Gold, like many other investment assets, can be predictable to some degree. Not to the point of being able to accurately predict its price movements, but it is possible to venture some upward and downward movements that are usually repeated over time. It is what is called the seasonal cycle of gold. In this post we are going to explain the factors that cause these periodic movements in the price of metal.
As Luke Burgess from the Outsider Club blog explains , the gold market is incredibly cyclical in nature. These cycles, in the long, medium and short term, are usually quite consistent.
The main and best known of these is the eight-year gold cycle. Over the past five decades, the price of gold has bottomed out at least once every eight years, as can be seen in the chart below.
The last time the metal suffered this drop was in 2016. So, taking this periodicity into account, the next time this correction will occur will be in the year 2024.
As Burgess points out, because it’s such a long cycle, it’s hard for investors to take advantage of it. In his case, after 20 years of presence in the gold market, he has barely witnessed this fall twice.
Short Term Cycles
However, in the gold market there are more cycles than the eight-year one. They occur for various reasons. And these cycles, more in the short term, have a much greater utility for investors.
Some of these short cycles are recorded as a result of certain periodic economic events, such as the meetings of the so-called Federal Open Market Committee (FOMC ) of the US Federal Reserve .
These meetings are meticulously scheduled throughout the year (eight meetings) and the price of gold is usually much more active during the days that they are held.
In general, the price of the metal tends to rise during the days immediately before and the two days that the meeting lasts, to fall afterwards, when the president of the Fed appears before the press to announce the decisions adopted.
Despite this, according to Burgess, there is no pattern that is consistent enough for investors to benefit from these eight moments a year, although they should keep it in mind.
Seasonal Pattern
A short-term pattern that is much more reliable, since it tends to repeat itself every year, is the one that indicates the months of the year in which the price of gold tends to appreciate more.
Thus, during the last 45 years, the best months for the gold price have been September, November and January.
Analyzing the most recent data, it can be seen that there have been increases in the precious metal during the past months of September, November and January. In general, the rise at the end of the year is usually more pronounced than those of January and September.
Why are these increases in seasonal forms registered, in a pattern that has been repeated for the last 45 years?
As the Outsider Club post explains, everything is due to the significant demand for gold by the jewelry sector. The covid-19 pandemic has disrupted the industry’s usual behavior over the past year, but in a typical financial year about half of global gold demand comes from the jewelery sector.
The Five Gold Festivals
Precisely at the end of each year, at least five festive events coincide in the world during which sales of gold jewelry multiply.
The most important are the Indian festival of Diwali, also called the Festival of Light, and the Chinese New Year. During these two moments alone, about a third of the world’s annual demand for gold is consumed. It must be taken into account that China and India are the world’s two largest consumers of the precious metal, which is very present in their culture and tradition.
The Diwali festival takes place between the months of October and November, depending on the year. And the Chinese New Year begins at the end of January or the beginning of February.
To these must be added other moments in which gold sales increase, although to a lesser extent than the two mentioned: Christmas, New Year and Valentine’s Day.
The coincidence of several of these celebrations means that both the last quarter and the first of each year are those with the highest demand for gold jewelry.
Therefore, the price of gold usually rises during the last quarter of the year, due to this increase in demand from consumers and from merchants and jewelers who have to provide themselves with raw materials to manufacture the pieces they are going to sell.
In fact, it seems that the favorite month for jewelers to stock up is usually the month of September.
According to this seasonal pattern, the last quarter of the year is usually not a good time to buy gold, although it is a good time to sell it. And analyzing the evolution of the price in the last 45 years, it can be observed that the month of October is usually one of the best to acquire the metal, like the month of March.
…
The post Gold Cycles You Need To Know About appeared first on Best Gold IRA.
[content] => Array ( [encoded] =>Gold, like many other investment assets, can be predictable to some degree. Not to the point of being able to accurately predict its price movements, but it is possible to venture some upward and downward movements that are usually repeated over time. It is what is called the seasonal cycle of gold. In this post we are going to explain the factors that cause these periodic movements in the price of metal.
As Luke Burgess from the Outsider Club blog explains , the gold market is incredibly cyclical in nature. These cycles, in the long, medium and short term, are usually quite consistent.
The main and best known of these is the eight-year gold cycle. Over the past five decades, the price of gold has bottomed out at least once every eight years, as can be seen in the chart below.
The last time the metal suffered this drop was in 2016. So, taking this periodicity into account, the next time this correction will occur will be in the year 2024.
As Burgess points out, because it’s such a long cycle, it’s hard for investors to take advantage of it. In his case, after 20 years of presence in the gold market, he has barely witnessed this fall twice.
Short Term Cycles
However, in the gold market there are more cycles than the eight-year one. They occur for various reasons. And these cycles, more in the short term, have a much greater utility for investors.
Some of these short cycles are recorded as a result of certain periodic economic events, such as the meetings of the so-called Federal Open Market Committee (FOMC ) of the US Federal Reserve .
These meetings are meticulously scheduled throughout the year (eight meetings) and the price of gold is usually much more active during the days that they are held.
In general, the price of the metal tends to rise during the days immediately before and the two days that the meeting lasts, to fall afterwards, when the president of the Fed appears before the press to announce the decisions adopted.
Despite this, according to Burgess, there is no pattern that is consistent enough for investors to benefit from these eight moments a year, although they should keep it in mind.
Seasonal Pattern
A short-term pattern that is much more reliable, since it tends to repeat itself every year, is the one that indicates the months of the year in which the price of gold tends to appreciate more.
Thus, during the last 45 years, the best months for the gold price have been September, November and January.
Analyzing the most recent data, it can be seen that there have been increases in the precious metal during the past months of September, November and January. In general, the rise at the end of the year is usually more pronounced than those of January and September.
Why are these increases in seasonal forms registered, in a pattern that has been repeated for the last 45 years?
As the Outsider Club post explains, everything is due to the significant demand for gold by the jewelry sector. The covid-19 pandemic has disrupted the industry’s usual behavior over the past year, but in a typical financial year about half of global gold demand comes from the jewelery sector.
The Five Gold Festivals
Precisely at the end of each year, at least five festive events coincide in the world during which sales of gold jewelry multiply.
The most important are the Indian festival of Diwali, also called the Festival of Light, and the Chinese New Year. During these two moments alone, about a third of the world’s annual demand for gold is consumed. It must be taken into account that China and India are the world’s two largest consumers of the precious metal, which is very present in their culture and tradition.
The Diwali festival takes place between the months of October and November, depending on the year. And the Chinese New Year begins at the end of January or the beginning of February.
To these must be added other moments in which gold sales increase, although to a lesser extent than the two mentioned: Christmas, New Year and Valentine’s Day.
The coincidence of several of these celebrations means that both the last quarter and the first of each year are those with the highest demand for gold jewelry.
Therefore, the price of gold usually rises during the last quarter of the year, due to this increase in demand from consumers and from merchants and jewelers who have to provide themselves with raw materials to manufacture the pieces they are going to sell.
In fact, it seems that the favorite month for jewelers to stock up is usually the month of September.
According to this seasonal pattern, the last quarter of the year is usually not a good time to buy gold, although it is a good time to sell it. And analyzing the evolution of the price in the last 45 years, it can be observed that the month of October is usually one of the best to acquire the metal, like the month of March.
The post Gold Cycles You Need To Know About appeared first on Best Gold IRA.
) [summary] =>Gold, like many other investment assets, can be predictable to some degree. Not to the point of being able to accurately predict its price movements, but it is possible to venture some upward and downward movements that are usually repeated over time. It is what is called the seasonal cycle of gold. In this post we are going to explain the factors that cause these periodic movements in the price of metal.
As Luke Burgess from the Outsider Club blog explains , the gold market is incredibly cyclical in nature. These cycles, in the long, medium and short term, are usually quite consistent.
The main and best known of these is the eight-year gold cycle. Over the past five decades, the price of gold has bottomed out at least once every eight years, as can be seen in the chart below.
The last time the metal suffered this drop was in 2016. So, taking this periodicity into account, the next time this correction will occur will be in the year 2024.
As Burgess points out, because it’s such a long cycle, it’s hard for investors to take advantage of it. In his case, after 20 years of presence in the gold market, he has barely witnessed this fall twice.
Short Term Cycles
However, in the gold market there are more cycles than the eight-year one. They occur for various reasons. And these cycles, more in the short term, have a much greater utility for investors.
Some of these short cycles are recorded as a result of certain periodic economic events, such as the meetings of the so-called Federal Open Market Committee (FOMC ) of the US Federal Reserve .
These meetings are meticulously scheduled throughout the year (eight meetings) and the price of gold is usually much more active during the days that they are held.
In general, the price of the metal tends to rise during the days immediately before and the two days that the meeting lasts, to fall afterwards, when the president of the Fed appears before the press to announce the decisions adopted.
Despite this, according to Burgess, there is no pattern that is consistent enough for investors to benefit from these eight moments a year, although they should keep it in mind.
Seasonal Pattern
A short-term pattern that is much more reliable, since it tends to repeat itself every year, is the one that indicates the months of the year in which the price of gold tends to appreciate more.
Thus, during the last 45 years, the best months for the gold price have been September, November and January.
Analyzing the most recent data, it can be seen that there have been increases in the precious metal during the past months of September, November and January. In general, the rise at the end of the year is usually more pronounced than those of January and September.
Why are these increases in seasonal forms registered, in a pattern that has been repeated for the last 45 years?
As the Outsider Club post explains, everything is due to the significant demand for gold by the jewelry sector. The covid-19 pandemic has disrupted the industry’s usual behavior over the past year, but in a typical financial year about half of global gold demand comes from the jewelery sector.
The Five Gold Festivals
Precisely at the end of each year, at least five festive events coincide in the world during which sales of gold jewelry multiply.
