12 Jun 10 Buying Gold Online – Market Recap
In a setback for the U.S. economy, retail sales fell in May as consumers curtailed their spending on everything from cars to clothing, the Commerce Department reported. The drop in sales reported by the Commerce Department on Friday reflected weak gasoline prices and the end of a home buyer tax credit which had previously boosted sales of building materials, according to Reuters.
The Wall Street Journal reported that the U.S. trade deficit with China expanded from $16.90 billion in March to $19.31 billion in April, adding to a trend that some economists worry could revive the international trade imbalances that many see as a major contributor to the recent financial crisis. U.S. Treasury Secretary Timothy Geithner said China was taking some steps to address U.S. concerns about its currency and trade policy, but also vowed to press for more fundamental change. “We are seeing some progress, but we still face many challenges,” he said.
With the onset of the World Cup in South Africa, Rand Refinery Ltd., of Johannesburg, South Africa, raised production of Krugerrand coins to a 25-year high as Europe’s sovereign-debt crisis boosted investor demand for bullion, according to a story from Bloomberg. Output last week jumped 50 percent to 30,000 ounces of blank coins for minting by SA Mint, said Debra Thomson, the refinery’s treasurer. “We’re seeing higher demand for gold because of the sovereign-debt crisis in Europe and the depreciation of the euro,” said Thomson. “People are looking for gold as a safe haven.” Increased demand for gold caused a brief new high for the yellow metal. Gold set a new record early on Tuesday at $1,254.50 before settling again under the $1,250.00 mark where it remained for the rest of the week.
Gold:
Spot gold prices opened this week at $1,220.90. The high during the week was on Tuesday, June 8th, at $1,254.50, while the low for the week occurred on Thursday, June 10th, at $1,216.20. Gold ended the week up $7.50 at $1,228.40.
Silver:
Spot silver prices opened this week at $17.45. Silver reached a high of $18.54 on Friday, June 11th, while this week’s low for silver occurred on Monday, June 7th, at $17.20. Silver ended the week up $0.82 at $18.27.
Platinum:
Spot platinum prices opened this week at $1,517.00 and ended the week up $23.20 at $1,540.20. Platinum investors showed the most interest in 1 oz. Pamp Suisse Platinum Bars, Platinum American Eagles and 5 gram Credit Suisse Platinum Bars this week.
Palladium:
Spot palladium prices opened this week at $428.00 and ended the week up $22.10 at $450.10. Palladium Canadian Maple Leafs and Lewis & Clark design 1 oz. Palladium Bars were the most popular palladium products on APMEX.com this week.
Featured Bullion Product:
This week, in honor of the beginning of the World Cup in South Africa, we will examine the South African Gold Krugerrand.
The Krugerrand was the first modern gold bullion coin ever struck by any nation. These coins were originally minted in 1967 to help South Africa sell some of its vast gold reserves to investors around the world. The Krugerrand was also the world’s first gold coin that weighed exactly 1 Troy ounce and many worldwide investors purchased these coins to add a precious metal investment to their portfolios. These beautiful coins are struck in 22-karat gold and weigh just over one ounce. The additional copper alloy was added to make the coins harder and more resistant to scratches. This alloy gives the Krugerrand its distinctive color. Krugerrands have been continuously minted in South Africa since 1967.
On the obverse, or front, of these coins is a portrait of Paul Kruger, the last President of the Republic of South Africa. The reverse, or back, of this coin depicts a Springbok Antelope, which is one of South Africa’s national symbols. The name “Krugerrand” is a combination of Paul Kruger’s name and the word “rand” which is one of the monetary units of South Africa. These attractive coins are backed by the government of South Africa for their purity, content and fineness. Krugerrands have also been minted in ½ Troy Ounce, ¼ Troy Ounce and 1/10th Troy Ounce sizes as well as having been struck in both Uncirculated and collector’s Proof conditions.
