Gold Trading

Understanding the Value of Gold Amidst Various Economic Conditions

gold-insurance
There is no doubt that during the latter parts of 2008, the United States’ economic condition went down from its former glory. Many investors became worried about the U.S. debt burdens and their possible impact on the currency, stocks, and real estate markets. This lack of confidence made many investors increase their stores of gold. Gold, among all the precious metals, is considered one of the most stable assets even during tough economic times. So, is gold investment good when the economy is down? What about when the economy is doing well? Let’s find out.

SilverSaver.com1.) Gold is a stable asset.

Gold would have not been money for hundreds of years if it weren’t for its stable value. The economic issues of “demand and supply” that affect other commodities are not as relevant to gold because this highly-valued metal is inflation-proof. Say you have a ten-dollar “bill” in one hand and a ten-dollar “gold” coin in your other hand. Which of these two has more value? The gold coin has more value, of course. Sure they were of equal value six decades ago. However, due to inflation, the ten-dollar bill has dropped dramatically in terms of buying power while the ten-dollar gold coin has tremendously increased in purchasing power. Is gold investment good? Definitely yes, because the value of gold appreciates over time.

2.) Gold is a highly-valued metal by many countries.

Gold, being one of the most important metals in history, is prized by nearly all nations of the world. Most countries, if not all, continue to trade in gold, making it one of the most liquid financial assets in any investment portfolio. Because of its universal value, investors will not have a hard time using gold in their transactions.

3.) There are several ways to invest in gold.

While buying bullion gold bars has been one of the most traditional ways to invest in gold, this treasured metal offers a variety of other investment opportunities to interested individuals. Some investors prefer gold exchange-traded products such as ETFs, ETNs, and CEFs to avoid the hassle of storing gold bars. Others invest in gold coins for their “safe haven” status. Some prefer gold certificates to avoid the pitfalls and large costs of transferring and storing physical bullion. Is gold investment good? Certainly, because one will definitely not run out of options when it comes to gold investing.

4.) Gold is considered a “safe haven” when the economy is underwater.

This “safe haven” status was again supercharged when Switzerland’s central bank established a limit on how much the Swiss Franc can gain. Severe recession results in weak currency. Interest rates are kept low and people get virtually nothing for their money in bank accounts. So, is gold investment good when the economy is weak? Absolutely. Because gold price increases when currencies weaken.

5.) The demand for gold is expected to surge in emerging-market countries.

The world’s love for gold shows no sign of weakening. Around 2,000 to 3,000 tons of gold are mined every year to meet the world’s demand for the said metal. A lot of developing countries, especially China, Brazil, India, and Russia are having an increased appetite for gold jewelries, watches, and other gold-based products. This growing interest in gold can be a very good advantage to those investors who want to make big profits from this demand.

These are just some of the reasons why this glittering yellow metal is so valuable to many investors around the world. Gold has long been considered a good investment because no matter what the condition of the economy is, gold always remains a highly priced asset.

Which is Better, Silver or Gold Investment

As people become more financially saavy, more and more are looking at expanding their financial portfolios with investments in metals. Among all the precious metals, however, gold and silver are the ones which have maintained their appeal over the years. Gold has long been proven to be a very stable asset with very great potential of increasing your wealth. Silver, on the other hand, is the world’s second most important commodity, next to oil. But, which is better – silver or gold investment?

gold and silver

According to the International Monetary Fund (IMF), the economic rollercoaster ride is expected to continue in the next few years. With that said, it is extremely important for all investors to first understand the current market conditions before making investments.

Investors who have no confidence in Dollars or Euros can find refuge in silver or gold investment. These two metals have survived the test of time and hence, are both generally safe investments for your wealth. But, of course, there are benefits and drawbacks to every investment project, and these two precious metals are certainly no exception.

The Pros and Cons of Gold Investment

Gold is the only money that has maintained a very strong position in the 5,000-year history of its utilization by mankind. This metal has proven in a lot of ways that it is the safest investment in times of economic turmoil. And since it is considered a universal currency, gold can be traded anytime and anywhere in the world. Here are some other facts that make gold a good investment.

  • Gold is a very stable asset.
  • Gold internationally recognized and valued.
  • Gold offers a variety of investment opportunities.
  • Gold is not affected by inflation.
  • Gold is almost always highly in demand.
  • Gold is durable.

Although gold is preferred by most investors who are concerned with collapsing currencies, it is not without risks. Here are the two major cons of gold investment.

  1. Gold is highly at risk of loss, theft or confiscation.
  2. Gold needs a highly secure storage place.

The Pros and Cons of Silver Investment

Silver is one of the most useful commodities in the world. It has innumerable uses in various industries because it is electrically conductive and thermally resistant. The benefits of silver are pretty much similar to the benefits of gold. Here are some of them.

  • Silver is a relatively inexpensive metal.
  • Silver is not generally affected by inflation, just like gold.
  • Silver is highly in demand in industries like jewelry, electronics, coinage, imaging, water purification, etc.

Adding silver to your investment portfolio diversifies your assets and adds protection against the risks of other financial instruments. But, just like gold, silver has its own set of disadvantages.

  • Silver is subject to tax due to its rarity and wide use in different industries.
  • Similar to gold, silver is at risk of being stolen.
  • Silver needs storage.
  • Silver takes longer to liquidate.

Fiat currencies have weakened in recent years and have lost most of their buying power. Before paper money becomes a safe investment again, it has to recover its genuine value first. Meanwhile, investors can have alternatives in the form of silver or gold investment.

When money is fast becoming worthless, investors are better off going for real money, just like gold and silver.

I like buying silver and gold on a cost-averaging monthly plan with hardly any effort on my part.  Once you establish an account with OWNx and choose your purchasing plan, BOOM it then happens for you automatically.  Pretty cool.

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God, Guns, and Gold DVD

God, Guns, and Gold

God, Guns, and GoldYou may already own guns.

