Archive for March, 2008
March 30th, 2008 | 
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It’s easy to answer the question “Why buy gold?” U.S. consumers are seeing their buying power dwindle and unemployment rates rise as the government deploys crazy tactics in a hopeless effort to slow deflationary economic pressures.
If you follow the news you heard President Barack Obama publicly warn that the US economy was “very sick” and “the situation is worsening.”
How low can interest rates go? Well, in December 2008, the Federal Reserve slashed rates for the tenth time since September 2007. They dropped from five and six percent to an almost panic level of zero percent.
At the same time Congress-approved Troubled Asset Relief Program (TARP) doled out $350 billion to frozen-up lending institutions, hoping to disintegrate the banks’ hoarding spree.
According to a November 30, 2008 Los Angeles Times report, the Federal Reserve had, by that date, actually loaned, committed, and guaranteed amounts totaling over $8.5 trillion. Minimal fiscal improvements have surfaced from these government tactics. Subsequently in 2009, the US budget deficit will exceed $1 trillion while the national debt will pass $11 trillion.
This news is sending thinking investors into gold as they wait for an inflationary time bomb to drop . . . Consider this scenario:
The slowdown of the US economy is evidently cyclical, moving from less buying power to lost jobs and less demand for goods. To stimulate buying, the Federal Reserve has lowered interest rates dramatically to free up credit and stimulate purchasing. Resulting low bond yields will eventually cease to draw foreign investors, who fear the purchase of diluted dollars.
The Treasury will print more dollars to buy up bonds, diluting the dollar’s value even more. A hyperinflation cocktail is about to be served.
That’s reason enough to protect your buying power with gold, but there’s more…
China and other Asian countries are still lending the US money and buying up its bonds, but to a lesser degree in past year. Their buying will continue only as long as consumers and businesses buy sizable amounts of Asian goods and services.
With bank credit lines frozen and unemployment rising dramatically, US consumer buying power continues its erosion as spending systematically decreases. Foreign investment holders may soon catch on to US inflation worries and sell off their dollar-denominated reserves, moving to more stable currencies. Some already have. Massive Treasury sell-offs could lead to dollar freefalls and interest rate spikes, then hyperinflation. The dollar would be worthless, wiping out American savings and retirement accounts in unprecedented amounts.
So why buy gold?
Buy gold as an investment. Buy gold as a hedge against inflation. Buy gold to preserve wealth.
Statistics show the only asset groups making gains in 2008 were Treasuries, corporate bonds, and gold.
Historically, the value of gold has risen with inflation, outperforming other investment vehicles during periods of economic turbulence. Even during hardy economic times, gold often finds its way into a prudent investor’s portfolio.
Many leading economist find today’s financial landscape comparable to that of the Great Depression-even Weimar Germany. Now is absolutely the time to begin thinking about moving assets to gold, before the dollar writes itself into history’s books as the next great fiat currency collapse.
By: Mark Walters
About the Author:
If you follow the news you heard President Barack Obama publicly warn that the US economy was “very sick” and “the situation is worsening.”
How low can interest rates go? Well, in December 2008, the Federal Reserve slashed rates for the tenth time since September 2007. They dropped from five and six percent to an almost panic level of zero percent.
At the same time Congress-approved Troubled Asset Relief Program (TARP) doled out $350 billion to frozen-up lending institutions, hoping to disintegrate the banks’ hoarding spree.
According to a November 30, 2008 Los Angeles Times report, the Federal Reserve had, by that date, actually loaned, committed, and guaranteed amounts totaling over $8.5 trillion. Minimal fiscal improvements have surfaced from these government tactics. Subsequently in 2009, the US budget deficit will exceed $1 trillion while the national debt will pass $11 trillion.
This news is sending thinking investors into gold as they wait for an inflationary time bomb to drop . . . Consider this scenario:
The slowdown of the US economy is evidently cyclical, moving from less buying power to lost jobs and less demand for goods. To stimulate buying, the Federal Reserve has lowered interest rates dramatically to free up credit and stimulate purchasing. Resulting low bond yields will eventually cease to draw foreign investors, who fear the purchase of diluted dollars.
The Treasury will print more dollars to buy up bonds, diluting the dollar’s value even more. A hyperinflation cocktail is about to be served.
That’s reason enough to protect your buying power with gold, but there’s more…
China and other Asian countries are still lending the US money and buying up its bonds, but to a lesser degree in past year. Their buying will continue only as long as consumers and businesses buy sizable amounts of Asian goods and services.
