Everyday ITM Trading is helping many people avoid gold coin rip offs. The price of gold has risen tremendously and with that comes the scams. There are ways to avoid them and protect you and your family.
Always do your homework on a company. Make sure it’s been around for at least 10 years if not more. There are many gold operations popping up just about everywhere.
Using the Internet and the BBB is a great way to start researching different businesses of interest. Read reviews from other customers. Remember some complaints are normal due to no company is perfect nor can they satisfy everybody.
Stay away from businesses that pressure you to send them money. These places are more than likely a scam and you will get nothing in return. Ask about upfront charges. Some businesses will hide their high fee charges. A reputable business will be honest and upfront.
Guarantees are another scam. A business that guarantees profits should be avoided or thoroughly researched. No one can predict what the gold market will do. Just because past performance has excelled, it still does not guarantee a profit for you.
Depending on a persons needs and goals is the determining factor of which gold product is best. There are different products to choose from but a person’s goals are the deciding factor.
If looking to sell your gold jewelry at a “cash for gold” store make sure you research the business and it’s history with other customers. The average payout is 50-65% of the spot price but some could try to pay you less.
Any questions or concerns can be answered by calling ITM Trading. We have been around for over 16 years and our knowledgeable staff is here to serve you.
Wednesday, December 14, 2011
Information About Gold Scams From ITM Trading
With so many gold scams out there in the market today you need help to protect yourself. ITM Trading is here to help you do that.
You want to do business with a company who’s been around for a few years. There are many new pop up companies arriving in cities nation wide. Doing research on a company can only benefit you.
Using the Internet and BBB for reviews, testimonies and complaints. There will be some complaints though cause not everyone can be happy and satisfied.
If a business tries to pressure you into sending them money you should avoid them. Many of these companies have hidden fees and charges and can hurt you in the long run. An honest company will be upfront on fees and charges.
Avoid off shore companies all together. Many scams have occurred with many of these overseas operations. It’s just wise to avoid these altogether.
No company can guarantee a profit. If they do it’s usually a scam. Nobody can determine what the market will bring. Take your time in choosing a company and again do your homework.
Every person has a different need. Therefore their goals will be different. Choosing what gold product works best for you all comes back to your needs and goals. You want what’s best for you in the long run.
Another company to be cautious with is “cash for gold” companies. Many people want to sell their old gold jewelry and want to get the highest payout. The average is 50-65% of the spot price but some may go as low as 40%. Again, do your research for the best possible payout.
Call ITM Trading to have all your questions answered. We have been around for more than 16 years and have an excellent rating with the BBB.
You want to do business with a company who’s been around for a few years. There are many new pop up companies arriving in cities nation wide. Doing research on a company can only benefit you.
Using the Internet and BBB for reviews, testimonies and complaints. There will be some complaints though cause not everyone can be happy and satisfied.
If a business tries to pressure you into sending them money you should avoid them. Many of these companies have hidden fees and charges and can hurt you in the long run. An honest company will be upfront on fees and charges.
Avoid off shore companies all together. Many scams have occurred with many of these overseas operations. It’s just wise to avoid these altogether.
No company can guarantee a profit. If they do it’s usually a scam. Nobody can determine what the market will bring. Take your time in choosing a company and again do your homework.
Every person has a different need. Therefore their goals will be different. Choosing what gold product works best for you all comes back to your needs and goals. You want what’s best for you in the long run.
Another company to be cautious with is “cash for gold” companies. Many people want to sell their old gold jewelry and want to get the highest payout. The average is 50-65% of the spot price but some may go as low as 40%. Again, do your research for the best possible payout.
Call ITM Trading to have all your questions answered. We have been around for more than 16 years and have an excellent rating with the BBB.
Wednesday, October 26, 2011
Return on Investment Grade Gold
If you have been a customer of ITM Trading for the past 10 years you have noticed a very nice return on investment grade gold. In the past decade Investment Grade Gold has brought a return of of over 300%. Bullion investors wishing to diversify their gold holdings for security, privacy and profit often begin with Investment Grade Gold (IGG) coins, a select category of relatively affordable Mint State rare coins. These coins have significantly outperformed gold bullion in the past and their value often increases when traded in complete sets. They typically trend with gold but usually in much higher multiples than bullion, and often peak after bullion gold does (this is not always the case as the markets are independent).
This can mean great returns when gold is high and the bull market for them runs longer. In addition to being a sound safe haven, rare gold coins, beautiful, educational and are national historic treasures. For more information on diversifing your gold portfolio contact a precious metals specalist at ITM trading and get all the information on investment grade gold coins.
This can mean great returns when gold is high and the bull market for them runs longer. In addition to being a sound safe haven, rare gold coins, beautiful, educational and are national historic treasures. For more information on diversifing your gold portfolio contact a precious metals specalist at ITM trading and get all the information on investment grade gold coins.
Monday, September 12, 2011
How the Gold Standard Came About
Wikipedia defines gold standard to be “the monetary system where the standard economic entity is measured in terms of a specific weight in gold”. Hence, the Gold Standard unit of currency is usually defined in reference to the precious metal.
Past Standard
There was no formal gold standard in the past although the Sir Isaac Newton did make an evaluation of gold and silver using his invented measurement system in 1717. Hence, many take that this kicked start the Gold Standard that was to be established. But it was only in the 1870s that there was an official Gold Standard.
With the establishment of an official Gold Standard, many governments began adopting this official gold standard for trading currency notes amongst themselves. The users of the Gold Standard view the standard as a contrast to the expansion of debt and credit. It is not possible for any government to generate arbitrary funds that are backed by gold unlike the fiat currencies of today.
Gold Standard Opposition
With a Gold Standard, it is not possible to create an artificial inflation through currency devaluation. Hence, the monetary authority’s credit is constant; there is no ‘currency uncertainty’ with more lending encouraged.
However, not all countries adopted the Gold Standard of the day; they manipulated the paper currencies which led to debt crises and currency depressions where the central banks manipulated the currency until inflation comes on.
One example of this occurrence was the 1819 panic in U.S. when the country’s second National Bank turned more towards paper-based currencies with opposing movements against the Gold Standard that was politically motivated. Hence, the Gold Standard started to lose its grip over many industrial nations and the international market. It was decided that the Gold Standard was dropped as a consequence of its lack of support and functionality in most nations with the emergence of fiat currency.
It was only the private institutions that continued with the digital gold currency and used accounted gold in grams as money form.
Rise of the Dollar
The US was on a gold standard for the most part from 1795 to 1971. In 1933 we were taken off of the gold standard domestically, meaning citizens could not exchange dollars for gold but countries still could. Then in 1971 Nixon removed the US from the gold standard for good, thus causing inflation to begin to rise dramatically. Since then the dollar has lost over 80% of its purchasing power.
Past Standard
There was no formal gold standard in the past although the Sir Isaac Newton did make an evaluation of gold and silver using his invented measurement system in 1717. Hence, many take that this kicked start the Gold Standard that was to be established. But it was only in the 1870s that there was an official Gold Standard.
With the establishment of an official Gold Standard, many governments began adopting this official gold standard for trading currency notes amongst themselves. The users of the Gold Standard view the standard as a contrast to the expansion of debt and credit. It is not possible for any government to generate arbitrary funds that are backed by gold unlike the fiat currencies of today.
Gold Standard Opposition
With a Gold Standard, it is not possible to create an artificial inflation through currency devaluation. Hence, the monetary authority’s credit is constant; there is no ‘currency uncertainty’ with more lending encouraged.
However, not all countries adopted the Gold Standard of the day; they manipulated the paper currencies which led to debt crises and currency depressions where the central banks manipulated the currency until inflation comes on.
One example of this occurrence was the 1819 panic in U.S. when the country’s second National Bank turned more towards paper-based currencies with opposing movements against the Gold Standard that was politically motivated. Hence, the Gold Standard started to lose its grip over many industrial nations and the international market. It was decided that the Gold Standard was dropped as a consequence of its lack of support and functionality in most nations with the emergence of fiat currency.
It was only the private institutions that continued with the digital gold currency and used accounted gold in grams as money form.
Rise of the Dollar
The US was on a gold standard for the most part from 1795 to 1971. In 1933 we were taken off of the gold standard domestically, meaning citizens could not exchange dollars for gold but countries still could. Then in 1971 Nixon removed the US from the gold standard for good, thus causing inflation to begin to rise dramatically. Since then the dollar has lost over 80% of its purchasing power.
Many Gold Options
Gold has been around since the dawn of time. Its value has been on the rise since a decade ago. This has caused many individuals to consider getting some for themselves as a portfolio diversifier.
Global Gold Markets
You can purchase gold from any of the valid gold markets available in the world today whether at night or in the day. The time zones have allowed this special feature to happen that causes gold to be traded around the clock although the top two gold markets are found in New York and London.
The oldest gold market is the London market which sets the ‘gold fix’ for the day at two times of the day; namely, one at 10:30am and the other fix at 3pm.
The second largest gold market, the New York market, is noted more for futures contracts. Other available gold markets are found in Zurich, Sydney, Hong Kong and Tokyo.
Gold can come in many forms depending on your purposes.
Bullion Coins and Bars
One way to own gold is through purchasing gold bullion bars of various sizes and weights. Gold bullion is most popular with small time gold buyers as it is the cheapest form of gold investment. An international refiner stamp on your gold bullion piece will make it more saleable.
Gold bullion coins are also very popular with gold coin collectors as they are actually a nation’s money with a guaranteed amount of gold in its content and not the coin’s face value. The actual worth of the gold piece is the amount of gold content with the gold price at that point in time.
There are different sizes of bullion coins representing different pure gold content. These are legal tenders that are guaranteed by their respective country of origin. These coins can be purchased or sold easily anywhere as there is always a ready market with the increasing gold prices today.
The more popular bullion gold coins include the American Eagle, the UK Britannia, the Australian Kangaroo, the Austrian Philharmonic coin, the South African Krugerrand and the Canadian Maple Leaf.
Gold bullion coins can appreciate in value very quickly as they have an artistic appeal with an intrinsic value. The different designs of the various gold bullion coins reflect the country’s beauty and symbol. They make good memorable gifts as they are portable and easy to store.
Hence, more and more individuals are purchasing bullion coins and bars for many reasons.