You may already own gold.

But either way… you’ll definitely want to hear Joe McDurmon’s rousing case for God, Guns, and Gold!

You may even want to get an extra copy to give to your friends. After all, most Christians are NOT familiar with the material McDurmon covers…

…and they could benefit greatly from his teaching. (Possibly even remove the guilt some Christians feel about owning guns.)

A Look At Gold As the Standard for Currency

When you hear the term ‘gold standard’, you are likely hearing about the International Gold Standard. This was established in the late 1800s after a silver crisis in England which ended with the U.S. suspending all silver payments. In 1871, the first gold standard was established by Germany, and within three decades, nearly all countries with big economies had established similar systems.

With the onset of the First World War, the gold standard reached an initial crisis. Britain had moved from it to a fiat standard, due to the huge cost that was involved in fighting the war. With the Treaty of Versailles, which set conditions for Germany’s surrender, Germany was forced to turn over (as reparations), the bulk of its gold supply to the winning countries. This left Germany without enough gold to maintain it, thus giving them no other option than to switch to a fiat currency system.

The U.S. and most other major economies abandoned the gold standard by the mid Twenties. The official demise of the standard came in 1933 when those nations using the gold standard failed to come to an agreement on the value of gold. Following WWII, the Bretton Woods Agreement would govern the value of currency, until 1972, when the free-floating currency era began. Gold lost its status as the basis for reserve accounting for central banks.

The gold standard, initially, allowed for the expansion of trade around the world, but it was problematic. Gold supplies grew much more slowly than the global economy, which made the gold standard highly deflationary. For example, in the U.S., periods of deflation that lasted for as long as fourteen years were seen when the economy switched to the it. It is also possible for local distortions of value to be realized. Such was the case when the Irish found it more profitable to export potatoes to England rather selling them domestically, which led to what became known as the Great Potato Famine.

What The Gold Price Means To A Nation

Gold coinNowadays, it is possible to obtain the latest gold price by reading the financial press as well as from network news programs, though for more than two decades this was something that hardly elicited any interest, leave alone being reported. Mostly, the gold price was either quite steady or it kept falling; things have changed since then, and since 2001, there has been quite a lot of interest been shown in gold price which has been heading north resulting in the price reaching more than one thousand dollars per ounce, and many more people are finding it an attractive investment to make.

Depends On The Strength Or Weakness Of The Dollar

The gold price is directly related to how strong or weak is the US dollar, and the steady upward movement of gold price from around two hundred fifty dollars in 2001 to the present levels of more than one thousand dollars has made gold very attractive to investors as well as speculators. However, even though many people have made money through this means, it should not be taken for granted that gold, when purchased, will definitely be a sound investment because you won’t earn interest on it and the quality is fixed as well making it static and not like other good investments.

What you can be sure of is that the gold price will only change according to how cheap or expensive is the paper money that we use which is in this instance the US dollar. Thus, purchasing gold is more to do with having some form of protection against a currency that is going to depreciate rather than being a great investment.

Dollar CollapseSo, it is safe to say that when the gold price shoots up, there is reason to be concerned about the future of the major currency, and if the gold price is especially high, then there is even more reason for concern about the paper money’s value. At present valuation, the gold price fetches over one thousand dollars per ounce as compared to the twenty dollars it took to buy the same amount of gold way back in 1934.

Also, the gold price which is going upwards really shows a lack of confidence in the central bank as well as the paper currency, and the gold price that we are witnessing today reflects a certain uneasiness with the increased supply of money and also the deficits in budgets as well as in trade as too for liabilities that are not funded, and most of all, the inability of the country’s governing bodies to bring runaway spending back to control.

Learning How to Buy Gold Investment for Beginners

People make investments because they want to keep their money stashed somewhere it can earn more. Successful investing is about keeping it safe too against macroeconomic and geopolitical risks. It is a known fact that gold and gold related investments are stable investment options. It can stand global geopolitical debacles as well as economic recessions/depressions. If security is what is wanted, there can no safer asset than making an investment in gold. With this and the potential for profit because of the strong market for gold, more and more people are becoming interested to learn how to buy gold investment these days.

gold-insurance

If you have more than enough wealth and you wish to make an investment in gold, you must be wondering how you are going to do it or what cardinal rules that one must remember or follow. Generally, one’s motivation influences the buying of gold and the form preferred. Buyers, based on motivation can be described either as a speculator, investor or saver. Anyone of these can further have other finer motivations such as: Is the investment for the short, medium, or long-term? These are important because can define the different forms they would prefer to buy the gold.

The Value Of The Physical Gold

SilverSaver.comFrom a beginner’s point of view, the easiest to understand and do is concerned with the original form of investing which is the physical gold. It is an ideal part of a properly diversified investment portfolio. This can be bought in the forms of gold jewelry, numismatic coins and gold bullion. Gold jewelry is the most common and familiar form of gold investment among ordinary folks. This takes a very significant form in India where gold is a status symbol of family wealth and which is traditionally used in worshiping and holding of ceremonies. Numismatic coins hold special value not solely for the gold content but for their rarity, historical and aesthetic worth. Gold bullion is available either as gold bullion bars or gold bullion coins. These are highly preferred insofar as investment is concerned being lower in cost but can be easily sold at fair market price than any other physical gold.

Securities: Gold-backed, Stocks And Options

Investing in gold does not always entail owning of physical gold. One way on how to buy gold investment is by buying securities- Gold-backed Securities. A security is a financial instrument that represents a worth. These are actually indirect investments in the Gold ETF (Exchange Traded Funds), which, by the way are still backed by physical gold. This means that a holder of an ETC security only owns a claim against the issuer of gold ETC and cannot demand a physical delivery of the gold. Thus, investors must remember that gold-backed securities carry risks. Another form of securities that allow another gold-related investment is the gold mining stocks and gold mining funds. These are investments made in the companies engaged in gold mining.