The most important are the Indian festival of Diwali, also called the Festival of Light, and the Chinese New Year. During these two moments alone, about a third of the world’s annual demand for gold is consumed. It must be taken into account that China and India are the world’s two largest consumers of the precious metal, which is very present in their culture and tradition.
The Diwali festival takes place between the months of October and November, depending on the year. And the Chinese New Year begins at the end of January or the beginning of February.
To these must be added other moments in which gold sales increase, although to a lesser extent than the two mentioned: Christmas, New Year and Valentine’s Day.
The coincidence of several of these celebrations means that both the last quarter and the first of each year are those with the highest demand for gold jewelry.
Therefore, the price of gold usually rises during the last quarter of the year, due to this increase in demand from consumers and from merchants and jewelers who have to provide themselves with raw materials to manufacture the pieces they are going to sell.
In fact, it seems that the favorite month for jewelers to stock up is usually the month of September.
According to this seasonal pattern, the last quarter of the year is usually not a good time to buy gold, although it is a good time to sell it. And analyzing the evolution of the price in the last 45 years, it can be observed that the month of October is usually one of the best to acquire the metal, like the month of March.
…
The post Gold Cycles You Need To Know About appeared first on Best Gold IRA.
[atom_content] =>Gold, like many other investment assets, can be predictable to some degree. Not to the point of being able to accurately predict its price movements, but it is possible to venture some upward and downward movements that are usually repeated over time. It is what is called the seasonal cycle of gold. In this post we are going to explain the factors that cause these periodic movements in the price of metal.
As Luke Burgess from the Outsider Club blog explains , the gold market is incredibly cyclical in nature. These cycles, in the long, medium and short term, are usually quite consistent.
The main and best known of these is the eight-year gold cycle. Over the past five decades, the price of gold has bottomed out at least once every eight years, as can be seen in the chart below.
The last time the metal suffered this drop was in 2016. So, taking this periodicity into account, the next time this correction will occur will be in the year 2024.
As Burgess points out, because it’s such a long cycle, it’s hard for investors to take advantage of it. In his case, after 20 years of presence in the gold market, he has barely witnessed this fall twice.
Short Term Cycles
However, in the gold market there are more cycles than the eight-year one. They occur for various reasons. And these cycles, more in the short term, have a much greater utility for investors.
Some of these short cycles are recorded as a result of certain periodic economic events, such as the meetings of the so-called Federal Open Market Committee (FOMC ) of the US Federal Reserve .
These meetings are meticulously scheduled throughout the year (eight meetings) and the price of gold is usually much more active during the days that they are held.
In general, the price of the metal tends to rise during the days immediately before and the two days that the meeting lasts, to fall afterwards, when the president of the Fed appears before the press to announce the decisions adopted.
Despite this, according to Burgess, there is no pattern that is consistent enough for investors to benefit from these eight moments a year, although they should keep it in mind.
Seasonal Pattern
A short-term pattern that is much more reliable, since it tends to repeat itself every year, is the one that indicates the months of the year in which the price of gold tends to appreciate more.
Thus, during the last 45 years, the best months for the gold price have been September, November and January.
Analyzing the most recent data, it can be seen that there have been increases in the precious metal during the past months of September, November and January. In general, the rise at the end of the year is usually more pronounced than those of January and September.
Why are these increases in seasonal forms registered, in a pattern that has been repeated for the last 45 years?
As the Outsider Club post explains, everything is due to the significant demand for gold by the jewelry sector. The covid-19 pandemic has disrupted the industry’s usual behavior over the past year, but in a typical financial year about half of global gold demand comes from the jewelery sector.
The Five Gold Festivals
Precisely at the end of each year, at least five festive events coincide in the world during which sales of gold jewelry multiply.
The most important are the Indian festival of Diwali, also called the Festival of Light, and the Chinese New Year. During these two moments alone, about a third of the world’s annual demand for gold is consumed. It must be taken into account that China and India are the world’s two largest consumers of the precious metal, which is very present in their culture and tradition.
The Diwali festival takes place between the months of October and November, depending on the year. And the Chinese New Year begins at the end of January or the beginning of February.
To these must be added other moments in which gold sales increase, although to a lesser extent than the two mentioned: Christmas, New Year and Valentine’s Day.
The coincidence of several of these celebrations means that both the last quarter and the first of each year are those with the highest demand for gold jewelry.
Therefore, the price of gold usually rises during the last quarter of the year, due to this increase in demand from consumers and from merchants and jewelers who have to provide themselves with raw materials to manufacture the pieces they are going to sell.
In fact, it seems that the favorite month for jewelers to stock up is usually the month of September.
According to this seasonal pattern, the last quarter of the year is usually not a good time to buy gold, although it is a good time to sell it. And analyzing the evolution of the price in the last 45 years, it can be observed that the month of October is usually one of the best to acquire the metal, like the month of March.
The post Gold Cycles You Need To Know About appeared first on Best Gold IRA.
) [1] => Array ( [title] => What Can Gold Do For Me? [link] => https://bestira.gold/what-can-gold-do-for-me/ [dc] => Array ( [creator] => Kimberly Foster ) [pubdate] => Mon, 28 Nov 2022 09:17:24 +0000 [category] => Gold [guid] => https://bestira.gold/?p=38 [description] =>Any investor can ask himself this question when evaluating the different and increasingly varied investment options that are presented to him. Given the avalanche of sophisticated investment vehicles, digital assets, cryptocurrencies… gold, that precious metal that has been with us for centuries, still has a lot to say. In this post we are going to explain what gold can do for investors.
Gold is a very curious metal: it is extremely heavy, although soft; inert, but with an almost irresistible shine; therefore, it is the preferred material for jewelry. It is also very curious when it comes to investment: there is no topic that divides investment professionals more than gold” .
Indeed, gold as an investment asset generates a lively debate between those who defend it as the perfect refuge asset, and those who accuse it of not offering returns and of being a ‘barbaric relic’.
Objectively, however, the precious metal still has a lot to say in the realm of investment, many centuries after it began to be used as a store of value and a means of payment.
Criticisms And Advantages
Some of the usual criticisms from ‘deniers’ are that gold offers no returns, that it is very expensive to mine, has few uses outside of jewelery and its prices fluctuate widely. Which is true.
For their part, gold supporters argue that, over time, the price of gold ends up reflecting the cost of producing it, which, in turn, tends to reflect inflation.
It also has other important advantages:
• It has been used as a form of money since time immemorial.
• It is in semi-rigid supply , which means that central banks have no power to devalue it.
• It is the greatest monetary power, since it lacks counterparty risk , having value in itself.
• It cannot be created out of thin air , like fiat money.
• It maintains its value over time, regardless of what is happening around it.
As Ferguson’s post explains, the paradox of gold is that there are apparently no reasons why it has been a constant throughout the world for millennia, even after the advent of financial engineering. A constant that protects against any form of risk and uncertainty.
A highly liquid asset
One of the keys why gold is still relevant so many centuries later is because it is an asset that has enormous liquidity . The gold market is the third largest financial market in the world, with daily transactions worth billions of dollars.
The most important thing is that not only does gold move in the large international financial centers, but countless transactions are also recorded, even in the smallest cities, through the activity of jewelers or pawnshops.
Hence one of its main differences with the large investment assets that compete with it: to buy shares, bonds or trade titles, it is necessary to be in a financial center. On the other hand, gold can be traded anywhere in the world , because its value is recognized and its price is established.
Gold protects against any risk
Financial engineering has created in recent years multiple investment vehicles, increasingly sophisticated, usually with high volatility and risk. For this reason, gold is a perfect complement in investment portfolios that are too exposed to risk, as an element of diversification.
This is possible thanks to the fact that it is one of the few investment assets that have no correlation with the others and, therefore, maintains its value while that of the others falls.
It is the easiest investment
Apart from all of the above, gold is characterized by its enormous simplicity : it is what it is, a valuable asset, with immediate liquidity and value recognized throughout the world.
New forms of investment, such as cryptocurrencies, may have reduced some of its chances of revaluation, by attracting numerous investors, but the truth is that, while there are thousands of different cryptocurrencies, there is only one gold.
All of these digital currencies are not tied to anything and their value is simply based on the assumption that someone is always interested in buying them. But behind them there is nothing, as demonstrated when the bitcoin price collapsed due to criticism from Elon Musk or the ban by China.
Faced with this, gold is a universal asset, appreciated in all cultures and that forms part of the strategic reserves of countries, due to its ability to maintain its value over time.
If it is useful in this sense for countries, how much more will it be to shore up our personal finances and our future.…
The post What Can Gold Do For Me? appeared first on Best Gold IRA.
[content] => Array ( [encoded] =>Any investor can ask himself this question when evaluating the different and increasingly varied investment options that are presented to him. Given the avalanche of sophisticated investment vehicles, digital assets, cryptocurrencies… gold, that precious metal that has been with us for centuries, still has a lot to say. In this post we are going to explain what gold can do for investors.
Gold is a very curious metal: it is extremely heavy, although soft; inert, but with an almost irresistible shine; therefore, it is the preferred material for jewelry. It is also very curious when it comes to investment: there is no topic that divides investment professionals more than gold” .
Indeed, gold as an investment asset generates a lively debate between those who defend it as the perfect refuge asset, and those who accuse it of not offering returns and of being a ‘barbaric relic’.
Objectively, however, the precious metal still has a lot to say in the realm of investment, many centuries after it began to be used as a store of value and a means of payment.
Criticisms And Advantages
Some of the usual criticisms from ‘deniers’ are that gold offers no returns, that it is very expensive to mine, has few uses outside of jewelery and its prices fluctuate widely. Which is true.
For their part, gold supporters argue that, over time, the price of gold ends up reflecting the cost of producing it, which, in turn, tends to reflect inflation.
