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Eddi McGuire Celebrates Million Dollar Hot Seat Anniversary with ABC

June 10th, 2014 No comments

Eddi McGuire

 

To celebrate Million Dollar Hot Seat’s 1000th episode airing tonight, Eddie McGuire immersed himself in some of Australia’s finest Gold bullion. Help secure your financial wealth with investment grade bullion by contacting us today. Picture: Mark Stewart Source: News Corp Australia

 

 

Hidden Secrets Of Money – Ep1 ‘Currency Vs Money’ Mike Maloney

August 12th, 2013 No comments

Winston Churchill once said, “The further you look into the past, the further you can see into the future.”

This video expertly summarizes the basics on the history of money, finance and the fundamentals for Gold and Silver.

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Five Common Precious Metal MYTHS

March 20th, 2013 No comments

Buying gold, silver bullion and other precious metals is one of the least understood investment options open to inexperienced investors.

When investors take the time to look at the facts about precious metals in the light of day, they soon discover that all of the old myths about buying and selling gold and other precious metals can’t stand up to the examination.

Let’s take a look at five of these common misconceptions about precious metals.

1. Gold and silver investing is only for wealthy high rollers.

You don’t need to be a millionaire to get started in buying gold or silver. Many average investors are putting up as little as one hundred to one thousand dollars to start their precious metals portfolio. So, with extra cash you may have on hand, you can begin to invest in rather inexpensive coins and silver bars. In fact, people from all levels of income are investing in gold and silver to protect themselves and their money in case of an emergency or disaster.

2. Precious metal investing is only for the experienced investor.

Many investors believe precious metal investing is too difficult to understand, but this is also far from true. Gold and silver are globally traded and information on the global demand and supply of these precious metals are not some closely held secret. Everything you need to know to be a smart investor is available anywhere in the world.

Actually, silver is one of the safest investments anyone can make. It’s virtually fool-proof. Whether you choose to invest in silver coins or silver bullion is up to you, but both hold their value extremely well, and both make an excellent investment.

3. Investing in gold is risky business.

Gold is actually one of the least risky investments you can make. Unlike paper investments, gold will never lose all its value. There will always be a demand for gold. Right now the demand for precious metals, such as gold, silver and platinum, is on the rise, while the supply from annual mine production is falling rapidly.

Another factor strengthening gold as an investment is the inflation caused by rising oil prices due to increased demand and declining production. Another trend in gold’s favour is the increase of money supply by the central banks, which causes a decline in the purchasing power of paper currency. All these factors make gold a safer investment.

4. Gold is not a very good investment.

When compared to recent major stock indices, gold’s performance may look weak, but that’s not necessarily true. Over the last ten years, gold has registered an average annual return of about 20 percent, which is certainly respectable. As far as the DOW is concerned, companies come and go. They perform poorly, go bankrupt and totally disappear and are then replaced on the DOW by newer, higher performing companies. Your money is safe in the stock market as long as you pick the winners and avoid the losers. Gold, on the other hand, may not make you get rich quick, but it’s value is not going to disappear overnight, as is the case in some publicly traded companies. Gold’s main purpose is as a wealth protector.

5. Precious metals are not a very good inflation hedge.

The truth is that since 1971, gold has steadily risen in price against fiat currencies when the global gold standard was abandoned. During that period of time, all of the world’s currencies have greatly depreciated in value when compared to gold. The purchasing power of the American dollar, for example, is only 20% of what it was in the early seventies. On the other hand, gold increased its purchasing power and will continue to do so as long as the central banks continue printing more money than the increase in the national GDP.

As far as precious metals are concerned, it pays to keep an open mind. Do your due diligence and explore the reality behind the myths and you will be surprised by how much value there is in precious metal investment, especially as a wealth preserver

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.

Buying Bullion Bars or Coins: Which is the Better Investment?

November 8th, 2012 No comments

Many investors have decided that it is safer to have precious metal in hand than it is to invest in precious metals Exchange Traded Funds (ETFs). Granted, the cheapest and most convenient way to invest in and trade with gold and silver is ETFs, but they also come with more long-term risks. Risks such as, but not limited to, counter party risk, which means that the precious metal is not actually held by the ETF provider. It’s typically held by a large bank and if the bank goes bust, your investment could disappear as well.

Besides, how do you know they’re actually holding the precious metals that they claim to be holding? Along with this are the U.S. Commodity Futures Trading Commission and the Gold Anti-Trust Action Committee that reported that the actual physical gold that exists globally above ground is only 1% of the ‘paper gold’ that is being traded.