Another way to buy gold investment is by using securities with values that are derived from the gold but which are not backed by physical gold such as structured production and options. These are contracts between two parties that will expire at an agreed time. These allow a lot of leverage because the trader can manipulate a large position with a small outlay but carry significant risks.

Other Forms of Gold Investment

Other forms of gold investment may be presented as gold certificates. A gold certificate is like a bank note that entitles the holder certain specified worth of gold. It is a proof of gold ownership in a paper because gold bullion is hard to store and transfer. This used to function like money from 1882 to 1933. The technology of the Internet has already bred the so called Digital Gold Currency. This is an electronic currency that is backed by gold bullion. People with these accounts allow ownership of gold and online transactions (buying and paying online) using their own gold. This also offers the same security as gold bars and certificates only easier to store and convenient to transact with.

With the global economy that is both bleak and uncertain, investing in gold is not only sensible, it is also a necessity. The best form is and always will be physical gold. Yet, with its weight in gold, maybe electronic accounts and certificates, which are backed by gold bullion and as secured as well, will do. So, are you enthusiastic to learn how to buy gold investment?

Gold and Silver Maple Leaf Packaging

Gold Maple Leaf
Photo credit: tombothetominator / Foter / CC BY-NC-SA

Gold Maple Leafs debuted in 1979, Silver Maple Leafs in 1988. Since inception, 1-oz Gold Maple Leafs have been packaged ten to a tube. Because Maple Leafs are 24-karat, pure gold, they are “soft,” relative to alloyed gold coins, such as American Gold Eagles and Krugerrands. Further, because of the design of the coins and the tight-fitting tubes, it was difficult to remove, inspect, and reinsert 1-oz Gold Maple Leafs in their tubes without scratching the coins.

Actually, reinserting Gold Maple Leafs without at least some scratching is nearly impossible. Further, if the persons inspecting the coins do not know how easily the Gold Maple Leafs are damaged, needless damage often occurs while the coins are out their tubes.

Gold Maple Leafs carry the image of Queen Elizabeth II on the front, with a flat, clear field alongside the image. The backs have the outline of a maple leaf, hence the coins’ names. The problem arises from the coins’ really sharp milled (reeded) edges. When the coins are reinserted in their tubes, the milled edges often scratch the fields.

Then there is the problem with investors who like to “heft” their coins “to get a feel of them.” If they put four or five Gold Maple Leafs in the palms of their hands and “clang” them, the damage can be quite severe. Should a Gold Maple Leaf be dropped, rim damage is almost guaranteed.

As Gold Maple Leafs have been sold into the secondary market, damaged coins have become such a problem that Gold Maple Leafs have lost popularity with investors. The problem has become so widespread that many wholesalers bid only “melt” for Gold Maple Leafs, regardless of their condition. By paying only “melt,” wholesalers can profitably resell the coins for industrial or jewelry purposes if no buyers are found for the coins.

Gold Maple Leafs, like the Gold Eagles and the Krugerrands, are bullion coins, which trade for the value of their gold content, plus small premiums. Damaged Gold Maple Leafs do not mean a loss of gold; they contain an ounce of gold regardless of the scratching or rim nicks. Still, buyers do not like to receive damaged coins. This means that Gold Maple Leafs sold into the secondary market have to be evaluated for the degree of damage.

Some wholesalers refuse to take the time to individually inspect Gold Maple Leafs and separate them according to their condition. These are the wholesalers who generally will pay only “melt” for 1-oz Gold Maple Leafs, regardless of condition. Fortunately, the free market being what it is, there are still some wholesalers who will buy according to condition.

Yet the handwriting is on the wall: 1-oz Gold Maple Leafs in tubes will continue to lose popularity and probably will join Krugerrands, Mexican 50 Pesos, and Austrian 100 Coronas as basic bullion coins, which carry the smallest premiums in the bullion coin market.

With the new packaging, each 1-oz Gold Maple Leaf will be encapsulated in plastic and suspended in the middle of a plastic card, somewhat as 1-oz gold bars are packaged. However, the plastic protecting the Gold Maple Leafs will be heavier and more durable than the plastic used with 1-oz gold bars. The new packaging should keep the coins from being easily damaged.

With the new packaging, the Royal Canadian Mint made another big change: 1-oz Gold Maple Leafs will now come 25 to a box, whereas the old packaging is ten to a tube. This change could further increase sales as 20 coins are common ordering units for gold bullion coins, because the world’s most popular gold bullion coins—American Gold Eagles—come 20 to a tube. As a result of the change, investors wanting “complete original packaging” will move up to 25 ounces.

However, orders for small quantities mean the coins will have to be removed from their mint boxes—but still individually encapsulated—and put in other containers. The new packaging also will require more storage space for Gold Maple Leafs than for 1-oz gold coins that come in tubes.

Although 1-oz Gold Maple Leafs will be a little more cumbersome to handle, a large segment of the gold coin bullion market prefers pure gold coins. Gold Maple Leafs have long been the most popular 1-oz pure (.9999 fine or 24-karat) gold bullion coins on the market, and the new packaging should keep Gold Maple Leafs as the preferred 24-karat gold bullion coins. (The market for pure gold bullion coins is estimated to be $2.4 billion annually.)

New packaging for 1-oz Silver Maple Leafs has also been introduced. However, Silver Maple Leafs in their old packaging are still available. Since Silver Maple Leafs were introduced in 1988, they have been packaged twenty coins to a sheet, 200 coins in a box. Each coin was individually enclosed in plastic. The new packaging will be similar to the U.S. Mint’s Silver Eagles packaging.

Silver Maple Leafs will now come 20 to a tube, 25 tubes to a container, and 500 coins to a “mint box.” The new box will be made of durable heavy plastic, whereas the boxes of 200 are cardboard. The new packaging should make Silver Maple Leafs more competitive with American Silver Eagles, presently the most popular 1-oz modern silver bullion coins being sold.

