It is fall 2008; our economy is shrinking; our personal and business
assets are losing market value across the board; the banking system is
going catatonic; and commodities like gold and silver are bouncing
around like my truck on a road full of potholes. Earlier in the year the
US dollar was declining in value against virtually every other currency
and all commodities. While this fall the dollar has strengthened
relative to foreign currencies because the problems in our economy are
also global problems that are affecting the economies of all
industrialized countries. Along with the worldwide banking collapse and
strangulation of our economies by high energy prices, we are entering
into a significant global recession. Price speculators have been very
active all year long in all of the commodity markets, such that prices
on all raw materials, including gold and silver, shot up dramatically in
the first six months of 2008, while in the past few months speculation
is now driving most commodity prices way down. Since gold and silver
have been de-monetized for a long time their values only rise and fall
with industrial demand, because social demand for them as safe-haven
money is still very limited. If our economy goes into a deep recession,
the uncertainty of job security, retirement security, and the near
certainty of rising inflation, caused by government deficits and Federal
Reserve intervention into shoring up failing banks and other private
businesses, will cause more people, as well as many businesses, to
exchange dollars for gold and silver. Right now there is a preference
for gold rather than silver as a security hedge; but for the individual,
gold is the wrong metal to own.
Consider
that with more than six billion people on earth there simply is not
enough gold and silver available to have these precious metals fulfill
the role of money for everyone. It is estimated that about 4.4 billion
ounces of gold have been mined in historical times and at least 4
billion ounces are still with us as pure bullion, or easily recovered
and smelted into pure bullion; this amounts to only two-thirds ounce per
person. It is also estimated that about 44 billion ounces of silver
have been mined in historical times and about 20 billion ounces of this
silver has been consumed in the past and disposed in ways that are not
profitable to recover. Approximately 24 billion ounces of silver could
be recovered and converted to coins or bullion; this amounts to about
four ounces per person. Central banks and governments hold about 800
million ounces of gold and negligible amounts of silver, leaving just
over 3 billion ounces of gold and 24 billion ounces of silver in the
hands if businesses and individuals; or an approximate ratio of 8 to 1.
If
our paper currency fails, causing people to barter with gold and silver
for their daily needs and wages, then gold can at most command a value
of eight times that of silver. Since the current ratio of value is $750
to $10, or 75 to 1(in the fall of 2008), gold is nearly 10 times higher
that it should be relative to silver. This means that silver will
appreciate many times over when gold and silver become barter money
again. It is less than 50 years since silver was taken out of our US
coinage; yet prior to 1964 silver has been in coins going back over 1000
years. While gold has not been barter money since 1934 in the United
States, its history as coined money goes back more that 2000 years.
It
makes no sense to ask whether gold will go to $10,000 per ounce or $10
per ounce, because it is the US dollar that is changing value. Gold and
silver change their value very little with respect to goods and services
for which they may be bartered. One hundred and two hundred years ago
an ounce of gold would buy a good suit of clothes and an ounce of silver
would buy a good meal at a restaurant, and so they will today. Over the
years these metals have not strayed very far from this valuation except
under severe economic tensions, at which time they typically rise in
value rapidly.
Even though gold and silver are in relative short
supply and little used as money, the U.S. paper dollar is the wrong
barometer of economic stability. Assets and commodities should not be
valued in terms of US dollars, but in terms of fixed quantity
commodities like gold and silver. The unstable item (dollar) fluctuates
in terms of the stable (gold), not vice versa. Reporting it backwards
does not make it valid. Worldwide currencies should be exchanged by
valuing them to gold and silver, not to the U.S. dollar, or any other
currency for that matter.
In the past there have been many
government attempts to peg a monetary ratio between gold and silver. It
has been ten-to-one, twenty-to-one and even thirty-four-to-one during
the depression. Teddy Roosevelt ran for President promising to fix the
ratio at sixteen ounces of silver to one ounce of gold. These ratios not
only show a historical variance, they also are all showing ratios of
silver to gold that are greater than the real amounts of these metals
mined and refined. The reason that these metals are not valued in direct
relationship with the amounts mined is principally the hoarding of gold
by governments, central banks, international banks, and some
international corporations. This hoarding of gold is the same as it
having never been mined, as far as the markets are concerned. This
hoarding of gold tends to skew the ratio of gold available to consumers
and investors as compared to the silver available. And it is a valid
factor in arriving at a proper price for gold with respect to silver,
provided that this hoarded gold remains unavailable for investment or
payment in trade. If this hoarded gold came back into the markets as a
monetary unit it would un-skew a gold-silver relationship that goes back
to the late 1800's. However, if governments decide by law to remove
even more gold from private ownership to government ownership, they will
do so at their price, similar to the US government action in 1934; and
whatever is left in private hands will be too small of a quantity to
serve as money. In either case silver would increase in value as
compared to gold.
I am not asserting that gold and silver are
improperly valued today. But I am asserting that investors who own gold
to protect themselves from the calamity of a failed economy and
inflating paper currency are investing in the wrong metal, by a factor
of at least eight. Our current industrial and jewelry use of these
metals would have no relationship to the value they would become as
barter-money in a failing US economy. So one cannot compare these metals
today and make an investment in holding either of them, based on their
current uses and values in our social economy. When gold and silver are
re-monetized to act as money in our economies it will not be by
government decree, but by the actions of citizens acting to create
opportunity and build a new economy.
If a well-to-do person were
going to set aside food and other necessities for future consumption in
case of economic depression, should they be advised to purchase
champagne, caviar, and frozen pastries (gold); or should they perhaps
purchase apple juice, sardines, and crackers (silver)? Quantity is more
important than show when one is trying to survive. People who invest in
gold as insurance against economic depression are not acting in their
own best interest; they are simply following their investment
counselor's bad advice.
