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Posts Tagged ‘How To Buy Gold Bullion’

Gold Bullion in an Iran Event

Thursday, March 29th, 2012

Gold bullion shines as a currency and store of wealth in the most dire situations because paper currencies and methods of exchange break down. When the world is topsy-turvy business as usual breaks down. While this is not something that one should actively invest in, because such situations are by their very nature completely unpredictable, it has happened several times in recent human history at least.

Most people remember stories of the Second World War and the amazing role gold played in the lives of people migrating throughout the world, Europe specifically. Crossing borders, keeping police at bay, and storing wealth while currencies defaulted and disintegrated were all accomplished with the help of gold bullion.

The reason for this is the inherent value of gold. You cannot change the fact that gold is a valuable substance no matter what is happening in the world and this makes gold one of the best investments to make at any time. We know gold is valuable now and that it will be valuable in the future. That’s why it appreciates.

Right now the USS Enterprise, America’s most renowned aircraft carrier is on its way to the Arabian Gulf, or the Persian Gulf as it is known in the rest of the world. While there has been saber rattling between the West and certain Arabian powers for some time, it does not change the fact that geopolitical instability is still a very serious concern that needs to be considered by all investors.

In the event of a major conflict between Iran and the West, whether that manifests as a simple standoff or as a full-fledged military conflict of some sort, gold will immediately skyrocket in value as a safe-haven asset. This accounts for a portion of the demand in the market. Because gold is relatively sheltered from market activities, many investors prefer to enhance and hedge their portfolio with gold because it will benefit when other investments experience difficulties.

This is the basis for a gold rise on any kind of escalation in the Middle East. Even economic and diplomatic sanctions boost the gold market because they limit other markets and increase volatility.

Exactly how the current conflict in the Middle East will play out cannot be known, but we can know that there is a conflict and that gold bullion is the best way to protect yourself and accumulate your assets at this time.

Return To Currency Sustained By Gold Bullion…Superb!!!

Tuesday, February 28th, 2012

It really isn’t that surprising that it would be China to be the most influential country on its way to returning to a currency backed by gold bullion. I mean, they have surpassed us in many other areas, too…education, exports, etc. I doubt that the fact that they are worried about the value of their dollar reserves affects the United States in any way, but it should. Nobody wants dollars! They are the real asset that does not gain anything.

Since 1978 (commencement of China’s Reform Era), the Chinese have been exporting more goods than importing which has permitted the country to hoard trillions of dollars. They have so much that it is equal to our complete monetary base totaled before the latest financial predicament. The Chinese have their own way of doing things and whether we agree or not, nobody cares. The process by which they have accumulated so many dollars is that when a Chinese business makes money by selling their goods across the seas, it is stipulated by their government that they give the earnings to the country’s central bank which is the People’s Bank of China (PBOC). They, in turn, receive the Yuan at a fixed rate.

The two countries didn’t trade much at the beginning, for example, in 1980, China’s foreign currency reserves were roughly $2.5 billion. And, now, the amount of foreign currency reserves that are stored by the Chinese government is a whopping $3.2 trillion, translating into a gain of 127,900%.

It is the State Administration of Foreign Exchange (SAFE) in China that manages those foreign reserves. They are currently in an all out currency feud with the United States. Their purpose, for the moment, is to produce a novel leading world currency and remove the US dollar from its current reserve position. But they have a very big obstacle confronting them which is how to rid themselves of all the dollars they have. So they are purchasing US government securities and, because of this, have now accrued an enormous heap of US government debt. Indeed, about two-thirds of China’s reserves continue to be invested in US Treasury bills, notes, and bonds with the next largest block in the euro. And because of the Fed’s near to zero rates, all this money is essentially earning nothing in terms of interest rates.

In reality, the Chinese are now in a jam with all their US dollars. They are very aware that if they begin selling their US government bonds, it would push their value much lower. Then they experimented with the US stock market and their result was less than worthy with the great amounts of US equities they purchased just before the market commenced its downward spiral at the end of 2007. Morgan Stanley and Blackstone Group were firms in which the Chinese went into at about 10% and they have lost 70% and 46%, respectively. The US stock market is no longer appealing to the Chinese. Inflation is now their only worry and SAFE has made it clear that they will never be a speculator again while their only function from now on will be to guard the security of China’s foreign exchange reserves and guarantee a steady investment profit.

Now that they are not buying stocks and their only apprehension is inflation, how will they hedge that risk? Their answer is to dive into the gold market and take over. And with this action they are on their way to accruing massive amounts of gold that in the near future, they will have enough to re-establish the convertibility of their currency into a precious metal. They were on a silver standard in the early 1900s.

Things were different back then. They weren’t as respected as they are now. They are presently growing at an accelerated speed and are also in possession of the biggest cash reserves in the world. So it only corresponds that they will also have a currency sustained by the safest and most secure asset, gold. China would very much like to be one of the world’s most transcendent nations along with having the greatest currency as their own.

Today’s central banks rely on the printing press which is why China stands out amongst them because their way of achieving greatness will be by backing its currency with something much better than forsaken pledges. The Chinese know the power of gold bullion…do you?

How To Buy Gold Bullion

Thursday, July 16th, 2009

Gold bullion investments are widely known for their effectiveness as short-term profit vehicles, but their lesser-known benefit as a long-term security hedges, may change the way investors think about how to buy gold bullion. There are a great many investors in this country, who have taken a merciless beating, with so-called “traditional” investments in stocks and bonds. Traditional IRA’s have lost over $3 Trillion since 2001, and more and more investors have been converting their remaining retirement dollars into precious metal-backed IRA’s. The U.S. government approves the following gold bullion items for IRA storage:

24-Karat Bullion Bars: Reputable brand names include Johnson Matthey, Credit Suisse, PAMP Suisse, and Engelhard.

22-Karat Bullion Coins: American Eagles—These beautiful coins are near replicas of the famed, $20 Saint Gaudens, 22-Karat gold coin, minted from 1907 to 1933. They are also available as proofs, and as Ultra-High proof coins.

24-Karat Bullion Coins: American Buffalos, Canadian Maple Leafs, Australian Kangaroos, Koalas, and Lunar Coins, and Chinese Pandas.

All of these coins also come in varying denominations of 1-ounce, ½-ounce, ¼-ounce, and 1/10-ounces, to accommodate a wide range of investment budgets. Bullion coins also make superb items for physical possession, as their exquisite details are truly an artistic marvel to behold, and their liquidity provides added financial independence, for investors who are experienced in how to buy gold bullion. Those who are inexperienced in how to buy gold bullion are encouraged to complete their investment research, and then to contact a reputable, large-volume gold dealer. These dealers are experienced in assisting household investors with their specific, financial needs, and also offer institutional discounts on bullion bars and rare coins.

Danny Burns

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