With bank credit lines frozen and unemployment rising dramatically, US consumer buying power continues its erosion as spending systematically decreases. Foreign investment holders may soon catch on to US inflation worries and sell off their dollar-denominated reserves, moving to more stable currencies. Some already have. Massive Treasury sell-offs could lead to dollar freefalls and interest rate spikes, then hyperinflation. The dollar would be worthless, wiping out American savings and retirement accounts in unprecedented amounts.
So why buy gold?
Buy gold as an investment. Buy gold as a hedge against inflation. Buy gold to preserve wealth.
Statistics show the only asset groups making gains in 2008 were Treasuries, corporate bonds, and gold.
Historically, the value of gold has risen with inflation, outperforming other investment vehicles during periods of economic turbulence. Even during hardy economic times, gold often finds its way into a prudent investor’s portfolio.
Many leading economist find today’s financial landscape comparable to that of the Great Depression-even Weimar Germany. Now is absolutely the time to begin thinking about moving assets to gold, before the dollar writes itself into history’s books as the next great fiat currency collapse.
By: Mark Walters
About the Author:
Mark Walters is founder of CreatingWealthClub.com. He is predicting a period of hyperinflation and explains how to protect your buying power in his new book Buy Gold Now…www.BuyGoldNowGuide.com
Tameika Papallo
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what about government grants? asked:
My investments have lost so much value that I am thinking of investing in gold instead. But I want tangible gold that I can have in my possession. I don’t want a certificate or something like that.
My investment manager charges my account 1% fee for their services and my account lost 10% total value in one quarter. Seems high risk to me. I agree I need to become more informed, who has time?
Sandra
My investments have lost so much value that I am thinking of investing in gold instead. But I want tangible gold that I can have in my possession. I don’t want a certificate or something like that.
My investment manager charges my account 1% fee for their services and my account lost 10% total value in one quarter. Seems high risk to me. I agree I need to become more informed, who has time?
Sandra
babu asked:
Can anyone suggest good place to buy Gold Bars in Bay Area?
Tammie Aultman
Can anyone suggest good place to buy Gold Bars in Bay Area?
Tammie Aultman
endtimeman1 asked:
US government owns more gold than the the whole world combined ,,goldprices uninmaginable and depend only on how much currencies decline in real value The dollar is srtonger then ever and is rising fast,,,, Sell sell ,, sell now ,, gold will fall ,, the next 3 weeks ,, go back up slowly after this,,,, My Theory – I like to think outside the box
Marty Shillinger
J Corn asked:
I know that in 1933 FDR stole everyone’s gold and replaced it “fiat” federal reserve notes. But what I don’t know is if it is legal to purchase gold bars of unlimited quantity today in the US. I know you can buy and own gold bullion coins but what about bars of gold. I have heard many stories about this but I have yet to find any concrete evidence that it is legal to buy and own gold bars in unlimited quantity. I am talking about walking into a place of business putting down money and walking out with physical bars of gold. I don’t think you can do that… Am I wrong?
Regenia Glock
I know that in 1933 FDR stole everyone’s gold and replaced it “fiat” federal reserve notes. But what I don’t know is if it is legal to purchase gold bars of unlimited quantity today in the US. I know you can buy and own gold bullion coins but what about bars of gold. I have heard many stories about this but I have yet to find any concrete evidence that it is legal to buy and own gold bars in unlimited quantity. I am talking about walking into a place of business putting down money and walking out with physical bars of gold. I don’t think you can do that… Am I wrong?
Regenia Glock
Krugerrands are gold coins that were first minted and issued in 1967, and have been produced every year since. They are legal tender in South Africa but because of far sighted attitudes from their makers they have been imported into many countries without import taxes, duty or VAT. This has made them easily available at good prices over the intrinsic value of the gold they are made from, and therefore an attractive proposition for private gold investors.
Originally, only one size was issued, which contained one full troy ounce (31.1035 grams) of fine gold. These coins were the original Krugerrand, or Kruger, for short. From 1980, three other sizes were introduced, namely a half, quarter, and tenth ounce size. Because of these new additions, the original Krugerrand is sometimes referred to as a “full” or “one ounce” Kruger.
One of the best ways to purchase gold coins such as Krugerrands is on Ebay. Their auctions always prove that point that the value of a coin is only what is buyer is willing to pay for it, and on eBay it gets right down to the real action. Using EBay or sites like www.buycheapgoldcoins.com it is easy to search for the coins you wish to acquire. Just type whatever you want in the search box, or browse using the menus and you will view all the auctions related to the coin.