Gold and silver coins legal tender in Oklahoma

The U.S. Constitution (Article I, Section 10) provides for individual states to recognize gold and silver coins as payment for all debts. Last Wednesday, Oklahoma joined Louisiana, Texas, and Utah in exercising their Constitutional right to grant U.S. minted gold and silver coins legal tender status.

Bartering with gold or silver coins is legal in all states. However, states with legal tender recognition make it much easier for citizens to receive payments or pay bills in gold or silver. Legal tender status means no state or local sales or income taxes apply to transactions involving gold and silver American Eagles (and certain other U.S. coins).

At the federal level, capital gains taxes would still apply on coins whose value has appreciated in dollar terms.

What’s needed to allow gold and silver to compete on a level playing field with the U.S. fiat dollar is what Oklahoma has done at the federal level. Until then, we as individuals can help undermine the dollar’s undeserved and highly abused monopoly status by pressuring our state legislatures to declare gold and silver legal tender.

Finding the Money in Gold Coin Collecting

Starting and maintaining a gold coin collection takes a lot of money and it is only reasonable to expect such a collection to increase in value as years go by. If you are seriously thinking of venturing into gold coin collecting it is important to know everything you can about it. This way you can make sure you will find money and not lose it in gold coins.

There are Gold Coins and there are Gold Coins

A gold coin is exactly that – a coin that is made wholly or at least mostly out of gold. There are slight variations in the standard for being able to say that a coin is made mostly of gold. Starting from those for circulation in the year 1526, English gold coins have been 22 karats or 91.7 per cent gold while American gold coins for circulation in 1837 and following were minted at 90 per cent gold or 21.6 karats.

If you are thinking of investing in gold coins, there are two types of coins you may want to purchase. The first type is the bullion whose value rests simply on the weight of its metal content and not on rarity, quality or historical worth. Basically, gold bullion coins are used not as legal tender, but as a hedge against inflation. Gold bullion coins can weigh from a tenth of a Troy ounce to a quarter of an ounce to half an ounce or a full Troy ounce.

The second type of gold coin you can invest in is the coin which has been minted for legal tender. While the gold bullion coin derives its value from its gold content, this second type of coin can be worth much more than its weight in gold. There are other factors such as rarity and coin condition that influence the price of gold coins minted as legal tender.

The safer type to invest in would be the gold bullion coin because its price simply follows the price of gold which has steadily risen through the years. There is more risk, but at the same time more room for speculation when investing in gold coins that are used as currency.

How to Begin Gold Coin Collecting

The first step in collecting gold coins would be deciding what kind of coins you want to collect and what your budget is. There is a wide range of gold coins from you to choose from. Austria, Australia, the United States, member nations of the European Union and many other countries have minted their own gold coins in the past and some continue to do so now.

Assuming that you want to collect gold coins that have been used as legal tender, you might want to test the waters by looking into the availability of Liberty Head or Coronet Head Gold Eagle coins. These were minted from1838 to 1907. They come in three styles and are characterized by the face of Liberty looking to the left with a coronet that bears the word liberty.

These coins are one of the most affordable US gold coins and this has made them a big favorite among collectors.

Or, you might want to invest in British Gold Sovereigns, in Australian Kangaroos, South African Krugerrands or Chinese Gold Pandas. Whichever type of coin you want to start investing in, just remember to do your homework first. Track their prices in the last twenty years and figure out if their increment will allow you a good enough profit for the amount you will be spending when you buy.

The world wide figure for coin collecting is about ten billion dollars a year so. It is a big market so there is room for making money from gold coin collecting. Be aware though that this is not a get-rich-quick business and it may take years for a substantial appreciation in value to take place. Still, in a world where stocks of giant corporations have crashed and investment houses have come face to face with the possibility of collapse, gold coins can offer a form of security that is hard to come by.

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Facts about Gold Bullion

Gold bullion is officially recognized gold in the form of bars that is at least 99.5% pure. The common misconception is that gold can only be in this form. In reality, bullion means any refined and stamped weight of refined precious metal. Traditionally, gold is kept in the form of coins or bars. In olden days, it was in the form of coins; in modern times, it is stored in the form of bars.

SilverSaver(R) - Save Physical Silver and GoldGold bullion has always been considered to be a good hedge against inflation and spiraling prices. Monetary reserves of a nation are always kept in the central banks, in the form of gold bullion. One always imagines bricks of gold stored safely in Fort Knox! The gold owned by governments and central banks are known as “London good delivery” gold bullion bars. They weigh approximately four hundred troy ounces, and are refined and cast into bars by the various private refiners in different parts of the world. It is then accepted for delivery to London and other major precious metal markets of the world…

Gold bullion can be bought by anyone as a recognized weight and fineness of gold. It is purchased at the current price of gold with an additional cost for refining, fabricating, and shipping to the purchaser. This is an international symbol of financial value that has withstood the test of time

Putting Gold Bullion To Use

The metal is dense, so relatively small physical quantities of gold bullion represent enormous values. The material requires only minimal maintenance, and will not change in appearance if kept with reasonable care. It is recognized for its value all over the world, and transcends barriers of culture. It is especially useful in emerging countries, because its value does not diminish with political or economic uncertainties.

Gold bullion is the best security or collateral that one can offer. Everyone from individuals in trouble to large countries can use their stocks of gold bullion to raise cash at short notice. It is possible to add to gold bullion proportions of an estate just as easily as the material is to sell. Liquidity with enduring value may seem to be a utopian dream, but it is an everyday reality with gold bullion. It is a material that is worth building up over time, and constitutes the most reliable way of transferring value to your descendants. This may be why some communities with origins in ancient civilizations consider gold to be almost sacred, and something to buy at regular intervals.

