Monday, 5 September 2011

Investors Continue to Buy Gold Coins

There is one major reason why investors around the world are flocking to buy gold - security. At a time when financial markets around the world are shaky at best coupled with debt crises in America and abroad, investors are rightly seeking the safest haven for their investment. As you have seen over the past week or so, gold has been the hottest commodity around with skyrocketing prices. Market fears drove gold prices up to $1800 per ounce, even if only for a short time. It may be time to buy gold.
Let's revisit two Friday's past and consider how those market changes affected gold. The latest volatility started when S&P downgraded the US credit rating. While there was much speculation as to how the market would react on the following Monday regarding the downgrade, no one certainly imagined that the Dow Jones would drop 634 points. Within 72 hours, gold skyrocketed up to $1800. It was only as the market began to rebound that the price dropped slightly.
Surprisingly, even though the US credit rating was downgraded, investors still made heavy investment into US bonds. Which shows that even though there is a general lack of confidence in the markets as a whole, investors still know a smart bargain when they see one. But that hasn't affected how they see gold, which is still looked at as the premier safe haven for investment these days.
No matter when it takes place in history, market volatility will always cause gold prices to rise. When investors en masse lose faith in government and financial markets, that is a sure sign to invest in gold. Of course, many of you are certainly wishing you had invested some amount of money in gold when prices were in the $3-$400 range per ounce. It's pretty useless to beat yourself up about that as it does nothing to aid you in what needs to happen now. Do not let the current price of gold scare you away from making an investment. Now is the time to start preparing to buy gold.
It should be noted that if you're considering an opportunity to buy gold and silver, buy gold bullions, or buy gold coins, you should keep in mind that you shouldn't expect to see dividends or interest if the gold price is ever become stagnant. It's not exactly like putting your money in the bank. Your investment is directly tied to how much that gold is worth. On the other hand, gold is one of the few assets that you could actually hold in your hand and it will retain a fair amount of market value.
It should be noted that this market for gold has created a boon for gold sellers around the world. You need look no further than eBay for proof that gold markets can be extremely lucrative. Over the last two weeks, the market volatility along with debt problems in the US and abroad created a feeding frenzy on eBay. There's been so much growth in gold selling on eBay, that it actually had to create a special section just to accommodate the business. Everyday, the number of people who buy gold coins on eBay grows substantially.
Don't be surprised to hear some in the media sounding the horn for easing the heavy purchase of gold. There are some who are espousing the belief that the markets will turn around and gold prices will begin to drop. That seems highly unlikely given the US economic situation for which the reasons for are wide and complicated. One of the reasons why Standard & Poor's downgraded the US credit rating is because the US and its Congress showed a blindingly almost idiotic naïveté about how it's debt ceiling debate can affect markets not only in the US but around the world. The organization is seeking to teach a lesson hoping they learn not to play with markets based on politics.
Couple this situation with the fact that there is currently high employment throughout America and that unemployment among African-Americans is twice the national average; yet there is no jobs bill currently being pushed heavily in Congress and no indication that the Obama administration will alleviate this issue anytime in the near future. With that being the case, we would humbly suggest that you continue to find ways to buy gold while you can and while the price is still where it is today.
For more on how to buy gold coins and information on investment gold visit Gold Coin Buyer at
Ari B. Carlyle writes about financial markets and enjoys helping people find the best answers and solutions for safe and profitable investments.
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Sunday, 4 September 2011

Will Gold Hit $2,000 by the End of 2011? Is It a Good Time to Purchase Gold?

