2007 marked the beginning of what has been commonly referred to as “the worst financial crisis since the Great Depression,” and this weakened economy has caused mayhem with mainstream investments like stocks, bonds and real estate. Newspapers, magazines and articles from various sectors have reported trillions of dollars lost with paperbacked assets as a result of major economic contractions. Between 2001 and 2008, the majority of mainstream investing markets spiraled downward, and during this same period the gold spot price increased more than 300%. Masses of wise American investors have begun looking for the ultimate safe-haven tool that could help them protect wealth and even profit, and what better protection than a gold investment?
For decades, investors who have owned a gold investment have been able to store their wealth while profiting from upward fluctuation with history’s most cherished precious metal. The reason that investors turn to a gold investment during troubling economic times is because the metal is considered to be an asset that holds true value, as opposed to paperbacked assets like stocks that are dependent on company strength as well as the overall strength of the United States Dollar. With inflation and deflation continuously threatening paperbacked assets and the United States Dollar, doesn’t it make sense to own gold as a backup plan in the event that the economy collapses? Just like with backup generators in the offices of major corporations, a gold investment backup could help you keep your lights on in the event that the economy gets much darker.
Skyrocketing gold investment demand has driven gold’s spot price to record highs, and increasing demand continues pushing the metal’s value even higher. Many market analysts, financial planners and institutional investors believe that gold may continue climbing similar to movement that was seen in the late 1970’s when the spot price increased more than 800% in two years. If this were to happen, wouldn’t you like to know that your hard-earned wealth could be safe from major losses, while at the same time profiting if spot prices reach projected levels?
When beginning a gold investment, it’s very important that you fully understand how the market works in to maximize profit and wealth preservation potential. A proven method for diversification success is working with experts that can guide you in the right direction. Explore your options with a gold investment today by researching the award-winning online tutorial at . When you are ready, contact one of our experts at www.CertifiedGoldExchange.com and let us guide you on the road to peace of mind with the security of gold in your hands.
In the past decade, crumbling mainstream investment markets have caused many investors to seek safe-haven assets amidst this contracting economy, and the majority of them have learned how to gold as their ultimate tool for profit and wealth preservation amidst “the worst financial crisis since the Great Depression.” This comes as no surprise, especially since the metal has increased in value more than 400% since 2001 while many mainstream investments lost more than 25% of their initial value as a result of large economic contractions. History has proven time and time again that when paperbacked assets lose value, wise investors learn how to gold as a means of preserving themselves with one of the world’s most recognized stores of wealth.
Learning how to gold is a lot easier than many investors think, and modern technology has made it a very simple diversification. When you do decide to purchase, it’s very important that you only diversify with physical possession bars and coins because riskier precious metal investments like gold stocks and exchange traded funds have proven to be just as volatile as traditional stocks and shares. Just like with most other investments, thorough research could lead you to success with gold investments, thus I have outlined a three-step plan below that could lead you on your way to success with the metal:
Research Gold Market = There are several different factors that affect the gold market on a daily basis, and understanding these factors is the first step to success with a precious metal diversification. The spot price is the base price of one-ounce of gold on commodities exchanges worldwide, and it is the most important factor because it is influenced by external economic factors ranging from the strength of the United States Dollar to investor sentiment about the economy, stocks, bonds and real estate. You can track this spot price on reputable websites like www.GoldPrice.net.
Research Gold Bars And Coins = When learning how to gold, it’s important to know that there are hundreds of different bars and coins that could benefit certain types of investment portfolios. All these products are split into two major categories; modern-day bullion and pre-1933 certified rare coins. Investors who purchase modern-day bullion typically seek short-term profit from their investment while investors who purchase certified rare coins typically seek long-term wealth preservation from their investment. An excellent award-winning resource that can help you learn more about these bars and coins is www.Gold-Investment.info.
Research The Best Dealers = There are literally hundreds of gold dealers scattered across the nation, some of the reputable but most of them not so reputable. Conducting background reputability checks is important because you always want to deal with companies that hold long-standing histories of excellent service and pricing. The Better Business Bureau website is an excellent resource because simply by inputting the name of a gold dealer, you can see their BBB rating as well as any comments and complaints they may have. Precious metal firms such as www.CertifiedGoldExchange.com have held A+ ratings with the BBB since 1992, thus making them one of the industry leaders in this flourishing market.
Nov 4th, 2009 Precious Metals ETF have gone wild the past 2 weeks. Last week we saw gold and silver prices drop sharply as it shook out short term trader’s stop before breaking out and moving higher. Also there is a disconnect between the gold and the dollar.