Buying and Selling Gold at the Right Moment

Among all the precious metals, gold is the most widely accepted as an investment. Gold has long been used as a hedge against economic downturn, massive government deficits, unemployment, inflation, war, and social unrest. In the past, investors rarely considered gold for any financial portfolio because the other financial instruments were doing so well. But, with the stock market undergoing a rollercoaster ride over the last five to six years, many people are now starting to consider investing in gold.

With all that’s happening in the global economy, people are beginning to recognize the need to have a mixture of investments in order to handle the inherent risks of all financial projects. In times of economic crisis, investors generally turn to two kinds of “safety refuge” to park their money – the U.S. dollar and gold. While the U.S. dollar has been the popular refuge of choice of investors for generations, gold has been seen as the ultimate hedge against economic instability. Gold investing, however, requires proper management to make consistent profits and mind-blowing leverages. Learning the ropes of gold investment management can be quite difficult at first. But, if you know how the value of gold is affected by changes in economic conditions, this part is not a hard nut to crack.

First, you have to know that the value of dollar is inversely proportional to gold. When the dollar is strong and the economy is on the rise, the prices of gold tend to plummet. On the other hand, when the dollar is weak due to surging national debt, increased foreclosure rates, devastating natural disasters, war, etc. the prices of gold tend to skyrocket. Gold investment management requires that you know when is the right time to sell your gold or buy gold based on the circumstances.

Selling Gold during Bad Economy

If you have already invested in a lot of gold, perhaps one of your concerns is whether the moment is right to start selling it. Indeed, it’s very tempting to sell gold when the price is high. However, good management of gold investments means holding your horses during severe recession. Why? Because even though you can sell your gold at higher rates compared to when you bought it, economic crisis reduces the number of people who are willing to spend money on gold. What is more, even if you get some people interested in buying your precious metal, they’ll most likely negotiate and ask you to cut down the price. Hence, a rising price is not a good reason to sell gold.

So, when is the best time to sell gold? Only you can determine the “best time” to sell your precious metal. But generally, it will really depend on your purpose for holding gold and your individual situation. Most investors’ purpose for holding gold is to retain their asset value. Given that you have the same purpose, when life throws you a curveball which forces you to utilize some of your assets, then it’s a good time to sell your gold. In a nutshell, gold investment management means selling gold not based on the price but on the purpose.

Buying Gold During Tough Financial Times

If you’re curious whether buying gold in the middle of credit crunch is a good idea, here’s a tip – the best time to buy gold is when everybody else is not interested to buy. Even though gold prices are steadily increasing in the presence of economic collapse, this commodity can be easily found among investors. Because the price is great, many are willing to sell. Because many are willing to sell, you can easily negotiate for a lower price and hence, increase your investments. Just as what Warren Buffett once said, “You can’t buy what is popular and do well.” Again, the best time to buy gold is when no one wants to buy.

Gold investment management basically revolves around these concepts. Investing in gold is a surefire way to grow your asset. If you’ve invested in gold and yet you’re not sure how to handle your investment matters properly, you can always obtain advice from financial experts who are knowledgeable about managing gold investments in the current economy.

Where to Trade Gold and Silver?

A lot of people are looking for ways to trade their gold and silver. However not everyone is really sure about how to go about it. If you want to get the most money out of your gold and silver all you need to do find out where you can trade for maximum profits. Here are some ideas on your choices as to where you can trade your gold and silver for quick cash.

First off gather all your gold and silver items or jewellery so you can have them evaluated properly. If your jewellery is gold, it should reach the 10k mark and above. Find out what is the current spot gold price in the market. Don’t rely too much on what you see from the news on the television. I like tracking the current gold and silver spot price at kitco.com.

Now that you have a good understanding of how much you can sell your items for, you need to locate and find out what are your options for trading gold and silver. Jewellery shops are one and I’m sure you’ve seen their ads saying they are buying scrap or unwanted gold. This is due to the fact that they are interested in the melting value of your gold, not its resale value. Pawn shops are the same. They will buy your gold and silver and place its value on the melting value. However, these places may not be the best in terms of what they will offer you for your gold and silver.

I prefer selling my scrap gold and silver to a coin shop where they seem to pay a bit more than other places.

Another avenue on where to trade gold and silver is through the internet. Online precious metal buyers have been around for awhile now and they claim to offer a much better value for your unwanted gold and silver. They evaluate your items and once evaluated, they offer premium payment. If you are unsatisfied with what you are getting from them, they offer a free return policy. Aside from the fact that it offers you more comfort and hassle free in finding brick and mortar businesses to trade your gold and silver to, online trading involves no awkwardness when negotiating.

These are your options on where to trade gold and silver for a quick buck. Remember that it all boils down to your choice and which of these options presented will offer a greater deal for your unwanted gold and silver.

Gold Investment Account – Definition, Types, Advantages, and Disadvantages

Image courtesy of ponsulak / FreeDigitalPhotos.net

Gold has been used throughout history as “real money”. It has maintained its reputation of being an attractive commodity against inflation, deflation, and currency devaluation. A lot of investors started losing their faith in stocks, currencies, real estate, mutual funds, and other investments after the major economic stress in 2008. Many preferred to pay for gold and considered getting a gold investment account.

While the most popular way of investing in gold is buying bullion gold bars, buying gold using a gold account is another vehicle to invest in this precious metal. A gold investment account is an account that allows investors to buy the purest available gold commodity in the market. In contrast to physical gold (bars, coins, jewelries, etc.), gold accounts allow investors to build up a cheaper gold portfolio. Below are some of the other benefits of gold accounts.

  • Gold accounts, similar to other forms of gold investments, act as a hedge against inflation.
  • Gold trading becomes more convenient when gold accounts are used during transactions.
  • It is an affordable initial investment.
  • Gold in an investment account can be easily disposed on demand unlike jewelries.
  • The risk of loss and theft is reduced since the asset is held in an account.

As with all other kinds of investment, gold accounts also have weaknesses. Here are some of them.

