Cash for Gold Is It a Wise Decision?

July 21, 2011 By

The price of gold has touched record heights, so people are looking at the cash for gold to make some money out of their old fashioned and broken gold jewelry. Cash for gold has become more popular than buying gold. However, it is now common knowledge that a number of the cash for gold companies are fraudulent and use misleading methods to cheat customers.

Despite the awareness about their shady dealings, cash for gold companies continue to be in business because people must have some way of selling gold jewelry. You have better wise up to how these cash for gold schemes work.  The best known of these companies is Cash4Gold which boasts over a million daily transactions.  Your gold has to be mailed to the company in a special package and they will send you a check.  Too good to be true!

In most cases, the cash for gold companies safely assume that the person selling gold has not knowledge about the precious metal.  The gold is often undervalued and the weight is misreported.  When you are selling gold make sure that each piece is weighed separately.

But why are you thinking of selling gold.  Do you want to take your investment into something less volatile? Then you will be defeating your purpose by putting what you got from selling gold into US dollars, Euros or even the Pound.

If you want to sell gold, go ahead.  The gold you have has tripled in value in the last five years.  So you should either invest it in a new business or go on a fabulous holiday.  But don’t even think of reinvesting into the money markets or into bonds.  That would be a bad buy. Paper money is losing its purchasing power very fast.

So make sure that you get paid the right amount when you sell your gold jewelry. Just like in the cash for gold schemes, if you go to a to a pawn shop or a scrap dealer with your gold you will not get the full value.

Filed Under: Investing Tagged With:

Will the Price of Gold Hold or Fall?

July 20, 2011 By

Early this week, the price of gold touched $1610 per ounce and then dropped to $1601. Analysts said that the need for safety had reduced and investors were venturing into the stock markets If the European and the US debt crisis can be resolved; it would set the minds at rest and bring down the price of gold.

One reason why there is more confidence in the stock markets is because many of the blue chip companies such as Coca Cola and IBM have declared good Q3 results.  Another reason for hope is that there might be a solution in sight for the US debt, as President Obama has okayed a deficit reduction plan.

The price of gold has been surging recently and analysts say that the price of gold declines slightly after a big increase.   Market watchers warn that just as concerns over the European and US debt crisis pushed up the price of gold: the price of gold will dip once these issues are addressed.

Last week, Barclay’s raised its forecast of the price of gold saying that the gold prices would go up because of the European debt crisis and the fear of inflation.  But Barclays also cautioned investors that silver and gold prices were likely to go into correction if the debt problems are resolved.

As of now the price of gold has soared over what was estimated by Barclay’s.  The gold prices have been going up in both the dollar and the euro as most investors feel that the debt troubles may not be solved.    Debt issues are also rising up in other countries as is shown by the recent downgrade of Italy’s debt by Moody’s.

Analysts feel that most of the measures taken so far were not effective and the real problems have been shelved.  As long as there is no real solution to these issues, the price of gold will continue to go up.

Filed Under: Investing Tagged With:

When to Buy Gold and When to Sell Gold

July 13, 2011 By

You really have to know when to buy gold and when to sell gold to make money in this market. There are many factors which influence the fluctuations in gold prices which in turn will motivate you to either buy gold or sell gold. The gold prices become volatile when major gold mining companies go in for hedging their gross sale of the yellow metal against future loss.  Many of the companies suddenly increase their buying substantially and also start aggressively promoting retail sale.

You must understand that gold is not like other commodities.  Not only is it the most precious metal, owning gold is also aspiration.  Most of the gold is stored in bank vaults.  Many countries peg their currency to the gold bullion they own.  In the past 20 years or so, there has been a lot of fluctuations in the gold prices, as more people buy gold than sell gold.

Gold prices fluctuate according to the value of the dollar.  In reality the value of gold has remained the same over the last so many years, but the value of the currency has changed.  So you end up paying more when you buy gold and get much less when you sell.

One of the main reasons why people buy gold is bulwark to their assets.  Gold is considered sound and safe investment and you if you require funding urgently, you can always sell gold.