If investors and their counselors really
understood gold and silver they would never purchase or recommend the
purchase of gold at its current inflated price. If silver is mined at
ten ounces for each ounce of gold and is priced correctly at $10.00 per
ounce then gold should only be $100.00 per ounce, when we consider their
monetary barter value. But if gold is priced correctly at $750.00 per
ounce then silver should be $75.00 per ounce. Whichever way the market
moves in a panic, silver will appreciate by a larger factor in
relationship to gold. Actually, both metals would appreciate with
respect to the US dollar, but silver would outpace gold in percentage
growth at the point where producers and consumers started preferring
gold and silver in exchange for goods and services. Giving investment in
silver today considerable value over investment in gold, because of
this growth potential.
Besides the ratio of gold to silver issue
there is another important aspect of gold usage in tough economic times
that must be considered; and that is the usage of gold to purchase food,
toiletries, medicines, clothes; etc. If we were to do the Zimbabwe
thing and have the US dollar inflating 100 % per week while very few
goods are available to purchase; anyone going to a store with a shiny
1-oz gold coin would find that their purchases may only use up 10 to 20
percent of the value of their gold coin and that the store cashier would
not give them change in gold or silver (even if the store had gold and
silver to make change); the cashier would give them change in paper
dollars that would rapidly inflate to nothing if they could not be
quickly spent.
This problem would not occur with silver to any
great extent because silver is still available from 100 oz bars down to 1
oz coins, and also available as old US coins, right down to silver
dimes, permitting shoppers to pay with exact change for the goods they
require. In the late 1970's an elderly Dutch gentleman told me how he
experienced this very problem when he was sent to Germany in the early
1920's to go to university. The gold coins he received from home, for
living expenses, was greatly sought by the shopkeepers, but they had
little to sell and he always received change in German Marks (paper)
that lost more than half their value in a week. He seldom got full value
for his money, because of daily inflation. The same situation could
occur here; it certainly has hit many nations in the last few decades,
and for some it lasted many years. Silver is by far a superior
investment to gold when it is being held as insurance against
inflationary times and economic panics.
The companies that mine
gold and silver for our industrial and personal consumption should be
aware of the potential re-monitization of these metals by consumers and
retailers; and what this could mean for their businesses in tough
economic times. Recovery from a bout of depression caused by
hyperinflation will depend a great deal on having a good supply of gold
and silver and a vibrant mining industry to supply the money necessary
to grow and expand a new economy and support international trade.
Monday, October 22, 2012
How to Invest in Gold Bars
While bullion dealers the world over provide services to
investors wanting to put their money in gold bars, some major banks in
Switzerland, Austria, Liechtenstein and Argentina buy and sell them over
the counter.
Many sized bars are available and are measured in troy ounce, tola or tael depending on the country it is bought from and they can be either personally held or with bank in a safe deposit box.
It is a big hassle moving around with the bars or storing and transporting them which has made the gold account a preferred system of holding for small and medium investors.
Gold accounts offered mostly by Swiss banks help investors buy and sell gold or gold bars easily like foreign currency.
While Gold Money account has been in operation since 2001 providing digital gold currency, there are also Digital Gild currency and the Bullion Vault, both similar in operation. All these gold accounts have different set of rules for their clients and their gold investment through a trust or Bailment.
Entrusting the physical property with another party for its safekeeping which in this case is gold bars, the action is bound by law and services for the safekeeping are paid for.
Novelty one gram plastic coated gold bars costing twice the gold bullion content value are mainly aimed for the gift market. And of course, one can invest in gold bars of any size.
Good Delivery gold bars of graded specifications kept by central banks are around 400 ounce and professional dealers of bullion trade in them round the clock. Spot gold prices published online or in print are arrived at from the dealings in 400 ounce bars and Comex gold of 100 ounce, approved by the market, in New York.
Most traded gold bars among the nearly 30 types being bought and sold are the Good Delivery gold bars sold round the clock by dealers in London. Around 150,000 of the 400 ounce gold bars--manufactured by fifty five approved and monitored-by-London-gold refineries--made each year were valued in 2007 year end at $48 billion.
Bars come cheaper than coins of the same gold content and by buying gold bars you can avoid VAT or sales tax levied only on coins. Quality of gold bars with high quality comes cheaper.
Defined as investment gold, 100 and 400 ounce Good Delivery gold bars attract lower levels of tax as they are clubbed under retirement plans in many countries. Gold bars like the kilo bar or mass produced one ounce bars manufactured by gold refineries regularly are very cost effective for investment purposes.
Smaller gold bars can be kept in safe deposit boxes of banks or even stored in homes but they have drawbacks like higher prices and delivery costs. But there are specialist gold bar storage programs like gold pool accounts and gold certificate schemes that take away physical possession problems although their storage fees amount to 1.5% yearly.
Good delivery gold bars guarantees maximum resale value.
Bullion vaults offer gold bars of even one gram, help store them in gold bar facilities while keeping their values intact.
Many sized bars are available and are measured in troy ounce, tola or tael depending on the country it is bought from and they can be either personally held or with bank in a safe deposit box.
It is a big hassle moving around with the bars or storing and transporting them which has made the gold account a preferred system of holding for small and medium investors.
Gold accounts offered mostly by Swiss banks help investors buy and sell gold or gold bars easily like foreign currency.
While Gold Money account has been in operation since 2001 providing digital gold currency, there are also Digital Gild currency and the Bullion Vault, both similar in operation. All these gold accounts have different set of rules for their clients and their gold investment through a trust or Bailment.
Entrusting the physical property with another party for its safekeeping which in this case is gold bars, the action is bound by law and services for the safekeeping are paid for.