Energy commodities like natural gas and crude oil are moving in opposite directions and look to be picking up speed. Natural gas is losing pressure and oil is on fire.
GLD ETF Trading – Pivot Trading Low Last week we had our pivot trading low generate another signal for gold. Trading pivot lows is a simple trading strategy. I call them low risk setups and take advantage of buying a stock, commodity or currency after a pullback to support and when a reversal candle is formed. This chart clearly shows when you are trading with the trend buying on the dips is generally a low risk play with great up side potential.
Gold Bull Market Pivot Trading Low
Precious Metals ETF Trading – Gold Bullion Takes Control This is a chart which shows the performance of gold stocks (red), silver bullion (blue) and gold bullion (green). As you can see the past 2 weeks while the market has been selling down precious metals stocks have been hit harder than silver and gold.
Because of the heavy selling in stocks recently the smart money had been going into commodities especially gold bullion. Gold stocks are a great play but this is telling us investors feel safer in physical bullion than stocks.
Gold is the most known precious metal and safe haven which is why it’s holding value better than silver and stocks. This week we are seeing gold become more valuable in several major currencies which means gold is actually making a real move higher.
Gold Bullion, Silver Bullion, Precious Metal Stocks
USO ETF Trading – Breakout & Bull Flag Crude oil has had some great breakouts this year and it looks like we are about to get another signal shortly. We had a breakout in Oct from the large pennant and are now flagging which is very bullish. We could see USO reach $50 in the next month or two.
Crude Oil Bull Market Breakout
UNG ETF Trading – Pivot Low or Waterfall Sell Off? Natural gas is at a crucial level for a higher low bounce or another massive panic sell off. Trading right now with UNG is a 50/50 shot so we will just have to wait and let things unfold more before taking any action.
Natural Gas Pivot Low Bear Market
The Stock Markets, Precious Metals & Energy Trading Conclusion: The market is starting to feel a little squirmy as it tries to find support. Small cap stocks continue to get crushed while blue chip (large cap) stocks are holding more of their value. Gold has broken higher this week while silver and precious metal stocks under perform their big sister Yellow Gold.
Crude oil is holding up nicely forming a 3 week bull flag and showing signs of life while natural gas continues to get hammered.
The market has been jumpy the past 2 weeks because market participants are very uneasy about the future direction of the US dollar.
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Chris Vermeulen is Founder of the popular trading site . There he shares his highly successful, low-risk trading method. Since 2001 Chris has been a leader in teaching others to skillfully trade in gold, oil, and silver in both bull and bear markets. Subscribers to his service depend on Chris’ uniquely consistent investment opportunities that carry exceptionally low risk and high return.
Reach Chris at: Chris[at]theGoildAndOilGuy[dot]com
A bull market is associated with increasing investor confidence, and increased investing in anticipation of future price increases capital gains. And a bull market is also sometimes described as a bull run. A bullish market trend in the stock market often begins before the general economy shows clear signs of recovery. But bull markets can also happen as a result of an economic recovery, an economic boom, or investor psychology. Could we see another 1970s magnitude gold bull market again today? Sure!
Real interest rates haven’t been negative for over 20 years, when the last Great Gold Bull peaked. Negative real interest rate environments are the most potent fuel known for igniting out-of-control and spectacular gold bull markets.
So gold should form the core of a portfolio in times of depression and recession. During the great gold bull market of the 1970s, the average monthly gold price increased from under $35 to over $675 an ounce… representing a 1,833% gain.
If today’s gold bull market makes similar moves forward, gold prices could skyrocket well over $5,000 per ounce. With gold riding high peaks lately, it’s hard to imagine that any investor could still remain in the dark about the potential of the yellow metal. But despite the record-breaking prices, the greater investing public just hasn’t jumped on board the gold train. When you think of how much gold has risen since 2001—it’s nearly quadrupled—it still doesn’t seem to have excited an awful lot of people. There doesn’t seem to be much public participation yet. There’s no sense of a mania, at this juncture. One day, there probably will be, and then it will be really big. So some people who suggest that this is a bubble already, I think are probably mistaken.
So the danger lies in the government printing press. And true wisdom is to hold gold in the face of the devalued dollar. And as long as the world is restless with our increasing money supply, our trade deficits, our unfunded liabilities, and the complete inability of Congress to stop the government spending… the price of gold will continue to rise. Clearly, these problems won’t end any time soon.
While gold has shown a healthy appreciation, the stock market still remained in the doldrums. Despite the run-up in bullion prices and precious metal shares, the bull market in gold has just begun. The analysis is mainly derived from the bullish fundamentals of the yellow metal as well as the bearish fundamentals of the U.S. Dollar. In addition to favorable fundamentals, there are sociological signs that the bull market in gold has just started.