APMEX offers a great selection of South African Krugerrands dated the current year and in several prior years in Brilliant Uncirculated condition. Coins purchased in quantities of 20 or more will be delivered in special mint tubes. Krugerrands make an excellent addition to investment portfolios and are recognized worldwide for their lasting value.
11 Jun 10 Buying & Selling Gold Online – Common Mistakes
Common Mistake #5 – Superficial Research
When faced with something new, it’s easy to simply scan the owner’s manual for the basic information and then “wing it.” It is tempting to do the same when beginning an investment in precious metals.
In the precious metals market, superficial research is just looking at such general information as spot prices — in other words, doing the bare minimum to prepare yourself before jumping in. The downfall of not doing serious research is obvious. There are many, many layers of information that must be sifted through before an investor can feel confident in his investment choices.
Do your research
From forums to chat rooms to blogs, there are multiple sources of information available online for those who want to invest in precious metals.
Precious metal forums (goldismoney.info, cointalk.com, etc.) are great places to read other investors’ opinions, strategies and the experiences they’ve had with specific dealers. In a chat room, you can talk to others one on one.
This conversation can lead to invaluable information, not to mention the fact that you can ask specific questions and judge answers for yourself very quickly.
05 Jun 10 Buying Gold Market Recap
U.S. consumers saved more of their income in April, leaving spending flat last month which prompted stocks to fall, according to The Wall Street Journal. Consumer spending was unchanged last month, the Commerce Department said in a report Friday. Consumer purchases, which account for more than two-thirds of demand in the economy, are being held back by a still high unemployment rate and heavy debt loads.
Stocks fell sharply Friday as the market closed out its worst month in more than a year, reported The Associated Press. Investors were also taking money out of the market to play it safe ahead of the weekend, especially since overseas markets will be trading on Monday when U.S. exchanges are closed for Memorial Day. May was difficult for the stock market as persistent and intensifying worries about Europe’s debt problems sent the Dow down 7 percent.
The euro also lost 7 percent against the U.S. dollar this month on worries over high debt and budget cuts in euro zone countries such as Greece and Italy, reported Reuters. Concerns that Europe’s debt woes could spiral into a broader financial crisis have rattled the U.S. stock market, which has fallen from its April highs.
Thomas Kaplan, chairman of Tigris Financial Group in New York, said this week “I feel the only asset I have confidence in is gold.” The billionaire has gone further than perhaps any other major investor, according to The Wall Street Journal, betting the majority of his wealth on gold and other precious metals, reflecting his deeply held conviction that global economic instability could bring rising demand for gold.
Gold:
Spot gold prices opened this week at $1,179.10. The high during the week was on Thursday, May 27th, at $1,220.60, while the low for the week occurred on Monday, May 24th, at $1,176.80. Gold ended the week up $35.90 at $1,215.00. The most popular gold products this week were Gold American Eagles, 2010 Gold Buffalos and Gold Canadian Maple Leafs.
Silver:
Spot silver prices opened this week at $17.65. Silver reached a high of $18.65 on Friday, May 28th, while the low for silver occurred on Tuesday, May 25th, at $17.53. Silver ended the week up $0.77 at $18.42. Silver American Eagles, Silver Canadian Maple Leafs and 1 oz. Silver Rounds were the most popular silver items this week.
Platinum:
Spot platinum prices opened this week at $1,512.50 and ended the week up $37.50 at $1,550.00. This week, the most popular platinum items were 1 oz. Pamp Suisse Platinum Bars, Platinum American Eagles and 5 gram Credit Suisse Platinum Bars.
Palladium:
Spot palladium prices opened this week at $438.10 and ended the week up $23.00 at $461.10. Palladium investors were focused on 1 oz. .999 Fine Pamp Suisse Palladium Bars and Palladium Canadian Maple Leafs this week.
Featured Bullion Product:
Each week, we feature a different bullion product for the benefit of our readers. This week, we are putting the spotlight on NGC-Certified 20 oz. Gold Austrian Philharmonic Coins.