Novelty one gram plastic coated gold bars costing twice the gold bullion content value are mainly aimed for the gift market. And of course, one can invest in gold bars of any size.
Good Delivery gold bars of graded specifications kept by central banks are around 400 ounce and professional dealers of bullion trade in them round the clock. Spot gold prices published online or in print are arrived at from the dealings in 400 ounce bars and Comex gold of 100 ounce, approved by the market, in New York.
Most traded gold bars among the nearly 30 types being bought and sold are the Good Delivery gold bars sold round the clock by dealers in London. Around 150,000 of the 400 ounce gold bars--manufactured by fifty five approved and monitored-by-London-gold refineries--made each year were valued in 2007 year end at $48 billion.
Bars come cheaper than coins of the same gold content and by buying gold bars you can avoid VAT or sales tax levied only on coins. Quality of gold bars with high quality comes cheaper.
Defined as investment gold, 100 and 400 ounce Good Delivery gold bars attract lower levels of tax as they are clubbed under retirement plans in many countries. Gold bars like the kilo bar or mass produced one ounce bars manufactured by gold refineries regularly are very cost effective for investment purposes.
Smaller gold bars can be kept in safe deposit boxes of banks or even stored in homes but they have drawbacks like higher prices and delivery costs. But there are specialist gold bar storage programs like gold pool accounts and gold certificate schemes that take away physical possession problems although their storage fees amount to 1.5% yearly.
Good delivery gold bars guarantees maximum resale value.
Bullion vaults offer gold bars of even one gram, help store them in gold bar facilities while keeping their values intact.
Twelve Reasons to Invest in Gold Today
One of the oldest forms of money is the gold coin, its use can be
traced as far back as 560BC when the Lydian King Croesus. The Chinese
then used them in the 5th or 6th Century BC. Gold coins were the main
form of currency through to the early 20th Century. By 1933 most of the
world had stopped making gold coins and using them as currency.
Today gold coins are primarily collected by investors to hedge against inflation. In 1967 South Africa introduced the Kruger rand to cater for small investors; hence the reason that they manufactured Krugerrands in 1oz, 1/2oz, 1/4oz, 1/10 and 1/20 oz
The main gold coins in circulation today in order of their popularity are the Krugerrand, American Gold Eagle, Canadian Gold Maple Leaf, British Britannia or Sovereign, Chinese Panda, Gold Dinar, Russian Chervonets and the Swiss Vreneli.
Twelve Reasons to invest in Gold today!
1. During the last run on gold in the 70's and 80's the price of gold increased by 20 times.
2. There is a fall in gold production worldwide that is adding to its scarcity.
3. India and China have a veracious appetite for gold and as their economy powers forward they will drive up the gold price through demand and the limited supply globally.
4. There have been no new discoveries of gold deposits recently and it can take up to ten years to bring a new mine to full production.
5. When ever the world is on the verge of a recession people turn to gold as it is provides security.
6. It does not deteriorate and will last forever.
7. It is sought after for jewellery and electronic manufacture.
8. Governments can print paper money quickly, but they cannot just produce gold.
9. No other investment has the wealth preserving power of gold.
10. The Gold price will continue to be pushed by the current American debt and trade crisis.
11. Gold is an inflation-proof investment.
12. Gold is the only truly international currency.
Gold is Recession Proof
Back in June this year, I followed my own advice and purchased five one once Kruger at £470 per coin costing £2,350. The price of gold was at $870 per ounce when I bought my coins and since then the gold price has dropped down to $771, but the selling price has risen. Today a one ounce Krugerrand is selling at £629 for a 1ounce Krugerrand. My five coins today are worth £3,145 if I sold them today. I would have to pay a selling fee of 7% which would leave me with £574.85 profit or a 24.46% profit in 5 months.
That is a extraordinary return in the current economic conditions if I was to sell my coins today. I believe that gold coins will rise further. It just shows that there is money to be made during a recession. I spoke with a gold bullion firm earlier today and they only had 2 Krugerrand coins for sale. They said that people were turning to real gold rather than paper gold in this recession as they felt better holding real gold rather than a share certificate for gold.
How to buy and sell gold coins?
When you buy Gold through a Gold Bullion you pay the gold price according to the rate at that time and when you decide to sell it through the Gold Bullion they will offer you 7% to 9% less than the going gold rate.
You can now buy and sell gold coins on eBay; but, it is a case of Caveat emptor which is Latin for "Let the buyer beware" so please BEWARE!
You need to be careful and check the eBay seller out, look at their Feedback and check out the comments left by previous buyers. Do not buy from a seller with less than 30 feedbacks. Have a look at what other seller thought of dealing with them and if you are not happy with the seller then move on to the next seller, there are many more. Also check out their postage and packaging costs.
If you decide to buy from eBay be sure to check out the gold price that day and don't pay any more than you would have paid at a bullion dealer including their postage and packaging costs. Goto: Kitco.com for the daily gold price and to download a gold price widget for your computer.
I have one of their gold price widgets on my taskbar at the bottom of my screen and it updates all day; this gives me up to the minute gold prices. Then I have a look on eBay and see which gold coins are either on the money or below and don't forget to check out the post and packaging costs for the seller.
When ever I am selling gold I always sell on eBay as I generally always get the market price or a higher premium when two buyers go head to head on my auction and then I do better than the market price. Don't you just love eBay!
My best formula is to buy from the bullion Dealer when the gold price drops and then to sell on eBay. I hear you ask why buy from a Bullion dealer and sell on eBay, well I know that if I buy from the Bullion Dealer the gold coin is genuine and when I sell on eBay I get a better price then if I sold it to a Bullion Dealer, who would offer me 7% to 9% less than the market price.