  • Because gold accounts are not tangible, one cannot pawn it for quick cash.
  • Transactions must be made over the counter during banking hours only.
  • If your bank goes out of business, you can lose all your gold.

There are plenty of banks that offer gold accounts. Different gold accounts impose varying types of intermediation between the investor and their gold. In general, gold bullion banks offer two kinds of gold investment accounts – allocated and unallocated.

What is an allocated gold investment account?

Just like keeping gold bars inside a highly secure deposit box, this gold account is one of the safest forms of gold investment. When gold is placed in an allocated account, the gold is kept in a vault managed by a recognized bullion dealer or depository. Bars and coins are distinguished, numbered, and identified through hallmarks, weight, fineness, etc. These precious metals are then allocated to different investors who pay for the price of gold, storage, and insurance. The bullion dealer or depository who is responsible for managing the vault may not sell, lend, or lease the metal – except when there are specific instructions on the account.

What is an unallocated gold investment account?

Unallocated gold account investors generally do not have specific bars assigned to them. Traditionally, one major advantage of unallocated gold accounts has been the absence of storage and insurance fees, because the bank reserves the right to lease the gold out.

But, now that the gold lease rate is negative in real terms, a good number of banks have started to introduce charges even on unallocated gold accounts. As a rule of thumb, bullion gold banks do not transact in quantities below 1000 ounces. Their clients are institutional investors, private banks acting on behalf of their clients, central banks, and gold market players who are interested to buy or borrow large quantities of gold.

An investment in gold accounts is a great way to diversify your financial strategy and portfolio. While some investors prefer to actually hold their gold, others desire to put theirs in a gold account which allows them to earn potentially higher return from appreciation in gold price. If you think that investing in gold accounts better suits your investment needs, just see to it that before you decide on one, you have a good background of the market and how this can affect your portfolio.

Some Investment Points in Devising a Gold Investment Plan

Those who want to dabble into gold investing as part of their financial portfolio need to plan their investments carefully. A gold investment plan will work well to maximize yields within a specific time frame in which a person wants to realize his financial goals.

Devising a plan can be done individually or with the help of an expert such as a personal financial planner or an investment advisor. Understanding gold as it is used in personal investing is also an important aspect of any investment plan. It is essential to gain knowledge about how different investment products involving gold can serve various purposes for investors. Once the basics are covered and the resources are made available, a workable investment plan can easily be set into action.

When you invest, you put in a certain amount of funds with expectations for some future gain. This is quite different from savings as only a slight gain can be expected in exchange for the liquidity and security these products offer. Any investment presents risks, usually tagged low, medium, and high. The lower the risk, the lower the potential yields are likely to be. Inversely, investments with higher risks also present higher potential yields. Investment instruments that are high risk would not go well for investors who do not have much to invest and has low appetite for risks. The best investment options for these kinds of investors would be those that are likely to preserve their value over time and are not subject to much volatility.

Any plan would have to be devised in such a way that the potential yields are aligned with the financial goals of the investor. This means that any investment instrument should be chosen based on its ability to meet the investor’s target portfolio size within a specific time frame. Long-term investments with guaranteed yields would fit younger investors looking to accumulate funds for their retirement fund. Those who are a little more mature in age and have a shorter time frame in mind would most likely be in the market for instruments that can give high yields within a short period. Unfortunately, high yielding short-term investment products require larger cash or investment outlay. It is common to put together a combination of investment instruments in an investment plan to meet an investor’s financial goals.

One of the best investment options that you can put your money in today is gold. Gold and gold-related investments have consistently outperformed other investment instruments over the past years.

While there is no certainty as to the what the future holds, investment experts and financial analysts project gold to continue with the same upward trend in the coming years. Having a gold investment plan as part of your financial portfolio planning would definitely be an advantage especially since currency pressures, government deficits, and external debts are rocking global economies at present.

You may combine different products in your investment plan based on your investment appetite and financial goals. You can opt to buy gold bars or gold certificates, allocate a certain part of your IRA towards investments in gold, or take a more active stance by trading gold funds and gold company stocks. Always be guided with a good strategy that will allow you to maximize yields on your investment without exposing you to investment risks you might not be ready to handle.

Numerous options for buying gold online have appeared in recent years. For example, you can purchase gold on a regular basis depending on your budget. Opening a SilverSaver® account takes just 10 minutes. There is no paperwork to send, and as soon as your account is verified, you can schedule purchases to begin immediately.

Trading gold company shares in the stock market and investing in gold exchange traded funds takes a little more work than simply purchasing gold bars and certificates. Even as expert investors and traders can work on gut feel, it is not necessarily a guarantee that you will benefit from any impulsive investment decisions with regard to gold. It takes some understanding of the market and some fundamental analysis to be able to successfully navigate the realm of gold investing.

At the very least, investors should be able to follow rules and read indicators. This simply means that you have to know when to buy and when to sell using data of past performance and trends in price values. Some investors who do not want to worry about learning about the technicalities of the trade can turn to expert gold trading advisors or get reliable gold traders to help them with their gold investment plan. These services, however, may come with expenses like subscription fees, commissions, and other charges.

How Important is the Gold Trading Price

Everybody knows that Gold is valuable. A lot of people recognize gold as a form of jewellery. However, gold can also take other forms. Gold can come in the form of bars or in the form of coins. Regardless of the country or region where you are, gold is treated as a commodity on its own. It is used as a trading tool at the international stock markets. This makes gold trading prices comparable to other good traded in the market globally. Gold trading price is measured in ounces, so a gold’s price can be measured by ounce.

Gold’s price is not a set price. It fluctuates all the time depending on the market trends. Gold trading prices can be found in news channels, newspapers, and even on business and trading websites. However, you should not expect to see an exact and same price that you through these mediums when you are dealing with a seller. Gold trading prices varies depending on what form it takes. Gold jewellery and gold coins require unique production so expect that these are more expensive than standard gold bars. Antique items made of gold can also have higher prices since they have inherent antique and gold value.

