In recent years, the demand for gold coins has shot to very great heights thus increasing its prices. It is true to say that more investors are becoming very interested in this precious commodity because of its various properties, especially the fact that it is a liquid form of asset that can come in handy in times of need.
The commodity, as well as its stocks, have strongly rocketed in the bull market in recent times creating increased profits for those who have bought in. Although the price of this precious metal is determined by its level of supply and demand, its purchasing power and value have remained steadfast, increasing instead of decreasing, as is the case with most assets.
What makes the commodity a bull market is its outstanding fundamentals. Although the world’s gold mines are playing their part in supplying the commodity, the tons of gold produced are not enough to meet the ever increasing demand. There is an acute shortage of gold, especially because it is demanded for different purposes, including investment and industrial use, as well as jewelry.
One of the reasons it is important to buy gold coins is the fact that their value is increasing by the year, and so are the prices. This means that if you manage to buy a good quantity of gold at the moment, in the next few months or years you can see substantial growth. The commodity is very convenient as it saves investors from incurring losses since it is not affected by most things that affect other forms of investment assets. This factor greatly reduces major risks to the advantage of the buyer.
As in all products, it is important to do some research and investigate the bullish factors of gold to ensure that your decision is a good one and that you have an investment strategy that will work for you. One of the most important things to understand is the gold market behavior, as well as demand-supply trends and the prices of gold.
Thursday, October 14, 2010
Monday, October 11, 2010
Gold Coins as an Investment
It is up to an interested investor to know the various ways to invest in gold. Gold is a commodity that is gaining in value making the prices shoot up as the years go by. The value of gold has never been zero; it has a lot of advantages and its purchasing power has remained steady. Gold investment comes in various forms; an investor can choose to suit his needs.
Small bars and coins
These small amounts of gold have been legal since the reign of King Croesus who ruled Lydia in Western Asia. What is particular about this king is that his wealth mainly came from the gold sands and mines of the Pactolus River, making them legal tender. Small coins and bars are an attractive means of investing for most investors especially because any gold meant for investment purposes is exempted from VAT in many countries and from the European Union as a whole.
Bullion coins
These coins are normally issued by a governing body in most countries. They are considered legal tender because of their face value, not their content of gold. However, in purchasing, the gold content is what gives them value and the premium rates may vary from one dealer to another, as well as from one coin to another.
Bullion coin premiums rely mostly on the size of the coin unlike in numismatic and commemorative coins whose value is determined by their quality and rarity in addition to their gold content.
Small bars of gold
Any bar weighing 100g downwards is considered small. Gold comes in a variety of sizes and weights, which of course vary in value and price. These bars contain 99.5% of fine gold and provide a great platform for investment for interested parties or institutions. There are only 94 accredited brands and gold bar manufacturers in the whole world who produce different types of gold bars.
A potential investor should not limit himself to one method of gold investment. Instead, thorough research can help a great deal when settling for a method of investing and deciding what form of gold one is to invest in. This is largely determined by the various needs of the buyer, as well as the reason he or she is buying and investing in this commodity.
Gold investments should be given the same keen analysis as any other form of investment.
Small bars and coins
These small amounts of gold have been legal since the reign of King Croesus who ruled Lydia in Western Asia. What is particular about this king is that his wealth mainly came from the gold sands and mines of the Pactolus River, making them legal tender. Small coins and bars are an attractive means of investing for most investors especially because any gold meant for investment purposes is exempted from VAT in many countries and from the European Union as a whole.
Bullion coins
These coins are normally issued by a governing body in most countries. They are considered legal tender because of their face value, not their content of gold. However, in purchasing, the gold content is what gives them value and the premium rates may vary from one dealer to another, as well as from one coin to another.
Bullion coin premiums rely mostly on the size of the coin unlike in numismatic and commemorative coins whose value is determined by their quality and rarity in addition to their gold content.
Small bars of gold
Any bar weighing 100g downwards is considered small. Gold comes in a variety of sizes and weights, which of course vary in value and price. These bars contain 99.5% of fine gold and provide a great platform for investment for interested parties or institutions. There are only 94 accredited brands and gold bar manufacturers in the whole world who produce different types of gold bars.
A potential investor should not limit himself to one method of gold investment. Instead, thorough research can help a great deal when settling for a method of investing and deciding what form of gold one is to invest in. This is largely determined by the various needs of the buyer, as well as the reason he or she is buying and investing in this commodity.