It also has other important advantages:
• It has been used as a form of money since time immemorial.
• It is in semi-rigid supply , which means that central banks have no power to devalue it.
• It is the greatest monetary power, since it lacks counterparty risk , having value in itself.
• It cannot be created out of thin air , like fiat money.
• It maintains its value over time, regardless of what is happening around it.
As Ferguson’s post explains, the paradox of gold is that there are apparently no reasons why it has been a constant throughout the world for millennia, even after the advent of financial engineering. A constant that protects against any form of risk and uncertainty.
A highly liquid asset
One of the keys why gold is still relevant so many centuries later is because it is an asset that has enormous liquidity . The gold market is the third largest financial market in the world, with daily transactions worth billions of dollars.
The most important thing is that not only does gold move in the large international financial centers, but countless transactions are also recorded, even in the smallest cities, through the activity of jewelers or pawnshops.
Hence one of its main differences with the large investment assets that compete with it: to buy shares, bonds or trade titles, it is necessary to be in a financial center. On the other hand, gold can be traded anywhere in the world , because its value is recognized and its price is established.
Gold protects against any risk
Financial engineering has created in recent years multiple investment vehicles, increasingly sophisticated, usually with high volatility and risk. For this reason, gold is a perfect complement in investment portfolios that are too exposed to risk, as an element of diversification.
This is possible thanks to the fact that it is one of the few investment assets that have no correlation with the others and, therefore, maintains its value while that of the others falls.
It is the easiest investment
Apart from all of the above, gold is characterized by its enormous simplicity : it is what it is, a valuable asset, with immediate liquidity and value recognized throughout the world.
New forms of investment, such as cryptocurrencies, may have reduced some of its chances of revaluation, by attracting numerous investors, but the truth is that, while there are thousands of different cryptocurrencies, there is only one gold.
All of these digital currencies are not tied to anything and their value is simply based on the assumption that someone is always interested in buying them. But behind them there is nothing, as demonstrated when the bitcoin price collapsed due to criticism from Elon Musk or the ban by China.
Faced with this, gold is a universal asset, appreciated in all cultures and that forms part of the strategic reserves of countries, due to its ability to maintain its value over time.
If it is useful in this sense for countries, how much more will it be to shore up our personal finances and our future.…
The post What Can Gold Do For Me? appeared first on Best Gold IRA.
) [summary] =>Any investor can ask himself this question when evaluating the different and increasingly varied investment options that are presented to him. Given the avalanche of sophisticated investment vehicles, digital assets, cryptocurrencies… gold, that precious metal that has been with us for centuries, still has a lot to say. In this post we are going to explain what gold can do for investors.
Gold is a very curious metal: it is extremely heavy, although soft; inert, but with an almost irresistible shine; therefore, it is the preferred material for jewelry. It is also very curious when it comes to investment: there is no topic that divides investment professionals more than gold” .
Indeed, gold as an investment asset generates a lively debate between those who defend it as the perfect refuge asset, and those who accuse it of not offering returns and of being a ‘barbaric relic’.
Objectively, however, the precious metal still has a lot to say in the realm of investment, many centuries after it began to be used as a store of value and a means of payment.
Criticisms And Advantages
Some of the usual criticisms from ‘deniers’ are that gold offers no returns, that it is very expensive to mine, has few uses outside of jewelery and its prices fluctuate widely. Which is true.
For their part, gold supporters argue that, over time, the price of gold ends up reflecting the cost of producing it, which, in turn, tends to reflect inflation.
It also has other important advantages:
• It has been used as a form of money since time immemorial.
• It is in semi-rigid supply , which means that central banks have no power to devalue it.
• It is the greatest monetary power, since it lacks counterparty risk , having value in itself.
• It cannot be created out of thin air , like fiat money.
• It maintains its value over time, regardless of what is happening around it.
As Ferguson’s post explains, the paradox of gold is that there are apparently no reasons why it has been a constant throughout the world for millennia, even after the advent of financial engineering. A constant that protects against any form of risk and uncertainty.
A highly liquid asset
One of the keys why gold is still relevant so many centuries later is because it is an asset that has enormous liquidity . The gold market is the third largest financial market in the world, with daily transactions worth billions of dollars.
The most important thing is that not only does gold move in the large international financial centers, but countless transactions are also recorded, even in the smallest cities, through the activity of jewelers or pawnshops.
Hence one of its main differences with the large investment assets that compete with it: to buy shares, bonds or trade titles, it is necessary to be in a financial center. On the other hand, gold can be traded anywhere in the world , because its value is recognized and its price is established.
Gold protects against any risk
Financial engineering has created in recent years multiple investment vehicles, increasingly sophisticated, usually with high volatility and risk. For this reason, gold is a perfect complement in investment portfolios that are too exposed to risk, as an element of diversification.
This is possible thanks to the fact that it is one of the few investment assets that have no correlation with the others and, therefore, maintains its value while that of the others falls.
It is the easiest investment
Apart from all of the above, gold is characterized by its enormous simplicity : it is what it is, a valuable asset, with immediate liquidity and value recognized throughout the world.
New forms of investment, such as cryptocurrencies, may have reduced some of its chances of revaluation, by attracting numerous investors, but the truth is that, while there are thousands of different cryptocurrencies, there is only one gold.
All of these digital currencies are not tied to anything and their value is simply based on the assumption that someone is always interested in buying them. But behind them there is nothing, as demonstrated when the bitcoin price collapsed due to criticism from Elon Musk or the ban by China.
Faced with this, gold is a universal asset, appreciated in all cultures and that forms part of the strategic reserves of countries, due to its ability to maintain its value over time.
If it is useful in this sense for countries, how much more will it be to shore up our personal finances and our future.…
The post What Can Gold Do For Me? appeared first on Best Gold IRA.
[atom_content] =>Any investor can ask himself this question when evaluating the different and increasingly varied investment options that are presented to him. Given the avalanche of sophisticated investment vehicles, digital assets, cryptocurrencies… gold, that precious metal that has been with us for centuries, still has a lot to say. In this post we are going to explain what gold can do for investors.
Gold is a very curious metal: it is extremely heavy, although soft; inert, but with an almost irresistible shine; therefore, it is the preferred material for jewelry. It is also very curious when it comes to investment: there is no topic that divides investment professionals more than gold” .
Indeed, gold as an investment asset generates a lively debate between those who defend it as the perfect refuge asset, and those who accuse it of not offering returns and of being a ‘barbaric relic’.
Objectively, however, the precious metal still has a lot to say in the realm of investment, many centuries after it began to be used as a store of value and a means of payment.
Criticisms And Advantages
Some of the usual criticisms from ‘deniers’ are that gold offers no returns, that it is very expensive to mine, has few uses outside of jewelery and its prices fluctuate widely. Which is true.
For their part, gold supporters argue that, over time, the price of gold ends up reflecting the cost of producing it, which, in turn, tends to reflect inflation.
It also has other important advantages:
• It has been used as a form of money since time immemorial.
• It is in semi-rigid supply , which means that central banks have no power to devalue it.
• It is the greatest monetary power, since it lacks counterparty risk , having value in itself.
• It cannot be created out of thin air , like fiat money.
• It maintains its value over time, regardless of what is happening around it.
As Ferguson’s post explains, the paradox of gold is that there are apparently no reasons why it has been a constant throughout the world for millennia, even after the advent of financial engineering. A constant that protects against any form of risk and uncertainty.
A highly liquid asset
One of the keys why gold is still relevant so many centuries later is because it is an asset that has enormous liquidity . The gold market is the third largest financial market in the world, with daily transactions worth billions of dollars.
The most important thing is that not only does gold move in the large international financial centers, but countless transactions are also recorded, even in the smallest cities, through the activity of jewelers or pawnshops.
Hence one of its main differences with the large investment assets that compete with it: to buy shares, bonds or trade titles, it is necessary to be in a financial center. On the other hand, gold can be traded anywhere in the world , because its value is recognized and its price is established.
Gold protects against any risk
Financial engineering has created in recent years multiple investment vehicles, increasingly sophisticated, usually with high volatility and risk. For this reason, gold is a perfect complement in investment portfolios that are too exposed to risk, as an element of diversification.
This is possible thanks to the fact that it is one of the few investment assets that have no correlation with the others and, therefore, maintains its value while that of the others falls.
It is the easiest investment
Apart from all of the above, gold is characterized by its enormous simplicity : it is what it is, a valuable asset, with immediate liquidity and value recognized throughout the world.
New forms of investment, such as cryptocurrencies, may have reduced some of its chances of revaluation, by attracting numerous investors, but the truth is that, while there are thousands of different cryptocurrencies, there is only one gold.
All of these digital currencies are not tied to anything and their value is simply based on the assumption that someone is always interested in buying them. But behind them there is nothing, as demonstrated when the bitcoin price collapsed due to criticism from Elon Musk or the ban by China.
Faced with this, gold is a universal asset, appreciated in all cultures and that forms part of the strategic reserves of countries, due to its ability to maintain its value over time.
If it is useful in this sense for countries, how much more will it be to shore up our personal finances and our future.…
The post What Can Gold Do For Me? appeared first on Best Gold IRA.
) [2] => Array ( [title] => Facts About Gold And A Bright Future Ahead [link] => https://bestira.gold/facts-about-gold-and-a-bright-future-ahead/ [dc] => Array ( [creator] => Kimberly Foster ) [pubdate] => Mon, 28 Nov 2022 09:11:13 +0000 [category] => Stock Market [guid] => https://bestira.gold/?p=34 [description] =>Gold was one of the leading investment assets during the past year, in which it registered a revaluation of 24%, highlighting its nature as a refuge asset. However, this rise has not continued so far in 2021, in which several corrections have been registered that have made investors wary.