It is easy to find gold trading price per ounce today if you want to buy or sell some of the prized metal. But why is gold trading price and the gold itself important to investors? The answer to that is because the amount of gold globally is limited. Plus the fact that this precious metal cannot be reproduced and can only be discovered. This gives gold its stable value that is most of the time high.

The gold trading price per ounce is high as I write this. This can be attributed to one simple fact. All other financial investments that you invest in are very unstable; they reduce value at any given time. The more people who seek to have possession of gold, the higher the demand. So will the price of gold increase.

What are Your Options for Trading Gold?

A lot of investors are looking for different options for trading gold. Here are some gold options that you can use for buying gold.

A gold coin is perhaps the most popular way to purchase gold and buyers can actually take ownership of the gold coins. Gold coins are valued according to their weight, rarity, and type. If you choose this option you need to consider the security of these items since you will have the physical gold in your possession.

Gold bars are the traditional way to trade gold and can be purchased through banks, commodity brokers, and gold bullion dealers. These gold bars come in a variety of weight. The largest gold bars are the one preferred by traders and large companies who investment in large gold quantities.

Numerous options for buying gold online have appeared in recent years. For example, you can purchase gold on a regular basis depending on your budget. Opening a SilverSaver® account takes just 10 minutes. There is no paperwork to send, and as soon as your account is verified, you can schedule purchases to begin immediately.

Exchange traded funds (ETF’s) were developed back in 2003 as a way of trading and investing on gold without the hassle of storing the actual physical product. Gold exchange trade funds are traded on the major stock exchanges globally and provide traders an easy way of gaining exposure to the precious metal. I don’t recommend buying ETF’s or gold certificates, but prefer holding the physical metal.

Of course, you can also purchase stocks of mining companies. As the gold price raises the mining company’s profits also increase and the gains are passed on to the shareholder. Unless you are an experienced trader, I also don’t recommend this method for investing in gold since there are a lot of factors to consider when choosing a good mining company to invest in to.

It is important to consult with a qualified and highly trustworthy broker to determine the best gold trade option for you.

22k Gold Jewelry Make Good Investments

What is the commonality between the coins South African Krugerrand and the American Eagle? These are gold coins made up of minted one-ounce 22k gold alloy typical of the 1930 conventional gold coins minted of “crown gold”. What is intriguing is the preference for 22k gold in minting gold coins and in the manufacturing of 22k gold jewelry instead of the pure 24k gold.

The composition of the 22k gold alloy is: Gold 91.67%; Silver 5%; Copper 2%; and Zinc 1.33% and these metals account for the extra hardness, durability and scratch-resistance compared to 24k solid gold. These features of the 22k gold jewelry critically justifies its preference over 24k gold. 24k is not a logical choice for fabricating jewelry because of its softness and malleability that makes it more easily breaks and scratches. This is a gold alloy which is used in jewelry-making especially in Middle East, Southeast Asia and In India where gold and gold jewelry closely intertwined with social and cultural traditions.

The fact is, using 22k alloy can’t still make a sturdy jewelry. In spite the softness, the only alloyed gold closest to the solid gold and the elemental gold in terms of the gold content is the 22k gold alloy with the least amount of metals fused with it. This simply implies that 22k gold alloy has the highest value in the gold market next to 24k gold. This is why it can be sold or exchanged at the prevailing gold rate in the market without depreciation or wastage compared to the lower gold alloys namely, 18K and 14K. Thus, 22k still maintains a good value for one’s money as well as an ideal choice of investment at any time.

What is it about the 22k gold jewelry that makes it preferable than the other gold form? Besides 24k, there is really no such thing as 100 percent “pure” gold. Being too soft, the final product easily breaks, scratches and deforms so that makes elemental gold and 24 k useless where jewelry are concerned. Still, 22k gold is the most sensible gold for jewelry being alloyed with stronger metals.

Cardinal Rules When You Buy Gold

Buying gold is something that those with experience and knowledge in investment do all the time because it is smart. Throughout history and across continents, no other asset can be claimed to be a better investment. In the face of all the threats, the economy can be likened to a roller coaster ride – it can take explosive plunges, unexpected twists and unpredictable ascensions. Macroeconomic, geopolitical, financial and system changes are putting all volatile and unprotected assets at great risk. With these threats, it is understandable why more and more people are seeking the safety of gold and want to buy gold.

A perusal of the various references and reading materials on the Internet will tell you what is there to learn about gold. You probably are already aware that there are many forms of gold investment – securities, certificates, accounts and the physical gold. The choice is generally influenced by one’s motivations and purpose so that it is hard to say which is better over the others.

For example, you can purchase gold on a regular basis depending on your budget. Opening a SilverSaver® account takes just 10 minutes. There is no paperwork to send, and as soon as your account is verified, you can schedule purchases to begin immediately.

If a beginner wishes to invest one’s wealth on gold and wants to know how best to start, the answer is: invest in physical gold or its equivalent. This is because it is the most secured having an actual gold ownership. Physical gold includes jewelry, numismatic coins (the rare kinds), and gold bullion. While all of these have economic values, it is the gold bullion that makes the best form of investment being cheaper to acquire and easier to sell at market price that almost never dwindle.

What is gold bullion and what makes it an ideal form of gold or foundation of an investment pyramid for those creating a diversified investment portfolio? Gold bullion is a collective term for gold bars and refined gold coins. These may come in various sizes, shapes and types. This form of gold can easily change hands through buying and selling. Gold bullion is also a great investment because these can be used as tools for hedging against sudden inflation. Thus, these can preserve or even enhance one’s assets. Though gold bullion may also involve some risks, it is less and can be minimized compared to other forms of gold investments.

If you want to buy gold investment, what are some of the DOs and DON’Ts that you must be followed like cardinal rules?