Today gold coins are primarily collected by investors to hedge against inflation. In 1967 South Africa introduced the Kruger rand to cater for small investors; hence the reason that they manufactured Krugerrands in 1oz, 1/2oz, 1/4oz, 1/10 and 1/20 oz
The main gold coins in circulation today in order of their popularity are the Krugerrand, American Gold Eagle, Canadian Gold Maple Leaf, British Britannia or Sovereign, Chinese Panda, Gold Dinar, Russian Chervonets and the Swiss Vreneli.
Twelve Reasons to invest in Gold today!
1. During the last run on gold in the 70's and 80's the price of gold increased by 20 times.
2. There is a fall in gold production worldwide that is adding to its scarcity.
3. India and China have a veracious appetite for gold and as their economy powers forward they will drive up the gold price through demand and the limited supply globally.
4. There have been no new discoveries of gold deposits recently and it can take up to ten years to bring a new mine to full production.
5. When ever the world is on the verge of a recession people turn to gold as it is provides security.
6. It does not deteriorate and will last forever.
7. It is sought after for jewellery and electronic manufacture.
8. Governments can print paper money quickly, but they cannot just produce gold.
9. No other investment has the wealth preserving power of gold.
10. The Gold price will continue to be pushed by the current American debt and trade crisis.
11. Gold is an inflation-proof investment.
12. Gold is the only truly international currency.
Gold is Recession Proof
Back in June this year, I followed my own advice and purchased five one once Kruger at £470 per coin costing £2,350. The price of gold was at $870 per ounce when I bought my coins and since then the gold price has dropped down to $771, but the selling price has risen. Today a one ounce Krugerrand is selling at £629 for a 1ounce Krugerrand. My five coins today are worth £3,145 if I sold them today. I would have to pay a selling fee of 7% which would leave me with £574.85 profit or a 24.46% profit in 5 months.
That is a extraordinary return in the current economic conditions if I was to sell my coins today. I believe that gold coins will rise further. It just shows that there is money to be made during a recession. I spoke with a gold bullion firm earlier today and they only had 2 Krugerrand coins for sale. They said that people were turning to real gold rather than paper gold in this recession as they felt better holding real gold rather than a share certificate for gold.
How to buy and sell gold coins?
When you buy Gold through a Gold Bullion you pay the gold price according to the rate at that time and when you decide to sell it through the Gold Bullion they will offer you 7% to 9% less than the going gold rate.
You can now buy and sell gold coins on eBay; but, it is a case of Caveat emptor which is Latin for "Let the buyer beware" so please BEWARE!
You need to be careful and check the eBay seller out, look at their Feedback and check out the comments left by previous buyers. Do not buy from a seller with less than 30 feedbacks. Have a look at what other seller thought of dealing with them and if you are not happy with the seller then move on to the next seller, there are many more. Also check out their postage and packaging costs.
If you decide to buy from eBay be sure to check out the gold price that day and don't pay any more than you would have paid at a bullion dealer including their postage and packaging costs. Goto: Kitco.com for the daily gold price and to download a gold price widget for your computer.
I have one of their gold price widgets on my taskbar at the bottom of my screen and it updates all day; this gives me up to the minute gold prices. Then I have a look on eBay and see which gold coins are either on the money or below and don't forget to check out the post and packaging costs for the seller.
When ever I am selling gold I always sell on eBay as I generally always get the market price or a higher premium when two buyers go head to head on my auction and then I do better than the market price. Don't you just love eBay!
My best formula is to buy from the bullion Dealer when the gold price drops and then to sell on eBay. I hear you ask why buy from a Bullion dealer and sell on eBay, well I know that if I buy from the Bullion Dealer the gold coin is genuine and when I sell on eBay I get a better price then if I sold it to a Bullion Dealer, who would offer me 7% to 9% less than the market price.
Sunday, October 21, 2012
The Source of Gold - Its Ores and Minerals
With the high market prices of gold and silver in recent months, a
number of people are wondering about where these metals come from. Gold
and silver metals are obtained from a variety of different types of
rock ores. Most people think of gold nuggets and such as the source of
gold, but the truth is that very little of the new gold produced comes
from nuggets - nearly all newly mined gold comes from ores mined from
the natural hard rocks that contain gold in tiny, even microscopic
particles. This article is created to describe what these ores are like.
Gold is found widely diffused in nature even though it is one of the
scarcer metals in the earth's crust. Very commonly, gold occurs as the
native metal encased within a mineral known as quartz. Sometimes the
gold is in a finely divided state, sometimes in particles of
considerable size, as nuggets, grains, scales, plates, threads and wires
in quartz rock. It occurs also in a finely divided state disseminated
through schistose rocks, slates and some sedimentary rocks like
limestone. In these cases the rock has been altered by the flow of
heated and mineralized waters, often resulting in the impregnation of
large amounts of rock with silica, iron and a certain amount of gold.
Sometimes the silicified rock even replaces much if not all of the
original country rock. While historically speaking vein deposits were
the most productive, these disseminated deposits currently yield much of
the worlds gold ore.
Within gold ores, the element itself occurs in nature chiefly in the form of native gold, which is by far the most common gold bearing mineral. In various gold ores, the native gold commonly occurs as tiny particles contained within sulfide minerals such as pyrite. Iron pyrite is an exceedingly common mineral associated with gold, but it also serves as a reducing agent. Therefore whenever gold is found encased in pyrite, it is always present as free gold and not as some type of gold sulphide. Gold is also found at times in chalcopyrite, galena and arsenopyrite and stibnite, but not as a rule in such large amounts as may be found in pyrite. Other minerals, like sphalerite, pyrrhotite, magnetite and hematite sometimes carry small amounts of gold as well. Gold also occurs as tellurides such as calaverite. Common gangue minerals in gold ores include quartz, fluorite, calcite and pyrite, but many others can be found in smaller amounts.
