Australian Bullion Company

Yes—it’s that bad in Europe. While European leaders continue to attend meetings and argue about how to solve the Euro crisis, here’s what’s actually happening in Greece, according to German magazine Spiegel.

Many Greek residents are having to use their savings to pay routine bills because the economy there is so terrible; they are also facing rising taxes and financial uncertainty. As a direct result, Greek banks are having to reduce their lending—thus worsening the recession in that country. Money in Greek savings accounts has decreased 30% in two years. And it’s a situation that could happen soon in Spain and Italy.

Financial and political leaders in Europe are seriously starting to consider printing money as one way to get out of the crisis. This would start once Italy, Spain, and other countries adopt austerity measures. While this will provide some much needed liquidity, it also poses the threat of inflation. And when there’s a serious threat of inflation, then it’s a good time to buy gold. Historically, gold has been one of the most effective ways to protect savings from inflation.

And there’s absolutely no guarantee that printing money will solve the crisis.

“When there’s concerted action by central banks, it’s definitely good,” Jens Sondergaard, senior European economist at Nomura International told Bloomberg. “But are liquidity injections a game changer when the heart of the problem is in European sovereign debt markets?”

A further problem on the horizon is the potential downgrading of credit ratings for 15 out of the 17 Eurozone countries.

“We are therefore also placing the ‘AAA’ long-term rating on the EU on CreditWatch negative,” announced credit rating agency Standard and Poor’s.

And it’s understandable. Italy is precariously close to defaulting on its debt of 1.9 trillion Euros. If even one of the current Eurozone countries decides to stop using the Euro, this decision could create a financial catastrophe by triggering sovereign debt defaults across Europe. The choice is stark. Several European countries will have to accept Greek-style austerity measures or the European Central Bank will have to print Euros.

There’s a reason the United States is extremely worried about the Eurozone crisis: many U.S. banks guaranteed European sovereign debt; if there’s a default, then the U.S. government would have to bail out their banks again. To achieve this, the U.S. Federal Reserve would likely have to roll the printing presses and print more money. Again—this significantly raises the threat of inflation.

It’s a mess. And the crisis in Europe is one of the main reasons to buy gold. Right now, it looks like there will be two major problems in Europe: inflation and continued economic uncertainty. Both make buying gold attractive as gold thrives during times of uncertainty and when there’s inflation.

We’ll take a look at the reasons there will be increased demand for gold in a minute but let’s start by taking a look at some big players in the market. In past blogs, we’ve mentioned that Middle Eastern and Asian countries are big buyers of gold.

• Qatar has been buying more than a ton of gold every month for three years.
• Russia recently bought more than 15 tons of gold from its mines.
• The Reserve Bank of India bought 200 tons of gold the IMF sold.
• Even tiny Mauritius bought 2 tons of gold in November.
• And then China plans to buy gold: approximately 6,000 tons in five years.

It’s not easy to find this sheer quantity of gold. The supply of gold remains low. New mines are opening but it takes at least five years for a mine to produce at significant levels. With high demand, low supply, and a volatile global market, there’s a good reason that many commodities analysts are predicting significantly higher gold prices for 2012.

• UBS has forecast $2,075 an ounce.
• Barclays has forecast $2,000 an ounce ($35 an ounce for silver).
• Morgan Stanley predicts a range between $1,819 an ounce and $2,085 an ounce.
• HSBC predicts $2,025 an ounce.
• TD Securities predicts $1,975 an ounce.

With the price of gold hovering around the $1,700 an ounce mark for several weeks, it may be a good time to buy gold.

Five Factors Pushing Demand for Gold

1. The financial crisis in Europe over the Eurozone—which looks increasingly likely to lead to printing money…and inflation.
2. Central banks are buying gold as they move away from the dollar.
3. There’s strong demand for gold for jewellery in China, India, and the Middle East.
4. Institutional investors may start buying gold—especially if global equity markets remain stagnant.
5. The spectre of inflation—not just in Europe but all over the world.

With gold prices at approximately $200 an ounce below the high in September and many major financial institutions predicting prices over $2,000 an ounce in 2012, now could be a good time to buy gold.

In the short term, it will be extremely important for people who are considering buying gold to pay close attention to the news coming out of Europe.

