time is gold: August 2011

Tuesday, August 9, 2011

The Advantages of a Gold Standard

By Derrick Schwabe

Gold is money.
And if you live in a country on a gold standard your money is gold.

Today there is considerable discussion about whether or not we, the countries of the world, should embrace a return to the gold standard. To solve the economic problems of today. Yet perhaps it is time that we move on from the debate... and on to a demand for it's return.
Global economy solution

In this short but sweet outline on the gold standard and it's advantages, you will learn why it is essentially the grand solution our global economy is seeking.
Gold Has Got Your Back

Being on a gold standard means the national currency is fully backed by physical gold. And thus, it's citizens can freely exchange paper notes for a set rate of gold.

When a government embraces a full gold standard, they are effectively declaring that gold is the highest unit of trade. And that the currency is merely a tool for people, businesses, government and foreign investors to facilitate gold transactions more conveniently than trading physical bullion.

And therein lies a key to a truly free market economy. Gold is a rare, heavy mineral that nobody can print out of thin air. Making it difficult to manipulate. And allowing the principals of production, savings, capital and economic growth to create natural prosperity. Uninhibited by the clutches of politicians and central banks.

Tremendous Economic Stabilizing Power

A gold standard provides the stability needed to foster greater prosperity and productivity throughout the world.

The limited supply of gold creates a stabilizing effect on international trade & the business cycle. Effectively preventing potential for economic collapse by limiting over expansion, inflation, and major imbalances before they spiral out of control.

Former Federal Reserve Chairman Alan Greenspan, as a young and ideologically different man, best explained, in an article he published in 1966, why a gold standard fosters economic stability at home and abroad.

"Even though the units of exchange (the dollar, the pound, the franc, etc.) differ from country to country, when all are defined in terms of gold the economies of the different countries act as one-so long as there are no restraints on trade or on the movement of capital. Credit, interest rates, and prices tend to follow similar patterns in all countries. For example, if banks in one country extend credit too liberally, interest rates in that country will tend to fall, inducing depositors to shift their gold to higher-interest paying banks in other countries. This will immediately cause a shortage of bank reserves in the "easy money" country, inducing tighter credit standards and a return to competitively higher interest rates again.

Periodically, as a result of overly rapid credit expansion, banks became loaned up to the limit of their gold reserves, interest rates rose sharply, new credit was cut off, and the economy went into a sharp, but short-lived recession. (Compared with the depressions of 1920 and 1932, the pre-World War I business declines were mild indeed.) It was limited gold reserves that stopped the unbalanced expansions of business activity, before they could develop into the post-World Was I type of disaster. The readjustment periods were short and the economies quickly reestablished a sound basis to resume expansion."

Gold Enforces Responsible Government

A gold standard is necessary to the economic freedom of mankind. It acts as a tool for limiting the actions of governments and their ability to exacerbate economic problems.

Father of the legendary Wall Street investor Warren Buffet, made clear the correlation to a gold and it's power to enforce responsible government. Warren's dad Howard Buffet, a serving congressmen at the time, stated in his 1947 speech:

"When the people's right to restrain public spending by demanding gold coin was taken away from them, the automatic flow of strength from the grass-roots to enforce economy in Washington was disconnected...The gold standard acted as a silent watchdog to prevent unlimited public spending."

Without a gold standard, the government is free to create an unlimited number of paper notes & dollars. Allowing inflation to spiral out of control. As they selectively bail out banks and other institutions, regardless of a poor track record. Or spend billions of dollars on unproductive social programs. Or to wage war overseas.

The Gold Standard Produce Prosperity

Sound money cultivates prosperity. And under a gold standard you have sound money. There is no inflation. And alternatively, consumer prices are constantly falling. Which increases the purchasing power of the people. Improving the standard of living of everyone.

For about 120 years, between 1790 and 1910, with the exception of wartime, prices for Americans fell almost continuously.

In times such as in the Civil War, when the government temporarily resorted back to printing money, inflation became rampant again. Yet as soon as sound money was restored, prices would fall back down, reducing the cost of living, and improving living standards.

Savings is at the root of economic growth and capital formation. And a gold standard encourages savings. Because when the prices are constantly falling, the value of money is constantly rising. And people are more inclined to save money that is increasing in value. Under a gold standard, savers are rewarded for having saved money. Because the money that they have saved has more purchasing power.
Lady Justice

The most prosperous period in American, and even British, history was when these counties were under a gold standard. And even though a truly free & consistent gold standard was never achieved worldwide, it is clear that the power of gold, in combination with capitalism & human ingenuity, served as the basis for the Industrial Revolution.

While mankind has lost it's way, it is not too late to turn back. And now, more than ever, it is compelling to reverse the tides of inflationary money policy. To shift the focus from debate to a demanding roar that can be heard worldwide. To return to the proven model that is the gold standard.

Learn more about the gold standard at the Open Gold Exchange.

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What Was The Gold Standard?

By Kum Martin

The gold standard was a way fixing the price of the domestic currency against a particular amount of gold. So, when a country adopted this standard, all the money, including bank deposits and paper notes, could be converted to gold at a fixed price. England was the first country to adopt the gold standard in 1717, when Sir Isaac Newton, the master of the royal mint, ended up overvaluing the guinea against silver. However, at this time the adoption was not formal. The formal adoption of the gold standard in the United Kingdom occurred in 1819.

The United States was following a bimetallic standard, where the price of the US dollar was fixed against both gold and silver. The country shifted to the gold standard in 1834 after the US Congress passed the Gold Standard Act. The price of gold was fixed at $20.67 per ounce and this price stayed on until 1933.

During the 1870s, many other countries shifted to this standard, and the years between 1880 and 1914 were known as the classical period. This was the time the world witnessed significant economic growth clubbed with free trade.

However, when the First World War broke out, the gold standard fell apart, as countries responded by resorting to inflationary finance. Nonetheless, the standard was re-introduced for a short period, from 1925 to 1931 as the Gold Exchange Standard. In this new standard, the countries could keep reserves of gold, dollars or Sterling pounds and just the US and the UK were exempted from it, as they had reserves just in gold. But the Gold Exchange Standard broke after the UK shifted from the standard due to large outflow of gold as well as capital.

Then President Franklin Roosevelt decided to nationalize the gold that private citizens owned and also abolish contracts that paid people in gold. The US shifted to the Bretton Woods system from 1946 to 1971. Under this system, countries were allowed to settle their international debts in US dollars, while the US redeemed the dollar holdings of other central banks in gold. The price for one ounce of gold was fixed at thirty-five dollars. However, the US was facing deficits and this undermined the confidence of bankers and countries. They felt that as the US gold reserves were dwindling, the government would not have sufficient gold to redeem its currency. So, on 15 August 1971, the US President Richard Nixon took a decision that the country would no longer exchange currency for gold. This brought an end to the gold standard in the United States altogether.

