Archive

Archive for November, 2012

How to Invest in Coins: Three Key Steps to Coin Investment for Beginners

November 30th, 2012 No comments

If you are like most investors, at some point you are going to become attracted to, or at least intrigued by, the investment potential of coins. Rare coins have consistently been a great investment vehicle for the simple fact that there will always be a greater demand than there is a supply in the market place. That is the fundamental nature of rarity.

Step 1: Understand the Basics

The first thing to understand is that it is all about high quality and rarity. In order for it to have true investment potential, the coin has to be of the highest quality and/or it has to be extremely rare, preferably both. If you have to choose between the two, it is good to remember that circulated rare coins will typically command a higher price than non-rare uncirculated coins. In regards to rarity, it’s all about how many were minted, or how many still exist. An extreme rarity is a coin that came from a very limited production. Try for rarity first and then if you don’t have access to rarity, try for the highest possible quality. High quality means that the coin has remained in brand new (uncirculated) condition. High-quality rare coins are, of course, the most valuable.

Step 2: Find an Expert You Can Trust

Successful coin investing requires a high level of skill and experience. The selection process involves a thorough understanding of rarity and quality as well as sufficient market experience to be able to predict future demand. Knowing when to buy and sell is also vital to your success. This may seem a little intimidating to a beginning investor but thankfully there is an easy solution to this problem. Instead of having to spend years in the marketplace and countless hours studying, simply align yourself with a coin expert from a reputable company. A professional coin dealer with decades of market experience will be adept at choosing the coins that are the most likely to appreciate. With this relationship in place you will be able to build your coin collection and remove a lot of the risk so that you can make more informed decisions.

Step 3: Buy and Hold

It is generally recommended that you wait at least five to ten years to sell a coin after acquiring it. Actively trading coins is usually not the best strategy because you’ll probably only get minimal appreciation in the first 2 years of an investment. Also, appreciation is a lot more unpredictable in the first few years, more predictable over 5 years and very, very predictable over 10. The 5 to 10 year period is the optimum period to hold a coin. Of course, as with anything else, there are exceptions to the rule. There are times when the optimum capital appreciation might occur in just two or three years and it is a good time to sell a particular coin or group of coins. If you have a good working relationship with an expert broker, they will likely advise you when these conditions occur. Typically the longer a coin is held, the more valuable it becomes. If you look at coins over 40 years, the average rare coin has increased at a compound growth rate of 16.1%.  That’s a tremendous capital appreciation.

So with these kinds of consistent returns, it certainly seems to make sense to include rare coins as a part of your investment portfolio. You can start with as little as $1,000, although most experts would agree that it is ideal to start in the $50,000 range if feasible. Regardless of where you are starting, the important thing is to get started.

Gold price hits another new high of Rs 32,975/10 gms

November 28th, 2012 No comments

East India Gold CoinEast India Gold CoinEast India Gold Coin

Excerpt – Source : http://zeenews.india.com

“New Delhi: Gold prices Tuesday surpassed all previous highs to set new record of Rs 32,975 per 10 grams on demand from retailers for the peak marriage season.Traders said gold prices improved on increased demand in view of the ongoing marriage season and lifted the prices to another record high.
A firming global trend further supported the prices, they said.”

Read more here : http://zeenews.india.com/business/bullion/bullion-news/gold-price-hits-another-new-high-of-rs-32-975-10-gms_65198.html

Categories: Uncategorized Tags:

The Bubble: Interviewing Peter Schiff

November 26th, 2012 No comments

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

This is what a $100 looks like – What does $1 Trillion look like?

November 22nd, 2012 No comments
Categories: Uncategorized Tags:

Billionaires Soros, Paulson Bullish On Gold With Prices Expected To Hit Records

November 22nd, 2012 2 comments

Excerpt – Source : www.ibtimes.com / Moran Zhang

“The smart money thinks the bull market in gold is far from over, with billionaire investors George Soros and John Paulson betting big on the yellow metal.”

“Slowing economic growth in almost every corner of the world, the unfolding euro zone sovereign debt crisis and the looming fiscal cliff in the U.S. all have spurred speculation of more easing from the central banks.”

“Further monetary easing — printing money to buy bonds — would increase liquidity while maintaining pressure on long-term interest rates and sparking fears that inflation could rise in the longer run. All these factors support the gold price.”

Read more here : http://www.ibtimes.com/billionaires-soros-paulson-bullish-gold-prices-expected-hit-records-893466

Categories: Uncategorized Tags:

Treasury Secretary Geithner: Lift Debt Limit to Infinity

November 22nd, 2012 No comments

(CNSNews.com) – Treasury Secretary Timothy Geithner said Friday that Congress should stop placing legal limits on the amount of money the government can borrow and effectively lift the debt limit to infinity.

On Bloomberg TV, “Political Capital” host Al Hunt asked Geithner if he believes “we ought to just eliminate the debt ceiling.”

“Oh, absolutely,” Geithner said.