“We expect gold prices to increase because of fear of a Eurozone implosion,” said Dennis Hynes, chief market strategist at R.W. Pressprich, told Bloomberg. “The only currency that’s stable in this type of situation is gold.”

At the beginning of 2011, the price of gold was $1,421 an ounce. In mid-November, the price was close to $1,787 per ounce and moving toward $1,800 an ounce. The price of gold has increased, despite a dip in September, because of the world economic situation; the factors influencing the price of gold have essentially remained the same—making it a great time to consider buying gold.

The factors:

• Consistently strong demand for gold from India and China.
• A weak dollar.
• Continued uncertainty (and turmoil) in global equity markets.
• No resolution to debt woes in the United States.
• The Eurozone crisis.

If anything, the demand for gold from India and China has increased and the economic situations have worsened.

At the beginning of the year, certain ‘experts’ were optimistic about the economy. In front of the Senate Budget Committee, United States Federal Reserve Chairman, Ben Bernanke, said the U.S. economy was going to be “moderately stronger in 2011 than it was in 2010.” He went on to predict rampant growth between 3% and 4%. Obviously, a lot needs to happen in the month of December for Bernanke’s predictions to prove prescient.

Thankfully, the economists who help investors decide whether or not to buy gold have been more accurate in their assessment of the world economy—and the price of gold.

In December, CNBC mentioned Goldman Sachs:

“Goldman believes low U.S. interest rates will continue to underpin the rally in commodities like gold. The firm expects the precious metal futures to climb to $1,690 an ounce by the end of 2011 and continue to move higher.

The Bullion Research Desk of Commodity Online on December 22, 2010 said:

“Gold price to hover around $1500-$1600 range in 2011. Gold price will go up in 2011, driven by the fluctuations in US dollar and other currencies, dwindling productions, increasing mining problems and rising demand for jewellery and investment for the yellow metal. Gold price is definitely going to cross the $1500 mark per ounce in 2011 and it will remain in the range of $1500-$1600.”

And late last year, Bloomberg analyzed the gold price predictions of almost 30 investors, analysts, and traders. The ‘average’ prediction was $1,500 per ounce.

So…the ‘gold gurus’ were actually wrong—the price has exceeded their predictions. The factors influencing the price of gold have been more intense and are not going away as the headlines from the Eurozone crisis are proving.

So—is it a good time to buy gold? Remember…JP Morgan predicted a high of $2,500 per ounce by the end of 2011. Will they be correct? With the future of the Euro in serious doubt, gold could easily top $2,000 an ounce.

Have you heard the word contagion? It’s an ugly word the dictionary defines as:

“The communication of disease from one person to another by close contact.”

In European countries, the disease is debt—specifically default. Greece is having difficulty repaying its debts and Italy and Spain are extremely close to being in the same situation. The disease is spreading to all the European countries that use the Euro as their currency—which is all the major European countries excluding the United Kingdom.

And even through the currency in England, Scotland, Wales, and Northern Ireland is Pound Sterling, the U.K. is being affected by this crisis. The Prime Minister, David Cameron, has been part of the negotiations, the discussions, the summits, and all the meetings. In many cases, he’s been more vocal about the truth about the situation than others, saying recently there was now a “big question mark over the future of the Eurozone.”

Until now, the net result has been uncertainty. And if there’s one thing equity markets hate, it’s uncertainty. And when equity markets are not happy, the price of gold typically rises and it can be a good time to buy gold during uncertainty.

The chickens are coming home to roost for the leaders (and the countries) who got Europe into this mess. Angela Merkel, the German chancellor, has been saying that it’s a good time to ‘allow’ certain countries to leave the Eurozone. That’s a polite way of telling certain countries get out. In Greece and now, Italy, the Prime Minster and President, respectively, have resigned. Both countries now face a difficult choice: pursue austerity measures or get kicked out of the Euro.

With the possibility of two of the larger countries in the Eurozone leaving, the possibility exists that the Euro will collapse entirely. This could be catastrophic for large swathes of the European economy. With Europe moving closer and closer to the precipice, the price of gold has been inching upwards toward its record price of $1,923.70 an ounce on September 5 but dropped to $1,623.97 by early October. The price was back up to $1,787 per ounce on November 11. If the European crisis continues—and it looks likely to keep going—then the price of gold is likely to rise and thus now is an excellent time to buy gold.