Of course, its very safe to buy Krugerrands on Ebay as long as you take the proper precautions. There are many ways buyers are protected, but the best way to determine if a dealer or individual are reputable is to look at their feedback score and you can also view the comments previous customers have left for the seller. Beacuse you are buying gold coins I would recommend that you only buy from dealers with 100% feedback, but you have to take everything into consideration. If a seller has a feedback score of less than 100% he still may be a reputable dealer. Look at the total comments left in the upper right hand corner of the auction page.
Krugers are a very attractive proposition for private investors, especially with today’s soaring gold price! The Kruger was originally made available to world bullion dealers at a 3% premium over the prevailing gold price, so that after distribution costs, the coins would be available to investors in quantity at about 4% to 5% over intrinsic gold values, and possibly 10% premium for single pieces. This means that you will generally pay a higher price from a dealer than you will from EBay – and remember you shouldn’t be concerned about the aesthetics of the coin – its value is in the gold it contains, not how it looks!
With today’s rapidly rising gold price and turbulent stock markets, coins such as The Krugerrand are a very safe long term investment for individuals. For example if you had bought a Krugerrand on the first of January 2008 it would have cost you around $846 – the same coin is now worth over $1000 just 6 months later, and predicted to go as high as $1100 by the end of the year – that’s a whopping 30% growth for the year.
By: Dave Simpson
About the Author:
Originally, only one size was issued, which contained one full troy ounce (31.1035 grams) of fine gold. These coins were the original Krugerrand, or Kruger, for short. From 1980, three other sizes were introduced, namely a half, quarter, and tenth ounce size. Because of these new additions, the original Krugerrand is sometimes referred to as a “full” or “one ounce” Kruger.
One of the best ways to purchase gold coins such as Krugerrands is on Ebay. Their auctions always prove that point that the value of a coin is only what is buyer is willing to pay for it, and on eBay it gets right down to the real action. Using EBay or sites like www.buycheapgoldcoins.com it is easy to search for the coins you wish to acquire. Just type whatever you want in the search box, or browse using the menus and you will view all the auctions related to the coin.
Of course, its very safe to buy Krugerrands on Ebay as long as you take the proper precautions. There are many ways buyers are protected, but the best way to determine if a dealer or individual are reputable is to look at their feedback score and you can also view the comments previous customers have left for the seller. Beacuse you are buying gold coins I would recommend that you only buy from dealers with 100% feedback, but you have to take everything into consideration. If a seller has a feedback score of less than 100% he still may be a reputable dealer. Look at the total comments left in the upper right hand corner of the auction page.
Krugers are a very attractive proposition for private investors, especially with today’s soaring gold price! The Kruger was originally made available to world bullion dealers at a 3% premium over the prevailing gold price, so that after distribution costs, the coins would be available to investors in quantity at about 4% to 5% over intrinsic gold values, and possibly 10% premium for single pieces. This means that you will generally pay a higher price from a dealer than you will from EBay – and remember you shouldn’t be concerned about the aesthetics of the coin – its value is in the gold it contains, not how it looks!
With today’s rapidly rising gold price and turbulent stock markets, coins such as The Krugerrand are a very safe long term investment for individuals. For example if you had bought a Krugerrand on the first of January 2008 it would have cost you around $846 – the same coin is now worth over $1000 just 6 months later, and predicted to go as high as $1100 by the end of the year – that’s a whopping 30% growth for the year.
By: Dave Simpson
About the Author:
If you would like to buy a large range of gold coins at auction prices then visit my website at Buy Cheap Gold Coins.com
Brad Carlis
4bullionscom asked:
http://4bullions.com/investsafely/ If your looking for invest in GOLD… you ave found the right place. Visit… http://4bullions.com/investsafely/ today!
Hank Dovenmuehler
scottjb78 asked:
I have been looking at buying some silver and gold bullion from http://www.apmex.com
I have been looking at buying some silver and gold bullion from http://www.apmex.com
If I am buying bars or coins for silver and gold, what is the best ones to get if you just want it for the investment of the metal and not the actual coin etc? I don’t care to be a collector of coins, just to have the metal!
Cindy Greenough
ehowfinance asked:
The easiest way to buy gold is from the local metal shop, but buying futures as an institutional type of investor can get the best price. Find out how to buy gold stock with help from a portfolio manager in this free video on investments and the stock market.
Booker Danuser