Global Gold Markets
You can purchase gold from any of the valid gold markets available in the world today whether at night or in the day. The time zones have allowed this special feature to happen that causes gold to be traded around the clock although the top two gold markets are found in New York and London.
The oldest gold market is the London market which sets the ‘gold fix’ for the day at two times of the day; namely, one at 10:30am and the other fix at 3pm.
The second largest gold market, the New York market, is noted more for futures contracts. Other available gold markets are found in Zurich, Sydney, Hong Kong and Tokyo.
Gold can come in many forms depending on your purposes.
Bullion Coins and Bars
One way to own gold is through purchasing gold bullion bars of various sizes and weights. Gold bullion is most popular with small time gold buyers as it is the cheapest form of gold investment. An international refiner stamp on your gold bullion piece will make it more saleable.
Gold bullion coins are also very popular with gold coin collectors as they are actually a nation’s money with a guaranteed amount of gold in its content and not the coin’s face value. The actual worth of the gold piece is the amount of gold content with the gold price at that point in time.
There are different sizes of bullion coins representing different pure gold content. These are legal tenders that are guaranteed by their respective country of origin. These coins can be purchased or sold easily anywhere as there is always a ready market with the increasing gold prices today.
The more popular bullion gold coins include the American Eagle, the UK Britannia, the Australian Kangaroo, the Austrian Philharmonic coin, the South African Krugerrand and the Canadian Maple Leaf.
Gold bullion coins can appreciate in value very quickly as they have an artistic appeal with an intrinsic value. The different designs of the various gold bullion coins reflect the country’s beauty and symbol. They make good memorable gifts as they are portable and easy to store.
Hence, more and more individuals are purchasing bullion coins and bars for many reasons.
Tuesday, August 16, 2011
French 20 Francs Angel
The French 20 Francs Angel coin is popular for its simple but extremely impressive design. On the front side of the coin we find the Angel Genius signing the French Constitution. The constitution is located on a tablet. The angel is standing on a pedestal. On the left side of the Angel is a pillar and on the right side is a rooster. On the top of the angel is written the word ‘Republique Francaise’.
On the back side of the coin we find the inscription ’20 FRANCS’ along with the year when the coin was minted. These inscriptions are engraved in the midst of a wreath. On the top of the wreath the word ‘LIBERTE EGALITE FRANTERNITE’ is engraved.
A legend of the angel:
According to historians, Augustine Durpre designed this coin in the year 1792. The name of the angel engraved on the coin is ‘Louis D’or’. For having engraved the angel on the coin, Durpre was punished and was to be beheaded. Interestingly, Durpre escaped the beheading by bribing the guard with a coin of the angel which he had in his pocket and perhaps the guard helped him to escape. Interestingly again, Napoleon Bonaparte carried this coin of the angel in his pocket and he lost the coin before the famous war of ‘Waterloo’ and from then on Napoleon saw the downfall of his empire.
French 20 Francs Angel gold coin is one of the coins which were in circulation for a considerably short period of time. It is believed that this coin was in circulation during the period 1899 to 1906. Prior to this, this coin was in use during the years 1848-1849. During the period earlier to 1848, gold coins were in fact being minted but they were without the image of the Angel. Even with the short period of circulation, the coin has made a name amongst the numismatists.
The French 20 Francs Angel coin has a gross weight of 6.4516 grams with 90% purity. This coin with a diameter of 12 mm has gold content of 0.1867 0z. Most of the European gold coins have high gold content and these coins are relatively small in size. This is true of French 20 Francs Angel also. It is easy to trade with small size coins and that is the reason why French 20 Francs Angel became a popular legal tender. On the other hand, these coins have historic value and are in great demand amongst numismatists.
On the back side of the coin we find the inscription ’20 FRANCS’ along with the year when the coin was minted. These inscriptions are engraved in the midst of a wreath. On the top of the wreath the word ‘LIBERTE EGALITE FRANTERNITE’ is engraved.
A legend of the angel:
According to historians, Augustine Durpre designed this coin in the year 1792. The name of the angel engraved on the coin is ‘Louis D’or’. For having engraved the angel on the coin, Durpre was punished and was to be beheaded. Interestingly, Durpre escaped the beheading by bribing the guard with a coin of the angel which he had in his pocket and perhaps the guard helped him to escape. Interestingly again, Napoleon Bonaparte carried this coin of the angel in his pocket and he lost the coin before the famous war of ‘Waterloo’ and from then on Napoleon saw the downfall of his empire.
French 20 Francs Angel gold coin is one of the coins which were in circulation for a considerably short period of time. It is believed that this coin was in circulation during the period 1899 to 1906. Prior to this, this coin was in use during the years 1848-1849. During the period earlier to 1848, gold coins were in fact being minted but they were without the image of the Angel. Even with the short period of circulation, the coin has made a name amongst the numismatists.
The French 20 Francs Angel coin has a gross weight of 6.4516 grams with 90% purity. This coin with a diameter of 12 mm has gold content of 0.1867 0z. Most of the European gold coins have high gold content and these coins are relatively small in size. This is true of French 20 Francs Angel also. It is easy to trade with small size coins and that is the reason why French 20 Francs Angel became a popular legal tender. On the other hand, these coins have historic value and are in great demand amongst numismatists.
Austrian 1000 Schilling
What more fitting commemoration can one imagine than minting a gold coin with a face value of Austrian 1000 Schilling? That was in the year 1976 when the Babenberg Dynasty of Austria crossed the 1000th year of the commencement of its dynasty.
The design of the coin:
The coin is beautifully designed by the renowned Martha Coufal Hartl with the Austrian Royal Eagle with a sickle and hammer in its talon. On the bottom of the eagle the face value of the coin, namely, Schilling 1000 is depicted. The word ‘Austrian Republic’ in Austrian language is written on the top of the eagle. Interestingly, while one side of the coin is designed by Martha Coufal Hartl, the other side of the coin is designed by Gertrude Simon, yet another renowned designer.
The side of the coin designed by Simon depicts a knight on horseback with a pennant in his hand. This is a commemoration of the Babenberg Dynasty perhaps in the early part of its dynasty. On the top of the knight is written ‘976 – 1976 EINSETZUNG DER BABENBERGER’ indicating the long travel this dynasty had in these 1000 years. History says that the Babenberg Dynasty ruled Austria during the period 976 to 1248 AD and later the House of Habsburg took over the reins of the country. The coin with 0.3906 troy ounce of gold has 90% purity.
Apart from this, the Austrian mint has also brought out other gold coins with Schilling 1000 face value with other distinct designs. It is also minting gold bullion coins weighing half ounce with Schilling 1000 face value.
What is unique about Austrian Gold and Bullion?
People prefer the Austrian Gold coins because they are a proof of purity (they are claimed to be 90% pure). Further, these coins are small in size and therefore easy to trade. According to the law prevailing, those who buy gold coins from European countries are not required to reveal their Social Security number. However, it is advised that those who want to claim tax rebate for purchase of these gold coins should consult their tax adviser and find out the applicability of tax law.
Legal position:
According to financial and legal experts, some countries have restrictions on the holding of these gold coins. For example, in USA, the Government can confiscate excess gold but the coins which have antique value are exempt from confiscation. Therefore, get the clear legal position on holding these gold coins from a competent authority.
The design of the coin:
The coin is beautifully designed by the renowned Martha Coufal Hartl with the Austrian Royal Eagle with a sickle and hammer in its talon. On the bottom of the eagle the face value of the coin, namely, Schilling 1000 is depicted. The word ‘Austrian Republic’ in Austrian language is written on the top of the eagle. Interestingly, while one side of the coin is designed by Martha Coufal Hartl, the other side of the coin is designed by Gertrude Simon, yet another renowned designer.
The side of the coin designed by Simon depicts a knight on horseback with a pennant in his hand. This is a commemoration of the Babenberg Dynasty perhaps in the early part of its dynasty. On the top of the knight is written ‘976 – 1976 EINSETZUNG DER BABENBERGER’ indicating the long travel this dynasty had in these 1000 years. History says that the Babenberg Dynasty ruled Austria during the period 976 to 1248 AD and later the House of Habsburg took over the reins of the country. The coin with 0.3906 troy ounce of gold has 90% purity.
Apart from this, the Austrian mint has also brought out other gold coins with Schilling 1000 face value with other distinct designs. It is also minting gold bullion coins weighing half ounce with Schilling 1000 face value.
What is unique about Austrian Gold and Bullion?
People prefer the Austrian Gold coins because they are a proof of purity (they are claimed to be 90% pure). Further, these coins are small in size and therefore easy to trade. According to the law prevailing, those who buy gold coins from European countries are not required to reveal their Social Security number. However, it is advised that those who want to claim tax rebate for purchase of these gold coins should consult their tax adviser and find out the applicability of tax law.
Legal position:
According to financial and legal experts, some countries have restrictions on the holding of these gold coins. For example, in USA, the Government can confiscate excess gold but the coins which have antique value are exempt from confiscation. Therefore, get the clear legal position on holding these gold coins from a competent authority.
Thursday, July 14, 2011
Individual Retirement Account - A fabulous plan
Those who are on the verge of retirement normally start planning long before they actually retire. They will have several options like investing in the Fixed Deposit, investing in shares/debenture, investing in real estate etc. Yet another form of investment is from Goldstar wherein the investment is made in Gold and Silver. As a matter of fact, Gold and Silver are the two metals which have are most popular to buy and put into an IRA. Even during the recession, the price of gold and silver have increased in value.
As compared to Gold and Silver the stock market is quite unpredictable and the prices of individual shares may or may not register any increase. The real estate market is of course predictable. But the investor has to invest substantial money in it. Further, in order to redeem the investment, the investor has to sell the entire property. Therefore if the investor has need for a small amount of money, then he has to sell the entire property. On the contrary he can enter the bullion market with minimum dollar amount. Therefore, buying Gold and Silver is more liquid.
What is Precious Metals IRA?
The IRA (Individual’s Retirement Plan) is a plan supported by ITM Trading. Under the plan, the individual with acquire a specified amount in Bullion (Gold or Silver). The individual will get the appropriate quantity of Gold and Silver. Once the individual purchases this precious metal, the company will ship it directly to the Goldstar account. Whenever the person is in need of funds, all that he has to do is call ITM Trading who will buy the gold from the individual at the prevailing market rate.