The Shiny Stuff

Buying physical gold and silver is undoubtedly more expensive than purchasing ETFs. First you have the dealer’s premium that you will incur when you buy it. You will also have to factor in delivery, storage and even insurance costs. Then when you sell, there is typically a dealer fee as well. Of course, buying and selling gold and silver is also not without risks either.  Gold and silver prices could drop through the floor resulting in a loss on an asset that may not be easy to sell. However, when you look at current market conditions and global economic trends, investing in physical precious metals definitely warrants close consideration. So what form of precious metal do you buy? Bullion and coins each have their own merits and drawbacks and both should be assessed as to how they fit your unique needs and investment strategy.

Coins

Coins can be quite elaborate and attractive and easy to purchase in small amounts. Since they are something with which most of us are familiar, they can also be a little less intimidating than bullion, at least at first. Some coins are rare and collectible which can add even more complexity to the investment. It should be noted that the added value of being a collectible is often in the eye of the beholder. Collectible and antique coins are very specialised markets and should probably be avoided unless you really know what you are doing. Collecting coins can be fun and rewarding but for true investors, most would agree that bullion is a wiser choice.

Bullion

Precious metal investors focus purely on the metal value rather than getting caught up in collectible values. Bullion is easy to sell, hard to fake, and is typically more pure than coinage and the premium is generally lower as well. For the serious investor, gold bars are the simplest and most efficient way to invest in precious metals. Larger bars are generally available for the lowest premiums over their intrinsic metal value. The trade-off is that they are not quite as flexible as smaller bullion portions when it comes time to sell.

Even though most investors would agree that bullion bars make the most sense, like most things, investment strategy is an individual pursuit and only you can determine what’s best for you.

Quick Facts About Silver & Silver Investment

October 12th, 2012 No comments

Of all the precious metals on this planet, silver is by far the most widely used and certainly the most interesting when you look at its history, its inherent qualities and its potential as an investment vehicle. Even though it has long played second fiddle to gold, buying silver is quickly growing in popularity with investors for a variety of reasons. So let’s take a look at some interesting facts about silver:

HISTORY

Silver was first mined in Asia Minor sometime around 4,000 BC.

Man learned how to effectively separate silver and lead around 3,000 B.C.

Throughout history, silver has been used for money more than gold has.

In early Egypt and Medieval Europe, silver was generally considered to be more precious than gold.

‘Sterling silver’ references the grade of silver and the standard of .925 emerged from England sometime in the 13th century.

Silver has always been highly regarded and displayed as a status symbol.

HEALING QUALITIES

Silver kills bacteria and viruses by chemically acting upon the cell structure and inhibiting their cell growth.

Bacteria do not typically develop resistance to silver like they do with many antibiotics.

‘Born with a silver spoon in their mouth’ is an expression that originally referred to health status rather than wealth. It was believed that children who were fed with silver utensils would be healthier.

Recent medical research indicates that silver can actually promote the production of healthy new cells and increase the rate of healing for wounds and damaged bone.

CHARACTERISTICS OF SILVER

Silver’s many unique properties include, but are not limited to, its strength, ductility, malleability, conductivity, reflectivity and its ability to withstand extreme temperature.

Silver’s melting point is 960 degrees C.

Silver is softer than copper yet harder than gold.

APPLICATIONS

There are many more industrial applications dependent upon silver than there are for gold and more and more applications are being discovered and developed every day.

Silver has long been used to protect space craft from extreme temperatures.

Jet engines utilize silver bearings due to their superior performance.

The production of hydraulic fluids, polyester fabrics, engine antifreezes, and flexible plastics like Mylar, is much more efficient thanks to silver.

Silver is used extensively in the automotive, electronics and medical industries.

Modern cars use silver coated contacts for virtually every electrical action.

SHRINKING SUPPLY

Today, Mexico and Peru are the biggest producers of silver.

Over two thirds of global silver productions is a by-product of copper, lead and zinc mining.

Silver production as well as secondary recovery efforts have been unable to meet demand for the last fifteen years.

There were approximately twelve billion ounces of silver available in the world in 1900. Today, that estimate has fallen to around three hundred million ounces of refined silver above the ground.

GROWING DEMAND

Compared to gold, the cost to invest in silver is very low, making it more attainable for the average investor

Silver investors are buying and hoarding rather than selling.

Industrial demand seems to be growing steadily.

The U.S. Federal Reserve is still suggesting that the central bank is prepared to start another round of quantitative easing. Silver performed extremely well during prior periods of quantitative easing and this alone could result in a rush on silver.