Before you buy gold or sell gold you should study the market’s seasonality.  Most commodities, including gold have a season.  For instance, demand for gold goes down in summer and this is seen by many investors as the time to buy gold.  Winter is seen as a high season when the demand for gold is higher.

There is no time like the present to buy gold.  If you invest a small amount every month into bullion then you can safeguard yourself against inflation in the future.

Filed Under: Investing Tagged With: ,

Why You Should Invest Money to Buy Silver

July 13, 2011 By

Many analysts believe that this is the right time to buy silver as this precious metal is grossly undervalued.  Experts concur on the opinion that the prices of precious metals such as silver and gold are going to shoot up.

There are some economic indicators which will help you decide whether you want to buy silver or not. One of the factors which are likely to inflate the price of silver is the Quantitative Easing program by the US Government.  Under this program a large amount of money has been printed, which has resulted in inflation and has also driven investors to safe havens of investing such as silver and gold.

Another reason why investors should buy silver now is that the Euro is taking with a beating with the huge bailouts given to Greece, Portugal, and Ireland to stop them from defaulting on their obligations.  This would also increase the price of silver.

Silver is in demand for industrial use. Of late, it is also being used by the electronics sector.  In most cases, it is not economical to salvage this silver. Since only a small quantity of silver is made into bullion; when people start to buy silver, the prices are likely to shoot up. There are a lot of Chinese investments coming into silver; analysts say that this strategy has the support of the Chinese government.

Another theory says that the silver price has been artificially depressed to prop up the US dollar.  But this practice is not likely to continue as the resources are depleting.  The public are also likely to call for an end to major banks selling short.

The price of silver has not increased along with inflation.  If it had, the silver prices would have been higher. However, all economic indicators point towards the price of silver going up.  So it’s the best time for you to buy silver.

Filed Under: Investing Tagged With:

Aid Plan for Greece Cause Gold Prices to Decline

July 2, 2011 By

Gold prices decreased as the attractiveness of the precious metal was reduced due to lower oil prices and a promise of EU leaders to prevent a default by Greece on its debt. The recent drop in the price of gold is its largest weekly decline in the past seven weeks.

A decrease of 0.3 percent was noted in gold prices which have decreased to around $1,498.15 per ounce. The price of gold has dropped by 2.4 percent since a week ago, which is the largest decrease since May 6th. Gold prices for delivery in August remained basically unmoved at around $1,500.50 per ounce.

According to a senior trader of a financial institution in Seoul, the price of gold has been decreasing due to the continued increase in the value of the dollar. The rescue plan for Greece also contributed to the recent decline in gold prices.

The recent promise of leaders of the EU prevented the default of Greece on the condition that a budget cut package is implemented by the prime minister of Greece. This has contributed to the decline in the price of gold.

The value of the dollar has strengthened by 0.3 percent against six major currencies which influenced gold prices. This increase capped a three-week rise of the dollar which has decreased the appeal of precious metals and affected the price of gold. Crude oil prices have also decreased by 0.7 percent, which is the fourth consecutive week of its decline.

Gold prices have gone up by 5.6 percent for 2011 and prior to the recent decline, the price of gold went up by 0.2 percent to around $1,506.28. Some observers may indicate that gold prices have experienced a correction and since the price of gold is at the lower limit of the range, it is possible for a recovery to occur. Interest in the precious metal also increases once gold prices are low.

The price of gold reached its highest level of $1,577.57 last May 2 following the debt crisis in Greece and low-level cost of borrowing at the US. Along with the decrease in gold prices, silver prices also declined by 1.3 percent, its fourth consecutive decline. Platinum and palladium also went down by 0.8 percent and 1 percent respectively along with the price of gold.

Filed Under: Investing Tagged With: ,

Increased Demand Risk Affects Price of Gold

June 30, 2011 By

As the demand risk among investors increased, the price of gold have weakened even as the dollar devalued following the positive result at the Greek parliament for the austerity measures of the government. Gold prices are expected to increase for the eleventh straight quarter.