Authenticity:
ITM Trading’s IRA is approved under the US law. The gold issued by the ITM Trading to the individual as ‘proof coin’ are minted in a state of the art mint under the strict supervision of experts. The proof coin undergoes several tests. Images of the coin are also taken and they are securely wrapped in plastic and then placed in a velvet box. In case the individual desires, he can leave the coin with a third party custodian who will hold the coin on behalf the individual.
As compared to Gold and Silver the stock market is quite unpredictable and the prices of individual shares may or may not register any increase. The real estate market is of course predictable. But the investor has to invest substantial money in it. Further, in order to redeem the investment, the investor has to sell the entire property. Therefore if the investor has need for a small amount of money, then he has to sell the entire property. On the contrary he can enter the bullion market with minimum dollar amount. Therefore, buying Gold and Silver is more liquid.
What is Precious Metals IRA?
The IRA (Individual’s Retirement Plan) is a plan supported by ITM Trading. Under the plan, the individual with acquire a specified amount in Bullion (Gold or Silver). The individual will get the appropriate quantity of Gold and Silver. Once the individual purchases this precious metal, the company will ship it directly to the Goldstar account. Whenever the person is in need of funds, all that he has to do is call ITM Trading who will buy the gold from the individual at the prevailing market rate.
Authenticity:
ITM Trading’s IRA is approved under the US law. The gold issued by the ITM Trading to the individual as ‘proof coin’ are minted in a state of the art mint under the strict supervision of experts. The proof coin undergoes several tests. Images of the coin are also taken and they are securely wrapped in plastic and then placed in a velvet box. In case the individual desires, he can leave the coin with a third party custodian who will hold the coin on behalf the individual.
Tuesday, July 12, 2011
How To Buy Gold
Gold has established itself to be worthwhile for those who wish to diversify their portfolio. This is mainly because this precious metal has an intrinsic value and it is a solid asset that you can physically own and grasp in your own hand.
The Simple Steps To Buying Gold
Step 1:
There are different kinds of gold that can be used as portfolio diversifier and if you wish to know more about it then you can talk to a ITM Trading Account Executive by calling 1-888-OWN-GOLD. We would also gladly provide you with an Gold Information Kit, absolutely free.
Step 2:
Evaluate the Purchase Policies and Risk Disclosure booklet provided by ITM Trading to help you decide on your first purchase.
Choose whether you prefer self storage or storage provided by a separate depository. (A few restrictions may be imposed when choosing the storage option.) Verify your preferred option as well as the mode of payment with our Client Services Representative.
Step 3: You are done! It's that easy.
If you wish to know more about buying gold coins and the different options, you can view the ITM Trading silver and gold catalogue within the free gold information kit.
The Required Forms
To get started, the first thing that you should do is fill out the form for the Account and Storage Agreement. Remember to read and understand the risk disclosure information as well as the state refund policies. Once that is completed you can call our Account Executive and start buying precious metals.
If you want to know more information about buying gold and other precious metals you can submit a Request for Information.
Payment Options
ITM Trading accepts different payment options such as:
- Cashier’s Check
- Bank Wire
- Personal Check
The Simple Steps To Buying Gold
Step 1:
There are different kinds of gold that can be used as portfolio diversifier and if you wish to know more about it then you can talk to a ITM Trading Account Executive by calling 1-888-OWN-GOLD. We would also gladly provide you with an Gold Information Kit, absolutely free.
Step 2:
Evaluate the Purchase Policies and Risk Disclosure booklet provided by ITM Trading to help you decide on your first purchase.
Choose whether you prefer self storage or storage provided by a separate depository. (A few restrictions may be imposed when choosing the storage option.) Verify your preferred option as well as the mode of payment with our Client Services Representative.
Step 3: You are done! It's that easy.
If you wish to know more about buying gold coins and the different options, you can view the ITM Trading silver and gold catalogue within the free gold information kit.
The Required Forms
To get started, the first thing that you should do is fill out the form for the Account and Storage Agreement. Remember to read and understand the risk disclosure information as well as the state refund policies. Once that is completed you can call our Account Executive and start buying precious metals.
If you want to know more information about buying gold and other precious metals you can submit a Request for Information.
Payment Options
ITM Trading accepts different payment options such as:
- Cashier’s Check
- Bank Wire
- Personal Check
Thursday, June 9, 2011
The Stability of Gold Even In Times Of Debt
Americans have become deep in debt in so many ways for the last 3 decades. The debt brought about by the irresponsible use of credit cards has reached a level where the United States has negative savings rating. A lot of Americans are buying so many things on credit. They buy things that they do not even use. Their debt piles up and it becomes impossible for them to pay off their debt. In the 1990s, most Americans paid for their daily living expenses with their credit cards and used their trading stocks and cash assets in the internet trade. The trend eventually ended and a lot of wealth was lost.
Credit card debt can bury you alive. As the debt grows, the interest also grows. As time passes, your debt also grows bigger. It can reach a point where the amount you are paying each month is only enough to cover the interest on your debt. It is almost impossible to pay off such a huge debt unless you win the lottery.
The nation is buried deep in national debts and deficits. Many administrations have begun programs with no funding at all. The government has also acquired weapons, aircrafts and sea vessels to modernize the armed forces but they were all acquired through credit. The debt of the nation will be passed on from generation to generation. The children of your children will grow up paying the debt that has accumulated generations before them. The only problem is that as the years go by the interest on that debt is also growing. The interest alone is adding billions of dollars to your liabilities. The government has made a useless attempt at offsetting all this by printing large quantities of money. The problem is that, the high circulation of money has lowered the value of the US dollar, making the nation even poorer.
In times of economic instability, there is one thing that remains stable and that is gold. Even as the value of the US dollar has plummeted, the value of gold has risen. If inflation is sky-high and the value of the dollar hits rock bottom, the value of gold will soar. This has been the same for thousands of years.
Instead of buying things that you do not really need, buy gold coins instead. The value of a car depreciates over time but the value of gold rises as time passes by. Buying gold is the best way that you can protect your future as well as the future of your children.
Credit card debt can bury you alive. As the debt grows, the interest also grows. As time passes, your debt also grows bigger. It can reach a point where the amount you are paying each month is only enough to cover the interest on your debt. It is almost impossible to pay off such a huge debt unless you win the lottery.
The nation is buried deep in national debts and deficits. Many administrations have begun programs with no funding at all. The government has also acquired weapons, aircrafts and sea vessels to modernize the armed forces but they were all acquired through credit. The debt of the nation will be passed on from generation to generation. The children of your children will grow up paying the debt that has accumulated generations before them. The only problem is that as the years go by the interest on that debt is also growing. The interest alone is adding billions of dollars to your liabilities. The government has made a useless attempt at offsetting all this by printing large quantities of money. The problem is that, the high circulation of money has lowered the value of the US dollar, making the nation even poorer.
In times of economic instability, there is one thing that remains stable and that is gold. Even as the value of the US dollar has plummeted, the value of gold has risen. If inflation is sky-high and the value of the dollar hits rock bottom, the value of gold will soar. This has been the same for thousands of years.
Instead of buying things that you do not really need, buy gold coins instead. The value of a car depreciates over time but the value of gold rises as time passes by. Buying gold is the best way that you can protect your future as well as the future of your children.
The Basic Fundamentals Of Gold
If you plan to buy gold coins, it is important that you have a clear understanding of the gold market. The gold market is the one that mainly dictates the price and movement of gold. The specific factors that affect the price of gold are supply and demand.
The supply of gold is normally low. Gold has been mined since the ancient times which contribute to its scarcity. Another factor is that gold nuggets are not just picked up from the ground like pebbles. They have to be mined several hundred feet below the ground. Out of ten tons of ore, you can only get an ounce of gold. A lot of men have searched for their fortunes in gold but only a few have succeeded. The short supply of gold has made it even more valuable. There are gold mines all over the world but the demand for gold currently surpasses the supply that is available. The most productive mines in the world are in the United States, Russia, Australia and South Africa.
Freshly mined gold is not the sole source of the world’s gold supply. The gold that has been mined many years ago can still be used. Gold is a lasting and precious mineral. It can last forever and can be used over and over again.
One of the sources of existing gold is the official reserves of the government as well as private organizations. These gold reserves have been sold over the years and it was expected to stabilize or even lower the price of gold but that never happened. In the late 1990s, the Bank of England sold their gold reserves at $300 per ounce. After they have sold their gold reserves, the price of gold in the market more than tripled. The International Monetary Fund or the IMF sold off part of their gold reserves at the same time the Bank of England did. Financial institutions cannot even predict the right timing in selling their gold.
The supply may be low but the demand for gold has always been high. One major cause for the high demand for gold in the market is the jewellery-making industry. Gold jewellery is very much in demand in Asian countries such as China and India. Gold jewellery is not only a precious accessory in these Asian countries but they are also considered as a medium for trade. In the Western countries, gold jewellery is acquired for its value and beauty.
Gold is very strong, malleable and is an excellent conductor of electricity which is why it is used as an industrial metal. It is used in making electrical and computer parts. They are also used as lining for the cockpits of modern military aircrafts.
The supply of gold is normally low. Gold has been mined since the ancient times which contribute to its scarcity. Another factor is that gold nuggets are not just picked up from the ground like pebbles. They have to be mined several hundred feet below the ground. Out of ten tons of ore, you can only get an ounce of gold. A lot of men have searched for their fortunes in gold but only a few have succeeded. The short supply of gold has made it even more valuable. There are gold mines all over the world but the demand for gold currently surpasses the supply that is available. The most productive mines in the world are in the United States, Russia, Australia and South Africa.
Freshly mined gold is not the sole source of the world’s gold supply. The gold that has been mined many years ago can still be used. Gold is a lasting and precious mineral. It can last forever and can be used over and over again.
One of the sources of existing gold is the official reserves of the government as well as private organizations. These gold reserves have been sold over the years and it was expected to stabilize or even lower the price of gold but that never happened. In the late 1990s, the Bank of England sold their gold reserves at $300 per ounce. After they have sold their gold reserves, the price of gold in the market more than tripled. The International Monetary Fund or the IMF sold off part of their gold reserves at the same time the Bank of England did. Financial institutions cannot even predict the right timing in selling their gold.