The price of silver per ounce has historically been the equivalent of 1/16th of an ounce of gold, meaning that an ounce of gold was worth approximately the same as 16 ounces of silver. That ratio is currently around 1/50th and history has shown that this value ratio has had a way of naturally correcting itself.

So whether or not you are fascinated by the history and characteristics of silver, it doesn’t take a crystal ball to see that demand for silver will continue to grow while the supply continues to dwindle. And of course you don’t have to be an expert investor to understand what the intersecting variables of supply and demand may do to silver’s value in the future.

6 Reasons to Invest in Gold

September 27th, 2012 1 comment

If you’re looking for a good return on your investment, buy gold. Why? Because gold has a strong history in preserving value even when national currencies were losing value. If the value of your current investments is being determined by depreciating currencies then it may be a good time for you to start thinking about investing in gold.

Wondering where you fit in when it comes to the ‘type’ of people who have decided to take their hard-earned money and invest it in gold? They are the people you meet in your everyday life, i.e. doctors, carpenters, teachers, and bank tellers. In fact, the next time you see your next door neighbour, ask them if they happen to be a gold investor. You just may be surprised at their answer. What we’re saying is that anyone who has an interest in investing in the gold market can become a gold investor.

6 Reasons to Invest in Gold

The following are 6 reasons why it’s a good idea to invest in gold:

1. Gold utilisation is not keeping up with global gold production. This means the price of gold is going to continue to rise as demand increases.

2. Gold is a universal form of currency. For instance, the US dollar is currently weak with no apparent end in sight due to existing economic policies. Investing in gold is a great way to increase the value of your portfolio because it is much more stable than national currencies.

3. Gold is a form of insurance, and can be separated from most capital assets that rely on someone else’s ability to pay.

4. It’s not difficult to buy or sell gold. In fact, gold can be seen as somewhat of a portable investment that you can buy and/or sell whenever you want.

5. There are lots of choices when it comes to buying gold. There are gold bars, gold coins, gold stocks, gold bullion, gold mining, etc. from which to choose from. It’s important that you recognize there are pros and cons to buying each form of gold, so be sure to do your homework so you can fully understand exactly what you’re buying.

6. Gold forms a properly diversified portfolio. At least 10% and no more than 30% of your portfolio should be comprised of hedge funds, making gold a great choice for creating a highly diversified portfolio.

How to Buy Gold in Australia: 9 Methods

September 18th, 2012 No comments

Buying gold is certainly a flexible process. Those who invest in gold also like the fact that there are so many methods to choose from when buying this precious metal. Since buying gold is a more and more popular choice for those who are looking for ways to invest their money, the choices for buying gold have increased greatly.

No longer are gold investors limited to only buying gold coins or gold bars (although these are still two of the more popular choices). Instead there are plenty of different methods that can be used to purchase gold, depending on your investment goals and strategy.

How to Buy Gold in Australia

The following are the top 9 methods one can choose from in order to invest in gold in Australia:

1. Gold Bullion – Refiners produce gold bars that range in weight from 1 gram to 400 ounces. Gold bullion is generally considered the most effective and least risky way to purchase gold.

2. Gold Coins -The American Eagle, the Canadian Maple Leaf, the South African Krugerrand and the Austrian Vienna Philharmonic comprise the most popular 1 ounce gold coins. Gold coin investment is also a highly effective way to invest in gold.

3. Numismatic Coins – If a coin is considered a collectible, the value of gold in these coins are at a premium. However, they can be harder to sell as collectors are the only buyers interested in paying the premium of a rare coin.

4. Gold Certificates – An extremely easy and convenient option, many people like the idea of owning certificates that state they own gold bullion. The actual gold is kept safe in a financial institution, of which there is a fee.

5. Gold Futures and Options – Since gold futures contracts are traded on future exchanges, high price movements are expected. These method also allow one to sell short, or to benefit from an increase in gold prices.

6. Gold Mining Stocks – This method refers to stock ownership of a company that’s traded in an exchange.

7. Jewellery – The most utilised gold buying method. Probably because buying gold jewellery normally requires a smaller investment. Especially popular in developing economies where people often use this method for savings.

8. Exchange Traded Funds (ETF) – This method requires shares to be purchased from a fund that’s only based on the current market price of gold. It’sconsidered the safest because it removes any leverage or storage problems.

9. Gold Mutual Funds – This is a fairly safe method that allows buyers to diversify their stocks and then let a professional investor make all the decisions.

