Tag Archives: gold

General Investing

Gold Investments

European Central Banks renew sales pact and Boost Gold

Europe agreed to renew their pact to cap sales of gold for another five years causing gold prices to boost.

This reaffirmed gold’s status as a key reserve asset. Also, the new Central Bank Gold Agreement reduced the maximum amount of gold that can be sold by the signatories.

Under a new deal to replace the current five-year pact, the limit for sales has gone down to 2,000 tons from 2,500 tons. Annual sales are now capped at 400 tons, down 25% from 500 tons – a quota that was not reached in recent years.

Gold sales were first capped by European in 1999 in an attempt to reduce market volatility. Their agreement to prevent markets being flooded with the gold has been an important factor in its rally over recent years.

Because of the recent economic plummet, gold’s status as a safe-haven asset has also helped boost the price of gold.

The new deal and its tighter sales quotas help cement a view that the days are over of central banks’ anti-gold stance and the kind of big sales announcements – notably by the Bank of England at the end of the 1990s – that led to wild swings in prices.

The World Gold Council welcomed the new deal. “The announcement is a clear endorsement of gold’s role in today’s global economic and financial architecture and a reflection of the success of the previous Central Bank Gold Agreements,” said chief executive, Aram Shishmanian.

“The agreement to limit the sale of gold over the five-year period to 2,000 tons demonstrates that, at a time of continued market volatility and inflationary fears, gold’s unique investment qualities provide the necessary hedge and protection that central banks are seeking.

“The reduction in the annual ceiling on sales … reflects an acknowledgment of the fact that the central banks’ appetite for sales is diminishing.”

Investing in the US

In the worst financial crisis since the great depression, the U.S. government has responded with $13.5 trillion in pledged or potential outlays. Meanwhile, rising unemployment and slumping corporate profits are crimping the U. S. Treasury’s tax revenue.

Because the credit worthiness of the U. S. government is raising concern, it’s no surprise that the eagerness of foreign governments and investors for dollar-denominated investments has diminished.

The dollar’s standing as the world’s de facto reserve currency is impaired. Nations are looking to diversify their foreign exchange reserves away from the dollar and showing a liking for gold. The combination of liquidity circulating through the U. S. economy and a tanking dollar stokes inflation. Gold is being sought out as a safe-haven by investors who sense the threat of inflation.

Gold Price Outlook

Gold is once again approaching the psychologically important $1,000 per ounce mark. Rallies in the price of gold have peaked in the $900-1,000 per ounce range three times since the start of 2008. I believe gold will crack the four-figure mark in 2009 and move on to exceed its 2008 highs. Given the state of the U. S. economy and the monumental challenges ahead, the $1,000 per ounce figure can well become a support or floor for a long time to come.

General Investing

The Investment Appeal Of American Gold Eagles

There are several countries that mint Gold coins presently, however, the most widely accepted and demanded are the American Gold Eagles. These coins are guaranteed as to gold purity and weight content by the U.S. Central Authority. It has not always been this way the South African Krugerrand was the coin of choice for investor for many years, that was until 1985 when the U.S. started minting their own coins

The American Eagles is 22 Karats and is minted with two other metals to make it firmer and last longer. The other metals Silver and Copper are mixed in very small amounts, that is the coins is 23 parts gold and 2 parts of the other materials.

These coins are widely accessible from dealers and the U.S. Mint, although there have been period when the mint has stopped producing them due to high demand and shortage of metal. In small quantities they are easily to store and transport making them a great investment. As gold has gone up substantially in the past decade the coins have become even more popular. These coins are highly liquid and marketable and buying and selling these coins are relatively easy and can be down quickly.

The coins are minted in different a size, which makes them affordable to most. They come in 1 ounce or $50 denomination, ½ ounce or $25 denomination, ¼ ounce or $10 denomination and 1/10 of an ounce or $5 denominations. The different size has also made them appealing since several coins from other countries are not available in all sizes and one can begin investing in gold in small amounts.