However, the country faced high inflation in the latter half of the 1970s and early part of the 1980s, which prompted many economists to advocate a return to the gold standard. It is believed that whenever the inflation crosses 5 percent, there is renewed demand for return to the gold standard, as when the country was using the standard, the average inflation per year was just 0.1 percent.

About Author:
Kum Martin is an online leading expert in history and education. He also offers top quality articles like:
Gold Standard History

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Gold Is Still a Safe-Haven As a Greek Default Still Seems Inevitable

By Marko Puustinen

Concerns about Greek default, and the knock-on effects which could have drastic consequences on global financial markets, have diminished - for now. However it is far too early to completely write off a Greek default which seems inevitable in the long term. Some analysts say five years until default, but others say this is far too optimistic and Greece will collapse financially well before that.

However, for the moment with the help of a €12 billion loan from the EBC and IMF, Greece has managed to ward off default. Therefore, coupled with the traditionally weak summer period and less demand from Asia, we are likely to see gold remain under pressure for the next month or so.

Although lending further money to Greece seems to be pouring more money down the drain, a default would drive German and French banks near bankruptcy because of the huge amounts they have invested in the debt. The knock-on effects would then descend on Portugal and Ireland, who also face huge debts and which would in turn put stress on the U.K and Spanish banks.

The prospects for gold remain strong as the gold price continues to hang around $1500. At the moment (1/07/11) gold is trading in the low $1,490s however, this is largely from relief that Europe has not actually imploded financially yet. However, there is more than enough economic distress to keep gold prices from falling further:

• Massive structural problems exist in the U.S. The housing sector continues to be a problem and the fiscal deficit is large.
• Worries over the increasing possibility that Greece will default will resurface over the next few weeks and months.
• Greece defaulting would produce a domino effect, forcing Portugal, Ireland, Spain and Italy into the same position- European lenders still have almost $2.trillion linked to these countries.
• The weak US dollar is gradually losing its status as a global currency, which is a logical consequence from the quantitative loosening; however the US only has until the 2nd August to make a decision whether or not to raise its debt ceiling.

The safe haven aspects of gold investment will return especially from September so now is the perfect opportunity to buy gold while prices are sitting lower. Although technical factors could drive gold down further in the short term, things are likely to get worse for the Global economy, which will see gold continue upwards again; therefore this is perhaps not the time to be selling gold. Until the economies of countries in Europe and the USA begin to pick up (which seems some way off yet) inflation will continue to increase and as such gold prices will continue to climb.

Overall, given the chronic uncertainty the financial world is facing and the trust lost in central banks, we believe that investing in gold is the right answer. The situation for the Euro and the US Dollar only seems to be getting worse and therefore the global expansion of monetary supply should continue to provide gold investments with a positive environment to thrive in.

KK Bullion offers you the opportunity to participate in a rising gold market with gold bullion. Buy or sell gold bullion, have it delivered securely or we can store your gold bullion for you in our Vault. Click here to buy a Gold Bullion

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Gold and Geopolitical Tensions

By Marko Puustinen

The last few weeks the situation in Egypt has been dominating the headlines and making the markets even more volatile than normal. The gold price has been moving very rapidly since the uprising started. This shows the important role gold is playing in traders portfolios in times of uncertainty. They are trying to protect themselves with gold as it traditionally moves inversely to other equities.

The tension in Middle-East might keep investors on their toes for quite some time as Jordan and Yemen are very close to losing the control of their people too. Investing in gold will offer a safer option to invest one's money than stocks as long as the inequalities between people keep causing problems in Middle-East.

According to bullion dealers in Hong Kong and Shanghai the physical demand for gold has been unbelievable before Chinese New Year celebrations. Chinese people traditionally buy gold as a New Year's gift and because of the emerging inflation pressure the hunger for the metal has been at record high ahead of the holiday.

Traditionally the physical demand calms down after the Chinese New Year and won't pick up until early September but currently the inflation pressure is likely to stop any major falls as governments are pretty helpless in front of market forces. In a healthy economic environment inflation is caused by increasing consumer spending and can be controlled by raising interest rates. Presently inflation is caused by rising commodity and food prices, not people spending too much. This causes politicians a dilemma as rising interest rates would cool down the commodity prices but it also would kill the emerging recovery.

Both the ECB and the FED have stated that they will not raise interest rates until the recovery is on firmer ground and the economy is adding far more jobs than it currently is. Recent employment data from the U.S is backing up this as the country is not creating new jobs fast enough to support the recovery. ECB is expecting inflation to be 1.8% in 2011 which is below the 2% target and would ease the pressure to raise interest rates in the Euro Zone.

As central banks are not currently able to do anything to cool down inflation without affecting the recovery, commodity and food prices are likely to keep rising. Some analyst suggest that rising food prices were the bottom reason for the riots in North Africa as in most of these countries over 50% of family income goes to grocery shopping. As food prices keep rising, it is likely that the anxiety and tension keeps spreading to other developing economies.

Resent economic statements from America and Europe are suggesting that the recovery is picking up but financial markets remain doubtful about it and especially Asian investors are keener than ever to buy gold as an inflation hedge. Whether the western world will follow until it's too late will be seen in the next few months but a lot of so called smart money from Asia is buying all the bullion they can get.

KK Bullion offers you the opportunity to participate in a rising gold market with gold bullion. Buy or sell gold bullion, have it delivered securely or we can store your gold bullion for you in our Vault. Click here to buy a Gold Bullion

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How High Will Gold Climb?

By Marko Puustinen

Last week I wrote that the next price barrier for gold is $1300/oz and recently the price has been hovering around $1298/oz for few days. Few months ago most analysts expected the gold price to be on these levels by the end of the year but recent news from America and Japan has encouraged investors to jump on board faster than predicted.

Last week the Japanese government announced that they will interrupt the markets by weakening the Yen for the first time in six years. This is a rather significant move from the Japanese government since they haven't injected any stimulus into the markets since the last recession in 1990s. The falling Dollar has caused problems in Japan since their large exporting industry has been suffering because of the strengthening Yen and the government was forced to take actions. All this is gold positive because one more of the few reserve currencies have been manipulated by the government.

The counter strike from the Dollar came on Tuesday when the FED announced the readiness to introduce a new round of quantitative easing to boost the economy. After the announcement gold has been very close to the $1300/oz mark and once this level is reached, investors need to revalue their price targets once again.

The depreciation of the Yuan compared to the Dollar has caused a growing tension between The U.S and China in recent weeks. The U.S is blaming the cheap Yuan for its economic issues and even financial sanctions against China have been on the cards. If these two giant economies are starting to threaten each others, the impact on the ever slowing recovery could be enormous. Both of the nations are key players in the global economy and how they manage to support the economic growth and stability will have a major effect on all economic regions.