Gold Ore Minerals:
The most prominent is native gold - most of the native gold contains a small amount of silver, copper, platinum, etc. Telluride minerals are the most common minerals which contain significant gold in their make up. They include: Petzite (Ag,Au) 2,Te, with a gold content of about 25 per cent. Hessite (Ag2Te), with gold often present replacing a part of the silver. Sylvanite (Au,Ag)Te2 : typically about 25 per cent. gold. Calaverite (Au,Ag)Te2 : typically about 40 per cent, gold. Krennerite (Ag2Te,Au2Te3) : gold is about 35 percent. Nagyagite (Au2,Pbi4,Sb3,Te7,S7). Some samples of Nagyagite have given upon analysis 12.75 per cent gold. The gold containing sulphides, as well as the tellurides, are of primary formation, although auriferous chalcopyrite might also be formed by secondary enrichment processes. Native gold may occur in the primary, secondary enrichment, or oxidized zones. The tellurides, which are usually associated with pyrite, are widely distributed, though not so abundant, but not always recognized; indeed by some miners they are mistaken for sulphides.
General Types of Gold Ores:
Gold deposits are often classified according to their association. The first of these may be catalogued as quartzose. This implies that the gangue mineral is acid, that is, quartz, and that fluorite may abound, or even the other gangue minerals of the alkaline earth group. Not infrequently there appears within the quartz varying amounts of pyrite and even limited quantities of chalcopyrite and galena. These are free milling ores. By a free milling ore, it is meant one that the rock does not require roasting before the gold can be recovered from it. Dry ore is the term often used for this category. The second class of gold ores is auriferous copper ores. These are widely distributed throughout the United States and much of the chalcopyrite is gold bearing. These auriferous copper ores are especially abundant in Colorado, Utah, Montana and British Columbia. They are also present at Gold Hill, North Carolina and in Canada at Newfoundland. The third class of gold ore is auriferous lead ores. The percentage of lead in these rocks is large and the gold content is often small. They are refractory ores like the copper ores. By refractory ore is meant one that requires roasting before extraction processing. The heavy sulphides as copper, lead and antimony require this method of treatment, that is the condition of the gold in the mineral will not allow of its immediate capture with most recovery systems. The fourth class of gold ores comprises the gold-telluride group. The gold telluride ores occur with silver, or with silver, lead and antimony, or as native gold accompanied by other tellurides. These ores are often sent direct to the smelters for treatment. A fifth type is the disseminated ore type. They are often low in grade but large. They fill large fracture and fault zones or replace certain geologic horizons. They are the result of the circulation of large amounts of heated water deep underground.
Within gold ores, the element itself occurs in nature chiefly in the form of native gold, which is by far the most common gold bearing mineral. In various gold ores, the native gold commonly occurs as tiny particles contained within sulfide minerals such as pyrite. Iron pyrite is an exceedingly common mineral associated with gold, but it also serves as a reducing agent. Therefore whenever gold is found encased in pyrite, it is always present as free gold and not as some type of gold sulphide. Gold is also found at times in chalcopyrite, galena and arsenopyrite and stibnite, but not as a rule in such large amounts as may be found in pyrite. Other minerals, like sphalerite, pyrrhotite, magnetite and hematite sometimes carry small amounts of gold as well. Gold also occurs as tellurides such as calaverite. Common gangue minerals in gold ores include quartz, fluorite, calcite and pyrite, but many others can be found in smaller amounts.
Gold Ore Minerals:
The most prominent is native gold - most of the native gold contains a small amount of silver, copper, platinum, etc. Telluride minerals are the most common minerals which contain significant gold in their make up. They include: Petzite (Ag,Au) 2,Te, with a gold content of about 25 per cent. Hessite (Ag2Te), with gold often present replacing a part of the silver. Sylvanite (Au,Ag)Te2 : typically about 25 per cent. gold. Calaverite (Au,Ag)Te2 : typically about 40 per cent, gold. Krennerite (Ag2Te,Au2Te3) : gold is about 35 percent. Nagyagite (Au2,Pbi4,Sb3,Te7,S7). Some samples of Nagyagite have given upon analysis 12.75 per cent gold. The gold containing sulphides, as well as the tellurides, are of primary formation, although auriferous chalcopyrite might also be formed by secondary enrichment processes. Native gold may occur in the primary, secondary enrichment, or oxidized zones. The tellurides, which are usually associated with pyrite, are widely distributed, though not so abundant, but not always recognized; indeed by some miners they are mistaken for sulphides.
General Types of Gold Ores:
Gold deposits are often classified according to their association. The first of these may be catalogued as quartzose. This implies that the gangue mineral is acid, that is, quartz, and that fluorite may abound, or even the other gangue minerals of the alkaline earth group. Not infrequently there appears within the quartz varying amounts of pyrite and even limited quantities of chalcopyrite and galena. These are free milling ores. By a free milling ore, it is meant one that the rock does not require roasting before the gold can be recovered from it. Dry ore is the term often used for this category. The second class of gold ores is auriferous copper ores. These are widely distributed throughout the United States and much of the chalcopyrite is gold bearing. These auriferous copper ores are especially abundant in Colorado, Utah, Montana and British Columbia. They are also present at Gold Hill, North Carolina and in Canada at Newfoundland. The third class of gold ore is auriferous lead ores. The percentage of lead in these rocks is large and the gold content is often small. They are refractory ores like the copper ores. By refractory ore is meant one that requires roasting before extraction processing. The heavy sulphides as copper, lead and antimony require this method of treatment, that is the condition of the gold in the mineral will not allow of its immediate capture with most recovery systems. The fourth class of gold ores comprises the gold-telluride group. The gold telluride ores occur with silver, or with silver, lead and antimony, or as native gold accompanied by other tellurides. These ores are often sent direct to the smelters for treatment. A fifth type is the disseminated ore type. They are often low in grade but large. They fill large fracture and fault zones or replace certain geologic horizons. They are the result of the circulation of large amounts of heated water deep underground.
