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Archive for February, 2010

When Is It The Best Time To Buy Gold?

February 24th, 2010 1 comment

When should you buy gold? Well, the short answer is ‘now’. When you understand how and why to buy gold, you can begin to buy it.

One of the beauties of gold is the fact that you can buy it whenever you need it. Unlike stocks and other investments, you can buy gold whenever you need it, timing is never an issue.

Ask yourself “Do I believe that I need to own gold?”, if you answer ‘yes’ then there is no reason to delay buying gold. Every day that you wait you are holding off on diversifying your portfolio. Economic crisis could come swiftly, wipe out your assets, and then you would be kicking yourself for not making the gold purchase you were thinking about.

Waiting to need to buy gold is poor strategy. There was a rush to buy gold during last year’s economic downturn, national mints could not keep up with public demand, and premiums went through the roof.

Gold can be almost impossible to buy when it is in high demand. During these times, you cannot just call a gold warehouse and place an order for gold. Even national mints cannot keep up with gold when their is a rush of demand like the ones in 2008 and early 2009.

In fact, Times Online posted an article in February discussed buying gold during a recession.

Even people who collect numismatic (high quality and rare coins) gold will have a hard time buying during these rushes to buy gold. Great demand can make people hold tight to their personal stores of gold. In some cases, the supply of gold can just simply disappear.

That’s why the best time to buy gold is now, global markets are still in an economic downturn, but the increased demand for gold has subsided. Gold will be easier to buy and at a lower premium than it has been recently.

Gold And Silver: Safe Haven Investments

February 19th, 2010 1 comment

A lot of people wonder how they can protect their wealth. Super rich and ultra wealthy individuals have been doing it for centuries – investing in HARD ASSETS like gold and silver bullion. This short YouTube video is an expert interview by Exponential Growth Strategist Dr Marc Dussault and Peter August, CEO of The Australian Bullion Company. It’s only 4 minutes long, but reveals what high net worth individuals are doing right now.

Video transcript: Gold and Silver Safe Haven Investments

Hi, I’m Dr Marc Dussault and I’m here with Peter August, Managing Director of Australian Bullion Company.  And as you can see I have a blackberry mobile phone and I have some gold and silver bullion coins and some bars as small as this over here, 20 ounce, 10 ounce, I have a 1 kilo here and a 5 kilo which as you can see is quite heavy.

It has a good feel to it.

I know, I just love doing that and I’m sure you can hear that on the video.  Peter, really in the next 60 to 90 seconds…

Sure.

Why would someone invest in gold or silver bullion compared to the stock market or property market?

Safety, safety, safety; okay, you’ve got the ultimate safety, the ultimate safe haven investments here.

Because it’s physical, because you can touch it, you can go to your safe and take a look at your coins and your bars and you know…

You know how much you’ve got in value.

Yeah. Read more…

Gold Price And Valuation

February 9th, 2010 1 comment

A lot of people wonder “Why is the price of gold high and how is the value determined?” This short YouTube video answers this and other interesting investment questions. It’s an expert interview by Exponential Growth Strategist Dr Marc Dussault and Peter August, CEO of The Australian Bullion Company.

VIDEO TRANSCRIPT: GOLD PRICE AND VALUATION

Hi, I’m Dr Marc Dussault and as you can see its November, it’s 2009 and I’m here with Peter August, Managing Director of the Australian Bullion Company.  And I wanted us to take some time today to explain something that for you is self-evident but for other people out there who are considering gold as an investment what they might not know is that these are actually gold bars and we have 105 ounces of gold right here, which by the way in today’s price is worth how much?

Over 120 thousand.

Over $120,000, so it’s a great compact way to invest.  Now one of the things that we’ve all done as a kid, and Peter you remember your days back when you were a child and you started investing in coins and collecting coins.

Yes.

There’s this thing called the numismatic value of coins.

Sure.

Can you explain what that really big word is for people.

Yeah, absolutely.

Cause I have a coin here, and I have another coin here; so what’s the difference between this one and that one, other than the size?

Sure.  Okay; this particular coin Marc is a 1 ounce gold coin.

Okay.

It’s 4 nines pure so that’s 99.99% pure, and it is bought and sold on it’s intrinsic gold value.

Yeah.  So you’re buying it because it’s 1 ounce?

That’s correct.

Okay.

Now this…

And this by the way is a 1 ounce gold bar.

That’s correct. Read more…

Why Gold Is A Smart Investment

February 3rd, 2010 No comments

Investors who are new to gold will surely feel the thrill of seeing and holding their first stock of physical gold. Valuable coins and bars have a beauty and lure that that has dazzled monarchs and common folk alike.

Like any commodity, the value of gold rises with demand and falls with supply. But, unlike other commodities, there is a limed supply of gold, you can’t just make more of it. Yes, more can be mined, but not at the rate that it is demanded. And, there is a virtually unlimited amount of demand for gold because of gold’s historic and ever-rising value.

Gold is usually in a strong bull market. The definition of a bull market is one that has gains of 20% or more a year. Since 2000 alone the gold market has had on average gain of 202% per year. Gold has made a fortune for those wise enough to invest.

In 2006 CNN Money did an article on the current ‘gold rush’, but that was nothing compared to the demand that we have seen over the past few years. Anybody that bought during the 2006 ‘rush’ would have made a lot of money during the next rushes that occurred in mid-2008 and again earlier this year.

Why does gold’s value rise so fast?

Well, part of it is the mining issue I mentioned earlier. The world’s mines produce about 2,500 metric tons of gold a year. The world demands between 4,000 and 5,000 metric tons of gold a year. Gold demand outstrips demand by 60% to 100% every year.

The world’s banks were allowed to sell there supply after the end of the gold standard, which was a system that forced countries to back their currency with physical stores of gold. From the mind 1960s to the late 1990s, banks released enough gold to marginally keep up with the worlds demand. By 2001 the banks had run out of their massive stores, and the demand for gold skyrocketed.

Right now is a strategically critical time to invest in gold. The arrival of online trading and increased interest in gold as an investment may eventually bring the market into an equilibrium that results in a higher gold price. Jumping into the market right now means buying gold at price that should prove to be historically low.

Gold can be seen as insurance, it will always be worth something, no matter what else happens in the world. Mighty stocks can plunge to zero, inflation can render the dollar worthless, bond interest rates can fluctuate, but gold will always be valuable.

The gold that you buy today will be able to buy the same amount of goods, if not more, in the future. Your grandchildren and great grandchildren will be able to reap the benefits of your gold investment.