Gold has been in a secular bear market and is now in a secular bull market. Market experts use the term secular to indicate a long time period. Not an entire century, but perhaps to represent events that occur “once in a lifetime” because they are so long. The price of gold over the last decade displays one major cyclical bear market from early 1996 to early 2000 and a major cyclical bull market from early 2001 to the present.
There continue to be very strong fundamentals driving the gold market. These fundamentals are driven by basic economics. There is a small finite supply of gold; while there is a very large and growing very significantly, supply of government bonds as governments internationally print money and create public debt on a scale never seen before in history. In the battle between the huge supply of government debt versus the small finite supply of gold, there can be only one winner for the foreseeable future.
Gold is unique among asset classes as it is the only asset class not dependent on the performance of auditors, management, corporations, financial institutions, banks, politicians and governments. Nor should physical gold be dependent on the performance of trustees, custodians or sub custodians. Gold does not depend on the performance and health of the wider economy and as importantly when you gold in its physical form there is no third party liability or credit risk. Gold has an intrinsic value in of itself that is not contingent on someone else’s or some entities performance or mere promise to pay. Thus, gold in its physical form is still the ultimate form of financial insurance. This is why every major central bank in the world still maintains a significant portion of their reserves in gold bullion and many, such as the Chinese, are now increasing their gold bullion reserves.
Most ordinaly people have difficulty understanding why gold is the investment opportunity of a life time. There is actually huge physical demand for gold as opposed to paper demand. A high demand for gold coins, gold bars, and it is getting increasingly difficult to deliver it, (for example the US mint) is no longer selling the american eagle gold coins, simply because they ran out of gold.
All the above fundamentals and factors are indicators that there is a large price spike on the horizon for gold. This is leading to what is clearly a real bull market in gold – and a bear market in the dollar and other currencies
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Buying solid gold is a cleaver way of investing and holding gold. Over the past six thousand years gold has been regarded as a form of money and store of wealth. The use of gold has far outshined the alternatives for a number of reasons including its scarcity, brilliance, softness and resistance to rust.
Since the end of the gold standard, gold has largely lost its role as a form of currency, but is still considered by many, including some of the world’s most important central banks, as a store of great wealth and a safe haven in times of calamity. Gold along with other precious metals are seen as unique assets in that they are real value and liquid specimens, unlike some other assets like property which is real but not liquid, or company shares which are liquid but not real, its only paper.
The unique and useful properties of gold, as well as its rarity and increasing demand, make it an attractive commodity investment. Gold is known as the “crisis commodity” because during periods of political, social, or financial disaster, the price of gold tends to rise in response to the same factors which cause other investments to fall.
And gold does preserve a special position in the market with many tax regimes. For example, in the UK the trading of gold is free from taxes.
When currencies have failed or economies collapsed, gold throughout history, has maintained its bargaining power. It is hardly possible that it will ever lose all its value, unlike stocks whose value can be wiped out in short if one or more of the numerous risks associated with them turns badly.
Buying Bullion bars is initially the most cost effective entry into the physical gold market. They can be purchased in various weights from as low as one troy ounce and up. But be sure to from an established dealer that provides a written certificate of weight and gold content.
As gold is a soft metal it is safe for the bars to be sealed in clear plastic protector to prevent any accidental damage or wear causing a loss in weight or identification. Most investors are not fond of keeping their bars at home so annual storage and insurance costs must be taken into account.
Many will make their investment by opening an account on line with an authorized gold depository where purchases are kept in a secure vault and can be traded as easily as stocks. If the purpose of buying is to take physical possession of the gold, then renting a safety deposit box is an answer. Also do not forget to check out the tax implications in your jurisdiction before deciding on investing in bullion bars.
For gold bullion coins currently or recently minted, that are issued by various countries, there is a possibility of getting a simple entry into the ownership of gold. Typically bullion coins are priced according to their weight, with little or no premium above the gold price.They come in a range of sizes from as low as 1/20th of an ounce to one ounce. The prices fluctuate throughout the day in line with spot gold prices and expect to pay up to a 5% premium.
The coins are easy to purchase on line and can be shipped to your door by secure delivery. They are easier to store at home, can be traded at local coin dealers or online and as they age, may increase in value as they become of interest to collectors. There is less likelihood of any adverse tax problems associated with trading in bullion coins on a limited level as they are likely to be considered as a private transaction but to be safe check before purchasing. Not to be confused with commemorative or numismatic coins.
