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.
Tuesday, April 19, 2011
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.
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