Elegant is the perfect word to describe this lovely and unusual coin. This exquisite coin is the largest version of the Gold Austrian Philharmonic coin series, created as a tribute to the renowned Vienna Philharmonic Orchestra, one of the finest musical ensembles in the world.
A harmonious design of musical instruments represents the world famous orchestra on the reverse of this spectacular gold coin. The obverse depicts the Great Organ of the Golden Hall in Vienna’s concert hall. Many collectors and investors consider this to be one of the most beautiful designs of all gold bullion coins. The 20 oz. Austrian Philharmonic coin is struck in .9999 fine gold and is available in very small quantities worldwide.
The Austrian Mint made only 6,027 of the 20 oz. version of its Gold Austrian Philharmonic coins and only 2,009 examples are available in the United States. Very few of these magnificent coins have been certified by any of the grading services. Don’t miss this unique opportunity to own one of very few 20 oz. Gold Austrian Philharmonic coins certified by NGC.
05 Jun 10 Buying & Selling Gold – Common Mistakes #3
Common Mistake #3 – Over-reliance
Information on investing in precious metals is everywhere and it’s natural to seek advice from outside sources. When experiencing challenges, we tend to look outward for solutions. However, this is a double-edged sword. On the one hand, it’s prudent to educate yourself before undertaking a precious metal investment. Online forums are terrific sources of information. Just make sure you’re always mindful of your sources. Not all outlets available to you are reputable.
On the other hand, problems arise when you rely too heavily on these outside sources. Often times, people forget to look inward in addition to seeking outside assistance. After all, there is no magic solution and no one path to success. No one can guarantee in which direction the market is going to move. It simply cannot be done.
Therefore, the most important person you can turn to is you. Success comes from diligent research, solid advice from other successful people, patience and emotional fortitude. Investing is a skill which must be honed over time. There just aren’t any shortcuts in that respect.
Gain Your Own Experience
Don’t mindlessly follow the suggestions others give you. There is little value in getting someone’s opinion on the best course of action. Just as schools prepare children for lives as successful adults, so must you learn the ways of succeeding in precious metals investments. Rather, ask others how they came to their decision.
Seek their advice on skills, not tips. It may be tempting to take the quick solution through tips, but keep in mind that tips are not transferable skills — they’re the cheat sheets that may help with short-term gains but may ultimately lead you nowhere. Learning to “see” the market as someone successful sees it is the best skill to learn.
05 Jun 10 Buying & Selling Gold – Common Mistakes #2
Common Mistake #2 – Flip-flopping
Another common problem that investors face is a lack of vision. This often goes hand in hand with impatience. Investors, by nature, want a return on their investments (gold or silver, for example) and they typically want it quickly. Individuals may feel that if a particular strategy isn’t yielding strong enough returns, there must be something wrong with the strategy.
Investors will spend years chasing after the next big thing, often believing that this strategy is “the one.” When that particular strategy doesn’t yield the results they were looking for, the common response by investors is to blame the strategy and to quickly adopt another. They don’t realize that the problem most often lies within themselves and not with a given strategy or tactic.
Again, step back.
Give the strategy some time. We can’t be stress enough that precious metals investments should be long-term holdings. Success in this game is not something that can be accurately measured in weeks or months. This is a long-term commitment. Budget your time, energy and capital wisely.
05 Jun 10 Buying Gold – Common Mistakes #1
Common Mistake #1 – Impatience
One of the biggest pitfalls faced by precious metal investors of all experience levels is impatience. Particularly with newcomers, the calling to get rich quick is a temptation that prompts the urge to move as quickly as possible.
Many newcomers have the mindset that success is a given and that it must appear quickly, without much effort.
Nothing could be further from the truth
As any experienced investor will tell you, investing in gold or silver is a long-term proposition. The measure of one’s success comes from years spent in the game, not weeks or months. It is unrealistic to expect “get rich quick” results.