Collectors gold coins include pre 1933 government issues. These coins trade on a highly specialized market where the spot price of gold is not the only factor to consider. 1933 was the year when President Roosevelt made holding gold coins illegal and ordered all US citizens to return them to the US Treasury where they were melted into gold bullion bars, hence the rarity. Note that while it is an unlikely possibility that there would be another gold confiscation issued by the US or any other major government it has happened before and could happen again.
If your goal is simply to capitalize on price movement, then bullion coins will serve your purposes. If you are interested in long-term asset preservation and you have additional concerns about capital or monetary controls, then you might want to include the lower premium variety of pre-1933 European and American gold coins in the mix. These have been treated by the U.S. government since the 1930s as historical items, and, as a result, afford the privacy-minded investor a greater degree of safety than gold bullion.
If you want to protect yourself against inflation, deflation, stock market weakness and potential currency problems, to hedge financial uncertainties, there is only one portfolio item that will serve you in all seasons and under most circumstances; gold coins and bullions.
Now is a great time to invest in gold. The price is expected to continue to rise, with no clear limit in sight. As a hedge against inflation, as a store of value, as a liquid asset, and as a stable core in a diversified portfolio, gold is unmatched.
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The last week of October was something else. Heavy fiscal year end selling for mutual funds seemed to put a damper on good news and push stocks and commodities lower. October is historically a tough month on the US market with mutual funds locking in profits on their books.
Below are some charts showing my analysis on gold, silver, oil, natural gas and the S&P 500 index along with a seasonality chart proving that October has more selling pressure than other months.
As you can see from the chart below we appear to be in the middle of a pivot low correction which can make for some great entry points. The trend is up, gold is oversold and it looks like we had a reversal low last week.
This is a chart I posted a couple months ago and so far silver has traded within the trend lines and support & resistance levels I pointed out in early August. Silver still looks bullish as it is trading at a pivot low.
Gold mining stocks appear to be trading near the bottom of the trend channel. The odds are still pointing to higher prices.
Crude Oil USO Fund – Oil Pivot Trading Low – Daily Chart
This chart of USO is also from a recent post in early October. USO broke out and is now trading at our support trend lines. There was a nice reversal candle last week but the heavy selling across the entire market pulled oil back down.
Natural Gas UNG Fund – Natural Gas Pivot Trading Low – Daily Chart
Pivot trading low could be close for UNG. The daily chart is telling me we saw the bottom in natural gas back in September as prices collapsed washing out most long (bullish) traders. I figure we will see prices trade between $9-12 for several months as the commodity forms a base.
The broad market looks and feels oversold. This chart uses Andrews Pitchfork analysis to show where short term pullbacks to the middle trend line (middle of trading range) have been a buying opportunity. Deeper corrections drop to the bottom support trend channel. These corrections sometimes form a lower low and lower high that scares traders and inestors out of the market before heading higher.
This chart shows the performance for each month over the past 37 years. Simple analysis shows selling pressure in Sept and Oct as mutual funds sell positions to lock in gains for their books each year. This move is generally compounded because seasoned traders know about this seasonal movement and also sell positions and even short the market to take advantage of this at times.
I think we are inline for a perfect storm going into year end. The market is trading at a pivot low from many different analysis theories. This forms a high probability trading opportunity in the next 2 months if we see prices reverse and start heading higher this month.
Pivot Trading Low Conclusion:
A lot of stocks have taken a real beating this past month as sell flooded the trading desks last week. Technology, financials and small cap stocks took is the worst. The sharp drop is not really what we wanted to see but it makes good sense. With those groups posting the largest gains since March it is only normal that money will be coming out of those stocks to lock in gains.
Many traders are starting to panic about another possible market melt down. This negative sentiment is a bullish indicator for higher prices. If everyone is scared and exiting their positions then we must be close to trading a pivot low.
I am still bullish on the market and will be looking for new opportunities if we see prices start to head higher this month.
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Chris Vermeulen is Founder of the popular trading site . There he shares his highly successful, low-risk trading method. Since 2001 Chris has been a leader in teaching others to skillfully trade in gold, oil, and silver in both bull and bear markets. Subscribers to his service depend on Chris’ uniquely consistent investment opportunities that carry exceptionally low risk and high return.
Reach Chris at: Chris[at]theGoildAndOilGuy[dot]com
There was a time not so long ago on this planet that obtaining information on gold, be it fundamental, technical or quantitive was a daunting task. From a technical price perspective, if you wanted to look at a chart you had two choices. You could the Wall St Journal, get the price, and then draw (yes draw) your price chart. Or you could mail for a yearly subscription to one of only a few companies that provided this service. Every Thursday or Friday you would get your charts and then spend the weekend drawing Thursday and Friday’s bars on your chart and recalculating your indicators for the upcoming week. Your charts were only updated to the preceding Wednesday because they had to be printed and circulated to subscribers. So for every stock or commodity you tracked you had to take a pencil or pen and update all of those pages with price bars from the past few days.