Either the Euro will collapse completely, the ‘offending’ countries will be booted out, or the Eurozone will follow David Cameron’s suggestion and print money to get out of trouble. The latter will make the currency worth a lot less and inflation could emerge as a threat—inflation makes the price of gold increase.

About five weeks ago, a British politician said the Eurozone had six weeks to resolve the crisis. That ticking sound? It’s a bomb about to explode. And this explosion, however fierce, will likely affect the price of gold.

Volatility with a capital ‘V’ made the week ending September 23 one of the most ‘interesting’ of the year. And in the commodities and equities markets, it hasn’t exactly been a year without drama—for every investor in every sector. In just a week, the price of gold decreased from $1,811.88 to $1,650.05 an ounce. It was also a bad week for other commodities and for the world’s stock markets. On Friday, September 23, silver plunged more than 17% before making a slight recovery. Oil prices dipped below $80 a barrel in the United States. The Dow Jones Industrial Average declined 6.41%.

In the past 18 months, the price of gold has often increased when stocks have taken a pounding. However, this past week, the price of gold declined as investors decided to sell gold bullion. And if there’s a reason for the decline in the price of gold, the current crisis, or impending crisis, in the Euro is a possible reason. The dire financial situation in Greece, and the potential for what’s grimly being called ‘contagion’ means that financial ministers in Europe must make some major and potentially brutal decisions about Europe’s currency. Against this backdrop, the dollar has regained some strength. There was also an indication that some institutional investors were selling gold bullion to take profits—as their equity investments continued to show weakness.

Historically, there’s been a strong inverse relationship between gold and the price of the dollar. So, for those who are thinking it’s a good time to sell gold bullion, the key question is ‘what’s going to happen to the dollar?’

In the next several months, all eyes will be on two key global economic drivers.

1. The Federal Reserve
2. The Eurozone

With the economy in the United States continuing to sputter, despite two rounds of ‘quantitative easing’ and a massive stimulus package, the Federal Reserve is considering another round of quantitative easing to generate growth. As we’ve written in previous blogs, quantitative easing is code for printing money. And when the government prints money, it devalues its currency. And when a currency is worth less, inflation rears its ugly head and when inflation rears its ugly head, gold becomes more attractive.

In the United Kingdom, Chancellor George Osborne said that European Leaders only had six weeks to find a solution to the financial crisis with the Euro.

“Patience is running out in the international community,” Osborne said. “More needs to be done to avoid a disorderly outcome.” Ironically, U.S. Treasuries may be attractive as the uncertainty in the Euro continues; U.S. Treasuries set a new low yield of 1.7 p.c. as investors sought a safe haven. As the dollar strengthens, it may be a good time to sell gold bullion.

However, major problems linger in the United States economy and the global economic factors that led to the increase in the price of gold in the last two years remain. Yes—it may be a good time to sell gold bullion to take profits but there’s a strong chance the price of gold will reach the expectations of many analysts and hit $2,000 late this year or in early 2012. While there’s no way to predict the price of gold with total certainty, the next few weeks are likely to be volatile—with a capital ‘V.’

If you’ve been anywhere near a newspaper, the Internet, or any news outlet, you’ve heard about the fight in the United States Congress over debt limits and its impact on credit ratings. The ‘punch up’ masks the real financial problems in the United States. And these problems have been helping to push up the price of gold. It makes now an excellent time to buy gold as part of your portfolio.

The national debt in the United States stands at over $14.3 trillion. This debt comes from the cost of keeping entitlement promises to the elderly and poor. In this blog, we’re here to discuss buying gold and not make any political statements. However, the numbers are staggering:

• Medicaid, health care for the poor, cost American taxpayers $243 billion in 2010.
• 50.5 million Americans are on Medicaid.
• 46.5 million are on Medicare.
• 52 million are on Social Security.
• 44.6 million are on food stamps and other nutrition programs.

At the current rate of spending, the United States will have to issue up to $10 trillion in new debt by 2021. Why does this mean it’s a good time to buy gold?

To pay for this spending, the United States can raise taxes massively or cut welfare spending. It seems unlikely that either of these will take place in the near future. So America must borrow more AND it must generate more tax revenue by growing its economy. But the economy isn’t growing in the United States—growth rates are stagnant. To light a fire under the economy, the Federal Reserve has used two rounds of ‘Quantitative Easing’ which is another way of saying, ‘let’s print money.’ This decreases the value of the U.S. Dollar and introduces the spectre of inflation.