Gold investments should be given the same keen analysis as any other form of investment.
Gold and the dollar
The demand for buying gold coins is increasing with every passing day. Since this commodity is known for withstanding depreciation, more investors regard it highly as the protector of their wealth. This is not only in the case of inflation, but also against other world currencies depending on what part of the world an buyer is situated in.
Gold has a good reputation, most especially when it comes to the US dollar, which is the main trading currency of the world. This commodity has proven to be an effective hedge surrounding the fluctuation of the dollar. This aspect about the precious commodity had been formalized in recent statistics making the demand shoot upwards and the price increase.
Research has proven that over the years gold has been an effective dollar hedge comparing its price and the exchange rate of other currencies of the world. It has been found that it correlated consistently negatively with the US dollar across all rates of exchange and over time. Despite economic turbulence over some periods, gold stood firm protecting investors against the instability and the fluctuation of exchange rates.
Other studies have been conducted and have proved that this precious commodity is not only a potent hedge protection against the US dollar, but also provides the dollar with protection when it is at the verge of losing value. This makes the loss very small, which is cleared by the appreciation periods of the dollar.
With this kind of knowledge and information, most investors are becoming wise enough to invest in this commodity rather than other kinds of assets as they know that its value is going to save them during the hard economic times. Gold is not losing value by the day, on the contrary, it is becoming more and more expensive and hard to get as the demand for it is on the increase. Investors and those who know the real value of this commodity are doing everything possible to have it available as a means of making money and maintaining wealth.
Gold has proven to be the most valued commodity over the years and that is not likely to change any time soon. So the more one can manage to invest in this commodity, the better it is for that individual or institution. Those looking for ways to improve their wealth, especially investors, should consider investing in gold as it is never been worth zero.
Gold has a good reputation, most especially when it comes to the US dollar, which is the main trading currency of the world. This commodity has proven to be an effective hedge surrounding the fluctuation of the dollar. This aspect about the precious commodity had been formalized in recent statistics making the demand shoot upwards and the price increase.
Research has proven that over the years gold has been an effective dollar hedge comparing its price and the exchange rate of other currencies of the world. It has been found that it correlated consistently negatively with the US dollar across all rates of exchange and over time. Despite economic turbulence over some periods, gold stood firm protecting investors against the instability and the fluctuation of exchange rates.
Other studies have been conducted and have proved that this precious commodity is not only a potent hedge protection against the US dollar, but also provides the dollar with protection when it is at the verge of losing value. This makes the loss very small, which is cleared by the appreciation periods of the dollar.
With this kind of knowledge and information, most investors are becoming wise enough to invest in this commodity rather than other kinds of assets as they know that its value is going to save them during the hard economic times. Gold is not losing value by the day, on the contrary, it is becoming more and more expensive and hard to get as the demand for it is on the increase. Investors and those who know the real value of this commodity are doing everything possible to have it available as a means of making money and maintaining wealth.
Gold has proven to be the most valued commodity over the years and that is not likely to change any time soon. So the more one can manage to invest in this commodity, the better it is for that individual or institution. Those looking for ways to improve their wealth, especially investors, should consider investing in gold as it is never been worth zero.
Tuesday, August 31, 2010
David Faber Comments on State of US Monetary Policy
Many experts have far from positive views of the economy for the current future we face as Americans. Popular tv economist on CNBC Marc Faber adds "the governments are taking over." He goes on to say that the current federal policies as it relates to money and the economy are not sustainable.
The great fear by many experts is that the Federal Government will continue to just keep printing money. A flood of more money entering the monetary system could cause "whole system breaks down" Faber adds. His comments on the current economic policies were last Thursday's program on CNBC.
"What I object to the current government intervention in so-called 'solving the crisis', (is that) they haven't solved anything. They've just postponed it."
Faber continues that the "ultimate armageddon" would be greater in scope the next it happens, as "governments will go bust", which would lead the Feds to just more money printing.
He continues to comment that China's growth rate is "completely unsustainable in the long run," talking about China which is the current fastest growing economy in the world.
The great fear by many experts is that the Federal Government will continue to just keep printing money. A flood of more money entering the monetary system could cause "whole system breaks down" Faber adds. His comments on the current economic policies were last Thursday's program on CNBC.