The events of the last weeks have been remarkable-and that's putting it mildly. A near credit default by the U.S. Government. A downgrade of the U.S. credit rating. Riots in the United Kingdom. Massive declines and advances in global equity markets. And-no surprise here-a big rise in the price of gold.
Commodities traders were slightly surprised to see the price of gold break through the $1,500 an ounce barrier in June. The rise continued: in mid-July, the price had climbed to $1,567.70 an ounce. On August 9, the price rose 2.7% to $1715.01 an ounce.
With the ongoing turmoil in global equity markets likely to continue, the price of gold is likely to endure some volatility but several analysts are predicting that gold could increase to over $2,000 by the end of 2011.
Goldman Sachs, the U.S. Investment Bank, believes the price of gold will continue to rise, forecasting gold will hit $1,860 an ounce in the next year.
"With our US economics team lowering their outlook for US economic growth, implying US real rates will remain lower for longer, and with sovereign debt issues in both the United States and Europe intensifying, we are raising our gold price forecasts," wrote the commodities analysts at Goldman Sachs.
There's been a rush to buy gold-just in the last month. From the beginning of the year until early July, investors bought 8.4 million ounces of gold. In July, investors purchased 18 million ounces.
An Interesting Correlation
In the past 30 years, every time the U.S. has raised its debt ceiling, the price of gold has risen. And the U.S. just raised its debt ceiling-it took the politicians until the 11th hour but it happened. While another increase in the U.S. debt ceiling may be a long time away, the slow progress of the U.S. economy may mean more money printing. This devalues the dollar further and sends investors into gold.
While financial issues in the United States are worrying, it would be a mistake to pick on the United States solely. Global investors are also extremely worried about Europe-specifically debt defaults in Spain and Italy. And the Chinese economy continues to overheat, meaning it's battling inflation. Just two more reasons for the price increases as investors buy gold as a hedge against inflation.
There's no way to predict the price of gold precisely and there will be several troughs and spikes over the next several months but the long-term outlook is excellent for the price-and for those who want to purchase gold.
The inability to buy gold bullion, due to the increase in price, is now a big problem in Pakistan, where couples scheduled to get married are having to delay their nuptials because the families cannot purchase gold. Traditionally, families are supposed to provide gold 'tolas' (almost half a troy ounce) as a dowry.
These couples may have to wait. It's not certain the price of gold will reach $2,000 an ounce by the end of the year but the engines driving the price of gold upwards are firing on all cylinders-as we are seeing.
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Saturday, 3 September 2011

Silver Investing - The Last Best Opportunity To Buy Silver Bullion

It is my firm opinion that every American should be buying gold and/or silver as insurance against the economic calamity that will bring the United States to its knees. Bullion is the best form of precious metals to buy, as it provides more insurance per dollar of cost than other forms of gold and silver. Long term, I believe silver will provide more economic insurance per dollar of cost than will gold. There are several reasons, which I have written about in this venue and others. Because of a couple of those reasons, the price of silver has been much more volatile than that of gold, or any other investment for that matter. To recognize the last best opportunity to buy silver bullion, macroeconomic factors affecting the United States must be understood.
The United States of America is headed for high inflationary times. Measured as it was measured before 1970, inflation in the United States is running 8% - 9% in mid 2011. This inflation is the result of a huge expansion in the money supply; over 300% on the last three years.
In addition to funding The Affordable Health Insurance legislation (better known as Obamacare), the money supply was expanded to provide funding for government stimulus and bailout programs, and to keep the yield (often referred to as interest) on government treasury bonds low. The U.S. government already spends over 40% of its tax revenue to pay interest on previously issued bonds as they mature. The borrowing needs are so high that there are not enough buyers of U.S. bonds at these low yields. There are not enough buyers at these low yields because the many of the buyers know that the increased money supply has resulted in inflation and devaluation of the U.S. dollar. To keep yields low, so that the government doesn't have to pay significantly more than 40% of tax revenues on interest, the Federal Reserve buys government bonds in the secondary market.
The Federal Reserve has no tax revenue, so it must create dollars (often referred to as printing money) to buy the bonds. The dollars the Federal Reserve creates today will push inflation higher two to three years down the road. The $600 billion of so-called QE2 that ended June 30, 2011 was the most recent example of this death-of the U.S. dollar-- spiral.
Big increases in the money supply results in inflation. To kill inflation, the money supply must be shrunk. To shrink the money supply, the U.S. government must reverse the process. It must spend significantly less than it takes in for many years. And then it must use the surplus to pay down the national debt. But that is not going to happen, because significant reductions will affect significant numbers of voters.
Inflation will push interest rates higher, and higher interest rates will stifle the fragile U.S. economy. The U.S. economy is, by far, the biggest in the world. The second and third largest economies of China and Japan depend heavily upon the U.S. When the U.S. economy goes into a tailspin, those of all other industrialized nations will follow.
Since silver is as much a high-tech industrial metal as it is a precious metal, when worldwide industrial output slows, industrial demand for silver will decrease. As the economy deteriorates, investment demand for physical silver will increase. But it is impossible to predict it this demand will offset the loss of industrial demand. And besides, it is the futures markets, controlled by the speculators that determine the short-term price of silver. On the other side of economic collapse, that will change. But for a period of weeks or months the price of silver may drop significantly. When the price moves up after that period, amidst high inflation in the U.S. and economic disaster everywhere, it will never return to anything near that price, in U.S dollars.
When the economy collapses and the government admits the country enters a depression, industrial demand for silver, and the outlook for industrial demand, will be at its lowest. And whatever investment demand is, it will only increase from that point. That period of time will be the last best chance to convert assets to silver at prices that will never again be seen in our lifetimes.
Learn how to protect yourself against the current (and impending) economic disaster with silver investing. For more information:
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Friday, 2 September 2011