These coins are considered bullion coins and are priced for their gold content not rarity or age as numismatic coins are. Earlier United States coins are considered numismatic and are priced based on several factors including age, grade and rarity. The gold Eagle have their counterpart in silver or the Silver American eagles that are also available in the same sizes and denominations. If you is going to invest in gold in this manner they must take in consideration that when you have a large quantity you have the appropriate safe storage location. Also in larger quantities it becomes more difficult to transport.

It comes down to matter of personal preference. If you would like to invest in gold and silver, but prefer to have the actual bullion in your possession. Then the American Eagles are a very good and logical choice.

General Investing

Making Money Investing in Silver And Gold

Investing in precious metals has always proved to be profitable financially as they showed great appreciation over a period of time and also offered security to the investor’s capital even during the most volatile times that hit the markets. The same holds very much valid for silver and gold. If the investor has a long term perspective and has an eye to invest in precious metals, silver investing and gold investing seem to pay off the maximum returns. A closer look at the past performances of these two metals would only elucidate and reaffirm the fact that they have paid off the investor lucrative profits over their investment.

Silver and gold have reached unimaginable peaks and all those who have invested in these two metals even during the beginning of this year are thoroughly rewarded with great returns. APMEX, the American Precious Metals Exchange gives the investors to trade in precious metals and a whole range of 3500 high demand and high value products round the clock and that too seven days in a week.

APMEX is a highly reliable online provider that gives the investor an opportunity to seriously consider gold investing and silver investing. Gold and silver are available in the form of gold bars and silver bars in different denominations. The Better Business Bureau has accredited APMEX with an ‘A+’ rating and also has given it the power to buy precious metals straight from the United States Mint.

The financial imbroglio that exists in the world markets today has spurred off such demand for the precious metals and many investors are open to buy a gold bar or a silver bar rather than invest in the volatile stock markets. APMEX gives you an opportunity to buy gold and silver at even more attractive prices through coupons, coupon codes and promo codes that it offers at regular intervals of time thereby saving more money while investing yet drawing the same profits when the metal appreciates.

Given the current global financial and economic situation, silver investing and gold investing through a trusted partner like APMEX is found to be a good proposition.

General Investing

Determining The Best Gold Bullion Coins For Investing or Collecting

Recognize fluctuations in gold coin prices and determine the best opportunities for gold coin investing.

In general, avid coin collectors are not entirely interested in private owned companies, such as the Bradford Exchange and Franklin Mint, who produce so-called collectible gold coins of various types since they are not actually an official government corporation. Despite the fact that certain products produced by these companies still increase a little in gold coin prices within the secondary market, their gold coins have generally performed very poorly. There are some exceptions which include of a few early Franklin Mint gold coin sets which were produced. Professional coin dealers used to just place these coins on a scale to weigh them, and compensate approximately 90-95 percent of the spot price once they have been verified to be real gold. The United States Mint, on the contrary, is an official government mint whose gold bullion coins perform much better on the secondary market especially over the course of a long period of time.

For the bullion offerings, such as the Gold Eagles, the mint and proof versions of these coins sold online at the United States Mint website have the same bullion purity content which is usually reserved for regular coins, but they adhere to a fairly higher standard of quality and are in limited quantities. Both versions of these coins have the potential to be excellent investments. However, whichever product you purchase will greatly depend on your collecting or gold coin investing goals.

For example, if your main goal is to buy gold bullion strictly as a form of investment, it is best that you do not even consider purchasing these coins at all, rather, buy generic gold bullion bars or ingots which are sold for a few percentage points above spot price. The US Gold Eagle, as well as the Canadian Maple Leaf and Chinese Panda are all prime examples of gold coins issued by government mints which have premium mark-ups on them. The country of South African produces the Krugerrand which traditionally has lower premiums. However, the lowest of all gold coin prices are the bars and ingots produced by various European banks such as Johnson-Matthey, PAMP and Credit-Suisse. For the United State of America it would be banks such as SilverTowne and Engelhard.