Bottom Line

The choice to buy gold as an investment is a popular one. Especially since the value of gold has been steadily increasing over the past 10 years, making it of great interest to both old and new buyers. This interest has made it so that a variety of people are looking for a variety of ways to invest, and that’s why there are so many methods for buying gold these days. If you are interested in buying gold using one of the above methods, be sure to do your research first. This way you’ll have the knowledge to understand what methods are going to work best for you.

Silver on the Rise, On Par with Gold: is it time to buy silver? 

March 28th, 2012 No comments

While gold is a hot commodity right now, for those who want to buy silver, there are hints that it will be a big commodity in 2012. Over the past few years, silver has followed in gold’s footsteps, often reaching similar milestones as gold, but there have been instances when silver has taken the lead in value. Is it a good idea to buy silver?

  • Historically, silver has proved more volatile than gold, fluctuating more dramatically, but while the silver market is generally smaller than the gold market, silver has mostly followed the same price patterns as gold even though fewer investors are keen to buy silver.
  • In 2011, silver almost doubled in value in a matter of months, reaching a high of $49.21/ounce around April. Gold also increased at the same time, but not such a percentage. This silver high ended in early May.
  • Silver has grown in value 37.62% from 2001-2010 and is continuing to rise suggesting that people are more willing than ever to buy silver. It is also worth noting that over the last decade, silver has ruled the precious metal markets in terms of returns, sitting at an annual return of 20% while gold is at 19% (and copper at 18%).
  • Surprisingly, though, this trend was not replicated at all last year. Gold increased overall in 2011, while silver decreased by about 10%.
  • In 2012 however, gold and silver are both currently surging since the Federal Reserve has now prolonged its low interest rate policy from mid 2013 to late 2014, making it possibly an ideal time to buy silver.
  • In 2012, some analysts predict that there is a strong possibility silver will at some point reach the $50 or $60 threshold and catch up to gold in terms of growth.
  • Reuters, however, is forecasting that silver will only increase up to $35 in 2013, despite some potential $50 highs, while gold will move to $1,835, which is only a 4% increase from their 2012 forecast.
  • It’s quite likely that whatever happens, silver will closely follow behind gold’s fluctuations, with the potential to surpass it in growth at various points in the near future, especially given the instability of the global markets.
  • If you’re looking to buy silver, it could be better to invest now, while it’s cheaper to buy silver. Also, some investors are showing a reluctance to buy silver, given its slump in 2011, making it more accessible than gold.

Will be buy silver or gold in 2012? Perhaps some investors will be tucking a little of both into their portfolios.

China to Install Over 2,000 ‘Buy Gold Bullion’ ATMs

February 29th, 2012 No comments

Are you more likely than ever to buy gold? Ever since Donald Trump and his Trump Organisation accepted a commercial lease payment in gold bullion in 2011, trading and transacting in gold is slowly beginning to determine the way finances operate globally – not only at a business level, but also at a consumer level. It seems people are keener than ever to buy gold.

Such is the case in China, which recently installed and activated its first ATM in Beijing that dispenses not cash, but allows users to buy gold bullion. A further 2,000 of the buy gold ATMs are set to be installed around the country over the next two years by the Beijing Agricultural Commercial Bank, in association with an independent gold trading company. Consumers can exchange physical cash or use bank cards to buy gold bullion for their personal investment needs and to protect themselves against inflation.

This makes China the first country in Asia to introduce the buy gold bullion ATMs into their economy, following in the footsteps of Italy, Germany, the United States and the United Arab Emirates. With its recent, 2011 purchase of 200 metric tons of gold, China is currently considered the largest economy in Asia to buy gold bullion, approximately on par with India, and both are clearly paving the way in the Asia for a surging trend in gold bullion trading.

According to Asia Times Online, Operations Manager Li Weizhou of Gongmei Gold Trading anticipates the ATMs to be popular in China and it is expected that more will be installed in China’s major cities with locations likely to include banks, private clubs and landmark locations. The withdrawal limit on the ATM is set at 5.5 pounds, which is worth approximately $156,000 and market purchase prices are updated every 10 minutes. Asia Times Online also claims that consumer demand for gold in China has jumped 25% from 2010 to 2011, making gold a highly sought after commodity and a peak time for those who wish to buy gold and expand their portfolios.

This is a ground-breaking step forward for China, which has joined a bid, in association with Russia and the United Nations, to develop a single, global currency based on a gold standard, in order to help protect economies from fluctuating and declining commodities markets.

Will we be queuing up to buy gold? And are we ready to buy gold from an ATM?