The supply may be low but the demand for gold has always been high. One major cause for the high demand for gold in the market is the jewellery-making industry. Gold jewellery is very much in demand in Asian countries such as China and India. Gold jewellery is not only a precious accessory in these Asian countries but they are also considered as a medium for trade. In the Western countries, gold jewellery is acquired for its value and beauty.
Gold is very strong, malleable and is an excellent conductor of electricity which is why it is used as an industrial metal. It is used in making electrical and computer parts. They are also used as lining for the cockpits of modern military aircrafts.
Understanding Gold Futures Market
The futures market is usually deemed a high risk investment but that is quite relative; others may view futures as a hedge against fluctuating and uncontrollable pricing.
Futures refer to the obligation of buying or selling a committed amount of commodity at a preset price on a particular day.
A gold futures contract is really a bet on gold price trends and has nothing to do with the physical metal, which does not concern the trader. Hence, futures trading is really a speculation rather than an investment.
Some traders view futures as a risk inhibitor. Gold mining firms that sell gold at some fixed price can hedge themselves from falling gold prices with futures trading. But many futures traders reap huge profits while being mindful of the risks attached. Those who wish to indulge in futures trading must be ready to take on those risks.
The saying is sure that a big gain opportunity is always balanced by a big loss possibility. However, futures trading is not really for the individual as the stakes are very high with unpredictable results. It is the leverage in futures contract that constitute the big gain opportunity and big loss possibility phenomenon (hedge funds realm).
Leveraging refers to the utilization of a small sum of money for a huge investment return. Hence, a gold contract of $35,000 would cost you $3,500 (minus fees and commissions) with a leverage of $31,500.
A small 10¢ gain of your contract, your investment value goes up by $10. For gold, it is possible for its price to swing $100 during the contract’s lifespan. Hence, for a price increase of $100, your investment value would increase to $10,000 to give you 300% gain.
But, the opposite can also happen; a price drop will incur a heavy loss in value which you would have to bear. Hence, leverage offers a seemingly easy and quick way to multiple your small investment, but it can also pull you deep down in serious financial losses quickly.
Futures contracts do offer an opportunity to traders to make a profit from the gold price increase and decrease. An investor expecting a price increase is said to be taking a “long” position while the one who expects gold price to drop will take on a “short” position.
There is “future” in the futures market. Futures contracts normally last only one year or less. Gold futures contract trading does not involve any physical gold delivery. Hence, it is normal for a trader to close out his position prior to the delivery date. Very few futures contracts last up to their whole lifespan. To close out, you will need to sell your contract.
The U.S. has eleven futures exchanges with two gold futures trading in New York and Chicago only. Overseas futures markets which trade in gold are also abundant.
Futures refer to the obligation of buying or selling a committed amount of commodity at a preset price on a particular day.
A gold futures contract is really a bet on gold price trends and has nothing to do with the physical metal, which does not concern the trader. Hence, futures trading is really a speculation rather than an investment.
Some traders view futures as a risk inhibitor. Gold mining firms that sell gold at some fixed price can hedge themselves from falling gold prices with futures trading. But many futures traders reap huge profits while being mindful of the risks attached. Those who wish to indulge in futures trading must be ready to take on those risks.
The saying is sure that a big gain opportunity is always balanced by a big loss possibility. However, futures trading is not really for the individual as the stakes are very high with unpredictable results. It is the leverage in futures contract that constitute the big gain opportunity and big loss possibility phenomenon (hedge funds realm).
Leveraging refers to the utilization of a small sum of money for a huge investment return. Hence, a gold contract of $35,000 would cost you $3,500 (minus fees and commissions) with a leverage of $31,500.
A small 10¢ gain of your contract, your investment value goes up by $10. For gold, it is possible for its price to swing $100 during the contract’s lifespan. Hence, for a price increase of $100, your investment value would increase to $10,000 to give you 300% gain.
But, the opposite can also happen; a price drop will incur a heavy loss in value which you would have to bear. Hence, leverage offers a seemingly easy and quick way to multiple your small investment, but it can also pull you deep down in serious financial losses quickly.
Futures contracts do offer an opportunity to traders to make a profit from the gold price increase and decrease. An investor expecting a price increase is said to be taking a “long” position while the one who expects gold price to drop will take on a “short” position.
There is “future” in the futures market. Futures contracts normally last only one year or less. Gold futures contract trading does not involve any physical gold delivery. Hence, it is normal for a trader to close out his position prior to the delivery date. Very few futures contracts last up to their whole lifespan. To close out, you will need to sell your contract.
The U.S. has eleven futures exchanges with two gold futures trading in New York and Chicago only. Overseas futures markets which trade in gold are also abundant.
Tuesday, May 24, 2011
The Supply and Demand Trends for Gold
The scarcity of gold has always influenced the demand curve for the commodity in the global market. The demand is currently much higher as compared to previous years, with most traders seeking the commodity in the form of gold coins and gold bars as well as in electronics. It is actually a form of world currency in which most people take pride.
It is estimated that there are 165,000 metric tons of gold in the world market with China and India being some of the world’s largest gold buyers as they dedicate the precious metal to jewelry and electronics. The global demand for gold is controlled by different forces, among them central bank reserves and individual gold coin investors as well as the jewelry industry and other technological fields.
These buyers are affected by different market factors which in turn affect the demand and supply curves of gold, making it even more valuable. The fact that gold remains a global trading asset has made it stronger as compared to other commodities in the market. The buying and trading of gold is allowed across boundaries, an occurrence that is not common when it comes to other forms of assets and commodities.
The price trends of gold are compared in relation to the different currencies that are performing well in the markets globally. Therefore the price of gold does not rely only on the US dollar, although most people may tend to think so. The investment trends are another major aspect affecting the demand and supply behavior of gold. Investments come in the form of gold options, gold futures as well as ETF’s and are believed to have a great impact on the supply and demand curve, mostly for gold coins and gold bars.
The macroeconomic factors also determine the supply and demand of this precious commodity, which has a tendency to affect gold prices. This is the same case with the gold market trends which cause the increase or decrease of gold prices. Over recent years, gold prices have proven to increase even with global economic factors showing a downturn.
The value and demand for gold is expected to continue to increase as more and more investors and interested institutions pursue this precious metal. The gold market will always have willing sellers and willing buyers regardless of the economic factors which affect the demand and supply of the precious metal.
It is estimated that there are 165,000 metric tons of gold in the world market with China and India being some of the world’s largest gold buyers as they dedicate the precious metal to jewelry and electronics. The global demand for gold is controlled by different forces, among them central bank reserves and individual gold coin investors as well as the jewelry industry and other technological fields.
These buyers are affected by different market factors which in turn affect the demand and supply curves of gold, making it even more valuable. The fact that gold remains a global trading asset has made it stronger as compared to other commodities in the market. The buying and trading of gold is allowed across boundaries, an occurrence that is not common when it comes to other forms of assets and commodities.
The price trends of gold are compared in relation to the different currencies that are performing well in the markets globally. Therefore the price of gold does not rely only on the US dollar, although most people may tend to think so. The investment trends are another major aspect affecting the demand and supply behavior of gold. Investments come in the form of gold options, gold futures as well as ETF’s and are believed to have a great impact on the supply and demand curve, mostly for gold coins and gold bars.
The macroeconomic factors also determine the supply and demand of this precious commodity, which has a tendency to affect gold prices. This is the same case with the gold market trends which cause the increase or decrease of gold prices. Over recent years, gold prices have proven to increase even with global economic factors showing a downturn.
The value and demand for gold is expected to continue to increase as more and more investors and interested institutions pursue this precious metal. The gold market will always have willing sellers and willing buyers regardless of the economic factors which affect the demand and supply of the precious metal.
Tuesday, April 19, 2011
Famous Gold Designers
Gold has great value and has been the foundation for the most fashionable items. This commodity has been in use for centuries in the production of jewelry and has also become a strong monetary force in the world markets. This is one material that has allowed designers to come up with the most intricate and breathtaking fashion items, creating a new wave of interest around the world.
The originality and special features of the designs created by jewelers and goldsmiths are the main factors that attract people to such items. Every designer has taken a different approach to the design of their products, setting his or her work apart from the rest in the market thereby making a name for him or herself. There are gold designers from times past who worked with this metal and are well-known to this day for their amazing work, which has retained its great value.
Andrea Cagnetti is one of the most renowned gold designers of all time. His roots are in Italy and he has several masterpieces to his name because of his technique and style of designing. David Goodwin is another great designer who majored in art, making unique gold designs by using the forms of ordinary common objects such as leaves as his inspiration. The designs have earned him a reputation all over the world as a master designer of gold.
Other well-known gold designers are Antonio Bernardo, Ming Lampson who designs her items by hand using Chinese, Indian, Tibetan and Japanese cultures as inspiration for her pieces, and Daphna Simon, who launched her collection back in 2007. Others are Dima, Pedro Boregaard, Azza Fahmy, Barbara Berk and Wright working with Teague as a couple in the gold designing industry. The latter work is mostly based on philosophical and spiritual themes which serve to accommodate different societies and cultures.
When searching for gold jewelry, most people choose the designer as well as the designs. Different people have different tastes when it comes to the designs. Whereas all designs are made in a unique and attractive manner, different people love different designs and many do not have one favorite designer as they feel it is necessary to have differently designed items in their possession.
Gold has proven to be a valuable commodity and one that is not prone to losing its value any time soon. On the contrary, this precious commodity is gaining value with each passing day and its scarcity just adds more value to it.
The originality and special features of the designs created by jewelers and goldsmiths are the main factors that attract people to such items. Every designer has taken a different approach to the design of their products, setting his or her work apart from the rest in the market thereby making a name for him or herself. There are gold designers from times past who worked with this metal and are well-known to this day for their amazing work, which has retained its great value.
Andrea Cagnetti is one of the most renowned gold designers of all time. His roots are in Italy and he has several masterpieces to his name because of his technique and style of designing. David Goodwin is another great designer who majored in art, making unique gold designs by using the forms of ordinary common objects such as leaves as his inspiration. The designs have earned him a reputation all over the world as a master designer of gold.