The Disconnect Between Raging Gold Demand and Yawning Gold Prices
Something's off.
Something doesn't make sense. On the one hand, you have rampaging gold demand, manic gold buying, an interest in the investment so intense that shortages of the precious metal are now actually commonplace around the globe.
On the other hand, what's the price of gold doing? Not much. Not much at all. Mediocre is what comes to mind. Gold seems inexplicably mired in a dull trading range while fireworks are going off in the rest of the financial world.
There's a disconnect going on some place.
Isn't the old law of supply and demand still in effect? Isn't it still true that when people want more of something, its supply decreases and its price heads north?
Or did the law get revoked, and we just never got the memo?
ARMAGEDDON ON WALL STREET, A YAWNER ON GOLD STREET
You certainly don't need a refresher course on what's been happening on Wall Street, how stocks keep losing trillions in value and how the government keeps overstepping its already overstepped boundaries.
That memory will probably be forever branded on your poor brain.
What has gotten considerably less publicity, though, has been the subsequent panic buying of precious metals by average, everyday people around the globe, from Europe to Asia to America.
According to a story in London's Evening Standard, German gold dealers have been halting the sale of gold coins. "German gold dealers say demand has skyrocketed this past week to 10 times normal so no more orders can be taken for the foreseeable future."
In no way is Germany alone. Gold dealers everywhere echo those same complaints. According to http://www.ameinfo.com, "We have a similar rush in the souks of Dubai. Gold coins are selling at the highest premiums to spot gold price in 30 years, and (gold) stocks are running out."
Toni Straka of SeekingAlpha.com, reported that Muenze Osterreich, producer of gold and silver Philharmonics, has had to add a third work shift to make more coins, such has been the unprecedented demand.
What's more, for the first time since introducing gold Eagles twenty years ago, the Mint has been stopping the sale of these popular coins. Its plan is to re-commence a more reliable supply, but only on a rationing basis to dealers.
So widespread are the shortages, according to Paul Joseph Watson, that buyers are turning to Ebay. "Since buyers are finding it near impossible to get gold bullion from recognized dealers, many are turning to eBay where auctions for one ounce Krugerrands and Maple Leafs are fetching anything up to 150 ($260) over spot price."
Gold demand is absolutely boiling.
Gold's price is absolutely yawning.
What's going on here?
THE GAS TANK IS FULL BUT THE GAUGE SAYS IT EMPTY
Many experts believe gold should now have reached $1,100 an ounce by now instead of loitering in the mid-$800s/$900s range. And even that may be a conservative estimate, given the devastation to the economy.
Why the disconnect? The Market Oracle's Alex Wallenwein, believes he knows:
"Why is gold dropping right now when anyone in their sane mind would expect it to rise? The simple answer to this question is, 'because Comex-gold isn't gold' - and because it deceptively pretends to be 'the' price-setter for real gold.
"Gold is gold, paper is paper, and 'Comex gold' is nothing but paper masquerading as gold while simultaneously pretending to be the price-setting medium for actual gold in the world. Now, finally, Comex-gold is in the process of being unmasked."
Wallenwein went on to explain what this unmasking will reveal:
"The real supply and demand determinants for Comex gold are not actual gold investors but fund managers. Fund managers are inextricably intertwined with the world of contract-based credit instruments. They bet on Comex gold contracts to hedge their other (currently horrendously losing) bets with something they all, in their in-bred belief in paper markets, believe will 'go up' in value while everything else is going down."
Trader Dan Norcini from jsmineset.com took another perspective: When a fund gets redemption requests from desperate clients who now need cash (instead of being invested in, say, the commodity sector), its managers are forced to sell futures across the board to generate that money.
"If $20 million of cash is required to meet client redemption requests, then $20 million of commodity futures must be sold REGARDLESS OF THE FUNDAMENTALS IN THAT PARTICULAR MARKET. In other words, it is FORCED liquidation on account of redemption requests. That has NOTHING TO DO with the real physical gold market where demand remains at unprecedented levels, levels so high that it's producing serious shortages of bullion for would-be buyers."
This forced liquidation then takes part in driving gold prices down...at least in the eyes of Comex.
GOLD VS MANIPULATION: GOLD WINS
Is there a serious conflict-of-interest going on here?
Does the Comex version of the current gold price bear any resemblance to what's happening with dealers, both supply and demand, in the real world? Are funds really pouring water on red-hot precious metals with their forced redemptions?
At least from the anecdotal perspective of a gold dealer, whether the reason is a compromised Comex or something equally nefarious, it seems clear that precious metals are being shamelessly manipulated.
There's just too much demand. Too little price.
Sadly, governments and institutions have been known to distort statistics whenever the need arose. Witness the government's changing of the CPI to exclude such insignificant inflationary factors as food and energy.
Regardless of these contrived forces, the current grassroots pressure on gold will only keep mounting in this environment. Something will give and soon. When that happens, will you be happy you had the prudence and foresight to diversify your portfolio with precious metals?
Is the American Gold Eagle made of gold?
Something doesn't make sense. On the one hand, you have rampaging gold demand, manic gold buying, an interest in the investment so intense that shortages of the precious metal are now actually commonplace around the globe.
On the other hand, what's the price of gold doing? Not much. Not much at all. Mediocre is what comes to mind. Gold seems inexplicably mired in a dull trading range while fireworks are going off in the rest of the financial world.
There's a disconnect going on some place.
Isn't the old law of supply and demand still in effect? Isn't it still true that when people want more of something, its supply decreases and its price heads north?