With inflation a probability and the value of U.S. debt decreasing, investors have been fleeing to gold to protect their assets and provide a hedge against inflation. The market is proving this. Gold is up 11% this year and we’ve seen record prices. Despite these record prices, we believe now is a good time to buy gold. The demand continues to rise while the supply cannot keep up.

With at least another month of global economic uncertainty ahead, the price of gold may experience some dips. However, we believe the upward trend will continue and a good time to buy gold would be in one of these dips.

Gold fund manager Adrian Ash recently told London’s Daily Telegraph, “Physical gold, indestructible and rare, will continue to appeal as the ultimate store of value for retained savings worldwide. Because, just like in the Eurozone, the U.S. debt cannot be settled in full. So it won’t be.”

While the media focuses on the U.S. debt ceiling, significant financial problems will continue to plague America as long as the country continues its current entitlement programs. These problems make it a good time to buy gold.

An article on Bloomberg.com stated that China purchased 200 metric tons of gold in the first two months of 2011. In 2010, demand from China equalled 579.5 tons so China is on track to double its gold purchasing in 2011. China’s voracious appetite for gold will continue to influence the price of gold for several months even though China is the world’s largest producer of gold.

“The trend is undeniable, gold demand in China is rising rapidly,” Walter de Wet, Standard Bank head of commodity strategy, told The Wall Street Journal in December 2010. And The World Gold Council estimates that China’s gold demand could double in 10 years.

So why is China buying so much gold? Eight reasons.

1. Inflation was 4.9 per cent in China in January 2011 and gold is a hedge against inflation. So there’s internal pressure to buy gold.
2. Inflation is starting rear its head in Europe and also in the United States. Again, the Chinese are heavily invested in European and American economies and see gold as a hedge against inflation in Europe and the United States.
3. American fiscal policy. To deal with its financial struggles, the Federal Reserve has been using ‘quantitative easing’ which is ‘printing money’ and this devalues the dollar. China has invested in American Treasury Bonds. Gold counteracts declining bond yields.
4. Middle Eastern unrest is likely to continue due to steeply rising food prices and political factors. This could result in another oil price spike which could result in another gold price spike.
5. Chinese people are worried about internal inflationary pressures. The government has promised to raise food supplies and address an increase in property prices. But the Chinese people, currently losing 1-2% in a savings account, are buying gold.
6. Gold is so popular in China that more than 1 million people have opened a physical gold linked savings account created by The Industrial and Commercial Bank of China Ltd. The bank stated it has more than 12 tons of gold stored on behalf of investors.
7. Last year, the Chinese government made it easier for financial institutions and individual investors to buy gold; more banks are importing and exporting gold. Previously, China’s central bank controlled the country’s gold market; the ‘dragon’ of demand for gold in China has now been unleashed at the retail and institutional levels.
8. There’s no guarantee the dollar will remain the world’s reserve currency; if the dollar collapses, gold provides a strong ‘plan B.’ China realises the potential of the declining influence of the dollar and has been buying gold. China is one of many countries looking to diversify monetary holdings.

Other countries, especially India, are big players in the global gold market but China will continue to influence the gold market for the next several months. We believe China will continue to buy gold and their desire for gold will put upward pressure on prices.

When you’d like more information about how to purchase gold, click here to contact us today. To receive our free newsletter, click here now.

After a steady April where the price of gold rose from $1,420 an ounce to just under $1,540, May has been a roller coaster with a couple of ‘big dips’ to under $1,500.

Periods of volatility are normal in the life of a commodity and, indeed, any investment. In the past 18 months, the price of gold has encountered some wild months: February, June, October in 2010 and March this year.

Nobody can predict future prices with absolute certainty. However, it’s clear a massive factor in the rise of gold is the American economy–specifically its debt levels and the decline of the dollar.

Unless the Federal Reserve dramatically changes course, which seems unlikely, the United States has a major problem coming up: in ‘layman’s terms’ the U.S. has ‘reached its credit limit.’

