Monthly Archives: September 2012

Melissa Lizenby accepts the $1000 prize

Melissa lizenby $1000 prize winner

Melissa lizenby $1000 prize winner

Melissa Lizenby accepts a $1,000 cash from A1 Gold Buyers CEO Anthony Shapiro. Melissa was the grand prize winner of our Facebook sweepstakes.
Let us all congratulate her by leaving a comment!

Would you like to be the next winner? make sure to visit this page for details

What Will $40 Billion A Month Do To Gold Prices?

Last week Federal Reserve Chairman Ben Bernanke announced that the Fed would begin to purchase $40 billion a month in mortgage backed securities in an effort to boost the American economy. This bold move may be able to keep interest rates low, but it will have an effect on the value of the American dollar.

When the Dollar is weak, people turn to gold as a safe haven investment. Not only is gold viewed as safe, it is viewed as a hedge against inflation. One of the largest concerns at this time is that the $2 trillion bond purchasing program will drive inflation skywards.

An economist at Bank of America has announced that the target for gold prices by the end of 2014 will be around $2,400 per ounce. He believes if current trends in the gold market continue, you will see a 0.7% increase in gold prices within the next four months. He also predicts gold hitting the $2,000 mark by the end of June 2013.

Of course, this can easily be changed if there are further financial problems in the United States and the rest of the world. If the Euro, for instance, goes into meltdown, you could see gold surpassing this predicted rate at a very fast pace.

The new bond buying program is anticipated to keep interest rates near zero until mid-2015. During this period it is easy to see that gold will continue to rise.

What will gold do tomorrow

The price of gold can change dramatically in a single day. Knowing what to look for will give clues on when gold will go up or down in price.

Usually, any hint of a major geopolitical conflict will send gold surging upward. The Middle East is especially an area to watch. For example, if Iran threatens to bomb Israel or sink a ship in the Strait of Hormuz, the price of gold will most likely go up.

People look to gold as a safe haven when geopolitical situations look to go hot as in a shooting war or anything that may hinder the shipment of goods.

Labor disputes in countries that mine gold can also send the price of gold up. If miners go on strike at a major South African gold mine, this will reduce the supply of gold and send the price upward. After a labor dispute is settled, the price may fall. Mines that forward sell gold can depress the price of gold. The news that a major gold vein is playing out at a big gold mine can send the price of gold higher.

Anytime the movement of oil is disrupted, the price of gold can surge. If the price of oil moves sharply higher, the price of gold can also go up.

By following geopolitical events, the action of mining companies and the price of oil, a person can get a good idea if gold will go up or down in price.

Remember! When you sell gold in Atlanta to A1 Gold Buyers you know that you get the most for your gold!