"What I object to the current government intervention in so-called 'solving the crisis', (is that) they haven't solved anything. They've just postponed it."
Faber continues that the "ultimate armageddon" would be greater in scope the next it happens, as "governments will go bust", which would lead the Feds to just more money printing.
He continues to comment that China's growth rate is "completely unsustainable in the long run," talking about China which is the current fastest growing economy in the world.
Is Now a Good Time to Buy Gold
If you have listened to the radio or the news lately, you may be asking yourself if gold is a good buy for you. There are plenty of reason why now is a good time to buy gold. The final decision is yours though learning the keys to gold prices is the best way to make an informed decision.
Important to understand the difference between gold stocks called gold ETF's and physical gold. Admissions from companies that trade on the Comex that many of the transactions for gold ETF's are not backed by adequate amounts of physical gold are causes for concern. It is important for financial security for buying gold to be physical gold that you hold in your possession.
There are increasing skepticism over the United States actuall gold reserves. The reported position for the United States is 8,133 tons which is estimated to be worth just over $300 billion. There is no outside audit for the total the US holds which makes the amounts that individuals own more important.
Gold is in the midst of a steady bull market. It has increased in value each year for the last 9 years. If the present value of gold holds true for 2010 it will be 10 years in a row. This has all happen as many in the mainstream media has had negative comments towards gold.
An amazing aspect of gold's value is the fact that most of the mined gold in the world is accounted for. Gold has a great weight to value ratio making it easy to store in private possessions. The ability of gold to hold up against normal abuse makes its a great way to preserve wealth for the long term.
with an unclear economic future ahead for the next few years in America, the fundamentals for gold have many factors that have the ability to produce positive results. For better understanding if now is the best time for you to own gold contact a reputable gold brokerage firm for more information.
Important to understand the difference between gold stocks called gold ETF's and physical gold. Admissions from companies that trade on the Comex that many of the transactions for gold ETF's are not backed by adequate amounts of physical gold are causes for concern. It is important for financial security for buying gold to be physical gold that you hold in your possession.
There are increasing skepticism over the United States actuall gold reserves. The reported position for the United States is 8,133 tons which is estimated to be worth just over $300 billion. There is no outside audit for the total the US holds which makes the amounts that individuals own more important.
Gold is in the midst of a steady bull market. It has increased in value each year for the last 9 years. If the present value of gold holds true for 2010 it will be 10 years in a row. This has all happen as many in the mainstream media has had negative comments towards gold.
An amazing aspect of gold's value is the fact that most of the mined gold in the world is accounted for. Gold has a great weight to value ratio making it easy to store in private possessions. The ability of gold to hold up against normal abuse makes its a great way to preserve wealth for the long term.
with an unclear economic future ahead for the next few years in America, the fundamentals for gold have many factors that have the ability to produce positive results. For better understanding if now is the best time for you to own gold contact a reputable gold brokerage firm for more information.
Different Forms of Gold that have Value
Gold has many different factors that creates its value. There are those that own gold in the form of jewelry while others own it in the form of gold bars or coins.
Yellow gold which is the most common form of gold that you can find is often not 100% pure. Copper and silver are added to make it more durable as gold itself is a soft metal.
To create what is know as white gold, nickel or platinum are added. White gold is common in jewelry and has a greater expense than jewelry made with yellow gold on average.
Rose gold is another common form of gold used in jewelry and also typically carries a greater value than yellow gold. A combination of gold and copper gives it its reddish tint.
A key aspect to the value of gold is the purity. The purity of gold is often referred to in karat, as 24 karat is considered pure gold. A 22 karat gold watch would be 91.7% pure. Most jewelry is not 24 karat as the copper or silver are added to make the metal harder for daily use.
People also buy gold for the financial value. Gold is considered an asset more than a pure investment. Gold bullion is one of the most popular forms for holding gold in your portfolio. Common gold bullion is the American Gold Eagle, Canadian Gold Maple Leaf, and the South African Krugerrand. Gold bullion can be bought at different weights for each person's different buying needs.
Gold can also be purchased in what is called rare gold coins. Product of these gold coins was stopped in 1933 and have a scarcity factor to them that increases their value. Rare gold coins is considered a private position in gold which is beneficial for many people as a preservation of wealth. To greater understand the difference between gold bullion and rare gold coins it is best to contact a reputable gold brokerage firm for more answers.
