Be a Successful Investor in Silver Bullion and Gold Bullion

When many people think about investing in gold and silver coins, they really think about coin collecting. While coin collecting involves finding interesting and unusual coins for the abstract-business-concept_mJOwe-purpose of creating a group of great variety, investing in gold and silver is more focused on buying coins, rounds and bullion for their monetary value.
Coin Investment Categories
There are four main areas of coin and bullion investment:
1. Rare, certified U.S. coins – Focused primarily on gold coins, these are very different from bullion. Today, many investors purchase American Eagle coins or Silver Buffalo rounds, but these are not rare coins. Items such as a $2.50 gold piece dating back to 1946 are hard-to-find and certified, making them worth thousands of dollars.
2. Certified ancient coins – Expanded to include more than just the coins produced in the U.S., these ancient items can be worth thousands as well, especially for those who are interested more in the value than in collecting.
3. U.S. coins that are “key dates” – In every series of coins, there are key dates that are produced in fewer quantities and that are more difficult to find. These become even more valuable because investors look for complete sets to bring full value.
4. Bullion bars and rounds – Many different artistic and representative iterations of adored designs are now freshly created by private mints. These genuine-article bars and rounds are securely ordered directly from these locations and are a great addition to private collections.

Reasons to Invest in Gold and Silver
The values of gold and silver bullion are at a significant low, fetching 43 percent less than it did in 2011. This makes these bullion options a steal. Investors know that eventually these rock-bottom prices will take a turn upwards, adding significant value to those pieces of bullion. Many investors are taking this opportunity to buy silver bullion online or to find gold bullion to buy online. It may seem like poor timing right now, but this is actually the ideal opportunity to get into the investment game.

For those individuals who are not interested in purchasing and storing bullion, another investment opportunity is to purchase collectible coins. In fact, many people are turning to this method of investment, as evidenced by the exponential growth of coin sales since 2014.

The U.S. mint makes many collectible versions of bullion available for purchase as coins, including the American Eagle gold coins and the Silver Buffalo rounds, two of the most popular coins used for investment. Likewise, private mints are able to recreate these designs, as well as other popular options such as the Walking Liberty and the Incuse Indian rounds and bars, in a variety of sizes. The benefit of collectible coins’ value is that because only a limited quantity were created, the demand often exceeds the supply, making these coins even more valuable.

Be a Successful Investor
The true secret to any good bullion or coin investor is to be sharp and always on the lookout for good deals. It is very easy for investors, especially those who are new to the operation, to get sidetracked by the look, shine and potential value of their purchase rather than to carefully examine each and every specimen that passes their way. A truly good investor enjoys the coins and bullion, studies them in depth and is ably to quickly and accurately assess the potential value.

This is especially true for gold bullion buy online and for those who buy silver bullion online. Internet purchases are much more difficult to investigate, and it takes some patience to find the right investment overall.

The best thing that any potential bullion or coin investor can do is to not be in a rush to complete an investment collection. Giving each new piece proper time for research and investigation will help investors to find the best specimens at the best prices, and the knowledgeable and helpful staff of GoldenStateMint can provide this guidance for new investors. With over 40 years of experience in coins, bullion and bars, GoldenStateMint can lead the way through the process of purchasing its inventory.


Posted in Economy, Investment, Precious Metals, Silver Bullion, Silver Rounds | Comments Off

Precious Metals Investments

saving_08252015Today’s news makes the case for why all investors should keep at least ten percent of the portfolio in precious metals. After stock market declines this week, we reflect on how quickly the markets for stocks, bonds, and other financial assets can change. The ability to “buy low and sell high” is every investor’s dream, but averaging the cost basis of gold and silver makes long-term financial sense.

It is true that precious metals prices soar during moments of panic. People worry about China’s economy slowing down or the U.S. stock markets’ consolidating. Either of these worries should not worry anyone. China’s economy has continued to grow at a remarkable rate for years and the U.S. stock market typically rests every five years or so. A bear market is overdue.

Interest Rates and Inflation

Concerns about the yield curve, interest rates and inflation are everywhere. Investment in almost any asset benefits from low rates with the exception of income investing and inflation-sensitive investments. Central banks around the world have recently indicated that the cost of money will start to rise next month through the end of the year.
Rates will rise with inflation. Income investors and fixed income asset managers are happy. For the past few years, real returns in fixed income have been negative or negligible. Investors are rebalancing portfolios in earnest. The stock market’s “nowhere to go but up” premise is unsustainable.