However, this is a mindset all gold and silver investors fall prey to at some point. This tendency often causes investors to flip-flop with their investment decisions. It’s the classic “the grass is always greener on the other side” scenario. An investor will try one approach and when it doesn’t yield the desired results in a fairly rapid timeframe, they will abandon the approach considered to be faulty for another that’s perceived as better.
Take a step back
To avoid the impatience trap, it’s important to take a step back and re-evaluate your expectations. Ask yourself the following questions:
- Are your expectations realistic?
- What are your long-term financial goals?
Note that both of these questions fail to mention anything about instant profit cash flow. Remember, success in precious metal investing is not instantaneous. Forget the drive to make a fast fortune. Take a moment to relax and realize that you’re in this for the long haul.
05 Jun 10 Buying Gold – Market Recap
The employment numbers grew by 431,000 in May. However, temporary census jobs accounted for 411,000 of the jobs gained. A majority of economists polled by Reuters thought there would be a gain of 190,000 private-sector jobs last month. Instead, only 41,000 were added. The decline in retailing jobs is the first monthly drop since December, and is the latest evidence that consumer spending may be stagnating after a surprisingly strong start to the year, reported Reuters. Worries about the impact of a potential double-dip recession as a result of problems in the euro zone are tempering some employers’ optimism about the U.S. economy, and could cause an ongoing recovery in jobs to slow or be pushed back even further.
The Dow Jones Industrial Average levels hovered around the 10,000 level Friday on the heels of the disappointing job report and renewed worries of economic problems in the euro zone. The DJIA slipped under 10,000 right after the euro fell below $1.20 around midday. The average closed at 9931.97. The euro had already been under pressure, hitting a series of four-year lows, on worries that Hungary would join its fiscally stressed euro-zone neighbors.
Gold prices reversed on Friday and moved higher as investors bought significant amounts of gold at a “discount” after the disappointing jobs number, according to TheStreet.com. Many buyers are looking for just such buying opportunities in order to add more gold to their holdings.
04 Jun 10 Buying Gold – Common Mistakes #4
Common Mistake #4 – Physical Gold And ETFs Are The Same
Many investors, especially those new to precious metals, make the critical error of thinking that owning an Exchange Traded Fund (ETF) that invests in gold, such as GLD, is the same as owning the physical gold itself. This mistake is born of a common misunderstanding. While ETFs do buy some physical gold, there are many differences between owning shares of an ETF and owning physical gold. There are many differences you should be aware of that make ETFs significantly more risky, as an investment, than owning and storing the physical precious metal yourself.
For thousands of years, gold and silver have been highly desirable and recognizable commodities that are easily bought, sold and exchanged for goods on local and world markets. You can take physical gold from New York to Zimbabwe and everyone will immediately recognize the inherent value in the metal itself. In essence, you can use physical gold or silver in lieu of, or for exchange of cash all over the world.
As the owner of a gold ETF, you ultimately only own a piece of paper, a promissory note, showing how many shares of the fund you own; however you do not own any actual physical gold. The ETF owns the gold and you own a promise from the fund managers to pay back the value of the shares you have purchased in the ETF. The ETF certificate that you own is something that is not universally traded on the world markets, nor is it widely recognized or easily exchangeable for currency. You would have a very difficult time trying to trade paper certificates for goods or services the same way you will physical gold.
Many newcomers to precious metals investing ask, “Aren’t gold ETFs the best way to take advantage of the rising gold prices?” “Probably not,” is the most accurate answer. ETFs do not always accurately reflect the current price of gold. That is because you are trying to compare a physical precious metal product to a piece of paper. In the past five years, the premiums on the spot price of gold have grown 10-40%, which may not be accurately reflected in the price per share of a gold ETF.
Also, if you read the language of an ETF prospectus carefully, you will see that your investment in the ETF could possibly drop to $0 in value. This highlights two critical factors to consider about ETFs: 1) you are trusting someone else to establish the value of the gold possessed by the ETF, and 2) you are trusting that the fund managers actually have enough physical gold to cover your investment and all of the other shares invested as well.
