Last week gold went one way and stocks the other way, contrasting moves that are not unusual. Whenever there is a major financial crisis, gold and stocks go opposite ways. We see gold prices going up and stock prices going down. Last week’s scenario fueled by the worsening Greek crisis had gold prices soaring to their highest level since December 2009 and their closest to the all-time high posted in December 2009. Stocks on the other hand plunged to their worst decline since March 2009 and their steepest one-week drop since October 2008.

How did this scenario happen? Perhaps, a more apt question to ask is why did this scenario happen?

Traditional mediums of investment like stocks and bonds and other paper investments are vulnerable and are easily threatened in an adverse economic situation. Investors wisely shy away from them under the circumstances to seek out safe and more reliable haven for their investments – an investment haven that can shield their funds from getting depleted and devalued. This explains why last week’s scenario came about. Investors moved their funds away from stocks and placed them on gold, the traditional refuge for threatened funds.

But gold does not only hedge investments against inflation. It does a lot more. It opens to an investor an opportunity for profit. Gold therefore serves a dual purpose – it not only preserves the value of invested funds and, more than preserving their value, increases their value.

The funds transferred last week from stocks and placed on gold not only avoided a value drop as staggering as 1,000 points but also earned for an investor as much as $13 an ounce of gold. Protection and profit are twin benefits an investment gets from gold.

Steve Kickner

Search the internet for “Purchase Gold”, “Gold Bullion Deals” or any other combination of keywords and a gambit of websites and forums will come up. Many discount gold “brokers” offer “deep discounts” on gold bullion, have professional looking websites, 800 numbers and use professional sounding terminology, but are their Gold deals for real?

Many Gold Bullion swashbucklers, claim to be working on behalf of a client, “who has a substantial amount of Gold Bullion they are looking to liquidate”. It is not uncommon to hear numbers as high or higher than 10,000 MT’s (metric tonnes) of gold. The U.S. Federal Reserve presently holds about 8,000 MT’s.

The most Popular Schemes on the internet today:

• High Interest Yield Investments- HYIPs are usually just Pyramid Schemes dressed up with no real value underneath. Using gold in their prospectus makes them seem more solid and trustworthy.
• Advanced Fee Fraud – Various emails circulate on the Internet for buyers or sellers. Often using mythical terms like ‘Swiss Procedure’ or ‘FCO’ (Full Corporate Offer). The end-game of these scams is unknown, but they probably just attempt to extract a small ‘validation’ sum out of the innocent buyer/seller from their hope of getting the big deal.
• Gold dust sellers – This scam persuades an investor there is real gold with a trial quantity, then eventually delivers brass filings or similar.
• Counterfeit Gold Coins
• Shares in fraudulent mining companies with no gold reserves, or potential of finding gold, as per the saying, attributed to Mark Twain, “A gold mine is a hole in the ground with a liar on top.”

It is advisable to research a supplier before investing in Gold Bullion.

Steve Kickner

Gold bullion’s appeal strengthens as the U.K. and U.S. have moved closer to losing their AAA credit rating. According to Moody’s Investor Service the cost of servicing debt is the primary concern that could lead to the detraining credit rating for the world’s largest economy. According to Pierre Caileteau, managing director of sovereign risk at Moody’s in London, under the ratings company’s so-called baseline scenario, the U.S. will spend more on debt service as a percentage of revenue this year than any other top-rated country except the U.K., and will be the biggest spender from 2011 to 2013

In a telephone interview with Bloomberg.com, Cailleteau said “We expect the situation to further deteriorate in terms of the key ratings metrics before they start stabilizing, this story is not going to stop at the end of the year. There is inertia in the deterioration of credit metrics.”

According to Moody’s adverse scenario, which assumes 0.5 percent lower growth each year, the U.S. will be paying about 15 percent of revenue in interest payments, more than the 14 percent limit that would lead to a downgrade to AA.

Many investors are considering a position in gold and silver coins as a hedge against the falling dollar and to have a hard currency available in the safety deposit box; not to mention the potential for appreciation.

Investors looking to reduce their risk exposure are encouraged to contact one of our friendly specialists, to get a better understanding of how to best utilize gold bullion in their portfolio.

Steve Kickner

This web-logger has come to the conclusion that no matter where the current gold spot price resides, there will always be those “never say aye” killjoys who proclaim that the gold bullion market will soon to return to below $400 levels, or lower. Reality is an entirely different animal, and nation’s central banks will always need an ample supply of gold, to bolster their financial leverage in the global market. Presently, the gold spot price (which represents the cost of one troy-ounce of pure gold) is at $1114.10 per troy-ounce, after being down as low as below the $1060 mark less than a month ago.