If you are purchasing gold for the sole purpose of storing them as bullion, then it would be wise to purchase the types that have the lowest commissions on them which are the bars and ingots manufactured by the aforementioned refiners. But if your interest is leaning more towards collecting aesthetically pleasing gold coins that also have the stability of bullion investments it is highly suggested that you contemplate buying American Eagles, Canadian Maple Leafs, and Chinese Pandas. Moreover, consider buying classic USA gold, such as the Saint Gaudens Double Eagles, since they trade at gold bullion value with an additional 7-10 percent for the majority of grades and dates. These particular types of gold coins have a double benefit where the gold in them will always be worth bullion value, regardless of the condition of the economy and that they are extremely rare since the bullion is stored in a one hundred plus year old American coin. The exact figures of how many were produced are not known and the current premiums on them are minimal considering their rarity and potential.

To determine which gold bullion coins are the best to buy you need to establish whether you are an investor or collector. If you truly appreciate the beautiful designs and images on the gold coins themselves including the way they feel in your hand and the feeling of achievement upon completing full sets, then collecting gold coins would most likely be your hobby. Keep in mind that you are still able to purchase with an attitude that it will make a profit someday since a good number of enthusiastic collectors have this type of goal in the back of their minds. Nevertheless, if your main purpose is to simply store up gold bullion for that rainy day, or you are hoping that gold coin prices will go up in value and you will be able to sell for a hefty profit someday, then buying bullion for gold coin investing purposes would be your best bet. When choosing this route a good tip is to try to avoid paying the premium commissions that collectible gold bullion coins inherently carry.

Whichever type of gold bullion coins you decide to buy you need to make absolutely sure that you take delivery of your purchases immediately. At no time should you allow companies to store your bullion in their vaults for you. If these companies become bankrupt or emerge as victims of corruption, you will be left holding a note that is not worth the paper it is printed on. Take delivery of your gold coin investments and safely store it in a location which is completely under your own control. The best place would not be under your mattress but preferably at a financial institutions safety deposit box.

General Investing

Gold And Silver Coin Investing For Your Future

Over and above being one of the most collectible and valuable of the precious metals, silver is a necessary component in many everyday electronics which will only serve to increase its value well into the future. Because the price of gold keeps rising, more typical investors are looking to silver to vary their investment portfolios. The technology sector continues to manufacture an incredible volume of computers and cell phones which require silver to function. A silver boom is bound to happen that is going to pay off big for the wise investors, those who start investing their money in silver now while it is still at a comparatively low price range. In the past ten years, the metal has increased an astonishing 300%. Due to this investors have been paying more attention to this market.

For the last 30 years or so, it’s a recognized fact that as the worth of the US dollar declines, the price of gold increases. In our economic climate it still makes good fiscal sense to invest in gold coins. Remember we all have read that gold is the investment of choice right now. And gold coins are always an outstanding asset. The last couple years gold has held steady at or about 7-8 hundred dollars an ounce but has fluctuated a lot between that number and over 1000 dollars. If there is another predicament it should go up to 1400 while holding steady at or above 1100. This could push it up to 2000 dollars.

There is no equivalent risk. Gold and silver in your custody is your ownership and reward. All bank deposits and paper or electronic transactions are nothing more than a promise to give by someone else. Moreover possessing precious metals is a good protection against inflation.

For the most part there are three half dollar coins that merit investing in. Since these half dollars are made of 90% silver, these coins are more sought-after by silver investors than others. These are the Walking Liberty Half Dollar, the 1964 dated Kennedy half dollar and the Ben Franklin half dollar.

When silver and gold go up in price coins go up too. If silver or gold go down the coins continue to be valuable to collectors. If the world economy suffers again, all coins should escalate in value.

There are those who are worried about a dooms day future – so there is only one medium of exchange that is acceptable–gold and silver. Because credit cards and paper money will be of no value. Remember that the smaller denominations – dimes, will be of more value than the larger – quarters. 1 oz silver will be used only for major purchases. Gold will buy almost anything, even the 1/10 oz coins. It seems like a great idea to have some silver coins and also some gold coins on hand in safe keeping.