Concerns on the debt problems in Greece have been advantageous to the price of gold recently as the economy of Europe would be affected if Greece defaulted on its debt. Gold prices will likely achieve a 5.5 percent increase for the quarter as compared to a 4.8 percent decrease in the price of oil.

Spot gold prices declined by 0.3 percent after an increase in two previous sessions while the price of gold in the US decreased by 0.11 percent. An analyst indicated that gold prices are expected to consolidate as the summer season starts. The current situation in Europe is also expected to influence the price of gold in the near future.

As the dollar weakened compared to a number of currencies, gold prices were expected to go up although it may be possible for the inverse relation of the price of gold with the dollar to be affected at times.

The safe haven appeal of gold is expected to remain following the crisis in Greece although gold prices may stay within a certain range for a while due to the absence of speculation in the market. The second quarter of 2011 has seen the acquisition of gold as noted in the movement in the ETF, which has influenced the price of gold.

Over two million gold ounces went through major ETFS from March to June, which has influenced gold prices although it was a bit lower than the movement for the first quarter of 2011. While the price of gold declined slightly silver prices remained unmoved at around $34 per ounce.

Spot prices of palladium also increased, as gold prices declined, as it went up by 1.1 percent. However it is expected to lose for the second month in a row. On the other hand, palladium remained as the worst performer for the year as it declined by over five percent to this point. Platinum was also lower by around 0.4 percent along with the current price of gold as it reached its lowest level in three months during the week.

Filed Under: Investing Tagged With: ,

The Canadian Mint Released the Wedding Celebrations Gold Coin

June 29, 2011 By

The Canadian Mint is coming out with a 22-karat gold coin to commemorate the state visit of the Duke and Duchess of Cambridge. The shipping of the Canadian commemorative coin will start on July 21.

The wedding celebrations gold coin from the Canadian mint will not just be a piece of art it will be a part of history too.  The 2-karat gold coin will have a sapphire colored Swarovski crystal set in it.  This sapphire setting is similar to the engagement ring worn by the Duchess.

The 22-karat gold coin has been approved by Queen Elizabeth and Prince William.

Canada is first on the list of the overseas tours the Royal couple will take.  The visit is scheduled to take place between June 30 and July 8.  This trip is likely to attract a lot of media attention and the wedding celebrations gold coin will be just the thing to remember the fairytale Royal wedding.

Prince William and Kate Middleton met at college in Scotland and have dated through the four years at St Andrews.  It was a foregone conclusion that the pair would eventually marry and they did in April, this year. The whole world tuned in to watch making it one of the most watched celebrity events in the recent times.

The 22-karat gold coin has a face value of $200 and the worldwide mintage is limited to 2000 coins. The coin will contain 91.67 per cent gold and 8.33 per cent of silver.

This coin is quite a piece of art by the Canadian Mint and the reverse side of the coin is designed by Laurie McGaw while Susanna Blunt has done the obverse side. The gold coin portrays the Duke and Duchess of Cambridge with a Tudor rose and maple leaves edging the design.

The Canadian Mint has also had specially designed, maroon colored, clamshell cases to present the wedding celebration gold coin in.

Filed Under: Investing Tagged With: , ,

Report Indicates Increase in Gold Prices

June 29, 2011 By

Price of gold has increased for two days in a row as optimism increased on a resolution to the debt problems of Greece. Even though the price of gold goes down when share prices increased but the weakening of the dollar against the euro allowed gold prices to increase.

Following the start of voting, the euro increased against the dollar as a Greek opposition member indicated that she would vote in favor of the austerity plan which boosted the price of gold.

Spot gold prices increased by 0.5 percent as it reached $1,508.51 per ounce after peaking at $1,509.96 during the day. The price of gold at the COMEX has also increased by 0.6 percent at $1,509.20 per ounce.

An analyst indicated that even though gold prices increased recently, the reaction to the result of the vote by the price of gold should not be a too strong.

The recent activity at the market was weak due to the low demand during this season and the absence of factors that would have a bigger effect on the price of gold. An analyst from Barclays Capital indicated that even as reasons in acquiring gold are present, they are still not strong enough.