According to the IMF, a growing number of central banks, especially from Asia, have been topping up their gold reserves in the last 12 months. Russia, China, Saudi Arabia, India, Mauritius, Bangladesh and Sri Lanka have been the main purchasers and the changing attitude towards gold investments from central banks has encouraged investors to buy gold.

Gold has gained 17% since January and has been the best performing asset by miles. Still most people don't see gold as an investment since it doesn't pay any dividend. This is a totally wrong approach to hard asset investing. Investors should keep gold in their portfolios to balance the risk aspect of investing. Every time something goes wrong in the global economy, people go for gold. This has been proven several times in last few years and is likely to be proven many more times before the recession is over.

KK Bullion offers you the opportunity to participate in a rising gold market with gold bullion. Buy or sell gold bullion, have it delivered securely or we can store your gold bullion for you in our Vault. Click here to buy a Gold Bullion

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Will the Gold Market Slow Down for the Summer?

By Marko Puustinen

Traditionally the gold market slows down for the summer along with other commodities as the holiday season approaches. Last year was an exception as the European sovereign debt crises hit the market hard in early June. Gold price went to record highs and stayed there until half way through July. The same could happen again as despite the 110bn Euro bailout Greece received from the EU, it has run out of money again and is asking for more.

If the EU and the IMF decide to give Greece more money or to restructure its debts, gold should benefit from this as uncertainty in markets should be gold supportive.

This, combined with high inflation in the Euro zone, is likely to support gold as both the Euro and the Dollar are likely to keep falling. Falling fiat currencies have been the main reason for the latest gold run and when QE2 runs out in the U.S in June, its economy might start slowing down again. This would force the FED to start a third round of quantitative easing and push the Dollar even lower. This normally has an inverse effect on the Euro but with the current issues in several of the Euro zone economies, gold would be the biggest winner in this situation.

Another important factor supporting gold is the central banks, which have carried on purchasing gold bullions in the first quarter of 2011. Mexico announced that it has bought 93.3 tonnes during February and March, which is a clear sign that faith in the Dollar is fading amongst most of the developing nations. As Russia and China are practically buying their whole domestic production, the amount of new bullion coming into the free markets is relatively limited compared to the current demand.

The most important event over the summer will be the end of QE2 and how the U.S economy will react to it. If the FED decides to start supporting the economy with another round, gold is likely to carry on its upward trend throughout the summer. If the economy manages to stand on its own feet, gold is likely to consolidate lower until autumn when the demand for commodities in general picks up.

Whether people should still invest in gold or not, one has to think the reasons why the value has increased so much and have any of the issues in the global economy been solved.

The Dollar is still falling and with a possibility of another QE round it is likely to keep doing so. Sovereign debt issues in Europe are still ongoing and there has not been a clear solution how to cope with them in the future. Economic power is shifting east where people are used to buying gold as a preserver of wealth, which should keep the global demand for bullion high. Taking into account all these factors and the rising oil prices, it is still advisable to keep a portion of gold in your investment portfolio.

KK Bullion offers you the opportunity to participate in a rising gold market with gold bullion. Buy or sell gold bullion, have it delivered securely or we can store your gold bullion for you in our Vault. Click here to buy a Gold Bullion.

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Gold and Geopolitical Tensions

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Is It Too Late to Buy Gold?

By Marko Puustinen

Since the beginning of the year the price of gold has been very volatile bouncing between £910 and £870 per ounce without any clear direction or reason for the volatility. This reflects the current market environment quite well as governments are trying to convince investors that they are on top of the situation but the data released by the independent market researchers tells something totally different.

Portugal, Spain and Italy were pretty successful in their bond auction yesterday and managed to get the money they wanted but this amount is not even close to the figures they actually need. Ireland received a 90bn Euro rescue package last month and Spain gathered 3bn Euros from the auction. Spain's economy is six times the size of Ireland so 3bn Euros is nothing when thinking about the actual figure the country needs.

Presently everyone is focused on Europe and how the Euro is going survive but an even bigger issue is the U.S. The country's debt levels are even higher than the Euro zone countries and as the economic power is shifting to East, the U.S will struggle to assure other countries that it can pay back its debts. Large eastern economies, such as Russia and China, are constantly reducing their Dollar reserves as they don't believe that it will regain its reserve currency status anytime soon if ever.

As they are selling their Dollars and there is no other reliable reserve currency available, the safe option is to invest in gold. Both China and Russia are absorbing almost their whole domestic production themselves leaving the markets clueless about the actual size of their gold reserves. This way they can buy gold without interrupting open markets and keep the actual reserve size in secret.

There have been rumours that China and Russia have started to trade in their national currencies instead of Dollars, if this is true it will be a major setback for the Dollar's recovery. Both countries are major players in the oil business and the Dollar has traditionally been the only currency used in oil trading.

The seasonal demand for gold bullion is likely to stay strong up until March as Chinese people are rather keen to buy gold as a New Year's gift. After March the demand traditionally quietens down for the summer but in the last few years it has continued to be strong because of the issues in global economy.

Most gold experts are anticipating big and fast moves up and down in the gold price as more and more people are getting interested in investing in gold and entering the markets. China is likely to become the biggest gold importer within few years as its economy is growing faster than India's and the Chinese government is encouraging people to buy gold bars and coins. The issues in western economies will dominate the price fluctuations but in the background the eastern traders will buy on every price drop and this way a major dip in the price in unlikely as long as the current global problems remain unsolved.

KK Bullion offers you the opportunity to participate in a rising gold market with gold bullion. Buy or sell gold bullion, have it delivered securely or we can store your gold bullion for you in our Vault. Click here to buy a Gold Bullion.

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Gold Demand Up 12 Percent From 2009

By Marko Puustinen

According to the World Gold Council' latest 'Gold Demand Trends publication', gold demand has increased 12% from 2009 totalling 940 tonnes. The largest gold consumer, the jewellery industry, has accepted the new price levels and demand has increased 9% in the last year. The best performing markets have been the traditionally big gold nations; India, China, Russia and Turkey, consuming 63% of annual jewellery production.

Retail demand rose 25% mainly driven by bar investments which went up 44%. The total ETF demand fell 7% mostly because trades were consolidating from record high demand caused by the sovereign dept crises. Industrial demand has climbed back to pre-recession levels totalling 110 tonnes which is 13% more than a year ago. The main reason for the rising industrial demand is the steady economic growth in China and India where the majority of electronic components are manufactured.