Experienced investors know that the gold bullion market historically picks up steam when whole nation’s economies become overextended, and hard assets are required to represent actual wealth, when printed (or fiat) currencies struggle to maintain their buying power. When nation’s central banks purchase enormous quantities from the IMF (International Monetary Fund), these gargantuan buys historically tend to stimulate the gold spot price, as a greater perceived need is seen in the market, and the gold spot price typically rises as a result.

The United States and Europe were hoping for a boost in the global gold bullion market from India, since the IMF has 191.3 tons of gold bullion for sale, and India was considered to be a likely buyer. India is the world’s largest gold bullion consumer, but India has just raised her gold and silver import taxes by 50%, so India may only purchase 28-32 tons of bullion, according to Suresh Hundia, President of the Bombay Bullion Association.

Investors who complete their research, are encouraged to contact one of our friendly specialists, who offer expert consultation on precious metals investing, as well as institutional discounts on bullion, and certified rare gold coins.

Jonathan Monroe

Experienced investors know that when the price of gold bullion falls, it is usually a minor fluctuation that is brought on by profit taking from bullion sellers, as well as from possible gains by our U.S. dollar on the Index. Gold prices and dollar values historically move in opposite directions, but the dollar is presently competing with a comparably hemorrhaging euro, and not really gaining strength on its’ own merit. Greece’s fledgling economy is weighing down the euro, so investors shouldn’t place too much emphasis on the greenback’s reaching 81.2 on the Index today.

The gold spot price was $1114.40 at around noon EST, so even though mainstream media headlines may read that gold bullion falls, investors must maintain an objective perspective over economic developments, and decide for themselves where financial safety is optimal. Just last week, the gold spot price was below $1100 per troy-ounce levels, yet our Federal Reserve has yet to implement any notable action toward real economic recovery. Their latest strategy is to raise overnight lending rates between banks by .25% by the third quarter of this year, but such a measure will hardly mark the advent of a US economic turnaround.

Short-term profit seekers also know that when gold bullion falls, it is also an opportunity to capitalize on potential rebounds that the spot price invariably makes. 15 of 22 analysts surveyed at Bloomberg project gold to hit $1300 by year-end, so prospective bullion buyers are encouraged to thoroughly review their research.

Investors can also avoid paying outrageous retail prices for their bullion bars and coins by contacting one of our friendly specialists, who offer institutional discounts on these, and other precious metal items to household investors like you.

Jonathan Monroe

The manner in which an investor stores his or her gold bullion is a matter of personal preference, but experienced investors recommend keeping a comfortable portion of bullion within your own physical reach. In a real emergency, cold hard bullion is an invaluable resource, as well as genuine independence from banks and the government. Bullion bars and coins don’t occupy much space, so holders should use a small safe, gun case, or other secure designation for their gold bullion storage.

Some individuals aren’t comfortable with the notion of personally storing their gold bullion bars and coins, and use safety deposit boxes. This type of gold bullion storage is quite common, and depositors have thirty days to retrieve their gold bullion storage in the event of a bank closure. Still, it is wise to have at least a small amount of bullion within arm’s reach, as well as two or three locations designated for liquidating the bullion, if need be. If the investor does need to suddenly liquidate his or her metal, they should be abreast of the current gold price, as bullion prices are slightly higher than the ever-fluctuating spot price.

Investors who use IRAs for their gold bullion storage often have their bullion holdings secured at Wilmington Trust in Delaware, which is used by both Sterling Trust, and Gold Star, who are the two government-approved precious metal IRA custodians.

Prospective buyers can avoid paying mind-bending retail prices for their bullion bars and coins by contacting one of our friendly specialists, who offer institutional discounts on these, and many other items to household investors like you.

Jonathan Monroe

The IMF (International Monetary Foundation) still has 191.3 tonnes of gold bullion for sale, and is still waiting for formidable gold bullion buyers. The remaining gold equates to about 5% of the annual global demand for the metal, and many have wrongfully anticipated that China would buy up at least a large portion of that sum. Those assumptions were apparently closer to wishful thinking, as China has opted in recent years to also purchase gold from her own domestic producers, rather than from the IMF. By doing so, China has managed to almost double her gold reserves over the past six years, and currently holds 1,054 tonnes of bullion.

The immediate shortage of IMF gold bullion buyers has reflected in a 0.3% increase for the U.S. dollar on the Index today, bringing it up to 80.75. Experts believe that if China bought IMF bullion now, it would reflect negatively on dollar values, which is why despite enjoying a thriving economy, China won’t likely be one of the IMF’s needed gold bullion buyers, since she already owns so much U.S. debt.

Gold investors are eagerly awaiting this Thursday’s testimony by Federal Reserve Chairman, Ben Bernanke before Congress. Bernanke will be speaking about our government’s monetary policies, which could likely act as a strong influence on both gold spot prices, and dollar values. The gold spot price moves oppositely to dollar values, and many anticipate the Fed’s announcement to finally begin raising interest rates. Higher rates historically mean lower dollar values, which bullion investors hope will equate to a rising gold spot price.