Could Gold Be The Next Big Currency?

If you look at the recent discussions regarding currency we could see many problems exist. Also it could be a fact that some countries may just be printing money without any thing to back it up. For example there was a time when it was said that printed money had to be backed up by gold. But it appears that times have changed and it could be wise to carefully look at your options. Many people talk about a financial melt down, so would it be wise to look at other ways to protect your investments?
The Power Of Gold
If we look at the idea of Gold as a form of sound investment we could find that we have a stable method of ensuring that our investment is safe. For example look at how the value of money can drop when a government just prints paper money with no gold to back it up. This would lead to inflation and the value of any savings that you have could be reduced. So could this be a time to consider investing in gold.
The Value Of Gold
If we look at the many types of investments that are available currently you could find that there could be considerable risk involved in many of them. But if we look at Gold we could find a substance that does not deteriorate and could in fact be very stable as a way of investing your finances.
The Excellent Properties Of Gold
Gold is a substance that has excellent properties you will find that it does not rust like iron. It is used in the world of electronics due to the fact that gold is excellent as a conductor of electricity. Gold has been used in dental treatments due to the fact that it is safe to use in the body. It has been used as a form of jewelry for a number of years and this would seem to remain for years to come. Gold is used as a token to show that two people are joined in marriage by the giving and receiving of golden rings. So we can see that Gold has many great uses and properties.
Gold The Safe Option
So looking at all these factors perhaps this could be the time that you should now be looking at gold as a way to preserve your investments. Could Gold be the alternative that you need in order to protect your future? And is it now the time to seriously look at how gold could be a currency that could help you to find stability in a world of constant change and fluctuation?
P Raja © Aug 2011
Paresh Raja is an author and expert in the field of Jewelery, to find out how you can benefit from quality jewels go to
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Thursday, 1 September 2011

Gold - Is It the Only Safe Haven Investment Left

With the economy so sour right now, investors seem to be selling out of the market and looking for other areas which have a safe haven status right now. Gold has been a very hot commodity lately along with silver. Over the last two years goal has been dramatically increasing in price and hasn't stopped.
With the insane increase in price, many investors are left are asking has Gold now lost it safe haven status. With the housing crisis, along with falling stocks, many investors were forced to sell out of the commodities to raise cash to cover all their mortgage losses from the Lehman Brothers collapse. Many investors are heading right now, but those that have money left are looking for possible investment opportunities right now.
The latest market sell off we have witnessed here in August, gold seems to be increasing in price in and taking on its current role as a safe haven for diversification play for people that feel they need to place their money somewhere safe. But is this really the wisest thing to do right now, especially with the volatility in the markets and the grey zone in the economy right now.
We seem to be experiencing the forth longest rally in gold since 1975. This has a lot of investors out there nervous especially people holding gold for the long-term. The price of gold bullion is also doing well, due to many hedge funds hinting that these commodities will do well in the coming years back in 2008. With the risk of inflation right now, and also U.S. dollar troubles, their predictions have actually played out quite well.
Although the price of gold has done well, and we are still in the Hangover of the credit crisis of 2008, many analysts now think that Gold is in a bubble. However there are still buyers on the sideline looking to get into gold and gold will really not be in a bubble until you hear the guy shining your shoes on the street he is ready to buy gold.
No financial crisis is created equal. It seems that a lot of the gold investors right now are buying gold and holding them for the long-term. Even buying it for the kids, and also for their grandkids for and for their retirement. With the trouble surrounding the U.S. dollar right now, gold still seems to be a favourite amongst investors.
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