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Posts Tagged ‘Gold Prices’

Gold Bullion Prices Fall As Investors Sell Heavily

Tuesday, May 14th, 2013

Monday’s trading session saw something that has been the exception rather than the rule for the last few months – more investors were selling gold bullion than buying gold bullion. Yes, the gold spot price has been mostly falling or flat for the better part of the year, but how have gold bullion investments figured into the mix?

While investors have shed gold derivatives like pool accounts, exchange traded funds (ETFs) and gold futures contracts, savvy conservative investors have been stocking up on gold bullion bars and bullion coins like Canadian Maple Leafs and South African Krugerrands. The U.S. Mint has reported record sales figures all year, and the Royal Canadian Mint just announced that the numismatic division of its gold coin program was going to expand due to the increased demand. How, then, can gold bullion prices fall with so much demand for physical gold?

The answer lies in the volume of trading that is done via the physical gold bullion market as opposed to the derivatives market. Institutional investors, large banks and 401(k) managers rarely, if ever, invest in physical gold. It is too cumbersome and storage is too costly after vault and insurance charges. Instead, they purchase funds that represent gold.

The average household investor, on the other hand, prefers to keep the gold in his or her hands as a safety net in case our economy collapses. Bars and coins make American investors feel safe. Even though lots of bullion is being bought right now, the percentage of the gold market that is made up of gold bullion is small enough that outflows from derivatives markets overshadow any gains made because of physical buyers.  If this trend continues, gold could drop as low as $1200 before the institutions start to purchase again.

Gold bullion prices

Thursday, February 18th, 2010

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.

Gold Bullion Prices

Tuesday, December 22nd, 2009

Short-term bullion investors characteristically benefit from receding gold bullion prices, because they realize that our economy hasn’t recovered, nor will it recover without a major, long-term overhaul. There has been no shortage of headlines or stories that are proclaiming “economic recovery”, but the New Year has a funny way of holding a mirror to economic reality. The holidays will come and go, and with them will all of the warm wishes and holiday greetings, and our economy dear readers, will remain in some deep, hot, steamy soup. Dollar values have managed to climb into the high 70s on the Index, but this isn’t such a phenomenon when you consider the recent Dubai bailout, which is interpreted by many as yet another frail, soluble finger, in a desperately leaky financial dyke.

Gold bullion prices are currently hovering just above $1102 per troy ounce levels, and trend savvy precious metals investors are purchasing items like 22-karat, modern American Eagles, or 24-karat American Buffalos, or Canadian Maple Leafs. The value of bullion and rare coins historically moves in the opposite direction of dollar values, so many bullion investors are now also considering using today’s receded bullion prices to diversify more costly, long-term investments in rare coins like Double Eagles. $20 Lady Liberty, and $20 Saint Gaudens, 22-karat, rare gold coins are also known as Double Eagles, and these coins are proven to protect wealth throughout recessions like the one we’re presently encountering. Investors are encouraged to complete their research, and then to contact one of our friendly specialists, who offer institutional discounts on American Eagle bullion, and Double Eagle rare coin, to household investors like you.

Danny Burns

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