Other well-known gold designers are Antonio Bernardo, Ming Lampson who designs her items by hand using Chinese, Indian, Tibetan and Japanese cultures as inspiration for her pieces, and Daphna Simon, who launched her collection back in 2007. Others are Dima, Pedro Boregaard, Azza Fahmy, Barbara Berk and Wright working with Teague as a couple in the gold designing industry. The latter work is mostly based on philosophical and spiritual themes which serve to accommodate different societies and cultures.
When searching for gold jewelry, most people choose the designer as well as the designs. Different people have different tastes when it comes to the designs. Whereas all designs are made in a unique and attractive manner, different people love different designs and many do not have one favorite designer as they feel it is necessary to have differently designed items in their possession.
Gold has proven to be a valuable commodity and one that is not prone to losing its value any time soon. On the contrary, this precious commodity is gaining value with each passing day and its scarcity just adds more value to it.
Choosing Gold over Other Commodities
Investors looking for portfolio diversification have realized the importance of commodity allocation as a way of abating risk as well as maximizing profits. Buying gold coins seems to be the best choice as it comes with several benefits, the main one being diversification of the portfolio in the most optimal way possible.
Gold can be used as a management tool for risk as a result of its fundamental value and has therefore been used to effectively diversify many portfolios in the market. Compared to other commodities, gold has been proven by research to greatly impact the financial and economic market due to its unique characteristics. For instance, it has low correlation with and is more resistant to business cycles, which typically lead to losses. Gold also has had lower volatility compared to other commodities available for investment in the past 10 years.
These aspects have given investors the confidence to purchase this commodity as they are assured of lowered risks even when the markets experience a downturn. Besides being less volatile than other commodities, gold has performed well in the markets while supply and demand forces make it a highly liquid commodity. This has provided a stable financial asset for those who choose gold as their main commodity.
Investors have found that gold can withstand market forces in relation to the various market aspects that have negative impacts on other commodities. This has provided the safe haven for which investors have been searching. This commodity is sure to remain a major market force in the future since its the bull market remains in the second phase. Even though the price of gold changes daily as does any other market commodity, the value of this particular commodity is not at all compromised by these changes to the benefit of the investors with the wisdom to protect their assets by purchasing gold due to the positive underlying trend.
Gold can be used as a management tool for risk as a result of its fundamental value and has therefore been used to effectively diversify many portfolios in the market. Compared to other commodities, gold has been proven by research to greatly impact the financial and economic market due to its unique characteristics. For instance, it has low correlation with and is more resistant to business cycles, which typically lead to losses. Gold also has had lower volatility compared to other commodities available for investment in the past 10 years.
These aspects have given investors the confidence to purchase this commodity as they are assured of lowered risks even when the markets experience a downturn. Besides being less volatile than other commodities, gold has performed well in the markets while supply and demand forces make it a highly liquid commodity. This has provided a stable financial asset for those who choose gold as their main commodity.
Investors have found that gold can withstand market forces in relation to the various market aspects that have negative impacts on other commodities. This has provided the safe haven for which investors have been searching. This commodity is sure to remain a major market force in the future since its the bull market remains in the second phase. Even though the price of gold changes daily as does any other market commodity, the value of this particular commodity is not at all compromised by these changes to the benefit of the investors with the wisdom to protect their assets by purchasing gold due to the positive underlying trend.
Monday, March 7, 2011
Socioeconomic impact of gold mining
It has been proven that gold mining has a positive impact on global economies as it offers job opportunities to many in excavation of the gold.
After the excavation, there are still the processes of distribution and export to accomplish. A lot of technology is required for this with a steady demand for skilled employees, which requires training for the workers. The local community is blessed with job opportunities wherever gold is mined.
Gold mining also brings in a lot of positive improvements, not only in the physical and financial areas, but also the social and legal infrastructures. There are many long-term advantages to gold mining. In the whole mining cycle, gold produced on a large scale can impact the economies and societies of developing nations positively.
Economic impact
Gold mining brings in huge tax contributions as part of the tax revenue for the nation in which it is being mined. It also creates jobs in many sectors, such as utilities. Gold production is able to double income from foreign exchange. A lot of revenue is generated wherever gold is mined, not only in the state but also in the community around it.
Hence, it is in the local government’s favor to sustain the gold mining industry by playing an active and vital role. It can hold forums and dialogues to educate the public as well as address the issue of sustainability for gold as faced by the various sectors, such as industry, people buying gold coins and society.
Social impact
The World Gold Council, having researched the effects of gold mining on society, has discovered that there is a need to balance the economic, social and environmental aspects that can be affected by gold production in the short and long terms. These are the challenges that must be addressed to ease the difficulties of the community.
Hence, all gold activities are monitored by the World Gold Council, together with its partners, to ensure a positive contribution towards sustainable development. Research is vital in developing the gold industry so that the correct decisions can be made which, in turn, favor sustainable outcomes which benefit society at large.
The Voluntary Principles established in the year 2000 with regards to security and human rights involved various governments, energy companies and NGOs on human rights. These Principles were developed to provide the safety and security measures to be followed by companies in their operations to ensure respect for human rights. They help to guide companies in identifying human rights as well as the security risks in any gold mining operation. They serve to bring about significant benefits to the society as well as the mining industry.
After the excavation, there are still the processes of distribution and export to accomplish. A lot of technology is required for this with a steady demand for skilled employees, which requires training for the workers. The local community is blessed with job opportunities wherever gold is mined.
Gold mining also brings in a lot of positive improvements, not only in the physical and financial areas, but also the social and legal infrastructures. There are many long-term advantages to gold mining. In the whole mining cycle, gold produced on a large scale can impact the economies and societies of developing nations positively.
Economic impact
Gold mining brings in huge tax contributions as part of the tax revenue for the nation in which it is being mined. It also creates jobs in many sectors, such as utilities. Gold production is able to double income from foreign exchange. A lot of revenue is generated wherever gold is mined, not only in the state but also in the community around it.
Hence, it is in the local government’s favor to sustain the gold mining industry by playing an active and vital role. It can hold forums and dialogues to educate the public as well as address the issue of sustainability for gold as faced by the various sectors, such as industry, people buying gold coins and society.
Social impact
The World Gold Council, having researched the effects of gold mining on society, has discovered that there is a need to balance the economic, social and environmental aspects that can be affected by gold production in the short and long terms. These are the challenges that must be addressed to ease the difficulties of the community.
Hence, all gold activities are monitored by the World Gold Council, together with its partners, to ensure a positive contribution towards sustainable development. Research is vital in developing the gold industry so that the correct decisions can be made which, in turn, favor sustainable outcomes which benefit society at large.
The Voluntary Principles established in the year 2000 with regards to security and human rights involved various governments, energy companies and NGOs on human rights. These Principles were developed to provide the safety and security measures to be followed by companies in their operations to ensure respect for human rights. They help to guide companies in identifying human rights as well as the security risks in any gold mining operation. They serve to bring about significant benefits to the society as well as the mining industry.
Market Intelligence on Gold
The World Gold Council has established its authority on most issues related to gold, such as its price, trends and uses. It is able to advise stakeholders and investors on the key market aspects of gold with sufficient analysis and authority. The right market intelligence is imperative for strategic decisions which may impact the economy.
The global demand for gold has always been centered on jewelry, technology, investment (buy gold coins) and reserves in central banks. Detailed and accurate analysis of the trends in the supply and demand of gold is crucial for all stakeholders.
Market Forces
There are many factors that impact gold’s value. One is the regional supply and demand that is dynamic like China’s gold consumption in 2009, which used 428 tons for its jewelry and investment sectors. Although China has been the largest gold producer in the world since 2007, its demand has overtaken its supply every year. If China’s demand for gold continues at this rate, its consumption will easily double within the next decade.
But in India, gold has always been an essential entity in the life of its people as a symbol of security and prosperity. Gold has always had appeal throughout the Indian community across social strata and generations, as gold jewelry is the favorite tradable liquid investment. India is currently the world’s leading consumer of gold. The trends in the demand and supply of gold, especially in countries such as India and China, will definitely impact the global gold market.
Investment Research
Research on gold and its trends is very important for investors who need to know the gold market dynamics and its investment properties as a premium asset. Investment papers examining the special characteristics of gold are published for stakeholders to identify gold’s value, its function as an inflation hedge and its diversification of portfolio for investment purposes.
Government think-tanks, industry experts and prominent academics work together to provide further insights into gold to advise central bankers, investors, regulators and even policymakers all over the world.
From these panels of experts on gold, it has been determined that gold is an asset class with high return potential at any risk level. The Center for European Policy Studies, through its research, also concluded that there will be other motives besides hedging against inflation to drive gold prices upwards. It could very well be Asia’s economic growth, which will display the higher demands for gold in the midst of an uncertain financial market. Hence, gold prices are expected to continue upwards as investment demand increases from the private sector as well as from the official investors.
Technological research is promoting gold not on in its electronic applications but also in climatic and environmental issues, where gold is effective in supporting emerging technological solutions.
The global demand for gold has always been centered on jewelry, technology, investment (buy gold coins) and reserves in central banks. Detailed and accurate analysis of the trends in the supply and demand of gold is crucial for all stakeholders.
Market Forces
There are many factors that impact gold’s value. One is the regional supply and demand that is dynamic like China’s gold consumption in 2009, which used 428 tons for its jewelry and investment sectors. Although China has been the largest gold producer in the world since 2007, its demand has overtaken its supply every year. If China’s demand for gold continues at this rate, its consumption will easily double within the next decade.
But in India, gold has always been an essential entity in the life of its people as a symbol of security and prosperity. Gold has always had appeal throughout the Indian community across social strata and generations, as gold jewelry is the favorite tradable liquid investment. India is currently the world’s leading consumer of gold. The trends in the demand and supply of gold, especially in countries such as India and China, will definitely impact the global gold market.
Investment Research
Research on gold and its trends is very important for investors who need to know the gold market dynamics and its investment properties as a premium asset. Investment papers examining the special characteristics of gold are published for stakeholders to identify gold’s value, its function as an inflation hedge and its diversification of portfolio for investment purposes.