The numbers are chilling. In 2005, America’s debt ceiling was $7.8 trillion; debt may increase to $18.8 trillion by 2014 – more than 100% of GDP. So the only way the U.S. can fund this debt is by printing money. This creates massive inflationary pressure. Gold is a proven hedge against inflation: demand for gold will likely increase and this will likely push the price up for at least the next several months.

So, while the gold price has experienced some turbulence this month, we believe it’s still a good time to purchase gold for a portion of your investment portfolio. Especially when the price of gold dips.

In just two years, the price of gold has almost doubled. Is the price going to decline or will it increase? Is now a good time to buy gold even though the price continues to increase? While nobody can predict future prices with 100% accuracy, recent events indicate the rise will continue.

America’s economy remains the world’s largest even though the economy has experienced some turbulence. The Federal Reserve, which controls the money supply in the United States, has a massive impact on the global economy. Perhaps you’ve heard of the phrase “quantitative easing” which is essentially code for “printing money.” It’s the tactic the Federal Reserve is using to stimulate America’s economy.

We could debate the wisdom, or otherwise, of this tactic but there’s no arguing its effect. The dollar is worth less against other currencies and the weakening dollar means higher gold prices. So, for investors interested in buying gold, paying close attention to the Federal Reserve is vital.

• Federal Reserve Chairman Ben Bernanke held a press conference on April 27. He said that quantitative easing will continue. During the press conference, the dollar fell to 1.47 against the euro and $1.66 against the pound. Gold rose 1.4%.
• Kathy Lien, director of currency research at Global Forex Trading told CNN Money, “The Fed has made it crystal clear that it is not going to do anything to stop the dollar from falling.”
• Investors are clearly worried that quantitative easing will lead to inflation. Their “buy gold” tactic is a hedge against inflation. Inflation is starting to rise in the United Kingdom: their consumer price index was 4% in March.
• Central banks around the world are buying gold bullion. India, China, Qatar, and Russia are among the countries investing in gold. These countries will continue to buy gold as they follow a strategy of diversifying their investment portfolio—and leaving the weakening dollar.
• A country like Qatar, which receives its payment for oil in dollars, is quickly turning around and buying gold. From early 2008, the Qatari central bank has bought at least a ton of gold every month. Other countries want to buy gold: Mauritius, Sri Lanka, Kazakhstan, Venezuela, and the Philippines are enjoying the “buy gold” party. China will likely increase its gold reserves to 6,000 tons in the next five years and may spend $1 trillion on gold bullion.
• Robert McEwen, CEO of gold producer U.S. Gold Corporation, stated that gold may reach $2,000 an ounce this year.
• The last major gold rally ended in 1980 when the Federal Reserve increased interest rates to 20%. The current Federal Reserve Chairman has indicated he’s not likely to increase interest rates—even from the current historically low levels.
• Investor Warren Buffet recently revealed he believes the dollar will decline significantly.
• Demand for gold remains high while the supply remains relatively low due to the difficulty of finding and mining significant quantities.

Profit taking will continue in gold and this may create daily and weekly turbulence but the factors above have convinced many investors, and national governments, to buy gold.

If you’d like more information about how to buy gold, click here to contact us today. To receive our free newsletter, click here now.

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.

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…

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.

Today’s YouTube video is very short – explaining why gold and silver bullion investment is an ideal choice for wealth protection. Dr Marc Dussault interviews Peter August, CEO of The Australian Bullion Company, to explain why high net worth individuals are buying gold and silver like never before. This is a series of interviews that you can view on our Australian Bullion Company YouTube Channel.

Video transcript: Gold and Silver Bullion For Wealth Protection

Hi, I’m Dr Marc Dussault, and you can see it’s November, we’re in 2009, I’m here with Peter August, the Managing Director of the Australian Bullion Company.

Peter I want to thank you, hello, yes of course.  We’ve been sitting here for about, well I won’t say how long we’ve been doing these tapes but it’s been a great morning here and what we’ve done is we’ve put together a handful of YouTube videos that you can access through clicking the bubbles that you’ll see on the YouTube videos.  And what we’ve done is we’ve explained why you would invest in silver and gold bullion.  And we’ve explained also the difference between numismatic coins, in other words coins that you collect, as well as these bars here that I do know now that these are bars and not coins; and to take you through the process of why you would invest in gold or silver bullion.

Now we’re talking about different things; if you would just summarize, just in one sentence why someone would invest in gold bullion, or silver bullion, compared to anything else, what would that be?

