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Archive for January, 2013

Silver: The Hot Commodity for Investment?

January 25th, 2013 No comments

Gold has long been the darling of the precious metals investment game but more and more industry experts are saying that it just may be silver’s turn to shine. Jim Rogers, one of the world’s most successful investors, recently noted that silver appears to be a better play than gold right now, at least for the time being. It has actually out performed gold, albeit slightly, over the past five years.

Current Market Variables

Silver is the only major commodity that has not reached a new all-time high during this bull market. It is cheaper now than it was thirty-two years ago. Historically gold has been worth 12 to 15 times that of silver, however it is currently valued at roughly 50 times that of silver. This current value ratio gap between gold and silver is actually far from normal and means that it will likely correct itself as history has proven over and over again. The most likely way that it will do this, many speculate, is that the price of silver will experience a boom and naturally close the gap.

Industrial Demand

Silver has many industrial applications and is essential to the production of medical, telecommunications, computer and automotive equipment, to name a few. Industrial demand typically consumes anywhere from 50% to 80% of global mining production, leaving as little as 20% for use in jewellery and coins. As silver’s industrial applications have grown, it has led to incredibly large, periodic gaps in supply, hence the volatility. The outlook on global industrial demand continues to be quite promising with China’s mammoth appetite for precious metals that are essential to its continued dominance of product manufacturing. Of course, more demand and limited supply is exactly what we, as precious metals investors, are looking for.

Investor Demand

Silver is well known for its sudden and dramatic price swings. This volatility is one of the reasons that many precious metal investors have stayed away from buying silver, preferring the relative stability of gold. However, many savvy investors, like Jim Rogers, believe that it is silver’s volatility that now makes it a potentially ideal investment with the expectation that the U.S. Federal Reserve will announce another round of quantitative easing this fall. It is widely speculated that the program, if implemented, could cause a mad rush for silver. This projected increase in demand from investors and industrial applications could lead to silver prices soaring.

When you combine silver’s relatively low spot price with the potential increase in demand, it certainly warrants close consideration as a part of any investment strategy.

US Mint Sold Out Of 2013 Silver Eagle Coins

January 22nd, 2013 No comments

Sold Out

“The United States Mint has temporarily sold out of 2013 American Eagle Silver Bullion coins.  As a result, sales are suspended until we can build up an inventory of these coins.  Sales will resume on or about the week of January 28, 2013, via the allocation process.”

US Mint

Read more here : http://money.msn.com/now/post.aspx?post=46f3e875-5dc8-4bde-b15c-c53ffd2d6d42

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James Turk on the Central Bank Gold Heist and Bundesbank Accounting Shenanigans!

January 21st, 2013 No comments

Ownership of Gold is one of the pillars of a nation’s sovereignty.

The practice of storing Gold outside of the nation that owns it was a remnant of the old Gold standard which used Gold to settle international trade.

Should Germany have any cause for concern?

Source : CapitalAccount

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The Best Ways to Store Your Physical Gold Holdings

January 21st, 2013 No comments
As your supply of physical gold continues to grow, you are going to want to make sure that you are prudent and wise as to where you store it. As you probably know, there are a few different options available and you may find that a combination of one or more will work best for you. Let’s look at the most common and most feasible options to ensure that you have considered them all.
Home Sweet Home
The thought of having physical gold safely stashed at home brings a sense of security and peace of mind to a lot of people. Others however, get nervous just at the very thought of it. We’ve all heard stories of burglaries and if a burglar did find your stash there would be no way to recover it. On the other hand, having a small supply of physical gold on hand could certainly come in handy in the event of an emergency. So it’s up to you as an individual to find that balance between risk and security.
If you do decide to buy gold and stash some at home, you obviously want to be very secretive about its location. Some considerations are: a concealed safe (preferably bolted into place), a false wall or secret cupboard, a food box in the freezer (also offers some protection from fire), a special can designed to look like a drink or food can, or even buried in your back yard. If you store your gold at home, you will obviously be the only one responsible for its safety – which can be a benefit or huge risk depending on your mindset.
Safety Deposit Boxes
One of the most obvious options for storing your physical gold is a safety deposit box at your bank. The advantage of this method is that it is simple and has less risk of burglary than your home does. However there are risks that you should be aware of. If the bank, for whatever reason, becomes insolvent, accessing your gold might become quite difficult. Even though the gold would remain your property, it could take a great deal of time before you have access to it again.
Bullion Dealers
Many bullion dealers and organisations will hold your physical gold in their vaults for a nominal fee.  This would provide much better security than storing it at home and would also make it easy to sell it back into the marketplace when the time comes. This also minimises the cost and risk of transportation from the dealer to your home.
Allocated or Unallocated Storage
Allocated storage means that your actual physical gold remains segregated from the gold belonging to other investors. Unallocated storage means that gold is purchased for you at an agreed upon spot price. You don’t actually own the gold but the purchase transaction serves as a promise to provide you with that amount of bullion when you request it. In essence you are an unsecured creditor with the institution with whom you are dealing. Obviously you want to do careful research before committing your physical gold holdings to someone else.
The nice thing about having some physical gold on hand is that no matter what might happen, it can always be used as a medium of exchange in the event of an emergency or catastrophic global event. So regardless of where you decide to store it, the main thing is to ensure that you do have a stash of physical gold securely tucked away, just in case.