Or did the law get revoked, and we just never got the memo?
ARMAGEDDON ON WALL STREET, A YAWNER ON GOLD STREET
You certainly don't need a refresher course on what's been happening on Wall Street, how stocks keep losing trillions in value and how the government keeps overstepping its already overstepped boundaries.
That memory will probably be forever branded on your poor brain.
What has gotten considerably less publicity, though, has been the subsequent panic buying of precious metals by average, everyday people around the globe, from Europe to Asia to America.
According to a story in London's Evening Standard, German gold dealers have been halting the sale of gold coins. "German gold dealers say demand has skyrocketed this past week to 10 times normal so no more orders can be taken for the foreseeable future."
In no way is Germany alone. Gold dealers everywhere echo those same complaints. According to http://www.ameinfo.com, "We have a similar rush in the souks of Dubai. Gold coins are selling at the highest premiums to spot gold price in 30 years, and (gold) stocks are running out."
Toni Straka of SeekingAlpha.com, reported that Muenze Osterreich, producer of gold and silver Philharmonics, has had to add a third work shift to make more coins, such has been the unprecedented demand.
What's more, for the first time since introducing gold Eagles twenty years ago, the Mint has been stopping the sale of these popular coins. Its plan is to re-commence a more reliable supply, but only on a rationing basis to dealers.
So widespread are the shortages, according to Paul Joseph Watson, that buyers are turning to Ebay. "Since buyers are finding it near impossible to get gold bullion from recognized dealers, many are turning to eBay where auctions for one ounce Krugerrands and Maple Leafs are fetching anything up to 150 ($260) over spot price."
Gold demand is absolutely boiling.
Gold's price is absolutely yawning.
What's going on here?
THE GAS TANK IS FULL BUT THE GAUGE SAYS IT EMPTY
Many experts believe gold should now have reached $1,100 an ounce by now instead of loitering in the mid-$800s/$900s range. And even that may be a conservative estimate, given the devastation to the economy.
Why the disconnect? The Market Oracle's Alex Wallenwein, believes he knows:
"Why is gold dropping right now when anyone in their sane mind would expect it to rise? The simple answer to this question is, 'because Comex-gold isn't gold' - and because it deceptively pretends to be 'the' price-setter for real gold.
"Gold is gold, paper is paper, and 'Comex gold' is nothing but paper masquerading as gold while simultaneously pretending to be the price-setting medium for actual gold in the world. Now, finally, Comex-gold is in the process of being unmasked."
Wallenwein went on to explain what this unmasking will reveal:
"The real supply and demand determinants for Comex gold are not actual gold investors but fund managers. Fund managers are inextricably intertwined with the world of contract-based credit instruments. They bet on Comex gold contracts to hedge their other (currently horrendously losing) bets with something they all, in their in-bred belief in paper markets, believe will 'go up' in value while everything else is going down."
Trader Dan Norcini from jsmineset.com took another perspective: When a fund gets redemption requests from desperate clients who now need cash (instead of being invested in, say, the commodity sector), its managers are forced to sell futures across the board to generate that money.
"If $20 million of cash is required to meet client redemption requests, then $20 million of commodity futures must be sold REGARDLESS OF THE FUNDAMENTALS IN THAT PARTICULAR MARKET. In other words, it is FORCED liquidation on account of redemption requests. That has NOTHING TO DO with the real physical gold market where demand remains at unprecedented levels, levels so high that it's producing serious shortages of bullion for would-be buyers."
This forced liquidation then takes part in driving gold prices down...at least in the eyes of Comex.
GOLD VS MANIPULATION: GOLD WINS
Is there a serious conflict-of-interest going on here?
Does the Comex version of the current gold price bear any resemblance to what's happening with dealers, both supply and demand, in the real world? Are funds really pouring water on red-hot precious metals with their forced redemptions?
At least from the anecdotal perspective of a gold dealer, whether the reason is a compromised Comex or something equally nefarious, it seems clear that precious metals are being shamelessly manipulated.
There's just too much demand. Too little price.
Sadly, governments and institutions have been known to distort statistics whenever the need arose. Witness the government's changing of the CPI to exclude such insignificant inflationary factors as food and energy.
Regardless of these contrived forces, the current grassroots pressure on gold will only keep mounting in this environment. Something will give and soon. When that happens, will you be happy you had the prudence and foresight to diversify your portfolio with precious metals?
Is the American Gold Eagle made of gold?
Gold - Glitter to Investments
There is considerable action in the other non-financial fund
category, namely, gold. There are two kinds of gold-related funds in
India. One is the so-called gold ETFs, which act as proxies for holding
gold in physical form. Fund companies that run gold ETFs invest all of
the investors' money in gold. Thus, the money invested in such funds
makes profits or losses exactly in line with the price of gold, after
charging around 1 per cent per annum as expenses.
In the year or so since the first gold ETF was launched these funds' number has grown to five with few more in the pipeline. For a niche fund type, they've proven reasonably popular and hold assets of Rs 550 crore. However, when one compares these funds to the amount of gold that is traded in the commodity markets, this is a pittance. However, it's the other kind of gold fund that is having a more interesting time. These are funds that invest in the stocks of gold mining, refining and marketing companies abroad.
Currently, there's only one fund of this kind-DSP Merrill Lynch's World Gold Fund but another one from AIG is on offer right now and there's at least one from Tata Mutual Fund that is in the regulatory approval stage.
While gold prices have always had their ups and downs over the years and housewives in many Asian cultures have always liked to have their personal hoard of gold as hedge against bad times, it has been a long time since anyone has considered it as an alternatives to investments like stocks. This appears to have changed. Gold has had an amazing run over the last seven years, earning returns of about 300 per cent. Still, this can't disguise the fact that over the long term, gold hasn't been a great investment.