These figures support the assumption that despite record high prices investors and consumers are willing to invest in gold even at these price levels. Especially the retail bar demand shows that the general public is more aware of gold as an investment than few years ago. The public don't buy gold only as jewellery but also as something tangible that is not just numbers on paper.

As the money is floating from western nations to emerging nations in Asian, investment demand for gold bullion is likely rise even further in the coming years. Traditionally people from Asia have seen gold as liquid money and they are willing to keep investing in gold even if the price keeps breaking records. They don't see gold as an investment that you hold for a certain amount of time and sell when the price is higher. Gold is something they keep buying throughout their life, it is perceived as a status symbol in the same way as a nice house or a car is in western world.

China announced that it will raise banks' required reserves by 50 basis points to tighten liquidity management and control the credit cycle. This practically means that the Chinese government is preventing the economy from overheating which is a very wise decision. This way they can make sure that recent credit crises in western economies will not happen in China. This might push the price of gold down in the near future but once the price finds a comfortable level, it is likely to bounce back since the pressure of a price bubble is off again.

The General Manager of The China National Gold Corp estimates that gold consumption will rise 4% to 430 tonnes in 2010. This proves that China as a country and its people in general are investing in gold and as they get wealthier in coming years demand is likely to keep rising. Taking this and the latest bank announcement into account, China seems to be able to control its economical growth in a wiser way than western nations do. This should calm down the gold market as it has been very volatile in recent months and keep the gold bubble speculators quiet for a while.

KK Bullion offers you the opportunity to participate in a rising gold market with gold bullion. Buy or sell gold bullion, have it delivered securely or we can store your gold bullion for you in our Vault. Click here to buy a Gold Bullion

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Japan's Long Term Affect on the Gold Price

By Marko Puustinen

The recent earthquake in Japan had very little affect on the price of gold, only a relatively small £15 dip took place after the news came out but the price recovered fairly quickly. Compared to stocks, gold held its value very well during the few days when markets were falling almost in panic. The reason behind this is that gold is not widely used in the manufacturing industry and there aren't any big gold mines near the disaster area so the supply chain did not suffer any damages.

The long term affects are more currency related as the value of gold traditionally moves inversely to the main fiat currencies, such as the Japanese Yen. The Japanese government has already pumped more money in to the markets to support the economy. This will depreciate the Yen and push up gold.

Depreciation of the Yen will most likely affect on other main currencies in the longer term as it will make Japanese products cheaper. This consequently will force other central banks to depreciate their currencies and the money printing race between large economic powers will begin again. This is likely to be gold supportive as we have already seen last Autumn when the FED began the second quantitative easing round and pushed the gold price to new records.

When looking beyond the short term consequences of the earthquake and should people consider investing in gold, it is important to look at the most important factor affecting the price of gold, inflation. Presently European nations, especially the United Kingdom are struggling to keep the CPI below the recommended 3% because of rising commodity prices and increases in money supply mainly in the first two quarters in 2010.

The recent military actions against the Libyan dictator Muanmar Gaddafi are likely keep gold high in the short-term as Libya is one of the largest oil exporters and currently production has stopped. The value of gold traditionally follows oil rather tightly and as the supply side looks very unstable in North Africa, oil is likely to keep rallying.

The price of oil might even jeopardise the recovery in Europe and America, and force central banks to continue with their ultra loose monetary policy. This should encourage people to buy gold as low interest rates with increasing commodity prices will lead into higher inflation in the long-run.

If the unrest spreads to other major oil producing nations in the Middle East and North Africa, gold might reach $1500/oz in the coming weeks. Increasing military tension in the region would significantly harm the global economy and it is unlikely that the U.S would let its Saudi allies slip into a civil war, however the uncertainty is enough to keep the gold train going.

KK Bullion offers you the opportunity to participate in a rising gold market with gold bullion. Buy or sell gold bullion, have it delivered securely or we can store your gold bullion for you in our Vault. Click here to buy a Gold Bullion

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Are Central Banks in Control of the Gold Market?

By Marko Puustinen

Until President Nixon abolished the Gold Standard in 1971, central banks had full control of the bullion market as the value of the Dollar was tied to the gold price. It was illegal for a U.S citizen to own gold so all the gold in the markets was held in the bank's vaults. This system ensured a steady but slow economic growth since governments could just create more money to boost the economy.

After the abolishment of the Gold Standard, the price of gold rose from $43.35/oz up to $850/oz because everyone wanted to invest in gold. People didn't trust the paper currencies as they weren't backed by any physical asset. This didn't please central banks so the U.S with the help of the IMF tried to limit gold sales through auctions. This didn't work out because in reality the banks wanted to keep the yellow metal so the limitations were withdrawn.

After that the banks tried another tactic, which worked out well up until 1999. They lent their gold to gold miners to finance their operations, which created a massive over supply of gold and the price fell as low as $275/oz. This technically allowed central banks to keep their gold reserves since miners would pay them back with gold from the mines.

At the same time central banks threatened that they would sell all their bullion over time, which ensured the Dollar's position as the only reserve asset as it was the only currency to purchase oil with.

After Gordon Brown in all his wisdom decided to sell half of UK's bullion reserves in 1999, the IMF decided to limit annual gold sales to 403.3 metric tons. This removed the fear that central banks would sell all their gold and the gold price started a new bull run.

Central banks still had some form of control over the gold price after the IMF announcement until last year. For the last 20 years European central banks have been selling their bullion reserves and that way controlling the gold floating into markets.

Last year gold sales from the central banks stopped and they have started to buy gold bullion. When the banks stopped controlling the supply of gold bullion, they also gave up the control of the price.

As the old Western nations are paying the consequences of their loose monetary policy, the emerging economies from the East are enjoying healthy GDP growth figures. Such large nations as Russia, India and China have been buying more gold than the miners can supply, which has pushed the gold price up to the current levels.

Western central banks are facing a dilemma with their falling currencies and the rising gold price. If they start to purchase large amounts of gold, they would be admitting that they don't believe in the current monetary system. This would cause panic and would destroy even the smallest hope of recovery.

Will we see a new gold standard in the future? It is impossible to say but as long as central banks continue to buy gold and devalue their currencies, gold is likely to keep breaking records.

KK Bullion offers you the opportunity to participate in a rising gold market with gold bullion. Buy or sell gold bullion, have it delivered securely or we can store your gold bullion for you in our Vault. Click here to buy a Gold Bullion.

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Gold Prices Break Record Highs

By Marko Puustinen

Gold prices hit a new high above $1600 on Monday as a result of a powerful cocktail of economic uncertainty, difficult US deficit ceiling negotiations, European Union sovereign debt concerns and the threat of contagion to the banking sector.