To protect their wealth, their hard earned wealth, in fragile financial times.

And when we say protection we’re talking about an increase of about 10% historically that you’d recommend people have in bullion…

Sure.

In respect to their total value of their asset base, to now about 15 to 20%.  So you’re not saying sell all your stock, sell all your properties, but just increase the proportion of the gold and silver that you have within your portfolios.  Am I right?

Absolutely.  This is your insurance against calamity.  Okay, now I mean 10 years ago the risk of any kind of financial calamity, or geopolitical calamity was quite small so henceforth you had a very low gold price.  But that risk has increased dramatically. Read more…

This week’s video is an expert interview with Peter August of The Australian Bullion Company. Dr Marc Dussault, an Exponential Growth Strategist asks Peter why the gold price is high and why it’s expected to continue to rise in the future. If you’re interested in growing your wealth and protecting your investment portfolio, this 40minute YouTube video reveals what the rich and ultra wealthy are doing…

Video Transcript: GOLD PRICE HIGH

Hi, I’m Dr Marc Dussault and I’m here with Peter August, CEO and Managing Director of Australian Bullion Company. And we’re here videotaping a series of YouTube videos to explain certain things about gold investment. And this particular video is focused on why the price of gold has gone up so much, so quickly, at least in the eyes of the public.

This is an ounce of gold, about a year ago how much was this worth? Actually back in 2000 and in US dollars, how much was this worth in more or less the year 2000?

Okay. In more or less the year 2000 this was worth US$258.

So US$258.

That’s the low point that gold got to.

About a year ago how much was this same $258 asset that was purchased in 2000?

In US dollars it was about $800.

About $800; so from 250 to 800. Now how much is this worth today, November 2009, in US dollars?

It’s actually just at an all time high right now, so it’s $1,116. Read more…

This second video follows on from Part 1 that discusses gold versus silver investment. In this second part video, Peter August of The Australian Bullion Company reveals why sophisticated investors buy silver and gold bullion to create and protect their wealth.

VIDEO TRANSCRIPT: SILVER VERSUS GOLD INVESTMENT – PART 2 OF 2

Hi, I’m Dr Marc Dussault and I’m here with the Managing Director of the Australian Bullion Company.

Hi, Marc.

I’m sorry?

I said, hi Marc.

Yes.  And his name by the way, this happens every once in a while when do these…

I do like to be polite.

His name is Peter August.  So I apologize for not using his name because obviously we know each other, but you might not know him.  So getting on to this, we’re doing a few, a series actually of YouTube videos.  And what I have here are silver bars and what I wanted to focus on, you started mentioning something and I stopped you at the end of another YouTube video, we’re talking about silver as another investment.  Now I was in the printing industry where silver was used fro photographic purposes in film.  And a lot of the industry thought, well when film goes the price of silver is gonna plummet; because obviously film was a big user of silver components within the actual film manufacturing process.

Okay, well just…

But that didn’t happen. Read more…

Peter August was recently interviewed by Exponential Growth Strategist Dr Marc Dussault for a series of YouTube videos explaining gold and silver investment strategies and why anyone who wants to increase their wealth should consider gold and silver bullion to protect their investment portfolio. Today’s 4-minute video briefly explains the reasons to invest in gold.

Reasons to Invest In Gold

Video Transcript: REASONS TO INVEST IN GOLD

Hi, I’m Dr Marc Dussault and I’m here with Peter August of Australian Bullion Company.  And the reason we created this YouTube video is I’ve been talking with Peter for quite a while that a lot of people think that gold investment is only for rich people.  So we just want to take 2 or 3 minutes very briefly and you’re gonna see the big words that Peter is gonna be pulling out of the thesaurus today.

I’ll try to keep them small.

Now this is just take 2 of this YouTube video by the way and take 1 was quite funny; and we went through a few points but let’s get started.  First of all there are 105 ounces here on the table and you can see the size cause this is just a regular blackberry mobile phone.  This is 20, 20, 20, 10, 10, 10, 10 and this is five 1 ounce gold coins.

Gold bars.

I’m sorry, gold bars.  So this is what it actually looks like, that’s what it sounds like.  And it’s actually very heavy; it’s an amazing thing to actually touch.  How much is this actually worth by the way?  What we actually have on the table here.