Gold prices have not gone low enough to motivate a noteworthy acquisition from the emerging market as well as safe haven buyers. Recent information has indicated that worldwide ETF bullion holdings have increased as investors were acquiring gold.

Observers have indicated that gold prices may increase despite the recent uncertainty in the market. This comes as interest rates remain low in the US and the fiscal situation in Europe remains doubtful, which may affect the price of gold.

While gold prices remained above the $1,500 mark, platinum and palladium prices also increased. The increase in palladium prices comes amid apprehension on the South African power supply, which is the top platinum producer in the world. This situation may affect the price of gold.

Filed Under: Investing Tagged With: ,

Silver Coins Sales Up Despite Rise in Silver Price Per Ounce

June 29, 2011 By

Sales of silver coins at the Australian Perth Mint, has skyrocketed to record levels as people continue to invest heavily in precious metals.  With the silver price per ounce still being affordable to the common man, the poor man’s gold is set to go places.

With the sales of 1 ounce gold coins touching record levels, the 1-ounce silver coins are not to be outdone, with the Perth Mint selling  1-ounce silver coins to the tune of 10.7 million, which was 66% sales up from the previous year’s sales and a whopping ten times more than from five years ago.

A deepening European sovereign-debt crisis and excessive printing of US dollars by the US Federal Reserve Bank ,  paper currencies are being greatly devalued and that has caused a tremendous spurt in the sales of precious metals.

The mint observed that the buyers ordering the mint’s products were mostly new investors from Europe and America. Investors from Greece are pulling out their investments away from cash deposits to invest in gold coins. The trend is reflected in the enhanced sales of bars as well as coins by the Perth Mint to European countries.

The new silver coin press commissioned last April by the Perth mint, and the new online service introduced to make gold and silver available to Australians have been greatly successful.

Silver sales have caught on in the US too with the American Eagle silver coins touching 3.65 million during May, up 30%, the total sales for the year this far being 18.9 million ounces.  Even as silver price per ounce continues to rise smartly, there seems to be no dearth in the sales of silver coins worldwide, indicating shifting trends in investments, are towards precious metals.

Filed Under: Investing Tagged With: ,

Some Valid Reasons Why People Should Still Buy Gold

June 29, 2011 By

The dramatic rise of gold prices have baffled and confused many people and many think twice before they plan to buy gold, as it no longer seems to be a profitable option. However, several reasons still point to the fact that the prices of gold would continue to rise by leaps and bounds and people who buy gold would certainly reap profits.

A weakening dollar has only strengthened the price of gold and people who think that the inherent value of all paper currency is naught, have always thought it wise to invest in more tangible assets like gold. Another reason why the precious metal will appreciate in value is the slow production of gold, with a major gold producer, South Africa showing signs of declining gold production. South Africa which produced 1,000 tonnes of gold in 1970 produced below 200 tonnes last year. The US which is the second largest producer of gold showed decline in gold production for 11 consecutive years. China which is now the largest gold producer, mines its gold as a byproduct of mining other metals and the trend is unreliable.

The large reserves of gold are difficult to mine because of unfavorable geological and metallurgical conditions. These are enough reasons why people should continue to buy gold for investment. The prices of gold are not likely to reduce; rather here are some more reasons to assume that gold will continue to climb. Gold production will continue to be slow in the coming years as the few large existing gold mines will not commence any mining operations until the next five years. Any Greenfield projects are not likely to commence soon as gold mines take long to set up and as of today, the cost of setting up has increased dramatically.

Most Central Banks which sold gold between 1996 and 2009 are now buying up gold to increase their reserves and this helps the price hike. Slow production and as Central Banks continue to buy gold, demand will outstrip supply. The dramatic rise in incomes in India and China has had a marked effect on gold sales as consumers in these countries continued to buy gold up to 60% of global gold production.

Gold has outstripped every currency in value greatly undermining the credibility of paper currencies and what better reason does an investor need to buy gold, as the price of gold is predicted to touch an all time high of $5000 per ounce.

Filed Under: Investing Tagged With:
« Older Posts
Newer Posts »