Taken singly, the US debt ceiling impasse or the ongoing EU sovereign debt crisis would be sufficient to trigger a gold rally. But together, the affect on gold prices is even more bullish, as investors become wary of USD and EUR assets and seek a safe haven in gold. Based on this, we believe the bullion rally is likely to continue until tangible progress is made on relieving at least one of the sovereign debt issues.

On Friday, the results of a stress test of European banks were released. Eight of the 90 European banks surveyed by the European Banking Authority failed the stress test, well below market expectations, that as many as 15 lenders would need more capital to withstand a prolonged recession. In spite of massive bailout packages being discussed by the Euro Zone Leaders in Brussels next week, the Euro zone still looks very unstable and Italian and Spanish government bond yields have risen sharply. Ongoing uncertainty over the ability of European officials to agree on a second aid program for Greece and stop contagion from Greece's troubles spreading to other countries such as Spain and Italy continues to worry investors.

The European debt crisis is definitely not going to go away. If Greece defaults then it seems likely that Ireland and Portugal would follow suit almost immediately, and then the pressures on the much more significant economies of Italy and Spain would be close to overwhelming. European banks could crash and with the interconnections within the global banking system, many non-European banks could collapse as well.

The market's focus now appears centred on US economic issues, with slightly less emphasis on EU sovereign risk issues. Congress must raise the $14.3 trillion limit on America's borrowing by 2nd August or the government will run out of money to pay all its bills. The White House and Republicans are wrangling over spending cuts and higher taxes in addressing how to bring down the deficit.

The longer the US debt-ceiling talks drag on, the more supportive they are for gold. If agreement cannot be reached on raising the ceiling and, failing a Presidential "bending of the rules", the U.S. itself could go into technical default in two weeks' time and the psychological financial repercussions of this could be enormous. One suspects that a compromise will be reached at the 11th hour, but if discussions continue beyond the deadline, the United States could be stripped of its top-notch credit rating.

Gold is re-emerging as an international store of value and investors and individuals who recognise this will continue to buy gold bullion. It seems that in these times of tumultuous change, more people and banks around the world are becoming less comfortable holding dollars and would rather invest in gold.

KK Bullion offers you the opportunity to participate in a rising gold market with gold bullion. Buy or sell gold bullion, have it delivered securely or we can store your gold bullion for you in our Vault. Click here to buy a Gold Bullion

Article Source: http://EzineArticles.com/?expert=Marko_Puustinen

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Friday, August 5, 2011

The History of Gold

By Jack Wogan

4000 B.C. A culture, centred in what is today Eastern Europe, began to use gold to fashion decorative objects. The bullion was probably mined in the Transylvanian Alps or the Mount Pangaion area in Thrace.

1500 B.C. The immense gold-bearing regions of Nubia made Egypt a wealthy nation, as bullion became a recognised standard medium of exchange for international trade.

1091 B.C. Little squares of gold were legalised in China as a form of money.

560 B.C. The first coins made purely from gold were minted in Lydia, a kingdom of Asia Minor.

50 B.C. Romans began issuing a gold coin called the Aureus.

476 A.D. The Goths deposed Emperor Romulas Augustus, marking the fall of the Roman Empire.

1299 A.D. Marco Polo wrote of his travels to the Far East, where the "gold wealth was almost unlimited".

1284 A.D. Venice introduced the gold Ducat, which soon became the most popular coin in the world and remained so for more than five centuries.

1284 A.D. Great Britain issued its first major bullion coin, the Florin. This was followed shortly by the Noble, Angel, Crown, and Guinea.

1377 A.D. Great Britain shifted to a monetary system, based on gold and silver.

1700 A.D. Gold was discovered in Brazil, which became the largest producer of it by 1720, contributing to nearly two thirds of the world output. Isaac Newton, as Master of the Mint, fixed the price of bullion in Great Britain at 84 shillings, 11 ½ pence per troy ounce. The Royal commission, composed of Newton, John Locke, and Lord Somers, recommended a recall of all old currency, issuance of a new species with gold/silver ratio of sixteen-to-one. The bullion price thus established in Great Britain lasted for over 200 years.

1787 A.D. The first U.S. gold-coin was struck by Ephraim Brasher, a goldsmith.

1792 A.D. The Coinage Act placed the United States on a bimetallic silver-gold standard, and defined the U.S. dollar as equivalent to 24.75 grains of fine gold-bars along with 371.25 grains of fine silver.

1816 A.D. Great Britain officially tied the pound to a specific quantity of gold at which British currency was convertible.

1817 A.D. Britain introduced the Sovereign, a small gold-coin valued at one pound sterling.

1868 A.D. George Harrison, while digging up stones to build a house, discovered gold in South Africa - since then this continent became the source of nearly forty percent of all bullion ever mined.

1887 A.D. A British patent was issued to John Steward MacArthur for the cyanidation process for recovering gold from ore. The process resulted in a doubling of world gold output over the next twenty years.

1925 A.D. Great Britain returned to a gold-bullion standard with currency redeemable for 400-ounce gold-bullion bars, but there was no circulation of gold-coins.

1931 A.D. Great Britain abandoned the gold-bullion standard.

1954 A.D. London gold-market, closed early in World War II, re-opened.

1961 A.D. Americans were forbidden to own gold abroad as well as at home. The central banks of Belgium, France, Italy, the Netherlands, Switzerland, West Germany, the United Kingdom and the United States formed the London Gold Pool and agreed to buy/sell at $35.0875 per ounce.

1987 A.D. British Royal Mint introduced the Britannia Gold-Bullion Coin. The London Bullion Market Association (LBMA) was also formally incorporated. 2005 A.D. The LBMA annual Precious Metals Conference became the premier professional forum for the world bullion market.

Learn how to buy gold in the times of recession for investment.

Article Source: http://EzineArticles.com/?expert=Jack_Wogan

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Gold and Its History

By Jack Wogan

Gold is the oldest international currency in the world. The fact that it does not corrode or tarnish, it is malleable, and can be easily shaped into coins, has made gold suitable for money. In 18th century BC the first coin containing gold was struck, and the first coin made exclusively form gold was struck to honor the order of King Croesus of Lydia (around 550BC).

The Mediterranean civilizations also started to mint coins and these coins often circulated outside these countries. Roman gold coins were used long after the fall of the Roman Empire and during the Middle Ages, in Europe, gold and silver coins were at the basis of the currency systems. Nevertheless, they were considered to be far too expensive and valuable to be used for the daily transactions.

The coins used were the specie money. The value of one coin resided in the value of the metal it was made from. This type of currency was little by little replaced with specie-backed money. The latter type of money has its origins in the banker's bills of exchange.

International gold standard had a short lifespan: from the 1870s to the 1914, when First World War started. The international gold standard helped the prosperity and the steady rise of economic systems. After the War there were attempts of returning to the gold standard but they were deemed to failure due to mismanaged strategies.