Despite this, analysts are optimistic regarding the evolution of the precious metal, so this moment may be the ideal time to invest in gold, taking advantage of the low price.
Gold has posted positive returns for 16 of the last 20 years. In most of them, the precious metal has been one of the assets with the greatest appreciation, such as stocks, treasury bonds or commodities.
In addition, it is an asset that works better in the long term and shows an upward trend, despite corrections at specific times, as is happening in 2021.
One only has to look at a graph of the evolution of the price of the metal during the last 20 years to notice a clear upward trend, which is what investors who use it as a means of protecting their assets from monetary devaluation and inflation require. and as help towards retirement.
Gold has an average annual return since 2001 of 10.32%.
The figures speak for themselves: between 2001 and 2020, gold’s average compound annual return has been 10.32%, higher than many other assets. As is often said in the investment environment, past returns do not guarantee future returns, so there is no guarantee that the number will be repeated.
As in the previous case, what matters is the long-term trend. Investing in gold in the short term, hoping for a quick profit is a tactic that can pay off at times, but it is not an appropriate investment strategy.
Gold is an element of protection of the investment portfolio.
According to data handled by USAGOLD, an investment of $100,000 in gold made in January 2001 would be equivalent to about $655,000 today .
If we take the maximum price that gold has reached in this period, in August 2020, that hypothetical investment would have produced no less than $750,000 .
Institutional investors know this and there are many investment funds, especially the most conservative ones, which allocate between 2 and 10% to gold, as an element of investment portfolio protection.
Gold has no political preferences.
An analysis of the latest increases in the price of gold reveals a curious fact, which highlights that the metal is independent of political colours. Its revaluation in recent years has taken place during the terms of four presidents: two Democrats ( Bill Clinton and Barack Obama ) and two Republicans ( George W. Bush and Donald Trump ).
In addition, its most important annual revaluation ( 31.92% in 2007 ) occurred under the mandate of Republican President George W. Bush, while the second ( 29.24% in 2009 ) was under a Democratic president like Barack Obama.
Gold is independent of who runs the Federal Reserve
Although it might seem that whoever controls the monetary policy of the United States also has ascendancy over gold, the truth is that the metal has led a rise in prices that has extended during the terms of four presidents of the Federal Reserve , with four different monetary policies and very different economic circumstances.
They are Alan Greenspan (1987-2006), Ben Bernanke (2006-2014), Janet Yellen (2014-2018) and Jerome Powell (since 2018).
Gold does not need an inflationary environment to rise
Contrary to popular opinion, gold does not only thrive in inflationary environments. In 2001, the average inflation rate was 2.8%. In 2018 it was 2.4%. Between these two years, inflation only exceeded 3% on three occasions, while its lowest record was 0.1% in 2015.
Therefore, some of the years in which gold has had its best performance have not been marked by an inflationary environment, but rather the opposite.
The evolution of the price of gold is only remotely related to the dollar
Nor is it true that gold and the dollar are closely related, and that the possible appreciation or depreciation of the precious metal depends on the state of the US currency.
In January 2001, the Dollar Index (which compares this currency to the euro, the British pound, the Swiss franc, the Swedish krona, the Japanese yen and the Canadian dollar) stood at 113.39 . It is currently at 93.25 points , which means a drop of almost 18% during this period.
On the other hand, the price of gold has grown 6.55 times, a proportion that far exceeds the appreciation of the dollar against any of the other currencies.
The 21st century is the century of gold, not of the stock market
As Michael J. Kosares recalls , in January 2001 the Dow Jones Industrial Average was close to 9,580 points . With the latest increases, it is currently close to 34,000 points , which represents an increase of approximately 353%.
On the other hand, gold has appreciated 650% during this same period, from $270 to $1,760 an ounce, even despite the severe correction it is undergoing so far in 2021.
Despite the fact that it has been the stock markets that have dominated the headlines of the economic press during all these years, the real star has been gold.…
The post Facts About Gold And A Bright Future Ahead appeared first on Best Gold IRA.
[content] => Array ( [encoded] =>Gold was one of the leading investment assets during the past year, in which it registered a revaluation of 24%, highlighting its nature as a refuge asset. However, this rise has not continued so far in 2021, in which several corrections have been registered that have made investors wary.
Despite this, analysts are optimistic regarding the evolution of the precious metal, so this moment may be the ideal time to invest in gold, taking advantage of the low price.
Gold has posted positive returns for 16 of the last 20 years. In most of them, the precious metal has been one of the assets with the greatest appreciation, such as stocks, treasury bonds or commodities.
In addition, it is an asset that works better in the long term and shows an upward trend, despite corrections at specific times, as is happening in 2021.
One only has to look at a graph of the evolution of the price of the metal during the last 20 years to notice a clear upward trend, which is what investors who use it as a means of protecting their assets from monetary devaluation and inflation require. and as help towards retirement.
Gold has an average annual return since 2001 of 10.32%.
The figures speak for themselves: between 2001 and 2020, gold’s average compound annual return has been 10.32%, higher than many other assets. As is often said in the investment environment, past returns do not guarantee future returns, so there is no guarantee that the number will be repeated.
As in the previous case, what matters is the long-term trend. Investing in gold in the short term, hoping for a quick profit is a tactic that can pay off at times, but it is not an appropriate investment strategy.
Gold is an element of protection of the investment portfolio.
According to data handled by USAGOLD, an investment of $100,000 in gold made in January 2001 would be equivalent to about $655,000 today .
If we take the maximum price that gold has reached in this period, in August 2020, that hypothetical investment would have produced no less than $750,000 .
Institutional investors know this and there are many investment funds, especially the most conservative ones, which allocate between 2 and 10% to gold, as an element of investment portfolio protection.
Gold has no political preferences.
An analysis of the latest increases in the price of gold reveals a curious fact, which highlights that the metal is independent of political colours. Its revaluation in recent years has taken place during the terms of four presidents: two Democrats ( Bill Clinton and Barack Obama ) and two Republicans ( George W. Bush and Donald Trump ).
In addition, its most important annual revaluation ( 31.92% in 2007 ) occurred under the mandate of Republican President George W. Bush, while the second ( 29.24% in 2009 ) was under a Democratic president like Barack Obama.
Gold is independent of who runs the Federal Reserve
Although it might seem that whoever controls the monetary policy of the United States also has ascendancy over gold, the truth is that the metal has led a rise in prices that has extended during the terms of four presidents of the Federal Reserve , with four different monetary policies and very different economic circumstances.
They are Alan Greenspan (1987-2006), Ben Bernanke (2006-2014), Janet Yellen (2014-2018) and Jerome Powell (since 2018).
Gold does not need an inflationary environment to rise
Contrary to popular opinion, gold does not only thrive in inflationary environments. In 2001, the average inflation rate was 2.8%. In 2018 it was 2.4%. Between these two years, inflation only exceeded 3% on three occasions, while its lowest record was 0.1% in 2015.
Therefore, some of the years in which gold has had its best performance have not been marked by an inflationary environment, but rather the opposite.
The evolution of the price of gold is only remotely related to the dollar
Nor is it true that gold and the dollar are closely related, and that the possible appreciation or depreciation of the precious metal depends on the state of the US currency.
In January 2001, the Dollar Index (which compares this currency to the euro, the British pound, the Swiss franc, the Swedish krona, the Japanese yen and the Canadian dollar) stood at 113.39 . It is currently at 93.25 points , which means a drop of almost 18% during this period.
On the other hand, the price of gold has grown 6.55 times, a proportion that far exceeds the appreciation of the dollar against any of the other currencies.
The 21st century is the century of gold, not of the stock market
As Michael J. Kosares recalls , in January 2001 the Dow Jones Industrial Average was close to 9,580 points . With the latest increases, it is currently close to 34,000 points , which represents an increase of approximately 353%.
On the other hand, gold has appreciated 650% during this same period, from $270 to $1,760 an ounce, even despite the severe correction it is undergoing so far in 2021.
Despite the fact that it has been the stock markets that have dominated the headlines of the economic press during all these years, the real star has been gold.…
The post Facts About Gold And A Bright Future Ahead appeared first on Best Gold IRA.
) [summary] =>Gold was one of the leading investment assets during the past year, in which it registered a revaluation of 24%, highlighting its nature as a refuge asset. However, this rise has not continued so far in 2021, in which several corrections have been registered that have made investors wary.
Despite this, analysts are optimistic regarding the evolution of the precious metal, so this moment may be the ideal time to invest in gold, taking advantage of the low price.
Gold has posted positive returns for 16 of the last 20 years. In most of them, the precious metal has been one of the assets with the greatest appreciation, such as stocks, treasury bonds or commodities.
In addition, it is an asset that works better in the long term and shows an upward trend, despite corrections at specific times, as is happening in 2021.
One only has to look at a graph of the evolution of the price of the metal during the last 20 years to notice a clear upward trend, which is what investors who use it as a means of protecting their assets from monetary devaluation and inflation require. and as help towards retirement.
Gold has an average annual return since 2001 of 10.32%.
The figures speak for themselves: between 2001 and 2020, gold’s average compound annual return has been 10.32%, higher than many other assets. As is often said in the investment environment, past returns do not guarantee future returns, so there is no guarantee that the number will be repeated.
As in the previous case, what matters is the long-term trend. Investing in gold in the short term, hoping for a quick profit is a tactic that can pay off at times, but it is not an appropriate investment strategy.
Gold is an element of protection of the investment portfolio.
According to data handled by USAGOLD, an investment of $100,000 in gold made in January 2001 would be equivalent to about $655,000 today .
If we take the maximum price that gold has reached in this period, in August 2020, that hypothetical investment would have produced no less than $750,000 .