Now if you wanted fundamental information there was the Wall St Journal, the Journal of Commerce, Annual reports from mining companies, and the local Library. I mention this not for a nostalgic look back, but to make a point about how difficult and time consuming it was to obtain basic information that we whip up on the internet now in a matter of moments.
We are clearly in the information age and the ease of “info at your fingertips” has spawned a whole new bull market in….technical analysis and information gathering.
Whatever your opinion you may have of the precious metals future price, there is information out there to justify your “position.” Myriads of information. This can be very dangerous for the individual investor. No matter how much we’d like to think we are not biased and opinionated, there is no way around it. It is inherent and in our nature. The exceptions are rare. What usually happens is we tend to gravitate towards the information that most fits our view of the market’s future price direction. And this type of information is especially powerful when we hold a larger than we should position in a stock, or commodity sector. And there are many voices (commentary) out there mixed in with an incredible amount of supporting data. The investor is left with the problem of sorting it all out by himself or procuring the services of a market maven to assist him with the details at hand. And even there I have seen a good analyst go from bullish to bearish and actually get subscriber cancellations. Unfortunately, this makes it very difficult for the analyst to remain unbiased knowing if he/she becomes a bear, and then subscriptions will suffer. Who do you know who’s a bull in gold or any other commodity for that matter that accumulates bearish data and subscribes to an advisor who is an outright bear?
The proliferation of analysts and websites on the internet are many.
In to be successful the advisor must have made some good/great calls at some point in time, and must have a good reputation. Most importantly is how the advisor performs when a trend change develops. A perma bull analyst who had services in the 90’s for stocks must have built quite a reputation by just being long. But what were their results in this last decade?
If you’re a perma bull there are subscription gold advisors and websites that held thru the entire collapse of the Mining stock sector where week after week a new “support” area would be chosen, a new channel drawn, and another key CYCLE would be due to bottom. One advisor, in to remain bullish during the crash of 2008 would change indicators to suit their outlook. Near the end it got silly as the moving averages would be lengthened as long as it took to make the moving average look like it had not been broken by the price of gold during the bull market. I think near the lows the advisor was using a 21 or 29 month moving average on his long term charts. You’d look at it and it would show all the lows holding and of course the latest low was showing resting right on the line too !!! The advisor would go thru all the reasons why the low was about to be made, and if one got off he/she might miss the train.
The reality was that most of his subscribers were in STOCKS and not gold the metal. While gold was only dropping 30 percent the gold stocks collapsed. At their lows in 2008, a lot of investors had been pistol whipped to the tune of losses from 50%-70%. Those who used margin by buying the major producers and then using their margin to the junior miners lost everything and were wiped out even before the low arrived via margin calls.
On the other side of the aisle are the perma bears. There are some very famous ones too that have been allowed to be perma bears for many a year. There was a certain bear, who in all fairness called for a rally near the lows in gold. But in his view this was only a bear market rally in an on-going bear market. He called for a rally to 420 and was right on the money all the way up. Now we are talking a guy who had been bearish since the peak in 1980 and the results spoke for themselves. He had been correct for 20 years on the long term price of gold. And by the time we got to 420 in gold, he gave his first sell signal. Then a second sell signal at 460. By this time of course he had built up quite the case as to why gold was about to peak. How gold doesn’t do well in a recession, and how the US dollar was still in a bull market and was just going through a correction. Well by the time we got to 480 his case data read like a dossier. He gave us the millennium cycles, the historical data from the last great depression, actually making a case that Homestake mining only went up after the whole stock market bottomed.
Now the above examples are not extraordinary just because each call could not have been more wrong about market direction. What is extraordinary about it is they still have a huge following. Granted there must have been a lot who left (what else you going to do once your broke) but the process of wiping out entire client fortunes are not achieved overnight. What happens is that once the “clients” are committed on the wrong side of the market, the advisor babysits himself and his subscribers throughout the demise of their equity account by assuring them at each new high or each new bottom that “this is it.” This is the bottom and the bull or bear market is about to resume.
And that leads us to today. We have so much information at our fingertips. I recall reading that a study was made to determine if investor performance of today has improved along with the information age. It hasn’t.
Fortunately there are advisory services that are not afraid to follow the trends and are willing to be bullish at times and also bearish when price dictates. Twenty year rallies are the exception not the rule. And even during bull markets, there are times when one needs to be bearish as most bull markets suffer at one point or other pullbacks that are as deep as 38% and even 50% or 61%. The commodity chart below speaks for itself. One must be flexible in the world of commodities because at the top, few were bearish.