After the establishment of the Bretton Woods international monetary system most Western countries were helped to emerge into a period of prosperity. But slowly the decisions that were taken at Bretton Woods became out of date and in 1971 the United States abandoned the system.

Since the Bretton Woods system came to an end, gold has no longer been the backbone of the international monetary system. It has its set of monetary functions as it is considered the "ultimate form of payment" but its main function is as a reserve for the Central Banks.

Learn how to buy gold in times of recession by professionals.

Article Source: http://EzineArticles.com/?expert=Jack_Wogan

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Buying Gold Coins - Tips For New Investors

By Adam Brenner

People who are new to buying gold coins and investing in such have many questions regarding the various choices and options when it comes to making their purchase. When considering which to buy, many new investors want to know the difference between gold coins and gold bullion.

Gold is gold, essentially, and a coin with a rare valuation due to it's rarity or minting and condition might not necessarily be considered to be a bullion coin. The type of coin it is can affect it's liquidity as well as the resale value. A commonly recognizable coin such as eagles, maples, buffalos, krugerrands and the like, will command higher premiums on resale. In addition, it is a lot easier to sell recognizable coins than say, a large bar or something uncommon to those in the buyers market.

How can you tell a genuine gold bullion product? A True bullion product practically always has the word gold printed on it somewhere, not always in English. It also has it's mark or stamp of purity such as.999 and its weight be it grams or ounces. Bullion can be coins, bars or ingots. A numismatic or regular coin, such as vintage ones usually do not have any of that information on them.

Is it worth it to try buying gold coins on eBay? If you have had some experience with buying on eBay, you could do well, but don't expect to get super bargains, as you are still dealing with spot price and market value that cannot be negotiated down too far. Just be cautious and make sure the seller has a very high feedback rating. Look beyond the feedback number and check into the feedback rating itself. Look for one above 95% or even higher. Also, try to find a power seller as they are among the most trusted sellers on eBay, generally speaking. Also look for products being auctioned without a reserve price, so you will not have to bid too high and you may get a good deal.

Always make sure there is a fair return policy in place so you have a reasonable time like 7 to 10 days to evaluate the coin making sure it is in the condition that was described in the auction. If it does not meet the specifications described by the seller then you can send it back and just pay for shipping and get a refund. Now and then, coins can be graded incorrectly, even by accident and not everyone adheres to strict guidelines when it comes to grading these items.

Another option is to purchase gold coins from a bank, but not every bank has such coins for sale, so you will have to find one that does. This might be an appealing option to those who are not very experienced or savvy with purchasing gold coins.

Which are the most popular of all the gold bullion coins? They are the Canadian Maple Leaf, American Eagle, Chinese Panda and the South African Krugerrands. There are some others as well that are popular with buyers, such as the gold buffalo nickels as well as some other types. But those first four are among the most widely known and most commonly purchased by investors and collectors alike.

If you are going to buy your coins locally and in person, I would suggest a small coin shop or coin dealer that has been around at least a few years and has developed a good reputation as a business. The dealer should also be knowledgeable about his inventory and products and should have good business ethics. Being a member of the American Numismatic Association and the Better Business Bureau would be great, but not always necessary.

At least by going to a reputable gold coin dealer, your chances of getting ripped off by scam artists are minimal to none. People have found all kinds of ways to rip you off and rob you, like shaving down a minimal amount of gold from coins to produce gold dust that can be collected and sold later on.

To find out more about Investing In Gold and Buying Gold Coins visit http://americancoinnj.com

Article Source: http://EzineArticles.com/?expert=Adam_Brenner

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Gold Necklaces - What's the Best Length for a Woman?

By Susan Speling

For centuries women have had a unique fascination for gold. Be it necklaces, pendants, earrings...gold has always been a woman's best friend and her most preferred choice. For men, looking for unique gift ideas for their special lady, there isn't a better choice than a gold necklace, because with a gold necklace you can be sure to never go wrong.

Thanks to the internet buying gold was never as easy as it is today. From white gold to pendants on 14K gold chains and even gold plated chains there's everything for everyone in these online stores. But it's important to buy jewelry that compliments the wearer rather than make her look hideous. When choosing jewelry for women, it's important to be mindful of a few basic principles. For example, when choosing jewelry for women, height and chest type play a very important role and your choice of jewelry should depend on these basic factors. Women shorter than 5'4 look good in princess length gold chain link necklaces, and taller women can look great in necklaces of different lengths. Women with fuller chests wouldn't look very good in necklaces that lie on the breast line, but should rather opt for necklaces that are more than 22' in length. Women with flat chest should wear long and thin gold chain necklaces. Matinee length necklaces look good for business suits and casual attires. Remember, the jewelry shouldn't wear the woman, but it should rather be the other way round.

Also, it's great when you mix metals (not styles though!). For example, sterling silver chains can be worn with gold plated chains or 14K gold chains. But remember they should be of the same style. Also, your facial contour plays an important part in deciding the type of necklace (or any jewelry) that you would wear. Opera necklace length is best suited for round faces, while choker necklaces compliment women with heart shaped and rectangular face shaped women.

There's also jewelry that transcend occasions and can be worn to work as well as to a cocktail party. But again, the trick here is to get things right. The choice of jewelry should be classic, elegant, yet non fussy, considering the fact that these are to be worn for about 12 hours before you go to an event. Sterling silver necklaces are great for such occasions.

As stated earlier, remember that the jewelry shouldn't overpower you, but add charisma to your persona. The general rule here is to get the length right. A necklace that's just below the collarbone looks good on a reducing neck line and a necklace that's below the bust looks good with a high neckline.

The author bears essential expertise on women's gold jewelry and sterling silver necklace. Many articles based on sterling silver chains and gold chains have been intelligently fabricated by this author.

Article Source: http://EzineArticles.com/?expert=Susan_Speling

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Rose Gold Wedding Bands - Perfect For Your Man's-Gagement

By J. Raquel

Rose Gold Wedding Bands, Part of a Loving Tradition

In our present culture it would be against the norm to see a married man who does not wear a wedding ring. In fact, most observers would admit that it's expected, and appreciated by his loving partner, to let the world know he is off the market, and one half of a loving and committed relationship.

Would it surprise you to know that less than 100 years ago it would have been an oddity for the average husband and father to wear a wedding ring? It's true, at that time jewelry was predominately for women, and men were confined to the decoration of their pocket-watch, perhaps one passed down to them from their father or grandfather. What changed? On December 07, 1941, Pearl Harbor was attacked, and shortly after, the U.S. declared war, thus officially entering the global conflict now known as WWII. What effect could this possibly have on men wearing a wedding ring? When the men left for war overseas, their women wanted them to take something with them, as a reminder of their loved ones waiting back home. Even men who had already long been married were given wedding rings by their wives. Then, there were the countless young lovers who rushed to the altar before his being shipped out, exchanging rings with each other, she wearing his offering, and he too wearing her gift to him, that loving token of fidelity.