Government think-tanks, industry experts and prominent academics work together to provide further insights into gold to advise central bankers, investors, regulators and even policymakers all over the world.
From these panels of experts on gold, it has been determined that gold is an asset class with high return potential at any risk level. The Center for European Policy Studies, through its research, also concluded that there will be other motives besides hedging against inflation to drive gold prices upwards. It could very well be Asia’s economic growth, which will display the higher demands for gold in the midst of an uncertain financial market. Hence, gold prices are expected to continue upwards as investment demand increases from the private sector as well as from the official investors.
Technological research is promoting gold not on in its electronic applications but also in climatic and environmental issues, where gold is effective in supporting emerging technological solutions.
Wednesday, February 9, 2011
Types of Liberty Gold Coins
While all American gold coins are very much appreciated, the Liberty gold coins may be some of the most popular. The Liberty gold coins were in the forefront of US gold coinage for 7 decades, and most were lost to the melting/confiscation of 1933. Once they were America's symbol of growth to world power status from a struggling and developing nation. The Liberty gold coinage enjoyed popularity during 1838 to 1908. Now, it is estimated that less than 5% of Liberty gold coins exist today.
There are 4 coins in a Liberty gold series; these are known as the 4-piece Liberty Gold set which comprises the Quarter Eagle ($2.50), the Half Eagle ($5.00), the Eagle ($10) and the Double Eagle ($20). These are the main denominations used in gold coins mintage.
Liberty Quarter Eagle
The Liberty Quarter Eagle was minted between 1840 and 1907 at Philadelphia Mint, Dahlonega Mint, Charlotte Mint, New Orleans Mint and San Francisco Mint. This $2.50 gold coin holds 0.12094 oz. of gold in its 18 mm diameter design. The Lady Liberty bust sports its obverse, set above the date with 13 stars all around representing the first 13 states of the U.S. The American eagle sports its reverse with words "United States of America."
Liberty Half Eagle
This $5 gold piece has the longest mint history from 1839 to 1908, having been minted at 7 mints: Philadelphia, Charlotte, Dahlonega, San Francisco, New Orleans, Carson City and Denver. There are 2 varieties of this Half Eagle. The first variety, ‘No Motto’ variety, does not include ‘In God We Trust’ inscription; it was minted between 1839 and 1866. The second variety, ‘With Motto’, with the inscription was minted between 1866 and 1908. Lady Liberty’s bust sports the obverse above the date with 13 stars around while the reverse shows the American eagle clutching arrows and olive branches in its talons at its center; its perimeter is engraved with ‘United States of America Five D’ wordings.
Liberty Gold Eagle
The Liberty Gold Eagle mintage was between 1838 and 1907 at Philadelphia Mint, New Orleans Mint, San Francisco Mint, Denver Mint and Carson City Mint in 2 varieties: ‘No Motto’ (minted between 1838 and 1866) and ‘With Motto’ (minted between 1866 and 1907).
Its design is the same as the Quarter and Half Eagle coins design.
Liberty Double Eagle
The Liberty $20 gold coin was the biggest coin denomination ever issued by the US mint. Its initial design sported the Liberty motif from 1849 through 1907. It was created from the increased gold supply that resulted from the gold rush in California. This coin was minted at Philadelphia Mint, New Orleans Mint, San Francisco Mint, Denver Mint and Carson City Mint. Again, Lady Liberty bust sports its obverse while the most impressive designs of eagles sport its reverse.
There are 4 coins in a Liberty gold series; these are known as the 4-piece Liberty Gold set which comprises the Quarter Eagle ($2.50), the Half Eagle ($5.00), the Eagle ($10) and the Double Eagle ($20). These are the main denominations used in gold coins mintage.
Liberty Quarter Eagle
The Liberty Quarter Eagle was minted between 1840 and 1907 at Philadelphia Mint, Dahlonega Mint, Charlotte Mint, New Orleans Mint and San Francisco Mint. This $2.50 gold coin holds 0.12094 oz. of gold in its 18 mm diameter design. The Lady Liberty bust sports its obverse, set above the date with 13 stars all around representing the first 13 states of the U.S. The American eagle sports its reverse with words "United States of America."
Liberty Half Eagle
This $5 gold piece has the longest mint history from 1839 to 1908, having been minted at 7 mints: Philadelphia, Charlotte, Dahlonega, San Francisco, New Orleans, Carson City and Denver. There are 2 varieties of this Half Eagle. The first variety, ‘No Motto’ variety, does not include ‘In God We Trust’ inscription; it was minted between 1839 and 1866. The second variety, ‘With Motto’, with the inscription was minted between 1866 and 1908. Lady Liberty’s bust sports the obverse above the date with 13 stars around while the reverse shows the American eagle clutching arrows and olive branches in its talons at its center; its perimeter is engraved with ‘United States of America Five D’ wordings.
Liberty Gold Eagle
The Liberty Gold Eagle mintage was between 1838 and 1907 at Philadelphia Mint, New Orleans Mint, San Francisco Mint, Denver Mint and Carson City Mint in 2 varieties: ‘No Motto’ (minted between 1838 and 1866) and ‘With Motto’ (minted between 1866 and 1907).
Its design is the same as the Quarter and Half Eagle coins design.
Liberty Double Eagle
The Liberty $20 gold coin was the biggest coin denomination ever issued by the US mint. Its initial design sported the Liberty motif from 1849 through 1907. It was created from the increased gold supply that resulted from the gold rush in California. This coin was minted at Philadelphia Mint, New Orleans Mint, San Francisco Mint, Denver Mint and Carson City Mint. Again, Lady Liberty bust sports its obverse while the most impressive designs of eagles sport its reverse.
Which US Gold Coins Are Investors Seeking?
Although the actual gold markets lie oceans apart, the gold activities in the various markets impact gold prices. Gold is normally traded in gold bullion in these markets, but investors are also interested in the common date gold coins of the U.S.
The October 2010 Financial Times report stated analysts’ opinion that gold prices are skyrocketing in the midst of the bearish economy as well as the poor level of confidence in government policies.
Bullion Gold versus Common Date Gold
Common date gold coins do not enjoy the same fanfare as gold bullion coins. The former are scarce classic gold coins known as “generics.” These were minted in the 19th and 20th centuries by the millions for circulation. But most were lost or melted and only a few hundred thousand are left for trading.
Bullion gold pieces on the other hand enjoy trading as a financial market commodity. The government minted these for investment purposes. They are valued according to the gold content within them.
But coin buyers are interested in the US common date gold coins because of their scarcity, classic nature, and they can perform better is some instances than bullion coins.
Gold coins that were minted for circulation are hard to find as most of them got lost or melted; some may be hoarded without anyone’s knowledge. Similarly for US common date gold coins; their “scarcity” increases their investment value. There is no reproduction, unlike gold bullion.
Many coin collectors want to get a piece of the US common date gold coin for its “classic” value; the coin was minted only at a certain period of time; namely, in the 19th and early 20th centuries.
US common date gold coins are of more value than what their metal is worth; their price never dips but rises even when the gold price dips.
There is no legal accountability in the purchase or sale of US common date gold coins unlike the bullion gold. Meaning they are privately traded daily without any reporting.
The $20 St. Gaudens, $20 Liberty, $10 Indian and $10 Liberty, $5 Indian and $5 Liberty all have some dates that are considered to be common.
Rising Popularity of the Gold American Eagle
The American Gold Eagle coins are investors’ favorite gold coins although their sale was modest upon their introduction. The US Mint sold 165k oz. of gold eagle coins in 2000 but in 2001, the sales rose to 325k oz. despite bearish markets. When the gold price was low at $272, American gold eagles recorded $88 million sales.
The demand for American Gold Eagles soared during the 2008 summer even when a global recession was rumored. When the panic began in the later part of 2008, the American Gold Eagles were selling at an average monthly price of 111k oz compared to its earlier 33k oz. When the gold price hovered around $1350 to $1399, the American Gold Eagle Proof 1 oz. gold coins were sold at $1635 while the 1/10 oz. gold coins at $180.00 in October 2010.
The October 2010 Financial Times report stated analysts’ opinion that gold prices are skyrocketing in the midst of the bearish economy as well as the poor level of confidence in government policies.
Bullion Gold versus Common Date Gold
Common date gold coins do not enjoy the same fanfare as gold bullion coins. The former are scarce classic gold coins known as “generics.” These were minted in the 19th and 20th centuries by the millions for circulation. But most were lost or melted and only a few hundred thousand are left for trading.
Bullion gold pieces on the other hand enjoy trading as a financial market commodity. The government minted these for investment purposes. They are valued according to the gold content within them.
But coin buyers are interested in the US common date gold coins because of their scarcity, classic nature, and they can perform better is some instances than bullion coins.
Gold coins that were minted for circulation are hard to find as most of them got lost or melted; some may be hoarded without anyone’s knowledge. Similarly for US common date gold coins; their “scarcity” increases their investment value. There is no reproduction, unlike gold bullion.
Many coin collectors want to get a piece of the US common date gold coin for its “classic” value; the coin was minted only at a certain period of time; namely, in the 19th and early 20th centuries.
US common date gold coins are of more value than what their metal is worth; their price never dips but rises even when the gold price dips.
There is no legal accountability in the purchase or sale of US common date gold coins unlike the bullion gold. Meaning they are privately traded daily without any reporting.
The $20 St. Gaudens, $20 Liberty, $10 Indian and $10 Liberty, $5 Indian and $5 Liberty all have some dates that are considered to be common.
Rising Popularity of the Gold American Eagle
The American Gold Eagle coins are investors’ favorite gold coins although their sale was modest upon their introduction. The US Mint sold 165k oz. of gold eagle coins in 2000 but in 2001, the sales rose to 325k oz. despite bearish markets. When the gold price was low at $272, American gold eagles recorded $88 million sales.
The demand for American Gold Eagles soared during the 2008 summer even when a global recession was rumored. When the panic began in the later part of 2008, the American Gold Eagles were selling at an average monthly price of 111k oz compared to its earlier 33k oz. When the gold price hovered around $1350 to $1399, the American Gold Eagle Proof 1 oz. gold coins were sold at $1635 while the 1/10 oz. gold coins at $180.00 in October 2010.