1. Take time to learn about the trends and patterns of gold prices over time. Take note of those instances when the price soars and when it fluctuates. While past performances may not warrant any projection, it still pays to note the market behavior.

2. Buy gold bullion that bear the marks of quality. Learn how to distinguish them if your intention is to invest only in gold bars with impeccable purity. As a matter of practice, the purity and weight of a gold bar can be identified based on its four marks, to wit: the mark or seal of the goldsmith’s brand; the gross weight given in Troy ounces; percentage of purity; and a serial number of the bar for reference and control.

3. The Internet has made a big dent in the efficiency of finding and consummating buying and selling of gold. But, it has also ushered a new breeds of scams. For one thing, buying online makes it harder to ascertain the markings of gold bullion. Selectivity must be exercised when choosing your source; deal only with credible and trustworthy dealers.

4. Make sure that the delivery and later, the storage of such valuable investment is protected. Insured delivery must be arranged like armored delivery car service for extremely high investments. Storage in special vaults in banks and similar facilities must also be arranged for security purposes.

Gold bullion represents the ultimate asset with stable value and that makes it the best form to be preserved or passed on to the next generation. It forms the foundation in diversified investment portfolios and a secured base before making any investment in other high-risk gold forms of investment like securities, mining stocks, mutual funds and other speculative gold investments. With the security of gold bullion, it looks like buying gold will still remain to be a smart move in the years to come.

Protect Your Wealth with Gold

The popularity of owning physical gold and silver is on the rise and people are now becoming more aware of how important it is to possess these time tested precious metals.

Because of the current status of the global economy investing in anything other than paper money makes sense. Gold has long been a great long term strategy for the simple reason that it never loses its value. During the last few years the gold market has grow to more than triple in value. This can be attributed to the stability of the metal in the face of economic recession. When the global economy started to go down, traders and investors turned to gold; causing gold prices to increase.

I believe it’s smart to only buy physical gold and silver as opposed to stocks, ETF’s, and other paper assets. The value of gold is based on it purity and weight. Besides gold bullion, many gold coins have a collector’s value attached to it, which can add to the gold’s value.

The American Eagle Gold Coin

The American Eagle gold coin series debuted in 1986. The obverse of the Gold American Eagle was originally designed by Augustus Saint Gaudens for the 1907-1933 $20.00 U.S. Double Eagle gold coin. The reverse of the American Gold Eagle coin features a nest of American eagles, signifying the strength and security of American families. Its stately appearance and proud symbolism make the Gold American Eagle one of the world’s most popular gold coins. Gold prices fluctuate, but the popularity of the U.S. Gold Eagle coins only increases.

How You can Start Accumulating Silver and Gold

Silver Saver was designed to provide an easy and safe way for people to save in silver and gold, insured and stored at a highly secured, independent non-bank depository located in Delaware. Once you have saved enough for a minimum delivery, you can have your silver and gold delivered to you.

When you set up an automatic saving schedule (e.g weekly, monthly, etc.) with Silver Saver, each time you save, our Instant Rebate program automatically deposits 20% of the premium to your account in silver. SilverSaver provides you with your own Silver Rewards link or Share-Code that you can give others when they sign-up to save. Once they do, an amount equivalent to 50% of the premium for their transactions is added to your account in silver or gold each time they save.

Flashback: De Gaulle and the Gold Standard

In 1965, former French president Charles De Gaulle called for an international return to the gold standard. De Gaulle said a monetary standard based on gold would keep government spending in check and prevent the sort of economic crisis we are now enduring at the hands of the money masters.

“The fact that many countries, accept as a principle, dollars being as good as gold, for the payment of the differences existing to their advantage in the American balance of trade,” said De Gaulle, “this fact, leads Americans, to get into debt and to get into debt for free at the expense of other countries. Because what the US owes them it is paid, at least in part, with dollars the are the only one allowed to emit. Considering the serious consequences a crisis would have in such a domain, we think that measures must be taken on time to avoid it. We consider necessary that international trade be established as it was the case before the great misfortunes of the world, on a indisputable monetary base, and one that does not bear the mark of any particular country. Which base ? In truth no one see how one could really have any standard criterion other than GOLD !”

De Gaulle later said that the United States “exports inflation” and should agree to major reforms of the world monetary system and help to establish a pure gold standard in international finance.

Richard E. Caves, at that time the chairman of the Economics Department at Harvard, said “De Gaulle doesn’t know what he’s talking about” and lauded “reforms” instituted by the IMF and praised the idea of special drawing rights for countries that faced serious deficits in their balance of payments.

De Gaulle’s gold standard “scheme” was “wildly irrational,” Caves said. Paul A. Samuelson, professor of Economics at M.I.T., added that De Gaulle’s chief advisor was “an idiot” for suggesting such a proposal.

Fast-forward more than forty years. Gold is climbing toward $1,800 and ounce. Central banks are now abandoning the dollar as the world’s reserve currency. The United States has lost its top-tier AAA credit rating from Standard & Poor’s on concerns over budget deficits and a no-end-in-sight debt burden. Economic growth is anemic at best. Unemployment keeps climbing.

Meanwhile, the boss of the privately owned Federal Reserve, Ben Bernanke, has warned government not to cut spending “in the near term,” thus guaranteeing a continuation of unsustainable deficit spending and debt.

It makes you wonder – who was the idiot? De Gaulle or the academics at Harvard and M.I.T.?

Article written by Kurt Nimmo
Infowars.com
August 26, 2011

James Turk’s Outlook for Gold for 2013 to 2015

GoldMoney Chairman James Turk presents a sequel to his recently released video “Everyone should have a precious metals portfolio” which outlines his views on where the monetary and financial worlds are headed.

In this video James provides an update to a longstanding forecast that he made back in 2003 in Barron’s. This interview was widely talked about because whilst the gold price was USD350 at the time, James stated that he envisioned the gold price to be around USD8,000 sometime between 2013-20