It was during this time period that rose gold wedding bands were beginning their re-emergence into popularity. Due to the war effort of the day, much of the supply of platinum and white metals were unavailable to jewelers, and mixed colored gold especially rose gold, became highly desirable to those who wished to wear the ring of their beloved, before being separated from them for perhaps years at a time.

From Wedding Bands to Man-Gagements

We can all appreciate the way time tends to alter what we view as normal and expected. The latest winds of change have brought the emergence of rose gold wedding bands as the perfect choice in man-gagement rings. I have to admit I was taken aback when I first heard of this trend. What is a man-gagement anyway? Many modern and forward thinking individuals express that it seems a little one-sided for women to be the only ones who receive an engagement ring. An engagement ring holds the sentimentality of a promise for the future, of faithfulness and loyalty. An outward symbol of being off the market, even before the actual exchange of vows takes place. Men as well as women would like it to be known that he and she, are now considered unavailable, and that they are each part of something special, even while awaiting the big day.

Because of the romantic history surrounding the use of rose gold wedding bands, it is an obvious choice in this newest progression in engagement rings. There is quite a selection to choose from, whether your man desires a solid rose gold band, one with titanium or palladium inlay, or perhaps a band with a diamond setting. A growing number of men are choosing to wear their future wedding band as an engagement ring on their right hand, then as part of the wedding ceremony, moving it to the left hand. There are however, many men who are choosing to have separate engagement and wedding bands for themselves all together.

Let Your Love Speak For You

There are few things as fragile or beautiful as your relationship with the one you hope to spend the rest of your life with. When making your selection of the ring that will be such a part of your future together, reflect on what you wish it to say about you as a couple. Talk to your partner and ask what he or she feels about the kind of tone you would like to set with your wedding bands. There are many choices to make, so consider the warmth and tenderness of rose gold wedding bands, and now adding to this discussion, the selection of his engagement ring as well. Start your relationship and life together out on the right foot, with honest and open communication, and share your thoughts with each other regarding this latest trend of man-gagements.

J. Raquel is a freelance journalist keeping an eye on the latest trends in fashion and family. To get a good idea of the selections available in rose gold, take look at the variety of designs to choose from at http://www.titanium-jewelry.com/rose-gold-rings.html.

Article Source: http://EzineArticles.com/?expert=J._Raquel

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Is the Gold Worth it? An American Express Gold Card Review

By Lisa Carey

What do you think of when you hear American Express Gold? No pre-set spending limit? High annual fees? Prestige? Perks? Big late fees? Actually all of the above can be associated this card. Sometimes it can also mean the best seats in the house or roadside assistance. American Express Gold members share that it seems like the benefits just keep getting better and better each year as American Express continues to try to be the "gold" standard in credit cards.

American Express Customer Service

1-800-528-4800

americanexpress.com

The Ups and Downs, Ins and Outs

1) No Pre-Set Spending Limit

Obviously this could be a double edged sword if you are not careful but the benefit is there none the less to say "yes" and with a very few limitations you can charge what you want. Remember that at American Express the full balance is due each month and sure there are some limitations and restrictions.

What is I can't/don't pay off the balance each month?

If you choose to carry a balance, the interest rate is 17 to 19%.

2) Travel Benefits

Roadside emergency assistance, rental insurance, baggage insurance and other privileges like check cashing all come with your membership. If you travel a lot, then these benefits can really be worthwhile and you'll save on purchasing them individually.

3) Purchase Protection

This credit card offers insurance on new purchases as well as extended warranty benefits.

4) Rewards

Like many other credit cards, AE Gold offers rewards through accumulated points based on spending. The rewards points can be used for travel and entertainment packages and more.

5) Premium Entertainment Perks

Gold does seem to have its' privileges here. Members can often get premium seats at sporting events, concerts and other venues and there are sometimes discounts available for members too.

Annual Fees?

There are four options available including the Rewards Plus Gold American Express and the Preferred Rewards Gold American Express. They both have a hefty annual fee attached that occasionally can be waived for the first year through special promotions.

The Rewards Plus Gold has a $150.00 annual fee.

The Preferred Rewards Gold has a $130.00 annual fee.

American Express also offers a Senior Card just for senior citizens that have just a $35.00 annual fee. Apparently it does pay to be a senior.

If you are have investments with Fidelity, then there is also an American Express Fidelity Gold card available for Fidelity customers. This is a joint venture between Fidelity investments and American Express and there is no annual fee as long as you maintain the Fidelity investments accounts.

What do American Express Gold Card Members have to say?

-The benefits are great.

-This card offers more flexibility with their rewards. For example points can be transferred to frequent flyer, hotel or airline points.

-Customer service is really good.

-They also say, never make a payment late. It will cost up $30.00 or more.

Members and this reviewer also remark that if you take advantage of the benefits, perks and rewards then this gold card is the one to have. If you're not going to, then the annual fee and slightly higher interest rates can make a Visa or Master Card a better deal.

Lisa Carey is a contributing author for Identity Theft Secrets prevention and protection. You can get tips on Identity theft protection, software, and monitoring your credit as well as learn more about the secrets used by identity thieves at the Identity Theft Secrets blog.

Article Source: http://EzineArticles.com/?expert=Lisa_Carey

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Why Are You On The Fence? Buy Gold And Silver Now!

By Stephen Long

If you flip on the television and see 10 commercials, 2 of those ads will have some correlations to precious metals. It is doesn't take a genius to notice how precious metals have been performing. Whether you are conducting due-diligence upon the white or yellow metals, both need to be in your financial portfolio. In regards to what forms, that is another subject. You need to have physical tangible metals rather than on paper. My analogy is just this; if you were to board the S.S. Titanic knowing its past history, would you accept the crew member's life preserver certificate, or the actual life preserver?

The questions is asked daily when people think they have missed the boat of gold or silver. Everyone sees the media portraying the "all time highs." Americans, we need to wake up and look at the market fundamentals. There will be continued "all time highs" for at least the next 3-5 years. We have not missed the boat, but the boat is starting to unleash its ropes.

Take a glance at the European countries - Portugal, Italy, Greece Etc. obviously there are some great economic uncertainties and definite default in the short future. The reality is the United States of America is in worse shape than all of Europe! It is quite evident that the US will continue to print more money. We are on pace this year alone to print 1.4 Trillion dollars. If that continues to happen, you will see hyperinflation of 30-50% minimum. That means the average American citizen will have the same amount of dollars in the pocket, with extreme less buying power. Gold is sitting around $1600/ounce currently. Reports from Jim Sinclair shows accurate and detailed charts of gold reaching 12k/ounce. Silver has a mark of an easy 200-300/ounce within the next 2 years.