Jonathan Monroe

For the benefit of those who whish to either buy or sell, the following is a brief overview on the safest means of shipping gold bullion.

For discrete, insured delivery of gold bullion, it is recommended to transport your precious metal via Registered Mail (not certified mail) with the United States Postal Service. The USPS insures each individual package for up to $25 thousand, and is used by reputable precious metals exchanges nationwide. Registered Mail is a priority service which usually takes two to five days for delivery, and each package receives its’ own tracking numbers, so individuals can effectively monitor the whereabouts of their shipment. However, registered mail packages that do not have priority service attached may take up to 15 days to reach their respective destinations. Private parcel services like Federal Express, and UPS aren’t insured for bullion or coin transport, so shipping gold bullion through these delivery services isn’t recommended.

Investors who are purchasing gold bullion from a reputable precious metals exchange receive their USPS tracking numbers the day their metal is shipped, and take delivery of their package within the aforementioned time frame. Those who are selling their bullion are advised to securely package their bars and/or coins with bubble wrap or the like, and to use only non-glossed tape to seal their box. The Postal Service uses ink-stamped cancellation marks on their registered packages, so paper-packaging tape is recommended so as not to distort these official markings.

Those with questions on shipping gold bullion are encouraged to contact one of our friendly specialists, who not only offer expert consultation on gold investing, but who also offer institutional discounts on bullion bars and coins to household investors like you.

Jonathan Monroe

Gold bullion prices escalated dramatically on Tuesday morning as the dollar index suffered its first major blow of the year against the euro. While a large percentage of economists felt that gold bullion prices would drop until the end of February, the latest surge in gold prices is strong evidence that profit-taking has subsided for the moment.

As of 4:45pm EST on Tuesday, gold had climbed $18.50 to a per-ounce price of $1119. MarketWatch reported that this drastic change was largely due to dollar devaluation, and other news outlets reported that markets profited from new bullish projections on gold coming forth from the analyst teams at Bank of America Merrill Lynch as well as Suisse America. Gold is looking to stabilize for the first quarter between $1150-$1175 per ounce, and experts and technical traders believe that gold’s all-time high of $1226 (which was reached for the first time in December 2009) could be surpassed before summer is over.

The news isn’t all sunny, however, because the Dow and Nasdaq indexes’ early gains were soon replaced by substantial losses for the day. Additionally, the latest housing market news shows that more consumers are walking away from underwater mortgages and this is increasing the number of “ghost neighborhoods,” squatters, and crime. Continued trouble in the real estate market is expected for 2010 and 2011, and the government’s attempts at reviving this slumbering market have largely been unsuccessful thus far.

The lack of parity between our markets is why so many have diversified into gold bullion and other forms of precious metal investments, and you can always track gold bullion prices and trends directly at Gold-Bullion.org.

Simply by landing on this blog, it is fair to say that you have heard how well gold bullion has done since 2001. Yes, the 300%+ return over the past nine years, and the 24% performance of the yellow metal in 2009, has been talked about, written about, and blogged about to death by economists, market experts, and pundits for the last decade. Yet, even though the general consensus is that it is good to own some gold, most “experts” have avoided giving advice on what to do with your gold once you buy it. It seems to me like this is rather important, since 60-75% of investors are buying gold bullion in the current cycle for the first time (not including jewelry purchases or gold that came as part of an appliance).

There are two main schools of thought on what to do as far as possession of gold. Some individuals believe that gold bullion storage is the most appropriate way to conduct your investing, while others say that holding the gold bullion yourself is the only way to go. The truth is, both of the opinions CAN be correct, it just depends on what your goals are for your gold bullion investing.

If you are using technical trading to play the gold market, or if you plan on making a very large volume purchase that you plan to sell within a short period of time (due to the fact that you foresee a major jump within a relatively short time frame), then gold bullion storage may be the best option. Shipping can sometimes take days or weeks, it can be cumbersome (and dangerous) to hold all that gold by yourself with no long-term storage plan, and when you do plan to sell you want to complete the transaction immediately; this is impossible is you have to box, insure, and ship your gold to the dealer.

If your plan is to hold onto the gold for a longer period of time, or if you are concerned about needing your gold during a national financial emergency (namely, the collapse of the dollar), then you definitely want to take physical delivery of your metals. The best way to store gold privately is in a home fire-safe or a safety deposit box at your nearby bank. Even if the bank or the FDIC fails, your gold is safe. Stay in touch with Gold-Bullion.org to learn more about the recent slew of bank failures and how this situation could affect gold bullion prices in 2010.

Jonathan Monroe