We’ve got well over $120,000. Read more…

Investing in gold is popular these days. People are investing in gold like never before, but a little known fact is that silver bullion investment is also gaining in popularity. Watch this short 5 minute YouTube video that explains the differences between gold versus silver investment.

VIDEO TRANSCRIPT

Hi, I’m Dr Marc Dusault, I’m here with the Managing Director of the Australian Bullion Company Mr Peter August and we’re sitting here with gold, and this is 105 ounces of gold bars and this is another ounce of a coin.  And I just wanted to show you what it actually looks like; and it’s actually as heavy as it sounds.

Now just so you can see, this is a regular blackberry mobile phone and we have a series of YouTube videos that explains why you should invest in gold.  But what I wanted to do in contrast, and I’m just gonna move the phone over here just so you can see the difference in size.  Again this is just a regular, this would be about the size of a 20 cents piece wouldn’t it?

Yes.

Okay, so a 20 cent Australian piece, and it’s actually you know very attractive because once again it’s a coin, whereas these are bars which have a little bit more of a rough texture.  But the contrast I want to show you is with silver.  Now this is 1 kilo which is about, it’s about all of this isn’t it?

One kilo is that.

Is that.  So this, is that.

It’s a dramatic difference isn’t it?

Yeah, it’s a huge difference.  Now this is silver and I, you have to sense how heavy this is and when you look at it it’s got that rough texture we talked about in the other YouTube video about bullion, and it’s stamped, and it’s actually when you touch it it’s got a really nice feel to it.  I want to show you another one, this one is how much, 5 kilos.

That’s correct.

Now I’m not gonna drop it from too high up okay, but… Read more…

Watch this short interview with Australian Bullion Company’s Peter August on why you should consider investing in gold. As Dr Marc Dussault’s interview reveals, gold prices have had quite the run as of late, but this candid interview reveals why the trend is not expected to be short-lived based on historical data.

VIDEO TRANSCRIPT: GOLD INVESTMENT: WHY GOLD?

Hi everyone, I want to thank you for taking some time to watch this YouTube video.  I’m Dr Marc Dussault and I’m here with Peter August of Australian Bullion Company.  And I just wanted to take a few minutes and ask him a few questions on why would anyone want to invest in gold.

And what we have here is some gold bars and some gold coins.  And as you can see I just have a regular blackberry mobile phone so you can see the difference in size.  First of all how much gold is actually on the table?

Well we’ve got 105 ounces altogether sitting here Marc.

So this is 20, 20, 20, 10, 10, 10, 10 and then…

Five 1 ounce bars. Read more…

The Australian Bullion Company’s very own Peter August was interviewed on television recently. Watch the YouTube version of the interview to find out why the Gold Price is on the rise and why it’s expected to keep increasing based on expected global demand…

Peter August On The Gold Price

VIDEO TRANSCRIPT: GOLD INVESTMENT TV INTERVIEW

It has soared to record highs on news that India’s Central Bank has bought 200 tons of it from the International Monetary Fund.  The 6.7 billion dollar purchase over the last 2 weeks of October surprised the markets.

It was the biggest single central bank purchase over such a short period in the last 30 years.  The price of gold jumped by more than US$30 to an all time high of $1,087 an ounce.  The country has until now has been the biggest consumer of the precious metal, primarily because of its deep seated affection for jewelry and gold ornaments.  Experts say India’s interest in diversifying into bullion is a sign that gold’s run has only just begun.

For a while there had been a sort of a philosophy that gold no longer was relevant in a modern society, but with all the printing of money that is going on around the world gold has become the ultimate safe haven and has become the safe asset of choice, not only by individuals but by central banks.

The change of attitude appears to be due to a shift in strategy by investors to hedge against a weaker dollar and the threat of inflation.  It also heightens speculation that there may be more official purchases.

The Chinese we know are very worried about holding so much US denominated debt and cash.  You’ve got the Middle East petro dollars that need to be recycled into a store of wealth that they can rely upon.  There’ll be no shortage of takers.

The IMF plans to sell about 400 metric tons of gold this year in an effort to shore up its finances and increase lending to developing countries.  India’s purchase represents about half of that amount.  The question now is who will buy the rest of the IMF gold.

Neena Mairata, World News, Australia.

Gold Surges To Record High <- Click here to read the article