The question I have for everyone out there on the fence or using their skeptical glasses: "Where do you think our dollar is going to go in the next 3-5 years?" If your answer to that question is down, why are you still on the fence? Research the gold and silver charts and trends of the last 10 years. Compare the charts to the dollar. Gold and silver follow the exact opposite of the dollar. That is just mere simple economics.

With all this said, adding up the European crisis, the US budget deficit, raising the debt ceiling, and times of uncertainty, you need to diversify and exchange your dollar currency for the world known currency. Gold and silver is your only safe haven investment without the risk. Put the day trading mentality aside and bury your gold and silver away in your brain. This is your only way to retirement.

Learn how to properly diversify your portfolio with the proper position of gold and silver. At US Gold and Silver Advisors we are constantly analyzing and monitoring global trends and conditions. We keep our clients well positioned in the safest and most financially rewarding segments of the gold and silver market

Article Source: http://EzineArticles.com/?expert=Stephen_Long

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Gold to Crash in 2011

By Bert Contreras

If you you have been thinking about investing in Gold or Silver, you might have an opportunity of a life time in 2011. Over the last 5 years Gold and Silver have been two of the best performing assets, well out performing the overall markets. Since October 2008 the Gold ETF GLD has gone from $66 to a high of $139.54 on 12/06/10, an appreciation of over 210%. SLV the Silver etf has gone from a low of $8.45 in 10/08 to a high of $30.00 on 12/06/10, an appreciation of over 340%. Silver in fact is the number one performing asset in the last five years as I write this.

Gold once again is becoming a mainstream investment. From T.V. Personalities like Glenn Beck & Jim Cramer pontificating why you must buy Gold, countless of commercials on radio and TV, reality shows on Gold mining speculation, and even Gold ATM's. If you Google Gold you will find thousand of articles, videos, technical analysis charts on why Gold must go higher. The U.S. Deficit, European financial crisis, reckless spending in Washington, the Federal Reserves Quantitative Easing programs, J.P. Morgan huge short position on Silver, devaluation of the US Dollar, countless of conspiracy theory's, terrorism, and of course geopolitical issues. You will also find that smart money investors like Jim Rogers, George Soros, and John Paulson, have all taken positions in the Precious Metals.

I myself have been a Gold and Silver bull for the past 3 years, and believe in the the long term value of both Gold & Silver, and that the bull market in the Precious Metals is not over. My conclusion on Gold & Silver is based up many years and hours of careful study of these markets,using both fundamental & technical analysis. Also many years of investing & trading these markets with success. In fact Silver has produced the best investment returns for my accounts in 2010. This careful analysis has also led me to a current theory that a BIG correction is coming for both Gold and Silver.

My analysis points to a possible Correction in the GOLD ETF GLD of 18% to 26% and for the Silver ETF SLV to correct by 26% to 33%. That means we could see GLD trading around $105 to the $100 area and SLV trading $21 to $19 area sometime in 2011.

If you have experience investing or trading in Gold & Silver you understand that these metals are volatile. This volatility can be analyzed by it's past price action. For example in the last 5 years GLD has had two major corrections of over 20%. In 2006 GLD corrected by 21% and in 2008 GLD corrected by 34%, in both cases GLD continued to go higher after it finished correcting.

As investors in the Precious Metals we must understand that nothing goes straight up and that when price become parabolic as they have over the past few months, the probabilities increase that a correction is imminent.

If my analysis is correct and we see a large decline in the price of both Gold & Silver in 2011. This correction could provide some great opportunities to profit from the volatility of these markets. As for long term investors it could provide a great entry point, into Silver or Gold. With Silver still being our number one recommendation until we reach a Silver to Gold Ratio of over 18 to 1.

In the short term once my synopsis is confirmed by my advanced technical studies, I will implementing shorting strategies in mine & my clients accounts not only to hedge our current positions, but also to profit from the potential down trend in these markets.

If you would like information on investing or trading in Gold & Silver please contact:

Humberto Contreras

Info@incometrading.com

http://Incometrading.com

Article Source: http://EzineArticles.com/?expert=Bert_Contreras

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Selling Gold Jewelry Tips - Tips to Get the Most Money For Your Gold

By Alan Liddy

When I first started looking for selling gold jewelry tips, I came across a lot of confusing information, and quite frankly, I found a lot of garbage out there. My goal is to help you identify the resources that will help you get the most money for your gold jewelry if you are deciding to sell your jewelry for extra cash during these very difficult economic times. These are not tips to help you get the most money if you are looking to pawn your precious items. These tips will help you navigate some of the different options that you have when looking for the best place to sell your gold.

Tip Number 1

Think twice before selling your unwanted gold to pawn shops. Why, because this type of gold buyer is simply a middle-man that is making a profit off of your gold. The pawn shop will make the lowest offer possible for your gold so his profits will be maximized when the gold is resold to a refinery. I have absolutely nothing against pawn shops. Finding great buys in local pawn shops has been a hobby of mine for many years. If you want to find a great used home theater system, bicycle or lawnmower, go to a pawn shop and I am most certain that you will find a great buy for items like these. But if you are wanting to sell your gold and actually make a real profit, consider other options before selling your gold items to a pawn shop.

Tip Number 2

Hesitate before you run to your local jeweler to sell your unwanted gold. If you have a very nice piece of gold jewelry that is well made and has a lot of value as being a crafted piece of precious metal, then a jewelry store may be your best option. But if you have broken gold earrings or unwanted various gold items, local jewelry stores simply have no real interest in re-selling those types items. They may be willing to buy your scrap gold, but they are just not going to offer you very much money.

Tip Number 3

Think about finding an online gold buyer. If you have not heard of this type of gold buyer, let me fill you in on how they work. Typically you will navigate to their website where you will enter your information to receive a free mailing kit so you can send them your unwanted gold by mail. The different online gold buyers call it different things and describe it in different ways, but they basically offer the same service. Their overheads are low and many of them actually don't advertise a whole lot. Since their advertising costs and other overheads are low, they typically offer a higher cash payout for your gold than pawn shops or jewelry stores. Yep, it's as simple as that.

Now here is a little secret that you may not be aware of. Many of these online gold buyers are also refineries. This means you can cut out the middle man and maximize your profits. Cash for Gold Review offers insight and takes a closer look at the so called top online gold buyer. Visit http://cashforgold-review.com to find out how to sell your gold refinery direct and get the most cash for your gold.

Article Source: http://EzineArticles.com/?expert=Alan_Liddy

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Gold Prices Break Record Highs

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