Goldman Sacs Commodity Index
Recently, after a long consolidation of five months the commodity markets have come alive again as price has broken out to the upside. With the Asian miracle there have been new demands on food and energy to the global supply as an increase in wealth always brings new demand.
With the onslaught of fiat currency and the mass printing press of the United States and the loss of confidence in various governments, the investment world is also shifting towards gold and silver as a means of preserving their purchasing power. Taken in context, the fundamentals for food, energy, and hard money assets (barring another meltdown) favor the upside. The crude oil chart shows how close it mirrors the commodity chart.
Crude Oil Commodity Price
That is our number one goal for our subscribers.
This recent breakout in energy and commodities is one that we’ve been watching and we think that the possibility of trend resumption has merit. Let’s look at one more market.
Gold Commodity Prices
Since the meltdown of 2008 there is only one major market that has broken out to new highs and that is GOLD. Shunned as a barbaric metal for over 20 years, gold has quietly rallied 4X over this decade. More importantly, it has broken out to new historic highs after a long 19 month consolidation pattern. Long term price breakouts of this fashion can produce great price moves and the prospects for gold, when viewed in relation to what is happening in the United States, suggests that the potential for an inflationary environment down the road is one that is difficult to dismiss.
All of the demand/supply prospects look very bullish for gold and should investment demand increase from here, it could (and is already) overwhelming the demand. With the advent of ETF’s the ability to commodities like crude and gold has been a huge success as far as providing vehicles for investors to participate in these commodities. But as we’ve seen, there are times you need to be out of the market. If we think about it for a moment, knowing when to get in is certainly important to success but knowing when to get out is the KEY to profits in markets like this.
Over the past few years, it was easy. Get in and stay in. We think over the next few years it’s going to be a lot more difficult as volatility is the of the day. Crude’s drop from 147 to 35 is a clear demonstration that “holding” for the long term might not necessarily be the best way to go. While the fundamentals are known today, we can expect one thing. And that is that fundamentals will change. Crude is an excellent example. At the turn of the century, guess what was a key energy source? WHALE BLUBBER. Sounds incredible now but such is the case. Petroleum’s only use was Petroleum Jelly. Remember that stuff? Petroleum is now the main supply of energy for the entire globe. Can you imagine telling a whaler 100 years ago that the stuff (petroleum jelly) that you rub on a baby’s butt to keep it dry while in cloth diapers was going to replace whale blubber and become “the” worlds main energy component and that the world would consume 400 million gallons of petroleum a day by the turn of the next century? You would have been laughed off the docks.
How about gold? Can you imagine telling someone 100 years ago that real money (gold), the stuff used since the dawn of civilization would be replaced by ……PAPER. Not only would it be replaced by paper, but less than 2% of the world’s population would even own gold. Then you would lay this bombshell on him/her. Even though paper has replaced gold and that less than 2% of the population own gold, the price of gold would rise from $20 dollars per ounce to 1000………..a fifty fold increase. Surely they would look at you as if you were some nut. You could carry on with your story. You tell them that the United States government would confiscate all gold from its citizens, pay them $20 dollars for their gold, and then once they had it all, they would revalue it (overnight) at 35 dollars. Then they would make it illegal over the next 40 years for you to even OWN any gold. Can you imagine the look on their faces?
Since the dawn of civilization gold has been real money. However, in most of our lifetime that has not been the case. Real money (overall) does not lose its purchasing power. But paper money does. We can even make the case that the PRICE OF ANYTHING in the long term does not go up. What you’re really seeing is the value of the paper dollar going down. Here’s what I mean.
In 1908, Henry Ford sold his model T cars for $850 dollars or 42.5 ounces of gold. The base price of the all-wheel-drive 2010 Ford Taurus SHO with some (but not all) options comes to about $42,500 dollar or ………………………42.5 OUNCES OF GOLD!!!!
Any questions?
Now that we know what real money is, don’t you think its time you started buying some? If you’re answer is a resounding yes, and you have never done so, do yourself a favor. Get the services of someone who is familiar with the trends so you can have the confidence to some. If you don’t, 100 years from now some person will say something like this to another person. “Did you know 100 years ago, given the choice, people used to keep their wealth in paper instead of gold even though they knew that they would lose 90% of their purchasing power?
Think of how much more sophisticated the new 2010 Ford Taurus SHO is comparatively speaking to the Model T. Yet the price, in terms of gold has not increased one iota in all that time. If you don’t own gold, do yourself a favor. Get some. If you don’t have an advisor who is tracking the market for you, get one. One that follows price trends.