Yellow gold which is the most common form of gold that you can find is often not 100% pure. Copper and silver are added to make it more durable as gold itself is a soft metal.
To create what is know as white gold, nickel or platinum are added. White gold is common in jewelry and has a greater expense than jewelry made with yellow gold on average.
Rose gold is another common form of gold used in jewelry and also typically carries a greater value than yellow gold. A combination of gold and copper gives it its reddish tint.
A key aspect to the value of gold is the purity. The purity of gold is often referred to in karat, as 24 karat is considered pure gold. A 22 karat gold watch would be 91.7% pure. Most jewelry is not 24 karat as the copper or silver are added to make the metal harder for daily use.
People also buy gold for the financial value. Gold is considered an asset more than a pure investment. Gold bullion is one of the most popular forms for holding gold in your portfolio. Common gold bullion is the American Gold Eagle, Canadian Gold Maple Leaf, and the South African Krugerrand. Gold bullion can be bought at different weights for each person's different buying needs.
Gold can also be purchased in what is called rare gold coins. Product of these gold coins was stopped in 1933 and have a scarcity factor to them that increases their value. Rare gold coins is considered a private position in gold which is beneficial for many people as a preservation of wealth. To greater understand the difference between gold bullion and rare gold coins it is best to contact a reputable gold brokerage firm for more answers.
Monday, August 30, 2010
Korea Feals Pressure to Add Gold to Foreign Exchange Reserves
According to BNP Paribas Asset Management, the Bank of Korea which has yet to start buying gold is under enormous pressure to start adding gold to its foreign exchange reserves.
The increase in pressure comes from other countries like India, Russia, and China who have bought gold as a defense for currencies reserves. Last year the head of Korea's reserve management unit though gold to be of little value though with uncertain times increasing for financial markets that opinion is changing fast. Currently, Korea is 56th on gold holdings in the work according to World Gold Council.
As signs of a financial recovery are looking more bleak, gold prices are continuing to stay strong near their record high. With falling prices in both the dollar and euro there are not many options for Korea that are not adding physical gold to their foreign exchange reserves.
On August 26th gold traded for $1,239.70 and is up for looks to be its 10 year in a row.
South Korea is the 6th largest foreign exchange reserve in thw world with only 0.03% of their $286 billion in gold. China, Japan, Russia, Taiwan, and India are the top 5 foreign exchange reserves in order. Estimates are that Korea's' gold position is the smallest percentage of any of the top 100 foreign exchange reserve holders.
With fears surfacing of a double dip recession, Goldman Sachs forecasted that gold may exceed $1,300 with in the next 6 months.
Other foreign exchange reserves like Russia added 50000 ounces of gold in the last month increasing their total to 23.3 million ounces.
The euro has lost 12% of its value to the dollar in 2010 which is another set of economic news sending investors and countries to gold. Gold coins have been used in theory as a safe haven as they have never had a value of zero.
The increase in pressure comes from other countries like India, Russia, and China who have bought gold as a defense for currencies reserves. Last year the head of Korea's reserve management unit though gold to be of little value though with uncertain times increasing for financial markets that opinion is changing fast. Currently, Korea is 56th on gold holdings in the work according to World Gold Council.
As signs of a financial recovery are looking more bleak, gold prices are continuing to stay strong near their record high. With falling prices in both the dollar and euro there are not many options for Korea that are not adding physical gold to their foreign exchange reserves.
On August 26th gold traded for $1,239.70 and is up for looks to be its 10 year in a row.
South Korea is the 6th largest foreign exchange reserve in thw world with only 0.03% of their $286 billion in gold. China, Japan, Russia, Taiwan, and India are the top 5 foreign exchange reserves in order. Estimates are that Korea's' gold position is the smallest percentage of any of the top 100 foreign exchange reserve holders.
With fears surfacing of a double dip recession, Goldman Sachs forecasted that gold may exceed $1,300 with in the next 6 months.
Other foreign exchange reserves like Russia added 50000 ounces of gold in the last month increasing their total to 23.3 million ounces.
The euro has lost 12% of its value to the dollar in 2010 which is another set of economic news sending investors and countries to gold. Gold coins have been used in theory as a safe haven as they have never had a value of zero.
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