Institutional investors know this and there are many investment funds, especially the most conservative ones, which allocate between 2 and 10% to gold, as an element of investment portfolio protection.
Gold has no political preferences.
An analysis of the latest increases in the price of gold reveals a curious fact, which highlights that the metal is independent of political colours. Its revaluation in recent years has taken place during the terms of four presidents: two Democrats ( Bill Clinton and Barack Obama ) and two Republicans ( George W. Bush and Donald Trump ).
In addition, its most important annual revaluation ( 31.92% in 2007 ) occurred under the mandate of Republican President George W. Bush, while the second ( 29.24% in 2009 ) was under a Democratic president like Barack Obama.
Gold is independent of who runs the Federal Reserve
Although it might seem that whoever controls the monetary policy of the United States also has ascendancy over gold, the truth is that the metal has led a rise in prices that has extended during the terms of four presidents of the Federal Reserve , with four different monetary policies and very different economic circumstances.
They are Alan Greenspan (1987-2006), Ben Bernanke (2006-2014), Janet Yellen (2014-2018) and Jerome Powell (since 2018).
Gold does not need an inflationary environment to rise
Contrary to popular opinion, gold does not only thrive in inflationary environments. In 2001, the average inflation rate was 2.8%. In 2018 it was 2.4%. Between these two years, inflation only exceeded 3% on three occasions, while its lowest record was 0.1% in 2015.
Therefore, some of the years in which gold has had its best performance have not been marked by an inflationary environment, but rather the opposite.
The evolution of the price of gold is only remotely related to the dollar
Nor is it true that gold and the dollar are closely related, and that the possible appreciation or depreciation of the precious metal depends on the state of the US currency.
In January 2001, the Dollar Index (which compares this currency to the euro, the British pound, the Swiss franc, the Swedish krona, the Japanese yen and the Canadian dollar) stood at 113.39 . It is currently at 93.25 points , which means a drop of almost 18% during this period.
On the other hand, the price of gold has grown 6.55 times, a proportion that far exceeds the appreciation of the dollar against any of the other currencies.
The 21st century is the century of gold, not of the stock market
As Michael J. Kosares recalls , in January 2001 the Dow Jones Industrial Average was close to 9,580 points . With the latest increases, it is currently close to 34,000 points , which represents an increase of approximately 353%.
On the other hand, gold has appreciated 650% during this same period, from $270 to $1,760 an ounce, even despite the severe correction it is undergoing so far in 2021.
Despite the fact that it has been the stock markets that have dominated the headlines of the economic press during all these years, the real star has been gold.…
The post Facts About Gold And A Bright Future Ahead appeared first on Best Gold IRA.
[atom_content] =>Gold was one of the leading investment assets during the past year, in which it registered a revaluation of 24%, highlighting its nature as a refuge asset. However, this rise has not continued so far in 2021, in which several corrections have been registered that have made investors wary.
Despite this, analysts are optimistic regarding the evolution of the precious metal, so this moment may be the ideal time to invest in gold, taking advantage of the low price.
Gold has posted positive returns for 16 of the last 20 years. In most of them, the precious metal has been one of the assets with the greatest appreciation, such as stocks, treasury bonds or commodities.
In addition, it is an asset that works better in the long term and shows an upward trend, despite corrections at specific times, as is happening in 2021.
One only has to look at a graph of the evolution of the price of the metal during the last 20 years to notice a clear upward trend, which is what investors who use it as a means of protecting their assets from monetary devaluation and inflation require. and as help towards retirement.
Gold has an average annual return since 2001 of 10.32%.
The figures speak for themselves: between 2001 and 2020, gold’s average compound annual return has been 10.32%, higher than many other assets. As is often said in the investment environment, past returns do not guarantee future returns, so there is no guarantee that the number will be repeated.
As in the previous case, what matters is the long-term trend. Investing in gold in the short term, hoping for a quick profit is a tactic that can pay off at times, but it is not an appropriate investment strategy.
Gold is an element of protection of the investment portfolio.
According to data handled by USAGOLD, an investment of $100,000 in gold made in January 2001 would be equivalent to about $655,000 today .
If we take the maximum price that gold has reached in this period, in August 2020, that hypothetical investment would have produced no less than $750,000 .
Institutional investors know this and there are many investment funds, especially the most conservative ones, which allocate between 2 and 10% to gold, as an element of investment portfolio protection.
Gold has no political preferences.
An analysis of the latest increases in the price of gold reveals a curious fact, which highlights that the metal is independent of political colours. Its revaluation in recent years has taken place during the terms of four presidents: two Democrats ( Bill Clinton and Barack Obama ) and two Republicans ( George W. Bush and Donald Trump ).
In addition, its most important annual revaluation ( 31.92% in 2007 ) occurred under the mandate of Republican President George W. Bush, while the second ( 29.24% in 2009 ) was under a Democratic president like Barack Obama.
Gold is independent of who runs the Federal Reserve
Although it might seem that whoever controls the monetary policy of the United States also has ascendancy over gold, the truth is that the metal has led a rise in prices that has extended during the terms of four presidents of the Federal Reserve , with four different monetary policies and very different economic circumstances.
They are Alan Greenspan (1987-2006), Ben Bernanke (2006-2014), Janet Yellen (2014-2018) and Jerome Powell (since 2018).
Gold does not need an inflationary environment to rise
Contrary to popular opinion, gold does not only thrive in inflationary environments. In 2001, the average inflation rate was 2.8%. In 2018 it was 2.4%. Between these two years, inflation only exceeded 3% on three occasions, while its lowest record was 0.1% in 2015.
Therefore, some of the years in which gold has had its best performance have not been marked by an inflationary environment, but rather the opposite.
The evolution of the price of gold is only remotely related to the dollar
Nor is it true that gold and the dollar are closely related, and that the possible appreciation or depreciation of the precious metal depends on the state of the US currency.
In January 2001, the Dollar Index (which compares this currency to the euro, the British pound, the Swiss franc, the Swedish krona, the Japanese yen and the Canadian dollar) stood at 113.39 . It is currently at 93.25 points , which means a drop of almost 18% during this period.
On the other hand, the price of gold has grown 6.55 times, a proportion that far exceeds the appreciation of the dollar against any of the other currencies.
The 21st century is the century of gold, not of the stock market
As Michael J. Kosares recalls , in January 2001 the Dow Jones Industrial Average was close to 9,580 points . With the latest increases, it is currently close to 34,000 points , which represents an increase of approximately 353%.
On the other hand, gold has appreciated 650% during this same period, from $270 to $1,760 an ounce, even despite the severe correction it is undergoing so far in 2021.
Despite the fact that it has been the stock markets that have dominated the headlines of the economic press during all these years, the real star has been gold.…
The post Facts About Gold And A Bright Future Ahead appeared first on Best Gold IRA.
) [3] => Array ( [title] => Why Has The Price Of Gold Fallen In September? [link] => https://bestira.gold/why-has-the-price-of-gold-fallen-in-september/ [dc] => Array ( [creator] => Kimberly Foster ) [pubdate] => Mon, 28 Nov 2022 09:08:38 +0000 [category] => Price Of Gold [guid] => https://bestira.gold/?p=30 [description] =>Gold is not leading a year 2021 as positive in terms of its revaluation as it was in 2019 or 2020. It is partly logical, given that last year was exceptional, with a global pandemic unknown in the modern era, which triggered the investment figures in precious metals. Not surprisingly, gold reached its all-time maximum price in August 2020, exceeding $2,000 an ounce. In 2021, the movements have been minor and, specifically in September, the metal has undergone a correction that has led it to fall by 4.12%.
According to data from the London Bullion Market Association (LBMA) , the ‘fixing’ price of gold was at $1,811.80 an ounce on September 1 , and at $ 1,737.15 on the 29th of the same month. That is, a drop of $74.65 an ounce, or 4.12% in one month.
Analysts explain this drop in the precious metal by a combination of factors: on the one hand, the rise in yields on US Treasury bonds (one of the assets that compete with gold to attract investors) and, consequently, the dollar.
Gold vs bonds and dollar
At the time of writing this post, gold futures contracts on the US Comex were trading at $1,725 an ounce , while the Dollar Index (which compares the US currency to the euro, pound sterling, Swiss franc, krona Swedish yen, Japanese yen and Canadian dollar) stood at 94.36 points , and yields on the 10-year US Treasury bond reached 1.541%.
As we have already explained on other occasions, gold maintains an inverse relationship with bonds: when their yields rise, the price of the metal falls, and vice versa. The same thing happens with the dollar: when the US currency rises, gold falls, and vice versa.
For this reason, and taking into account the significant jump experienced by the Dollar Index (which is at its highest level in the last 12 months), analysts believe that gold is holding the rate quite well.
It is also a matter of perspective: the situation looks bad, because inexperienced investors tend to compare the current price level with the maximum registered in August 2020, above $2,000 an ounce.
But things change if we take into account that, at this time in 2019 , gold was trading at $1,485.30 an ounce , while, in 2018 , its price was $1,187.25 an ounce . In other words: gold is $251.85 an ounce higher than its price two years ago and $549.90 three years ago.
For this reason, when analyzing the price of gold, it is not necessary to do it with respect to the maximum, but to contemplate the evolution in the medium or long term, which is when precious metals offer their best returns.
The role of the Fed
Another of the factors that have influenced this drop in gold during the month of September has been the intervention of the Federal Reserve . In a previous post we already analyzed how the Fed’s rescue plan influenced the evolution of the precious metal.
After the last meeting held by the Council of the US central bank between September 22 and 23, President Jerome Powell dropped that the dismantling of the multi-billion dollar bond purchase program launched by the Fed to combat the economic effects of the pandemic could start next November and end in the middle of next year.
Given this situation, according to analysts, investors have tended to resort to assets such as the US dollar in the short term, instead of gold, which has led to a considerable rise in the former.