Gold and the U.S. Mint
Gold in the US has grown so popular that it is synonymous to US gold mint. The US Mint has been minting gold coins since 1795 when it minted its first gold coins at the Philadelphia Mint.
The $10 Eagle was the main denomination of the mintages; later the $5 Half Eagle and $2.50 Quarter Eagle denominations came were also minted. Until 1840, the Philadelphia Mint was America’s only mint; later mints were set up at Dahlonega, Charlotte, Georgia, New Orleans and North Carolina as gold was discovered in many parts of south US and it was too difficult to transport the mined gold to Philadelphia Mint.
The transportation was fraught with danger as the journey went through desert land; it was also time consuming and costly for such a long journey. Hence, branch mints were opened to accommodate the mintage after the gold was mined. The Dahlonega, Charlotte and New Orleans branches were opened and later closed during the 1861 Civil War. Only New Orleans Mint reopened after the Civil War in 1879 to continue minting until 1909.
When the American gold rush came on in 1849, the San Francisco branch opened. There was so much excitement and gold panning activities when gold was found at Sutter's Mill, California. The years 1848 and 1849 were known as the ‘Gold Rush’ period for America.
When more gold mines opened across California, there was an over supply of gold.
Hence, the U.S. Mint created the Double Eagle and the gold dollar pieces to absorb the excess gold. The $20 Double Eagle measures 34 mm in diameter with 0.9675 oz of gold. This became the world’s largest gold coin. The gold dollar is a small 13 mm in diameter gold coin; it was the US Mint’s smallest minted gold coin.
Another mint branch opened in San Francisco in the year 1854. At first, its primary task was to strike gold coinage; today it does not although it is still operating.
Two more mint branches were set up by the US Mint; that is at Denver, Colorado and Carson City, Nevada to mint gold and other coinage.
Later in 1933, President Franklin Roosevelt ordered all gold coins mintage to cease at all mints; the US stopped minting gold coins that would be circulated.
But the US Mint kick started the American Gold Eagle bullion program in 1986 which made the coin the world’s most popular of all gold bullion coins.
The $10 Eagle was the main denomination of the mintages; later the $5 Half Eagle and $2.50 Quarter Eagle denominations came were also minted. Until 1840, the Philadelphia Mint was America’s only mint; later mints were set up at Dahlonega, Charlotte, Georgia, New Orleans and North Carolina as gold was discovered in many parts of south US and it was too difficult to transport the mined gold to Philadelphia Mint.
The transportation was fraught with danger as the journey went through desert land; it was also time consuming and costly for such a long journey. Hence, branch mints were opened to accommodate the mintage after the gold was mined. The Dahlonega, Charlotte and New Orleans branches were opened and later closed during the 1861 Civil War. Only New Orleans Mint reopened after the Civil War in 1879 to continue minting until 1909.
When the American gold rush came on in 1849, the San Francisco branch opened. There was so much excitement and gold panning activities when gold was found at Sutter's Mill, California. The years 1848 and 1849 were known as the ‘Gold Rush’ period for America.
When more gold mines opened across California, there was an over supply of gold.
Hence, the U.S. Mint created the Double Eagle and the gold dollar pieces to absorb the excess gold. The $20 Double Eagle measures 34 mm in diameter with 0.9675 oz of gold. This became the world’s largest gold coin. The gold dollar is a small 13 mm in diameter gold coin; it was the US Mint’s smallest minted gold coin.
Another mint branch opened in San Francisco in the year 1854. At first, its primary task was to strike gold coinage; today it does not although it is still operating.
Two more mint branches were set up by the US Mint; that is at Denver, Colorado and Carson City, Nevada to mint gold and other coinage.
Later in 1933, President Franklin Roosevelt ordered all gold coins mintage to cease at all mints; the US stopped minting gold coins that would be circulated.
But the US Mint kick started the American Gold Eagle bullion program in 1986 which made the coin the world’s most popular of all gold bullion coins.
Gold Coin Options
Although many gold coins are available for an investor, only 2 main types stand out. The gold bullion coins and the rare gold coins. Gold bullion are strictly for a hedge against inflation; hence they form a good basis to own gold whereas numismatic gold coins or rare gold coins which are typically used to privately grow wealth over the long-term.
Gold Bullion Coins
The large market size for gold bullion coins makes them a favorite with many people. Gold bullion coins hold many benefits for their owners; security, safety, convenience and liquidity. But the best benefit of all is great potential profit as the coin’s value is directly related to the current gold price.
The Krugerrand from South Africa was the first modern issue gold bullion coin that surfaced in the market in 1967. This should not be surprising as South Africa has always led the pack in exporting gold; it is still the world’s leader in gold exports. The South African Krugerrand enjoyed its fame for a long time as many individuals took it as a means to possess gold. This is precisely the reason that the term ‘Krugerrand’ was interchangeably used with ‘gold coin’ during its hey days; just as one associated ‘Kleenex’ to facial tissue or ‘Xerox’ to photocopiers at the start of the respective industries.
But other countries caught on with South Africa's innovation with gold coins and started minting their own special gold bullion production. Now, the market offers the American Gold Eagle, the American Gold Buffalo, the Canadian Gold Maple Leaf, the Gold Australian Kangaroo and the Austrian Gold Vienna Philharmonic.
Rare Gold Coins
Rare gold coins can be collected for either investment purposes or just to own gold; some rare gold coin owners do not even bother to make a distinction of their collection.
US gold coins that were minted from 1795 to 1933 are classified as rare gold coins because the US Mint discontinued the minting for circulation. There were many denominations of rare gold coins distributed in the 138 years when these gold coins were minted. Sometimes, the US Mint minted various denominations of gold coins for commercial circulation such as $1.00, $2.50 (also known as Quarter Eagle), $3.00, $4.00, $5.00 (also known as Half Eagle), $10.00 (also known as Eagle) and $20.00 (also known as Double Edge).
Although small in size, the US Gold Dollar came in 3 types-I, II and III; it was minted between 1849 and 1889.
The Quarter Eagle's denomination is $2.50 and was minted between 1796 and 1929 sporting 7 different motifs.
The US gold coin that is stamped with $3.00 is the Indian Princess that saw its mintage from 1854 all the way to 1889. The US $4.00 gold coin was called ‘Stella’. It was minted as an experimental piece in 1879/80; hence there are very few pieces. The Half Eagle gold or US $5.00 gold coin came in 8 varieties of designs when it was minted.
The Gold Eagle of $10.00 came in 4 unique designs during its mintage between 1795 and 1933. The Double Gold Eagle of $20.00 is the largest among the US gold coins issued; it was minted between 1849 and 1933 with 2 designs.
These gold coins are in high demand because of the gold content in them as well as their beauty, rarity and historical relevance.
Gold Bullion Coins
The large market size for gold bullion coins makes them a favorite with many people. Gold bullion coins hold many benefits for their owners; security, safety, convenience and liquidity. But the best benefit of all is great potential profit as the coin’s value is directly related to the current gold price.
The Krugerrand from South Africa was the first modern issue gold bullion coin that surfaced in the market in 1967. This should not be surprising as South Africa has always led the pack in exporting gold; it is still the world’s leader in gold exports. The South African Krugerrand enjoyed its fame for a long time as many individuals took it as a means to possess gold. This is precisely the reason that the term ‘Krugerrand’ was interchangeably used with ‘gold coin’ during its hey days; just as one associated ‘Kleenex’ to facial tissue or ‘Xerox’ to photocopiers at the start of the respective industries.
But other countries caught on with South Africa's innovation with gold coins and started minting their own special gold bullion production. Now, the market offers the American Gold Eagle, the American Gold Buffalo, the Canadian Gold Maple Leaf, the Gold Australian Kangaroo and the Austrian Gold Vienna Philharmonic.
Rare Gold Coins
Rare gold coins can be collected for either investment purposes or just to own gold; some rare gold coin owners do not even bother to make a distinction of their collection.
US gold coins that were minted from 1795 to 1933 are classified as rare gold coins because the US Mint discontinued the minting for circulation. There were many denominations of rare gold coins distributed in the 138 years when these gold coins were minted. Sometimes, the US Mint minted various denominations of gold coins for commercial circulation such as $1.00, $2.50 (also known as Quarter Eagle), $3.00, $4.00, $5.00 (also known as Half Eagle), $10.00 (also known as Eagle) and $20.00 (also known as Double Edge).
Although small in size, the US Gold Dollar came in 3 types-I, II and III; it was minted between 1849 and 1889.
The Quarter Eagle's denomination is $2.50 and was minted between 1796 and 1929 sporting 7 different motifs.
The US gold coin that is stamped with $3.00 is the Indian Princess that saw its mintage from 1854 all the way to 1889. The US $4.00 gold coin was called ‘Stella’. It was minted as an experimental piece in 1879/80; hence there are very few pieces. The Half Eagle gold or US $5.00 gold coin came in 8 varieties of designs when it was minted.
The Gold Eagle of $10.00 came in 4 unique designs during its mintage between 1795 and 1933. The Double Gold Eagle of $20.00 is the largest among the US gold coins issued; it was minted between 1849 and 1933 with 2 designs.
These gold coins are in high demand because of the gold content in them as well as their beauty, rarity and historical relevance.
Gold close to an All Time High Once More
It is good news for those who are interested in buying gold coins for the price of gold is on the rise again; this time closing on an all-time high. Its price has been steadily rising over 10 consecutive years and it is expected to continue to rise this year.
With the gold price at more than $1,400/oz, it is quite close to a previous high of $1,421/oz.
Though gold price may fluctuate, its recent performance is indicative of long-term prospects investment.
US Dollar weaker
The performance of gold rises steadily due to the many disappointing US economic news figures; the weakened dollar has been hurt by global statements that the U.S. currency is not as attractive or ‘appetizing’ as before.
The US dollar has been, and currently is, the world’s reserve currency but gold tends to counter its prominence all the time. Gold has set itself to be the world’s currency major competitor and it is often referred to as the only real money.
China has surpassed Japan’s economy recently to take second spot with massive reserves in foreign currencies. China's reserves over the years were built on the US dollar but now a turnaround spells bad news for the greenback.
That in turn benefits gold as its price tends to move in opposite direction of the greenback. Gold owners are the major beneficiaries in this course of event. But it is not just the dollar’s decline that has buoyed the price of gold; there are other factors affecting the US economy.