As your supply of physical gold continues to grow, you are going to want to make sure that you are prudent and wise as to where you store it. As you probably know, there are a few different options available and you may find that a combination of one or more will work best for you. Let’s look at the most common and most feasible options to ensure that you have considered them all.

Home Sweet Home

The thought of having physical gold safely stashed at home brings a sense of security and peace of mind to a lot of people. Others however, get nervous just at the very thought of it. We’ve all heard stories of burglaries and if a burglar did find your stash there would be no way to recover it. On the other hand, having a small supply of physical gold on hand could certainly come in handy in the event of an emergency. So it’s up to you as an individual to find that balance between risk and security.

If you do decide to buy gold and stash some at home, you obviously want to be very secretive about its location. Some considerations are: a concealed safe (preferably bolted into place), a false wall or secret cupboard, a food box in the freezer (also offers some protection from fire), a special can designed to look like a drink or food can, or even buried in your back yard. If you store your gold at home, you will obviously be the only one responsible for its safety – which can be a benefit or huge risk depending on your mindset.

Safety Deposit Boxes

One of the most obvious options for storing your physical gold is a safety deposit box at your bank. The advantage of this method is that it is simple and has less risk of burglary than your home does. However there are risks that you should be aware of. If the bank, for whatever reason, becomes insolvent, accessing your gold might become quite difficult. Even though the gold would remain your property, it could take a great deal of time before you have access to it again.

Bullion Dealers

Many bullion dealers and organisations will hold your physical gold in their vaults for a nominal fee.  This would provide much better security than storing it at home and would also make it easy to sell it back into the marketplace when the time comes. This also minimises the cost and risk of transportation from the dealer to your home.

Allocated or Unallocated Storage

Allocated storage means that your actual physical gold remains segregated from the gold belonging to other investors. Unallocated storage means that gold is purchased for you at an agreed upon spot price. You don’t actually own the gold but the purchase transaction serves as a promise to provide you with that amount of bullion when you request it. In essence you are an unsecured creditor with the institution with whom you are dealing. Obviously you want to do careful research before committing your physical gold holdings to someone else.

The nice thing about having some physical gold on hand is that no matter what might happen, it can always be used as a medium of exchange in the event of an emergency or catastrophic global event. So regardless of where you decide to store it, the main thing is to ensure that you do have a stash of physical gold securely tucked away, just in case.

Prospector strikes 5.5kg gold nugget in Ballarat, Victoria

January 18th, 2013 No comments

imgres

Image : freerepublic.com

Excerpt : heraldsun.com / Jessica

“A WHOPPING 5.5kg gold nugget worth up to $300,000 has been found in bush near Ballarat.

The “incredibly rare” nugget was found 60cm underground by a prospector, who wishes to remain anonymous, on Wednesday.

Ballarat Mining Exchange Gold Shop owner and dealer Cordell Kent said the prospector heard a faint noise on his detector and removed a dense pile of leaf mulch before he started digging.

“He thought he had detected the bonnet of a car when he saw a glint of gold,” Mr Kent said.

“He cleaned the top of it and the gold kept expanding and expanding … he saw more and more gold … he couldn’t believe what he was seeing.”

The nugget is worth about $282,000 in weight, but has an added premium because it is rare to find one over a kilogram, Mr Kent said.

“I have been a prospector and dealer for two decades, and cannot remember the last time a nugget over 100 ounces (2.8kg) has been found locally.

“It’s extremely significant as a mineral specimen. We are 162 years into a gold rush and Ballarat is still producing nuggets – it’s unheard of.”

Read more here : http://www.heraldsun.com.au/news/victoria/prospector-strikes-55kg-gold-nugget-in-ballarat-victoria/story-e6frf7kx-1226555879738

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