Investing in Gold

“Price of gold will not have much movement”? What do you think?

According to an International Business Times article of July 11th 2013 experts believe that the price of gold will not have much movement for the next 12-18 months. If you are thinking about selling, now is the time to make a move, bfore the market takes a further fall in prices.
What’s Next For Gold?

Most experts aren’t holding their breath for a return to gold’s recent glory days. Nouriel Roubini, a New York University economist influential in financial circles but usually pessimistic about global markets, sees gold headed further south to $1,000.

Goldman Sachs lowered its forecast for the price of gold at the end of 2014 to $1,050 from $1,270.

http://www.ibtimes.com/golds-worst-quarter-ever-finally-over-where-do-gold-prices-go-here-1328233#

Outlook for 2013 Gold Prices

If you own scrap gold this appears to be a good time to sell. Increases in gold production might influence gold prices to drop.

Barclays, a major British financial services company, estimates that global gold production should increase slightly to 2,672 metric tons in 2013 from 2,652 metric tons in 2012, according to a November 13th Bloomberg article entitled “Gold Industry Facing Mine Discovery Challenge.” These estimates are similar to the 2011 global gold production estimate of the United States Geological Survey (USGS) of 2,700 metric tons. 2,672 metric tons is approximately 86 million troy ounces.

Gold production tends to fluctuate from year to year, with factors such as the gold price, new discoveries, mine quality, investment capital, and energy and labor costs influencing production. Despite this fluctuation, production tends to be relatively stable, due to the rarity of the metal and the cost of extracting it from the earth. With the price of gold having increased from under $300 per troy ounce in 2001 to about $1650 per troy ounce today, global gold production is likely to stabilize or increase in the next few years due to greater profitability in mining.

According to the USGS, in 2011 China led the world in gold production at 355 metric tons, followed by Australia at 270 metric tons, the United States at 237 metric tons and Russia at 200 metric tons.

Because of increased production, gold prices could feel the pressure and head downward. Now is a good time to sell and A1 Gold Buyers is the right place to sell to. A1 assures the highest prices and finest service in the metropolitan area. Come see us for your Gold, Silver, Diamond and Coin sales.

Sources:
http://www.bloomberg.com/news/2012-11-13/gold-industry-facing-mine-discovery-challenge-barrick-ceo-says.html
http://minerals.usgs.gov/minerals/pubs/commodity/gold/mcs-2012-gold.pdf

Should Pension Money be Invested in Gold?

Many people ask this question. The answer really depends upon a couple of factors.

Age to retirement is the first of these. For a person with a long time horizon, gold is an excellent way to diversify a pension portfolio. Gold offers a long term opportunity for significant capital growth. Someone who had added gold to their pension twenty years ago would have reaped a return on their investment that is almost impossible to get anywhere else without exposing the portfolio to extreme risk. In the short term, however, gold’s volatility might prove detrimental. Someone who invested in gold in 2012 with the expectation that it would continue the upward price movement it enjoyed during the first decade of the 21st century could have experienced a decline in the value of that portion of the pension portfolio.

The next factor to consider is an individual’s personal tolerance for risk. Again, the volatility of gold prices is behind this consideration. There is nothing whatsoever wrong with taking an extremely conservative approach where one’s retirement funding is concerned. Gold has shown consistent appreciation in value over the long term, but someone who monitors their pension fund on a monthly or quarterly basis might not be able to comfortably tolerate the ups and downs of the gold market.

It is possible to overcome these price swings somewhat and still include gold in a pension portfolio by investing in gold in such a way that it represents only a small portion of the total portfolio. This way, even someone who is risk adverse and has only a short time horizon before reaching retirement age can benefit if gold prices rise without being severely penalized if they fall or remain stagnant.

How the fiscal cliff will affect gold prices?

This is How the Fiscal Cliff Will Affect Gold Prices

Economic fundamentals of supply and demand determine the prices paid for commodities, groceries and currencies. Politicians have shown that their primary policy for handling the fiscal cliff will be to print more paper money. This will increase the supply of the fiat currency.
Inflation results when more paper money is chasing the same amount of goods and services. The paper money loses its value. Individuals, businesses and governments will demand more money to make ends meet. Wise investors will purchase gold to protect against assets losing their value.

Handling the Slippery Slope

When people start to slide down a slippery slope, their first goal is the stop the decline. Likewise, the wealthy are purchasing gold to retain the value of their assets.
Gold remains a valuable, scarce, precious metal. It can be used in all countries and at all time. Gold has lasted as long as mankind.
The unresolvable fiscal cliff is increasing the price of gold because investors want to protect the real purchasing power of their assets.

If you were smart and invested in gold at low prices then today would be a profitable time to sell.
However ,gold is always a safe investment for reasons outlined above .

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!

Investing in Gold Stocks vs. Direct Ownership

When you are interested in investing in gold, you have the option of going with gold stocks or owning gold directly. While gold stocks do have some advantages over other stocks, direct gold ownership is the best option.

With direct gold ownership, you get a tangible investment that you can actually hold in your hands. This way, if you ever need access to the investment, you know exactly where it is. With gold stocks, your shares are held electronically in your broker’s computer system. If the system collapsed, your shares would not be worth anything and you could not trade them with anyone.

Another reason that direct gold ownership is better is because it allows you to speculate directly on the price of gold. With gold stocks, they are loosely based on the price of gold, but the management of the company also comes into play. If the company makes bad investment decisions or doesn’t manage its resources effectively, it could devastate the stock price of the company. If you want to own something that is going to continue to go up in value over time, gold is what you need.