High Unemployment
The increased unemployment rate in the US is now around 10%, despite the large stimulus package announced by the US government. This rate has become the country’s highest in a long time. The financial markets are concerned over this figure which does not augur well for the economy, since much of the country’s work force is sitting idle. With persistent unemployment occurring, analysts are starting to call the situation ‘depression’. Hence people are driven towards gold, the safer haven.
The troubled real estate market also caused the gold price to rise. Real estate is traditionally regarded as an alternative to stocks and bonds which are paper assets, and a cover against inflation.
Ailing Real Estate
However, even the real estate market performed badly over the past two years; many Americans lost big bucks in real estate instead of having shelter from alternative assets. Their wealth fizzled out in the financial crisis caused by the recent subprime mortgage fiasco that rocked the stock market. Now, everyone stands alert to a paradigm shift when it comes to real estate and stocks.
It is not true anymore that real estate is independent of the stock market as both environments declined with the same factors. Hence, more people are turning to gold, especially gold coins. These are more affordable, convenient, portable and readily liquid.
Financial markets will remain a concern with Americans seeking solace and safety with the uncertain U.S. economy. Gold prices are expected to climb in such situations.
With the gold price at more than $1,400/oz, it is quite close to a previous high of $1,421/oz.
Though gold price may fluctuate, its recent performance is indicative of long-term prospects investment.
US Dollar weaker
The performance of gold rises steadily due to the many disappointing US economic news figures; the weakened dollar has been hurt by global statements that the U.S. currency is not as attractive or ‘appetizing’ as before.
The US dollar has been, and currently is, the world’s reserve currency but gold tends to counter its prominence all the time. Gold has set itself to be the world’s currency major competitor and it is often referred to as the only real money.
China has surpassed Japan’s economy recently to take second spot with massive reserves in foreign currencies. China's reserves over the years were built on the US dollar but now a turnaround spells bad news for the greenback.
That in turn benefits gold as its price tends to move in opposite direction of the greenback. Gold owners are the major beneficiaries in this course of event. But it is not just the dollar’s decline that has buoyed the price of gold; there are other factors affecting the US economy.
High Unemployment
The increased unemployment rate in the US is now around 10%, despite the large stimulus package announced by the US government. This rate has become the country’s highest in a long time. The financial markets are concerned over this figure which does not augur well for the economy, since much of the country’s work force is sitting idle. With persistent unemployment occurring, analysts are starting to call the situation ‘depression’. Hence people are driven towards gold, the safer haven.
The troubled real estate market also caused the gold price to rise. Real estate is traditionally regarded as an alternative to stocks and bonds which are paper assets, and a cover against inflation.
Ailing Real Estate
However, even the real estate market performed badly over the past two years; many Americans lost big bucks in real estate instead of having shelter from alternative assets. Their wealth fizzled out in the financial crisis caused by the recent subprime mortgage fiasco that rocked the stock market. Now, everyone stands alert to a paradigm shift when it comes to real estate and stocks.
It is not true anymore that real estate is independent of the stock market as both environments declined with the same factors. Hence, more people are turning to gold, especially gold coins. These are more affordable, convenient, portable and readily liquid.
Financial markets will remain a concern with Americans seeking solace and safety with the uncertain U.S. economy. Gold prices are expected to climb in such situations.
Monday, January 10, 2011
How Current Gold and Silver Prices Are Determined
Precious metals are constantly traded; their markets are so active that it may seem that there is no pause in its trading activities. With the different time zones, it is not surprising for gold and silver to be traded 24x7 in various international bourses and financial exchanges.
It is the market activity that determines the gold and silver prices which may go up or down. The basic supply and demand factors are the main contributors to these metals’ daily prices.
Demand for gold
There are 3 main sources that affect the price of gold and silver.
One, investment demand by an individual, organization or government can affect these precious metals’ pricing. Small or large investments can affect the said metals’ pricing easily depending on the trade demand.
Next, industrial demand of gold and silver affects their pricing easily as they have attractive properties suited for many industrial uses.
Thirdly, there is always the jewelery demand of gold and silver to be adorned or stored and passed on from generation to generation in Oriental cultures. Such high esteem of gold keeps its pricing buoyant.
Supply of gold and silver
However, the supply of gold and silver is not as dynamic as their demand. Supply is limited from the earth’s resources and difficult to source using expensive technology and tools. This causes gold and silver to be more valuable. It is estimated that the total amount of gold that can ever be sourced is only a 20 cubic yard.
And because these precious metals are scarce, their current owners are holding on to them tightly; hence, the value of gold and silver keep increasing making it a vicious cycle on its supply and demand value.
Another important source which can determine the value of gold and silver is the futures market. This arena holds the supply and demand level of these precious metals as this is where buyers and sellers of gold and silver trade actively on various commodities as well as financial derivatives.
Spot price
Futures prices of these precious metals can affect the spot price of a commodity, which is usually gold; a spot price of a commodity is the actual price that the commodity is agreed upon to be traded and delivered immediately.
A spot price of any commodity is the actual value of the commodity at that point in time which is usually traded in US currency. But today the trend is changing with the spot price being traded in other currencies like the European Euros, Chinese Yuan, Japanese yen, Australian dollars, Hong Kong and Canadian dollars.
It is the market activity that determines the gold and silver prices which may go up or down. The basic supply and demand factors are the main contributors to these metals’ daily prices.
Demand for gold
There are 3 main sources that affect the price of gold and silver.
One, investment demand by an individual, organization or government can affect these precious metals’ pricing. Small or large investments can affect the said metals’ pricing easily depending on the trade demand.
Next, industrial demand of gold and silver affects their pricing easily as they have attractive properties suited for many industrial uses.
Thirdly, there is always the jewelery demand of gold and silver to be adorned or stored and passed on from generation to generation in Oriental cultures. Such high esteem of gold keeps its pricing buoyant.
Supply of gold and silver
However, the supply of gold and silver is not as dynamic as their demand. Supply is limited from the earth’s resources and difficult to source using expensive technology and tools. This causes gold and silver to be more valuable. It is estimated that the total amount of gold that can ever be sourced is only a 20 cubic yard.
And because these precious metals are scarce, their current owners are holding on to them tightly; hence, the value of gold and silver keep increasing making it a vicious cycle on its supply and demand value.
Another important source which can determine the value of gold and silver is the futures market. This arena holds the supply and demand level of these precious metals as this is where buyers and sellers of gold and silver trade actively on various commodities as well as financial derivatives.
Spot price
Futures prices of these precious metals can affect the spot price of a commodity, which is usually gold; a spot price of a commodity is the actual price that the commodity is agreed upon to be traded and delivered immediately.
A spot price of any commodity is the actual value of the commodity at that point in time which is usually traded in US currency. But today the trend is changing with the spot price being traded in other currencies like the European Euros, Chinese Yuan, Japanese yen, Australian dollars, Hong Kong and Canadian dollars.
Where should I Buy Gold Coins?
One must be very careful when choosing to buy gold coins, whether you are a coin collector or a serious investor. Sufficient knowledge about the gold coins is necessary before a purchase should be made. In America, there are 2 basic types of gold coins that one can purchase – the rare gold and the bullion gold.
Gold Bullion Coins
The value of gold bullion coins lies in the content or amount of gold they possess. These gold coins exist in the millions with no outstanding appeal from serious coin collectors. It is easy to possess these as a means of owning in gold.
Many governments have minted their own gold bullion coins such as US mint on the American Eagle Gold coin and the Buffalo Gold coin, the Royal Canadian mint on the Gold Maple Leaf, the South African mint on the Krugerrand, Austrian mint on the Austrian Vienna Philharmonic and the Perth mint on the Australian Gold Nugget.
There are many sizes of these national gold bullion coins.
Rare Gold Coins
Rare gold coins are those minted between 1795 to 1933 in the U.S. which are few in number and thus are considered collectibles that are highly demanded.
The value of rare gold coins is not confined to the gold content within but according to the demand which can range from $1,000 and into the millions.
The U.S. Double Eagle twenty dollars gold pieces are the most popular rare gold coins that were minted between 1850 and 1933.
Buying Options
Although there are many places where you can purchase gold coins, it is best to purchase them at reputable coin dealers, like ITM Trading, especially for the rare gold coins. Local coin shops may also carry some gold coins for your convenience but not a good variety of choices would be available. A coin show is another place of purchase of gold coins which caters mainly for dealers. The public will not likely get the best price from a coin show as they are not knowledgeable enough about gold to negotiate a good deal. The last possible place to purchase gold coins is banks. But these may not always offer good bullion prices or service as gold coins trading is not their forte.
An individual who is an amateur in gold investment should get education on gold before getting involved in investing gold.
Gold Bullion Coins
The value of gold bullion coins lies in the content or amount of gold they possess. These gold coins exist in the millions with no outstanding appeal from serious coin collectors. It is easy to possess these as a means of owning in gold.
Many governments have minted their own gold bullion coins such as US mint on the American Eagle Gold coin and the Buffalo Gold coin, the Royal Canadian mint on the Gold Maple Leaf, the South African mint on the Krugerrand, Austrian mint on the Austrian Vienna Philharmonic and the Perth mint on the Australian Gold Nugget.
There are many sizes of these national gold bullion coins.
Rare Gold Coins
Rare gold coins are those minted between 1795 to 1933 in the U.S. which are few in number and thus are considered collectibles that are highly demanded.
The value of rare gold coins is not confined to the gold content within but according to the demand which can range from $1,000 and into the millions.
The U.S. Double Eagle twenty dollars gold pieces are the most popular rare gold coins that were minted between 1850 and 1933.
Buying Options
Although there are many places where you can purchase gold coins, it is best to purchase them at reputable coin dealers, like ITM Trading, especially for the rare gold coins. Local coin shops may also carry some gold coins for your convenience but not a good variety of choices would be available. A coin show is another place of purchase of gold coins which caters mainly for dealers. The public will not likely get the best price from a coin show as they are not knowledgeable enough about gold to negotiate a good deal. The last possible place to purchase gold coins is banks. But these may not always offer good bullion prices or service as gold coins trading is not their forte.
An individual who is an amateur in gold investment should get education on gold before getting involved in investing gold.
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