These two concerns are negated when you consider physically possessing gold. First, the value of your investment is determined by the market, not by a fund manager or by the popularity of the shares of a given ETF. Second, since you physically possess the gold, you know exactly what it is worth at any moment in time and are not dependent on another person or entity to tell you what you have. The chance of physical gold becoming worthless is virtually impossible, given that gold and silver have always had, and should always have value. While the value of gold may fluctuate depending on a given currency or during any given day, there will always be some value associated with these precious metals due to the fact that precious metals are rare elements, cannot be “manufactured” and have a myriad of industrial uses.
Yet another major concern surrounding ETFs is the increased possibility of counterfeiting. You may have read articles documenting the recent discovery of counterfeit gold bars, which have a core made of tungsten, which has almost the exact same weight and density of gold. Counterfeiters primarily target the 400 oz. size bars that all ETFs purchase because of the time and expense in the counterfeiting process, and the massive return on their counterfeiting investment. These bars are the only size bars that an ETF purchases, often purchased sight unseen, and they are rarely, if ever, critically audited. In fact, 400 oz. bars are typically only used by institutions, ETFs and world governments. Once again, in the language of the prospectus, you will find that if the ETF were to discover that they were holding counterfeit bars, the loss of value would result in a loss of value for the shareholders of the fund, not the ETF managers who purchased and accepted counterfeit bars in the first place.
At APMEX, we have highly-trained experts who can detect counterfeit products of any type. All of the gold coins and bars that we offer were manufactured by government-owned or well-known private mints, making these products even more resistant to tampering. The vast majority of coins and bars we sell are smaller in size, making them much more difficult and less profitable to counterfeit as well. Because of these three simple facts, you can be confident that the physical precious metals you purchase from APMEX are genuine.
Finally, there is a question of security. Some people are concerned about holding physical gold in their households and find that the idea of having shares of a precious metal ETF is quite appealing. When you consider the potential losses that could be sustained by investing in an ETF, the prospect of securing your gold coins or bars in a bank safety deposit box or even in a simple household safe is negligible at best. Many homes today are equipped with high-tech alarm systems, locks and other security measures. Installing a simple gun safe, wall safe or floor safe is an inexpensive and effective way to protect your precious metals.
This chapter has identified the advantages of owning a physical precious metal versus owning a paper ETF. When making your investment choices, you should always do your homework, always read the fine print and always understand what you are purchasing.
30 May 10 Healthy Living
The definition of healthy living is dissimilar for each person, but there are 2 things that most agree on. You have got to learn how to eat good foods that feed your body, and you’ve got to have some variety of exercise in your day by day life. These things can be tougher than folks think when they set off on a new plan for a higher quality life, and that’s why it is often smart to go ahead one step at a time till you have got where you would like to be with your way of life habits and your healthfulness. This is something you need to be careful with as there’s a lot of terrible advice out there. If you are not sure which way to turn, talk with your health practitioner about adapting your diet for healthy living, and get suggestions from them. These folks can show you what you should be eating, what to keep clear of, and what you may have moderately. If you are not sure about exercise re healthy living, know that any kind of movement is good for you. If you aren’t someone that moves around a lot, you can get some great benefits from just walking round the block. After a bit, you may need to add more to your routine, and that’s when a gymnasium is an excellent idea. You must hire a private coach to help find the things that work well for you in your search for healthy living. If somebody appears off or you hate what they are doing, do yourself a favor and move on to the subsequent one. Other bits of healthy living could be things you’ve got to quit doing. This could mean you have got to find a method to quit smoking, and you will have to change or lower your ingestion of alcohol. You will have more difficulty with these than anything that you do. What you need to do is visit with your health practitioner again, only this time tell them you need help with giving up or cutting back. There’s a lot of focus on healthy living nowadays, and most doctors will be happy to help in your search, regardless of if they think that they have to refer you to somebody else. It will be tough to change all of these things, but after you get going, you’ll enjoy your results too much to turn back to life before you found healthy habits.