This is because all the possible sources of short-term uncertainty (the US government’s problems with the debt ceiling, concerns about rising inflation, the possible bankruptcy of the Chinese company Evergrande) have led investors towards the safety offered by the US dollar, which has put downward pressure on gold and silver.
In fact, analysts are warning that another rise in the US dollar could trigger further declines in precious metal prices.
In addition, the fact that the US government, through the Fed, has launched an aid plan worth billions of dollars poses a risk for the price of the greenback in the future, which could be devalued.
An effect that, combined with an increase in inflation, would benefit gold, traditionally considered one of the best elements of protection against it.
Despite the fact that the Federal Reserve continues to view inflation as temporary, the current supply problems and the energy crisis could exacerbate this inflationary situation, which would benefit precious metals.
In short, and as we have pointed out on other occasions, to invest in gold you must not get carried away by emotions and keep a cool head: the metal is not a suitable asset for speculation and it is for protecting oneself in the medium and long term, which s when it offers its best returns. So peace of mind and perspective.…
The post Why Has The Price Of Gold Fallen In September? appeared first on Best Gold IRA.
[content] => Array ( [encoded] =>Gold is not leading a year 2021 as positive in terms of its revaluation as it was in 2019 or 2020. It is partly logical, given that last year was exceptional, with a global pandemic unknown in the modern era, which triggered the investment figures in precious metals. Not surprisingly, gold reached its all-time maximum price in August 2020, exceeding $2,000 an ounce. In 2021, the movements have been minor and, specifically in September, the metal has undergone a correction that has led it to fall by 4.12%.
According to data from the London Bullion Market Association (LBMA) , the ‘fixing’ price of gold was at $1,811.80 an ounce on September 1 , and at $ 1,737.15 on the 29th of the same month. That is, a drop of $74.65 an ounce, or 4.12% in one month.
Analysts explain this drop in the precious metal by a combination of factors: on the one hand, the rise in yields on US Treasury bonds (one of the assets that compete with gold to attract investors) and, consequently, the dollar.
Gold vs bonds and dollar
At the time of writing this post, gold futures contracts on the US Comex were trading at $1,725 an ounce , while the Dollar Index (which compares the US currency to the euro, pound sterling, Swiss franc, krona Swedish yen, Japanese yen and Canadian dollar) stood at 94.36 points , and yields on the 10-year US Treasury bond reached 1.541%.
As we have already explained on other occasions, gold maintains an inverse relationship with bonds: when their yields rise, the price of the metal falls, and vice versa. The same thing happens with the dollar: when the US currency rises, gold falls, and vice versa.
For this reason, and taking into account the significant jump experienced by the Dollar Index (which is at its highest level in the last 12 months), analysts believe that gold is holding the rate quite well.
It is also a matter of perspective: the situation looks bad, because inexperienced investors tend to compare the current price level with the maximum registered in August 2020, above $2,000 an ounce.
But things change if we take into account that, at this time in 2019 , gold was trading at $1,485.30 an ounce , while, in 2018 , its price was $1,187.25 an ounce . In other words: gold is $251.85 an ounce higher than its price two years ago and $549.90 three years ago.
For this reason, when analyzing the price of gold, it is not necessary to do it with respect to the maximum, but to contemplate the evolution in the medium or long term, which is when precious metals offer their best returns.
The role of the Fed
Another of the factors that have influenced this drop in gold during the month of September has been the intervention of the Federal Reserve . In a previous post we already analyzed how the Fed’s rescue plan influenced the evolution of the precious metal.
After the last meeting held by the Council of the US central bank between September 22 and 23, President Jerome Powell dropped that the dismantling of the multi-billion dollar bond purchase program launched by the Fed to combat the economic effects of the pandemic could start next November and end in the middle of next year.
Given this situation, according to analysts, investors have tended to resort to assets such as the US dollar in the short term, instead of gold, which has led to a considerable rise in the former.
This is because all the possible sources of short-term uncertainty (the US government’s problems with the debt ceiling, concerns about rising inflation, the possible bankruptcy of the Chinese company Evergrande) have led investors towards the safety offered by the US dollar, which has put downward pressure on gold and silver.
In fact, analysts are warning that another rise in the US dollar could trigger further declines in precious metal prices.
In addition, the fact that the US government, through the Fed, has launched an aid plan worth billions of dollars poses a risk for the price of the greenback in the future, which could be devalued.
An effect that, combined with an increase in inflation, would benefit gold, traditionally considered one of the best elements of protection against it.
Despite the fact that the Federal Reserve continues to view inflation as temporary, the current supply problems and the energy crisis could exacerbate this inflationary situation, which would benefit precious metals.
In short, and as we have pointed out on other occasions, to invest in gold you must not get carried away by emotions and keep a cool head: the metal is not a suitable asset for speculation and it is for protecting oneself in the medium and long term, which s when it offers its best returns. So peace of mind and perspective.…
The post Why Has The Price Of Gold Fallen In September? appeared first on Best Gold IRA.
) [summary] =>Gold is not leading a year 2021 as positive in terms of its revaluation as it was in 2019 or 2020. It is partly logical, given that last year was exceptional, with a global pandemic unknown in the modern era, which triggered the investment figures in precious metals. Not surprisingly, gold reached its all-time maximum price in August 2020, exceeding $2,000 an ounce. In 2021, the movements have been minor and, specifically in September, the metal has undergone a correction that has led it to fall by 4.12%.
According to data from the London Bullion Market Association (LBMA) , the ‘fixing’ price of gold was at $1,811.80 an ounce on September 1 , and at $ 1,737.15 on the 29th of the same month. That is, a drop of $74.65 an ounce, or 4.12% in one month.
Analysts explain this drop in the precious metal by a combination of factors: on the one hand, the rise in yields on US Treasury bonds (one of the assets that compete with gold to attract investors) and, consequently, the dollar.
Gold vs bonds and dollar
At the time of writing this post, gold futures contracts on the US Comex were trading at $1,725 an ounce , while the Dollar Index (which compares the US currency to the euro, pound sterling, Swiss franc, krona Swedish yen, Japanese yen and Canadian dollar) stood at 94.36 points , and yields on the 10-year US Treasury bond reached 1.541%.
As we have already explained on other occasions, gold maintains an inverse relationship with bonds: when their yields rise, the price of the metal falls, and vice versa. The same thing happens with the dollar: when the US currency rises, gold falls, and vice versa.
For this reason, and taking into account the significant jump experienced by the Dollar Index (which is at its highest level in the last 12 months), analysts believe that gold is holding the rate quite well.
It is also a matter of perspective: the situation looks bad, because inexperienced investors tend to compare the current price level with the maximum registered in August 2020, above $2,000 an ounce.
But things change if we take into account that, at this time in 2019 , gold was trading at $1,485.30 an ounce , while, in 2018 , its price was $1,187.25 an ounce . In other words: gold is $251.85 an ounce higher than its price two years ago and $549.90 three years ago.
For this reason, when analyzing the price of gold, it is not necessary to do it with respect to the maximum, but to contemplate the evolution in the medium or long term, which is when precious metals offer their best returns.
The role of the Fed
Another of the factors that have influenced this drop in gold during the month of September has been the intervention of the Federal Reserve . In a previous post we already analyzed how the Fed’s rescue plan influenced the evolution of the precious metal.
After the last meeting held by the Council of the US central bank between September 22 and 23, President Jerome Powell dropped that the dismantling of the multi-billion dollar bond purchase program launched by the Fed to combat the economic effects of the pandemic could start next November and end in the middle of next year.
Given this situation, according to analysts, investors have tended to resort to assets such as the US dollar in the short term, instead of gold, which has led to a considerable rise in the former.
This is because all the possible sources of short-term uncertainty (the US government’s problems with the debt ceiling, concerns about rising inflation, the possible bankruptcy of the Chinese company Evergrande) have led investors towards the safety offered by the US dollar, which has put downward pressure on gold and silver.
In fact, analysts are warning that another rise in the US dollar could trigger further declines in precious metal prices.
In addition, the fact that the US government, through the Fed, has launched an aid plan worth billions of dollars poses a risk for the price of the greenback in the future, which could be devalued.
An effect that, combined with an increase in inflation, would benefit gold, traditionally considered one of the best elements of protection against it.
Despite the fact that the Federal Reserve continues to view inflation as temporary, the current supply problems and the energy crisis could exacerbate this inflationary situation, which would benefit precious metals.
In short, and as we have pointed out on other occasions, to invest in gold you must not get carried away by emotions and keep a cool head: the metal is not a suitable asset for speculation and it is for protecting oneself in the medium and long term, which s when it offers its best returns. So peace of mind and perspective.…
The post Why Has The Price Of Gold Fallen In September? appeared first on Best Gold IRA.
[atom_content] =>Gold is not leading a year 2021 as positive in terms of its revaluation as it was in 2019 or 2020. It is partly logical, given that last year was exceptional, with a global pandemic unknown in the modern era, which triggered the investment figures in precious metals. Not surprisingly, gold reached its all-time maximum price in August 2020, exceeding $2,000 an ounce. In 2021, the movements have been minor and, specifically in September, the metal has undergone a correction that has led it to fall by 4.12%.
According to data from the London Bullion Market Association (LBMA) , the ‘fixing’ price of gold was at $1,811.80 an ounce on September 1 , and at $ 1,737.15 on the 29th of the same month. That is, a drop of $74.65 an ounce, or 4.12% in one month.
Analysts explain this drop in the precious metal by a combination of factors: on the one hand, the rise in yields on US Treasury bonds (one of the assets that compete with gold to attract investors) and, consequently, the dollar.