Let’s take a look at one more chart.
Already cities use natural gas for their bus fleets and the technology to burn cleaner increases every few years.
Natural Gas Commodity Price
In summary, the potential for the world to move away from paper is growing in leaps and bounds and the growing demand for energy is rapidly expanding. The advent of ETF’s and other investment vehicles has made the participation of these markets to the average investor easier than it ever has. Gold is in a major bull market, crude is the horsepower of the world, and natural gas is a market that has probably put in a long term bottom and has the potential to do what crude did to whale blubber.
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John Winston
John Winston is the technical commodity trader analyst. He provides detailed technical analysis for popular commodities like gold, silver, copper, oil, and natural gas. By focusing strictly on these commodity price movements trading become strictly technical and simple to trade. His free trading reports are available at his website:
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People still ask is it wise to invest in gold? It has always been a solid investment, throughout history, and even more so today. Gold still holds an air of mystery, sure, we all know about gold, its history, jewelry, gold coins, gold watches, but how many of us have really owned gold, I mean, a substantial amount, more than a few grams?
How many of us have investigated gold investment, and where and how to it? It is simply a matter of knowing where to at the right price and from a secure licensed dealer. Providing you deal with the legitimate companies in the gold industry, your gold investment will provide you with the financial security you have dreamed about. If these criteria can be met, then the answer to should I invest in gold is always a definite yes.
Investors who purchase gold will find that they have a hedge against market crashes, political disasters, currency crises, economic turmoil, taxes and devaluation.
Gold has always been a steadying influence throughout history, with investors achieving financial security and stability, due to the steady rise in gold, a safe haven for their investments.
Most people would want to find an investment that is secure, that can’t nosedive. With rapid fluctuations in forex and stock markets, investors want a safe place to put their money, and there are many reasons why gold ticks all the boxes.
Governments can’t make gold, they can make paper money, which is devaluation, but gold holds its value. Gold has always been around and will be around for a long time yet, steadily, or rapidly rising in value. Gold is the one perfect investment instrument which has the means to survive any financial catastrophe.
The Chinese and the Indians are starting to invest heavily in gold, they are increasing their gold reserves, and so is Russia. Investors in these countries are also looking for safe investments, and of course, realize the value of gold. Many Governments have dropped restrictions on the purchase of gold and so it is now possible to store gold with very low overheads, making gold a very viable investment.
You now can take control of your investments and protect against inflation, and create wealth when others are seeing their finances deteriorate. Governments can always rescue themselves by printing more and more money. The US and UK are printing more money now than at any time in history. This of course makes your cash worth less, but it also means that gold is worth more, gold always rises when confidence in Governments is at its lowest, with confidence in the economy at an all time low and markets sliding, what do you feel confident investing in?
In a turbulent time, if you have invested in gold, you have secured your assets, which means peace of mind for the future. Your risk is minimal against other investments because it tends to outperform others in times of turbulence. Gold has quite rightly been called the ‘crisis’ commodity.
With the US Dollar falling over 40% since 2001, and stocks at an all time low, the dollar could soon be in freefall, but gold is still a solid haven for hard earned cash, why?
Because since 2001 the value of gold has increased by 150%, try beating that. Over the last eight years it has outperformed all markets, and unlike stocks which can quickly fall, gold remains valuable and stable. For gold to collapse in line with other markets, it would need to rocket to over $6,000 per ounce (I hope it does, but if it does get out quick). Gold remains stable, therefore, is a secure way to protect your money and assets.
As a more promising outlook for the economy emerges, the focus should then fall on the possibility of inflation, which will increase with time, therefore increasing the demand for gold. The demand for gold investment in 2008 increased by 10% over previous years, and is expected to rise year on year as supply dwindles.
Gold is still going strong despite many critics predicting a fall in gold prices during last year, of course this was not the case, the bubble did not burst, with gold investors making a steady profit, from $800 to $950 per ounce, and certainly not losing as predicted. Gold is not subject to a bubble, unlike real estate or stocks; it is very rare to see a sudden movement in precious metals. No, there was no crash, indeed gold proved what a reliable investment it is, with its price during the first half of the year still producing a steady return, and should continue to do so.
Summing up, gold has, throughout history always been a strong, reliable, solid investment. Crashes in the economy, stocks and real estate we have all seen, but who can remember a serious crash in gold? If you don’t believe it now, you never will.
A good investment?
Make up your own mind.