None of this information is new. None of the information should inspire panic. Markets rise and fall with supply and demand. A long-term and conservative approach to investing in gold and silver, stocks, bonds, and real estate benefits investors. Over the long-term, investors’ assets tend to rise in price.

Gold Trading

An uncertain global economy tends to favor investment in gold. Gold is now up seven percent from five-year lows. Daily volume of futures contracts have approximately doubled the number of daily average. China’s currency devaluation or Greece’s possible Eurozone departure are certainly triggers. However, it’s also smart investing to buy when prices are low and the outlook for future price appreciation is high.

The Commodity Futures Trading Commission (CFTC) data, recorded since 2006, reflects the turnaround of bearish sentiment in precious metals. Short positions, or bets placed that gold’s current price will decline in future months, were covered at record rates this month. Long purchases, reflecting buyer sentiment that gold prices will rise, simultaneously increased. So-called “fast money” of hedge funds committed to these contracts shows that professional investors are bullish about a rising gold price.

Sovereign Gold Acquisitions

According to the World Gold Council, European countries’ appetite for gold increased over the past three months. In contrast, global market demand declined 12 percent to six-year lows. German buying of gold bars and coins increased by 24 percent in Q2 2015. Austria and Switzerland’s buying closely followed that of Germany.
Analysts at the World Gold Council believe that Greece’s possible Eurozone exit prompted the rise in retail investors’ acquisition of gold. The European market outpaced India’s lead position in the purchase of physical gold and coins.

Over the prior 18 months, Russia has continued to buy gold. In fact, Russia’s gold purchases are thought to represent 13 percent of sovereign reserves. Russian government has increased its gold stores by 300 percent in the past ten years.
The head of the Russian central bank announced that it will continue to buy more gold over the next few years. Analysis of the World Gold Council believe that the country views gold as an essential reserve component.

European Central Bank

Individual investors in Europe seem concerned about the European Central Bank’s money policy. The ECB’s announcement that it will begin a €1.1 trillion bond repurchase program in Q1 2016 may have stimulated the purchase of gold.
Gold is often considered as a hedge against inflation and wealth purchasing power. The ECB bond repurchase program is likely to cause the euro currency to decline against other currencies on foreign exchange markets.

Posted in Economy, Gold, Investment, Precious Metals | Comments Off

Gold’s Upward Trend Comes to an End

gold-163519_640If you’re looking forward to investing in gold, you might be pleased to know that it is set to post a weekly gain once again. However, gold fell on Friday as the dollar evened out. The price of gold had jumped on Thursday to $1,219.40 in response to attacks in Yemen. This was the highest it had been since March 2. Spot gold lightened .5% to $1,198/ounce, while U.S. gold futures for April sat at $1,199.80/ounce. The price of gold typically responds to conflict, rising in the face of strife because of its inherent stability. As of Friday gold was close to finishing the week up just over 1 percent. This has been gold’s longest positive stretch since August of 2012. There are three other reasons that the price of gold has been so high as of late. One is the uncertainty of the Federal Reserve’s monetary policy. As they move towards normalizing their monetary policy and raising interest rates, the price of gold fluctuates. If the interest rate remains low the value of gold increases. But It is anticipated that an increase in interest rate for gold might lead to less demand for investing in gold. Another reason the price of gold had been remaining high was the questionable future of the Euro because of quantitative easing of the European Central Bank. Once again people tend to plan for a future in which paper money takes a back seat to gold. Finally, the Chinese economy is encountering problems, which in turn effects the global economy, causing people to feel bullish toward the gold market. Some are still cautious over the increase in gold price, as the world’s biggest gold-backed exchange traded fund SPDR Gold Trust recorded a loss of nearly 6 tonnes to 737.24 on Thursday, the lowest level since January.

It is anticipated that with an increase in U.S. interest rates expected soon, the price of gold will continue to fall; this isn’t an unreasonable supposition since economic and financial improvements reduce the demand for gold and other “safety nets.” However, some economists argue that more than 40% of the demand for gold last year came from Asia, making United States monetary policy unimportant in the price of gold. They believe that the Asian market demand will pick up at some point this year, reflecting numbers that repeat those of last year. The process for pricing gold was forever altered on March 19. For the first time in 96 years gold prices weren’t set by a select few sitting in a quiet back room, but by an online auction that anyone could participate in. It is hard to tell what impact the process change will have in regards to the going rate of gold, but since 2011 gold prices have fallen 37%, even as those investing in gold notice the price still increasing. This seems to indicate that despite global finances, the U.S. economy is growing stronger. As this trend continues, gold’s upward trend will certainly slow down.

Posted in Gold | Comments Off