Gold vs bonds and dollar
At the time of writing this post, gold futures contracts on the US Comex were trading at $1,725 an ounce , while the Dollar Index (which compares the US currency to the euro, pound sterling, Swiss franc, krona Swedish yen, Japanese yen and Canadian dollar) stood at 94.36 points , and yields on the 10-year US Treasury bond reached 1.541%.
As we have already explained on other occasions, gold maintains an inverse relationship with bonds: when their yields rise, the price of the metal falls, and vice versa. The same thing happens with the dollar: when the US currency rises, gold falls, and vice versa.
For this reason, and taking into account the significant jump experienced by the Dollar Index (which is at its highest level in the last 12 months), analysts believe that gold is holding the rate quite well.
It is also a matter of perspective: the situation looks bad, because inexperienced investors tend to compare the current price level with the maximum registered in August 2020, above $2,000 an ounce.
But things change if we take into account that, at this time in 2019 , gold was trading at $1,485.30 an ounce , while, in 2018 , its price was $1,187.25 an ounce . In other words: gold is $251.85 an ounce higher than its price two years ago and $549.90 three years ago.
For this reason, when analyzing the price of gold, it is not necessary to do it with respect to the maximum, but to contemplate the evolution in the medium or long term, which is when precious metals offer their best returns.
The role of the Fed
Another of the factors that have influenced this drop in gold during the month of September has been the intervention of the Federal Reserve . In a previous post we already analyzed how the Fed’s rescue plan influenced the evolution of the precious metal.
After the last meeting held by the Council of the US central bank between September 22 and 23, President Jerome Powell dropped that the dismantling of the multi-billion dollar bond purchase program launched by the Fed to combat the economic effects of the pandemic could start next November and end in the middle of next year.
Given this situation, according to analysts, investors have tended to resort to assets such as the US dollar in the short term, instead of gold, which has led to a considerable rise in the former.
This is because all the possible sources of short-term uncertainty (the US government’s problems with the debt ceiling, concerns about rising inflation, the possible bankruptcy of the Chinese company Evergrande) have led investors towards the safety offered by the US dollar, which has put downward pressure on gold and silver.
In fact, analysts are warning that another rise in the US dollar could trigger further declines in precious metal prices.
In addition, the fact that the US government, through the Fed, has launched an aid plan worth billions of dollars poses a risk for the price of the greenback in the future, which could be devalued.
An effect that, combined with an increase in inflation, would benefit gold, traditionally considered one of the best elements of protection against it.
Despite the fact that the Federal Reserve continues to view inflation as temporary, the current supply problems and the energy crisis could exacerbate this inflationary situation, which would benefit precious metals.
In short, and as we have pointed out on other occasions, to invest in gold you must not get carried away by emotions and keep a cool head: the metal is not a suitable asset for speculation and it is for protecting oneself in the medium and long term, which s when it offers its best returns. So peace of mind and perspective.…
The post Why Has The Price Of Gold Fallen In September? appeared first on Best Gold IRA.
) [4] => Array ( [title] => What Format Is The Most Suitable For Investing In Physical Precious Metals? [link] => https://bestira.gold/what-format-is-the-most-suitable-for-investing-in-physical-precious-metals/ [dc] => Array ( [creator] => Kimberly Foster ) [pubdate] => Mon, 28 Nov 2022 09:06:39 +0000 [category] => Bullion Coins [guid] => https://bestira.gold/?p=26 [description] =>When investing in physical gold, there are various formats from which the investor can choose. Each of them has its advantages and disadvantages and, to a large extent, the choice will depend on the tastes and particular circumstances of each one. In this post we are going to explain the main options that exist and some details.
Regarding ingots, there is little doubt: everyone knows how to identify them without fear of confusion. They can be of very variable sizes, from just a few grams to more than 12 kilos.
On the other hand, those weighing more than one kilo are made in the traditional way: pouring the molten gold into a mold, from which it is extracted when it cools and then polishing it.
This very simple way of manufacturing, together with the few details that they usually show, allows the manufacturing costs that are passed on to the client on the price of the metal (known as ‘premiums’) to be smaller than in the case of coins.
In their favor is also the fact that their storage is easier than in the case of coins, since they have a more compact shape that allows better use of space in safes or vaults.
Among the drawbacks of bullion as an investment asset is its larger size, which causes its value to be higher, which discourages many investors from storing it at home, for security reasons.
Depositing them in a specialized custody company, outside the banking system, is the most recommended option, although in this case the additional costs incurred must be taken into account.
In addition, the greater weight of the ingots means that, when liquidating them, there are greater difficulties than with smaller pieces. In fact, few companies are going to offer investors a price higher than the spot price for their bullion, especially if they are small businesses.
On the other hand, if the investor has his metal in the form of large bars, he may only need some liquidity, which he could obtain by selling a fractional part of the bars. However, he is forced to liquidate the entire piece.
Investment or bullion coins
Bullions have the advantage that their value is universally recognized and appreciated, especially if they are minted by the most prestigious mints. This is the case of the MünzeÖsterreich Philamonic , the American Eagle of the United States Mint , the Kangaroo or the Koala of the Perth Mint , the Chinese Panda , the Britannia of the Royal Mint , the Maple Leaf of the Royal Canadian Mint or the Krugerrand of the South African Mint .
In all these cases, these pieces have an active secondary market, so their liquidity is immediate. In addition, since they are small pieces, it is easier to liquidate them in times of need and adjusting sales to what you want to obtain.
Some investors also appreciate their design: accumulating simple gold or silver bars is not the same as these pieces, some of which (Panda, Kangaroo, Koala) change their reverses every year.
On the other hand, the premiums that investors pay over the spot price of the metal contained in these coins are often much higher than those imposed on bullion or medals.
In particular, bullions minted by certain government mints such as the US Mint or the Royal Canadian Mint, due to their enormous popularity, carry even higher premiums. And investors appreciate the added value of these coins being legal tender.
Medals or ’rounds’
The other option to invest in physical gold are the medals or ’rounds’, which are coin-shaped pieces, minted by private mints, but which, unlike those, have no face value and are not backed by any condition.
For this reason, the premiums charged by the mints that mint them are lower than those of bullions, although higher than the premiums of ingots.
It is an interesting option for the price, although it must be taken into account that, since it does not have the prestige of the bullions, it can be more difficult to obtain liquidity in the secondary market.
The collecting variable, which also intervenes in the case of bullions, is very important in the case of medals or ’rounds’, since it is its main component.
Gold or silver?
There are also differences between gold and silver, not only in price, but also in premiums. These are made up of manufacturing costs, on the one hand, and the market forces themselves, on the other.
When deciding whether to invest in gold or silver, one of the issues that must be assessed is precisely that of the premiums.
In this case, the premiums charged on silver products are higher than those of gold. The explanation is that the cost of minting or manufacturing a silver ingot, coin or medal is much higher in proportion to the value of the metal.
For example, if the mint charges a premium of $2.50 per ounce , that is equivalent to almost 10% of the value of the ounce of silver itself . However, in the case of gold , this cost barely represents less than 1% of the value of the metal.
Another influencing effect is the dynamics of the market, which means that certain products, especially those made of silver, are very scarce in relation to the existing demand in the market, as has been verified in the last 18 months, given the avalanche of requests of silver bullion, which caused supply problems and caused premiums to rise.
…
The post What Format Is The Most Suitable For Investing In Physical Precious Metals? appeared first on Best Gold IRA.
[content] => Array ( [encoded] =>When investing in physical gold, there are various formats from which the investor can choose. Each of them has its advantages and disadvantages and, to a large extent, the choice will depend on the tastes and particular circumstances of each one. In this post we are going to explain the main options that exist and some details.
Regarding ingots, there is little doubt: everyone knows how to identify them without fear of confusion. They can be of very variable sizes, from just a few grams to more than 12 kilos.
On the other hand, those weighing more than one kilo are made in the traditional way: pouring the molten gold into a mold, from which it is extracted when it cools and then polishing it.
This very simple way of manufacturing, together with the few details that they usually show, allows the manufacturing costs that are passed on to the client on the price of the metal (known as ‘premiums’) to be smaller than in the case of coins.
In their favor is also the fact that their storage is easier than in the case of coins, since they have a more compact shape that allows better use of space in safes or vaults.
Among the drawbacks of bullion as an investment asset is its larger size, which causes its value to be higher, which discourages many investors from storing it at home, for security reasons.
Depositing them in a specialized custody company, outside the banking system, is the most recommended option, although in this case the additional costs incurred must be taken into account.
In addition, the greater weight of the ingots means that, when liquidating them, there are greater difficulties than with smaller pieces. In fact, few companies are going to offer investors a price higher than the spot price for their bullion, especially if they are small businesses.
On the other hand, if the investor has his metal in the form of large bars, he may only need some liquidity, which he could obtain by selling a fractional part of the bars. However, he is forced to liquidate the entire piece.
Investment or bullion coins
Bullions have the advantage that their value is universally recognized and appreciated, especially if they are minted by the most prestigious mints. This is the case of the MünzeÖsterreich Philamonic , the American Eagle of the United States Mint , the Kangaroo or the Koala of the Perth Mint , the Chinese Panda , the Britannia of the Royal Mint , the Maple Leaf of the Royal Canadian Mint or the Krugerrand of the South African Mint .
In all these cases, these pieces have an active secondary market, so their liquidity is immediate. In addition, since they are small pieces, it is easier to liquidate them in times of need and adjusting sales to what you want to obtain.
Some investors also appreciate their design: accumulating simple gold or silver bars is not the same as these pieces, some of which (Panda, Kangaroo, Koala) change their reverses every year.
On the other hand, the premiums that investors pay over the spot price of the metal contained in these coins are often much higher than those imposed on bullion or medals.