Raymond Carr has worked for government security for many years.He has also worked for a leading central gold bullion dealer and has also been a partner in a successful life coaching practice.A successful gold investor, he is proud to say that many people who have taken his advice on gold investing have enjoyed returns of over 30% in the last two years. If you would like to learn more about gold investing for the small investor go to > secretsofgoldinvesting.com
Your financial advisor has warned you against buying . It’s a a terrible investment, you’ve been told. Gold has a real rate of return of practically zero over the past one hundred years. It’s midnight cable tv’s investment “snuggie.”
I’m sure you’ve heard these statements before by popular investment gurus, who either don’t understand or ignore the true value of investing in precious metals.
Putting aside the fact that gold has appreciated at double-digit rates on average this decade against all of the world’s currencies and tripled in price over the past six years, let’s look at the metal not as an investment vehicle but as an insurance policy against loss of purchasing power.
Think about this for a moment.
You purchase an insurance policy for your home, not as an investment, but as protection against destruction. Gold bullion should be regarded in the same manner – not as an investment per se, but as a form of financial insurance. Insurance against destruction of paper currency.
On August 15th 1971, President Richard Nixon slammed the proverbial gold window shut, ending dollar convertibility into gold. Unchained from the gold standard, the dollar could now just ‘float’ (be printed in unlimited amounts).
Today, after 38 years of being endorsed by utterly nothing except the full trust and credit of our United States government, our beloved dollar is valued at a fraction of what it used to be. If you equate the purchasing exponent of that one dollar bill in 1971 against today, you’d be able to purchase just EIGHTEEN CENTS, after adjusting for inflation.
Why The Dollar Will Lose Even More Value
In response to the financial crisis of the past year, the government turned on its printing presses to warp speed. As a result, the United States monetary base exploded from $800 billion in August of 2008 to $1.7 trillion. To put that into perspective that means there are now more than two dollars for every dollar that existed a year ago. Never in the course of history has the money supply expanded like this.
In their attempt to get the economy going again and stablize the financial system, the government’s out of control spending spree has caused our federal budget deficit to reach a new record level of $1.42 trillion dollars.
If that wasn’t deplorable in itself, our national debt is at present over $11 trillion dollars. And unfunded liabilities like programs such as Medicare and Social Security stand at an astonishing $58 trillion.
In to pay for all of this, the government is either going to have to cut spending (ain’t going to happen), raise taxes (get ready) or crank up the printing presses some more and try to print their way out of this mess. And that deficit is projected to rise to $9.1 trillion over the next decade.
A Nation just can’t partake in the unchecked money printing in this way without the dollar diving in value! And the further the dollar is debased, the higher inflation will rise. This is the reason it is so, crucial that you possess gold. As an insurance policy to protect the buying power of the savings you worked so hard to put away.
The purchasing power of gold has not only endured and but increased since 1971, Examples of paper money whose value has been distroyed are played out over and over again in our history books. But that’s not the case with gold. Through wars, inflation, hyperinflation, recession and depression, gold has endured.
The value of gold has never been ZERO. Never.That is because gold bullion is the supreme store of value and protection of wealth. It might end up being the most important insurance policy you’ve ever purchased.
Protect your hard earned money from inflation and the devaluation of the dollar with pure gold bullion coins such as the beautiful . For great deals and selection, visit us at:
How to sell gold is a process that anybody can gain knowledge of. With some energy put into investigating, you will most likely become skilled at selling gold for the highest prices.
Getting exceptional quotes necessitates using a reliable precious metals dealer. These types of vendors will give you good treatment and do it sincerely. If you are especially eager to find out a dealer’s reputation, you can check with the BBB, the Better Business Bureau. The BBB reports on a sizeable number of companies and maintains records of consumer complaints directed at them.
An additional excellent alternative is word-of-mouth. You can check around to see if anyone knows and trusts a specific dealer, or if they know anything about a buyer of your choice. An alternative option is to view review websites, blogs and forums that can provide additional information which help you learn how to sell gold for cash.
Specifically speaking, net-based phone books as well as large search engines like Google are great places to try first. You will encounter offline store buyers and online buyers. Net-based buyers will get you the best payout because of reduced costs, and they also execute deals quickly. Physical shop vendors, for example jewelry stores and consigment shops, will yield you a lower sum and entail a longer wait.
Gold is valued partly based on its karats. You will receive the most money for 24k gold, as it is the purest type. Present market prices can be located on different websites, letting you know approximately how much you’ll be able to sell for.
It is imperative that you do business with companies that have some kind of guarantee, which demonstrates their commitment to having happy customers. Precious metals merchants with a policy like that in place are doubtless more trustworthy than those who don’t. It also shows a positive track record.
Exchanging your gold for cash is not a difficult procedure. By taking some precautions you are well on your way to receiving the highest price for your gold items with the least trouble possible
Read about , the , and other precious metals related topics at .
