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...]

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...]

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...]

How Is Gold Used?

There are several uses for gold and they come in a wide variety. Meaning, gold as an investment is not the only way gold is used. Gold is a very valuable metal that has several unique properties that contribute to making it very popular amongst many industries. Gold has a high level of malleability, ductility, it resists corrosion, and many other chemical reactions, it has great electrical conductivity, it reflects infra red light and has great thermal conductivity properties. Gold is used in a wide variety of electronic devices such as home appliances, cell phones, telephones, and … [Read more...]

When Should I Sell My Gold?

When should I sell my gold is a great question and one that everyone should take into consideration and put some thought into. The answer to these questions weighs heavily on why you purchased gold in the first place and what your goals and objectives are for owning gold. If your reason behind owning gold was because you were enamored by their beauty and wanted them as collection pieces then you probably are not considering selling them to begin with. However, if you purchased gold bullion bars, antique gold coins, or proof sets then you were most likely thinking into the future with the … [Read more...]

Prospecting for Gold

Prospecting for gold is the exploration of new gold or gold deposits. The method and resources used by the prospector will depend on what type of deposit the prospector is seeking to find. This endeavor is mainly done commercially however; in a few developed countries prospecting for placer gold has become a popular recreational activity. If you were in search for gold nuggets the best places to look would be places where gold nuggets have been found before. A number if people prefer to pan for gold by bridges where gold bearing streams flow under them. Others hunt for gold in the wild … [Read more...]

IRA’s and Gold

When there is an increase in the price of gold more people begin taking an interest in purchasing it. Large institutional buyers have bought gold for years and the general public only recently started investing in gold, and they only make up a small percent of buyers. If you decided to make an investment in gold you would have the option of choosing paper gold or physical gold. One aspect of physical gold that most investors are not aware of is that it can be bought and held in an IRA (Individual Retirement Account). If you currently have an IRA or 401K that can be rolled over you … [Read more...]

Investing In Gold

When a portfolio is put together it is important to create diversification. This will give your portfolio a good balance of what it needs to be successful. There will be some assets in your portfolio that will have losses and some that will have gains; this will allow your assets to balance each other out off setting any losses. A good way to diversify your portfolio is to make sure you have assets that are different in how they perform. Gold is generally added to portfolios for safety and stability purposes. The reason behind this is that when stocks fall people turn to gold out of … [Read more...]

The Majority of Americans Choose Gold

The latest CNBC All-American Economic Survey shows investors to believe that gold is the “best investment,” better than real estate or stocks. There is a lot of liking towards the shiny yellow metal. Seemingly there are no limits to this metal, from geographic regions, income levels and political parties. According to pollster Jay Campbell of Hart Research who ran the poll survey for CNBC “Gold has taken over perceptions across the public as being a good investment. If not first, gold comes in as a very close second among investors.” The poll indicates that gold is the “best … [Read more...]