In particular, bullions minted by certain government mints such as the US Mint or the Royal Canadian Mint, due to their enormous popularity, carry even higher premiums. And investors appreciate the added value of these coins being legal tender.
Medals or ’rounds’
The other option to invest in physical gold are the medals or ’rounds’, which are coin-shaped pieces, minted by private mints, but which, unlike those, have no face value and are not backed by any condition.
For this reason, the premiums charged by the mints that mint them are lower than those of bullions, although higher than the premiums of ingots.
It is an interesting option for the price, although it must be taken into account that, since it does not have the prestige of the bullions, it can be more difficult to obtain liquidity in the secondary market.
The collecting variable, which also intervenes in the case of bullions, is very important in the case of medals or ’rounds’, since it is its main component.
Gold or silver?
There are also differences between gold and silver, not only in price, but also in premiums. These are made up of manufacturing costs, on the one hand, and the market forces themselves, on the other.
When deciding whether to invest in gold or silver, one of the issues that must be assessed is precisely that of the premiums.
In this case, the premiums charged on silver products are higher than those of gold. The explanation is that the cost of minting or manufacturing a silver ingot, coin or medal is much higher in proportion to the value of the metal.
For example, if the mint charges a premium of $2.50 per ounce , that is equivalent to almost 10% of the value of the ounce of silver itself . However, in the case of gold , this cost barely represents less than 1% of the value of the metal.
Another influencing effect is the dynamics of the market, which means that certain products, especially those made of silver, are very scarce in relation to the existing demand in the market, as has been verified in the last 18 months, given the avalanche of requests of silver bullion, which caused supply problems and caused premiums to rise.
…
The post What Format Is The Most Suitable For Investing In Physical Precious Metals? appeared first on Best Gold IRA.
) [summary] =>When investing in physical gold, there are various formats from which the investor can choose. Each of them has its advantages and disadvantages and, to a large extent, the choice will depend on the tastes and particular circumstances of each one. In this post we are going to explain the main options that exist and some details.
Regarding ingots, there is little doubt: everyone knows how to identify them without fear of confusion. They can be of very variable sizes, from just a few grams to more than 12 kilos.
On the other hand, those weighing more than one kilo are made in the traditional way: pouring the molten gold into a mold, from which it is extracted when it cools and then polishing it.
This very simple way of manufacturing, together with the few details that they usually show, allows the manufacturing costs that are passed on to the client on the price of the metal (known as ‘premiums’) to be smaller than in the case of coins.
In their favor is also the fact that their storage is easier than in the case of coins, since they have a more compact shape that allows better use of space in safes or vaults.
Among the drawbacks of bullion as an investment asset is its larger size, which causes its value to be higher, which discourages many investors from storing it at home, for security reasons.
Depositing them in a specialized custody company, outside the banking system, is the most recommended option, although in this case the additional costs incurred must be taken into account.
In addition, the greater weight of the ingots means that, when liquidating them, there are greater difficulties than with smaller pieces. In fact, few companies are going to offer investors a price higher than the spot price for their bullion, especially if they are small businesses.
On the other hand, if the investor has his metal in the form of large bars, he may only need some liquidity, which he could obtain by selling a fractional part of the bars. However, he is forced to liquidate the entire piece.
Investment or bullion coins
Bullions have the advantage that their value is universally recognized and appreciated, especially if they are minted by the most prestigious mints. This is the case of the MünzeÖsterreich Philamonic , the American Eagle of the United States Mint , the Kangaroo or the Koala of the Perth Mint , the Chinese Panda , the Britannia of the Royal Mint , the Maple Leaf of the Royal Canadian Mint or the Krugerrand of the South African Mint .
In all these cases, these pieces have an active secondary market, so their liquidity is immediate. In addition, since they are small pieces, it is easier to liquidate them in times of need and adjusting sales to what you want to obtain.
Some investors also appreciate their design: accumulating simple gold or silver bars is not the same as these pieces, some of which (Panda, Kangaroo, Koala) change their reverses every year.
On the other hand, the premiums that investors pay over the spot price of the metal contained in these coins are often much higher than those imposed on bullion or medals.
In particular, bullions minted by certain government mints such as the US Mint or the Royal Canadian Mint, due to their enormous popularity, carry even higher premiums. And investors appreciate the added value of these coins being legal tender.
Medals or ’rounds’
The other option to invest in physical gold are the medals or ’rounds’, which are coin-shaped pieces, minted by private mints, but which, unlike those, have no face value and are not backed by any condition.
For this reason, the premiums charged by the mints that mint them are lower than those of bullions, although higher than the premiums of ingots.
It is an interesting option for the price, although it must be taken into account that, since it does not have the prestige of the bullions, it can be more difficult to obtain liquidity in the secondary market.
The collecting variable, which also intervenes in the case of bullions, is very important in the case of medals or ’rounds’, since it is its main component.
Gold or silver?
There are also differences between gold and silver, not only in price, but also in premiums. These are made up of manufacturing costs, on the one hand, and the market forces themselves, on the other.
When deciding whether to invest in gold or silver, one of the issues that must be assessed is precisely that of the premiums.
In this case, the premiums charged on silver products are higher than those of gold. The explanation is that the cost of minting or manufacturing a silver ingot, coin or medal is much higher in proportion to the value of the metal.
For example, if the mint charges a premium of $2.50 per ounce , that is equivalent to almost 10% of the value of the ounce of silver itself . However, in the case of gold , this cost barely represents less than 1% of the value of the metal.
Another influencing effect is the dynamics of the market, which means that certain products, especially those made of silver, are very scarce in relation to the existing demand in the market, as has been verified in the last 18 months, given the avalanche of requests of silver bullion, which caused supply problems and caused premiums to rise.
…
The post What Format Is The Most Suitable For Investing In Physical Precious Metals? appeared first on Best Gold IRA.
[atom_content] =>When investing in physical gold, there are various formats from which the investor can choose. Each of them has its advantages and disadvantages and, to a large extent, the choice will depend on the tastes and particular circumstances of each one. In this post we are going to explain the main options that exist and some details.
Regarding ingots, there is little doubt: everyone knows how to identify them without fear of confusion. They can be of very variable sizes, from just a few grams to more than 12 kilos.
On the other hand, those weighing more than one kilo are made in the traditional way: pouring the molten gold into a mold, from which it is extracted when it cools and then polishing it.
This very simple way of manufacturing, together with the few details that they usually show, allows the manufacturing costs that are passed on to the client on the price of the metal (known as ‘premiums’) to be smaller than in the case of coins.
In their favor is also the fact that their storage is easier than in the case of coins, since they have a more compact shape that allows better use of space in safes or vaults.
Among the drawbacks of bullion as an investment asset is its larger size, which causes its value to be higher, which discourages many investors from storing it at home, for security reasons.
Depositing them in a specialized custody company, outside the banking system, is the most recommended option, although in this case the additional costs incurred must be taken into account.
In addition, the greater weight of the ingots means that, when liquidating them, there are greater difficulties than with smaller pieces. In fact, few companies are going to offer investors a price higher than the spot price for their bullion, especially if they are small businesses.
On the other hand, if the investor has his metal in the form of large bars, he may only need some liquidity, which he could obtain by selling a fractional part of the bars. However, he is forced to liquidate the entire piece.
Investment or bullion coins
Bullions have the advantage that their value is universally recognized and appreciated, especially if they are minted by the most prestigious mints. This is the case of the MünzeÖsterreich Philamonic , the American Eagle of the United States Mint , the Kangaroo or the Koala of the Perth Mint , the Chinese Panda , the Britannia of the Royal Mint , the Maple Leaf of the Royal Canadian Mint or the Krugerrand of the South African Mint .
In all these cases, these pieces have an active secondary market, so their liquidity is immediate. In addition, since they are small pieces, it is easier to liquidate them in times of need and adjusting sales to what you want to obtain.
Some investors also appreciate their design: accumulating simple gold or silver bars is not the same as these pieces, some of which (Panda, Kangaroo, Koala) change their reverses every year.
On the other hand, the premiums that investors pay over the spot price of the metal contained in these coins are often much higher than those imposed on bullion or medals.
In particular, bullions minted by certain government mints such as the US Mint or the Royal Canadian Mint, due to their enormous popularity, carry even higher premiums. And investors appreciate the added value of these coins being legal tender.
Medals or ’rounds’
The other option to invest in physical gold are the medals or ’rounds’, which are coin-shaped pieces, minted by private mints, but which, unlike those, have no face value and are not backed by any condition.
For this reason, the premiums charged by the mints that mint them are lower than those of bullions, although higher than the premiums of ingots.
It is an interesting option for the price, although it must be taken into account that, since it does not have the prestige of the bullions, it can be more difficult to obtain liquidity in the secondary market.
The collecting variable, which also intervenes in the case of bullions, is very important in the case of medals or ’rounds’, since it is its main component.
Gold or silver?
There are also differences between gold and silver, not only in price, but also in premiums. These are made up of manufacturing costs, on the one hand, and the market forces themselves, on the other.
When deciding whether to invest in gold or silver, one of the issues that must be assessed is precisely that of the premiums.
In this case, the premiums charged on silver products are higher than those of gold. The explanation is that the cost of minting or manufacturing a silver ingot, coin or medal is much higher in proportion to the value of the metal.
For example, if the mint charges a premium of $2.50 per ounce , that is equivalent to almost 10% of the value of the ounce of silver itself . However, in the case of gold , this cost barely represents less than 1% of the value of the metal.
Another influencing effect is the dynamics of the market, which means that certain products, especially those made of silver, are very scarce in relation to the existing demand in the market, as has been verified in the last 18 months, given the avalanche of requests of silver bullion, which caused supply problems and caused premiums to rise.
…
The post What Format Is The Most Suitable For Investing In Physical Precious Metals? appeared first on Best Gold IRA.
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