Hunt then asked: “Is now the time to eliminate it?”

“It would have been time a long time ago to eliminate it,” Geithner said. “The sooner the better.”

View video here : http://cnsnews.com/news/article/treasury-secretary-geithner-lift-debt-limit-infinity

Categories: Uncategorized Tags:

Common Myths about Gold Investment

November 15th, 2012 No comments

Few investments attract more myths and folklore than gold. With gold long considered valuable, it’s been the subject of legends and tall tales for hundreds of years. Let’s take a look at some of the myths around gold that are still alive today and examine whether they’re busted.

Gold is Overvalued

For the past several years, this is probably the most heavily and hotly debated discussion around gold. The fact of the matter is that no one knows. For that matter, no one even knows what it is truly worth other than what it is currently trading for. Beyond that it is a fruitless discussion, but a popular one nonetheless.

The Smart Money Exited Gold Long Ago

People have been claiming this for over five years now. But the fact remains that some of the largest and most successful investors in the world have their portfolios diversified with a strong gold position.

Gold is a Safe Haven

Between 1980 and 2000, the purchasing power of gold dropped dramatically. Since then it has enjoyed incredible growth other than during the crash of 2008 when it fell by nearly a third. Of course, many investors would argue that its safety lies in the long position and that the relative volatility can be ridden out.

ETFs Are More Profitable Than Physical Gold

ETFs are sometimes more profitable but sometimes less so. It really depends upon when you buy and sell and what price you pay. During the crash of 2008, ETFs dropped even more than the metal did. ETFs are also usually considered more risky than physical gold and it’s often argued that more “paper” gold is sold than exists physically.

Gold is a Better Investment than the Other Precious Metals

Historically, over the long haul, silver and platinum have marched pretty much in step with gold. At various times both metals have outperformed gold, and at other times gold has excelled. At different times, one precious metal has risen much more than another. Timing and investment strategy make a big difference, no matter what you are in investing in. Speak to a specialist if you are unsure, and pay attention to market trends.

Physical Gold is Subject to Confiscation

This myth is perpetrated by unscrupulous dealers that want naive investors to invest in older gold coins with higher premiums. It is based on a time during the Great Depression, when U.S. President Roosevelt required all gold, except older coins, to be turned in. The older coins received special treatment due to their value as collectibles. The fact is that there is absolutely no evidence that any government has any plans of this nature or could even conceivably pull off such a dramatic feat.

Gold Should Comprise 7% to 10% of Your Portfolio

Why only 7% to 10%? Think about it. If the other 90% of your portfolio collapses, the 10% that your holding in gold isn’t going to make up the difference even if it doubles in value.

If you really want to know the truth about gold, rather than listening to myths perpetrated on the internet or by friends or family, you’re better off consulting with a reputable and professional company that has been dealing in gold for many years.

Anti-austerity strikes sweep Europe

November 15th, 2012 No comments

14 November 2012

Riot police officers face protesters during a demonstration outside the Portuguese Parliament in Lisbon during a general strike on November 14, 2012.

Picture : presstv.com

Strikes and rallies have hit twenty-three European countries including; Greece, Portugal, Spain, Italy, France, Britain and Belgium.

There were chaotic scenes across the euro zone as the public vented their anger against crippling  austerity measures that are not working and are no longer tolerable.

View video by Reuters/SMH here :

http://media.smh.com.au/selections/europes-day-of-antiausterity-action-3796351.html

Categories: Uncategorized Tags:

Lawmaker asks to be paid in gold

November 14th, 2012 No comments

Gold Coins

Excerpt – Source : Politico.com / Kevin Cirilli

“A Montana state lawmaker is asking that he be paid in gold coins because of his lack of faith in the U.S. dollar amid a rising deficit.

Jerry O’Neil, a Republican just re-elected in his northern Montana district, says his constituents told him he was not honouring his duty to uphold the U.S. Constitution, which O’Neil and Gold Standard supporters say requires the government to print money backed by gold.”

“I believe that if you take a look at the Constitution, that’s what it says,” he told POLITICO. “I think we’ve gotten a tremendously long way from it.”

So he wrote a letter to the state Legislature asking to be paid his public salary in gold and stating: “It is very likely the bottom will fall out from under the U.S. dollar. Only so many dollars can be printed before they have no value.”

http://www.politico.com/news/stories/1112/83767.html

Categories: Uncategorized Tags:

O’Bummer, Fiscal Cliff!

November 8th, 2012 No comments

O'Bummer

U.S. stocks dived on Wednesday — the worst day of the year for the Dow Jones Industrial Average — as anxiety about the “fiscal cliff” and Europe’s economic troubles hammered sentiment.

With the election over, Wall Street turned to pondering the more than $600 billion in tax hikes and spending cuts scheduled to take effect in January should Congress fail to reach a deficit-cutting deal.

Read more here : http://www.latimes.com/business/la-fi-us-markets-20121108,0,5852129.story

Categories: Uncategorized Tags: