Understanding the Price of Gold

On July 19th, 2013, Ben Bernanke said during the Senate Banking Committee hearing, “Nobody understands gold prices and I don’t pretend to either.” This generalization has caused a bit of backlash from financial experts, and raises the question whether anyone can really understand the price of gold? Let’s take a look. Experts agree that the price of gold typically ties closely with the supply of money. In other words, gold follows global liquidity; when gold supply doesn’t change, but more money is chasing the gold, the gold price goes up. Said another way: supply and demand drive … [Read more...]

Price of Gold Could Rise to $5000, says President of the EPC

Gold is the preferred choice of investment by people to secure their wealth when global and domestic crises threaten to hit finances. Gold prices are recovering despite the ongoing problems in the Mideast, Europe’s credit crisis and the American budget issues. Gold futures are currently trading below $1,700 an ounce, after reaching their peak at a little above $1,900 in June 2011. Goldman Sachs has warned of the increasing downside risks to gold, while decreasing its 12-month price prediction by 7.2% to $1,800 an ounce. Goldman Sachs was quoted saying that the price of gold is close to an … [Read more...]

US Government Resorting to Emergency Borrowing to Meet Obligations

The US government which is currently facing a deep financial crisis is likely to find it difficult to meet its various obligations after February 14, according to a report released by a Washington based think tank. The Bipartisan Policy Group or BPC has mentioned that the US government  has already reached its borrowing limit on the New Year’s Eve and is currently funding its operations through extraordinary measures. The US treasury has been tapping the $200 billion emergency fund to ensure uninterrupted operations of departments or schemes fully funded by it. The report prepared by … [Read more...]

Strong Demand for American Eagle Silvers Leads to Suspension of Sales

The US mint which sells a wide range of bullion gold and silver coins through its network of authorized dealers has announced suspension of sales of its 2013 dated American Eagle Silver Coins for the time being. The sale will be resumed soon. The decision comes as the inventory of these freshly minted coins run out and investor demand for these coins surges in the first fifteen days of their launch itself. The strong demand for these coins is attributable to the growing popularity of bullion as a safe investment because of growing fears about a possible recession in the US. Addressing … [Read more...]

Bad News For The UK taxpayer

There is indeed some bad news for the UK taxpayer. It appears that the entire amount of £66 billion, which was accumulated from taxpayer money in a bid to revive the sagging fortunes of RBS and Lloyds, could have been lost forever! This is what a report generated by a committee comprising of imminent members of the UK parliament claims. Margaret Hodge, the chairperson of the committee, has issued an official statement in which she warns that the pounds invested for the revival of Lloyds and the Royal Bank of Scotland may be irrecoverable. The same was declared in a report concerning the sale … [Read more...]

Where Would A Country Like Germany Stock Up Its Gold

Where would a country like Germany stock up its gold? The answer would be obvious right? Of course within the geographic domains of the country! In all likelihood, the gold would be lying safely in a heavily guarded vault, somewhere in Frankfurt. This, however, is far from reality! You would be surprised to learn that the gold reserves of Germany, which is the second largest in the world, are held by Paris, New York and London. It is only now that a campaign for bringing all the reserves back to the country has been mobilized and is gathering steam with every passing day. A phenomenon such … [Read more...]

Estimate the Gold Price in January 2014

The connection between gold and other monetary forms is evident from the available long-term charts. The long-term charts reflect that one performs better than the other, until the other tries to match up. However, let us consider the present scenario that is the US monetary base expansion from the time when the financial slump hit in 2008. As the Fed has announced "QEternity," it can be concluded that the monetary base expansion will persist. As a matter of fact, it the growth continues till the end of January 2014, there is a possibility that the price of gold will be approximately $2,300 … [Read more...]

Gold Wins for Most Americans


CNBC recently conducted a survey on an All-American Economic outlook where investors termed gold to be the “best investment” compared to stocks or real estate. Gold has gained a huge attraction and following with no known boundaries in terms of income levels, geographic regions or political parties. Good investment Such results coincides with that of a Gallup poll where 34% of Americans claimed gold to be their most favored long-term investment; this entity is preferred over other types of investments with real estate at 19% and stocks at 17%. Perception It was concluded that … [Read more...]

Coin Grading and Certification

rare penny

Coin collectors and investors prefer to source out coins that have a good grading. Such a rating allows the coin to be indemnified with a market value that is to the benefit of coin collectors and investors. Grading Procedure Grading a coin is the necessary procedure undertaken to determine the rightful condition or grade of a coin. Hence, it is important to have the coin graded to ensure its rightful value from its scarcity and demand factors which determine the coin’s value to any coin dealer, collector or investor. There are several processes in grading a coin. The coin must be … [Read more...]

China and Gold Hoarding

china gold

China was found to be purchasing more gold recently compared to their past acquisition pattern; these purchases were made through Hong Kong. China was reported to have imported about 102.8 metric tons in the month of November alone with a $5.4 billion based on January 11, 2011 trade data. Attention grabbing China’s gold purchases have caught many parties’ eye and concerned parties are wondering about that country’s massive gold purchases. Gold is known to hold strong purchasing power although it seems expensive to buy and people are concerned about its bubble bursting some time … [Read more...]