Even at the current prices, gold on international prices has gained at an average 4 per cent per year over the last hundred years. Adjusted for inflation, this is a mere 0.6 per cent a year. Does investing in gold or gold mining funds make sense now? According to those who are pitching for gold, we are in an unusual time when a combination of factors will probably make gold appreciate. Demand may stay and the supply will not really expand. After all, this is one of the scarcest materials on Earth. The total amount of gold ever mined in the world can fit into a box that is 64 feet by 64 feet by 64 feet.
What does all this mean? Looking beyond the merits of gold as an investment, the actual issue is the chasing of past performance that we all tend to do. Gold may do well or it may do badly. But the way to make money in gold in was to have realized back in 2001 that gold was at a historic low and then to have started buying it gradually.
To suddenly become a gold investor when the price has already run up more sharply than it has for a generation is folly indeed. Gold may have given returns of 40 per cent over two years, but the last time it did such a thing was perhaps in the mid to late 1970s. Do you really want to take a call on whether such a thing is sustainable? Whether it's gold or it's stocks or funds, what has already happened is generally not a great guide to what's going to happen. Gold won't be an exception to this rule. Gold as a small holding-perhaps five per cent of one's financial assets is fine, but it can't be anyone's main investment.
The sensex dipped 20% in 3 months but gold ETFs have given over 25% returns. It's time to look at gold for safe investments
WITH THE stock markets on a downhill trek, a wave of panic has gripped the retail investors. In these uncertain times, you may have also found yourself struggling, and sometimes worried, on how to get the right portfolio mix and avoid the bear's claws. The same stands true for many, who ran out of his wits after his year-long investments eroded in a matter of few seconds. If analysts are to be believed, in such turbulent phases, you can always look up to gold as an investment option not only as insurance against the choppy markets but for better returns as well.
THE GOLDEN SCENARIO
With an expected slower US growth momentum, Fed rate easing, a weakening dollar, rising oil prices and heightened geopolitical concerns, gold prices appear to be firmly supported in the months ahead. Strong investor demand coupled with strong jewellery demand from Asia and the Middle East is also likely to push the prices. In the present context, gold is expected to provide better capital appreciation, provided it is bought at a right price. It is also a good hedge against inflation
Strong fundamentals put aside, gold has also given a return of 18% in the first two months of 2008. Today, it is the most recession-proof asset and is actually playing the role of insurance in the investor's portfolio.
THE ETF ROUTE
Analysts feel that in the present market conditions gold is expected to provide better capital appreciation. While the sensex has fallen more than 20% in the last three months, gold Exchange Traded Funds (ETFs) have given returns of over 25%. "If you're looking for gold as an investment then it is better to invest through ETFs instead of holding gold physically.
It has a triple advantage:
1) Gold held via ETF would be treated as a long-term asset in one year whereas you'll have to hold the physical gold for three years to classify it as long-term.
2) There is no wealth tax attached and if you hold it in demat form
3) There are no issues about its purity.
GOLD FUNDS
If you're bullish about gold and other precious metals, it can be an interesting move to buy a mutual fund scheme which in turn invests in the shares of mining companies of gold, silver and platinum.
If you invest through an ETF, it is kept for three years and the amount of gold backing remains the same (it does not grow). However, in those three years, a gold mining company could have increased in the share price, could have given dividends and achieved higher valuation (share price) on account of corporate actions (like mergers, acquisitions).
Investing in a gold fund would benefit more as with the increase in gold prices, the profits of gold mining companies increase manifold on account of operating leverage. Launched in 2007 in India, DSP ML Gold Fund has given a return of over 60% in last six months.
GLITTER EFFECT
According to analysts, though gold is expected to provide very good returns this year, it would also come with higher volatility. So before you plan to invest in ETFs or gold funds, it is pertinent that you should get an outlook of dollar and crude price behavior, physical demand for gold in the global market and performance of equity markets. The entry time is very important while investing in gold. One should consider the seasonal pattern such as wedding seasons. Analysts caution that if you don't understand the dynamics of the commodity markets, avoid buying through futures because when the price goes against your position (price falls after you have bought) then you have to give the difference (known as marked-to-market) immediately to the broker.
In the year or so since the first gold ETF was launched these funds' number has grown to five with few more in the pipeline. For a niche fund type, they've proven reasonably popular and hold assets of Rs 550 crore. However, when one compares these funds to the amount of gold that is traded in the commodity markets, this is a pittance. However, it's the other kind of gold fund that is having a more interesting time. These are funds that invest in the stocks of gold mining, refining and marketing companies abroad.
Currently, there's only one fund of this kind-DSP Merrill Lynch's World Gold Fund but another one from AIG is on offer right now and there's at least one from Tata Mutual Fund that is in the regulatory approval stage.
While gold prices have always had their ups and downs over the years and housewives in many Asian cultures have always liked to have their personal hoard of gold as hedge against bad times, it has been a long time since anyone has considered it as an alternatives to investments like stocks. This appears to have changed. Gold has had an amazing run over the last seven years, earning returns of about 300 per cent. Still, this can't disguise the fact that over the long term, gold hasn't been a great investment.
Even at the current prices, gold on international prices has gained at an average 4 per cent per year over the last hundred years. Adjusted for inflation, this is a mere 0.6 per cent a year. Does investing in gold or gold mining funds make sense now? According to those who are pitching for gold, we are in an unusual time when a combination of factors will probably make gold appreciate. Demand may stay and the supply will not really expand. After all, this is one of the scarcest materials on Earth. The total amount of gold ever mined in the world can fit into a box that is 64 feet by 64 feet by 64 feet.
What does all this mean? Looking beyond the merits of gold as an investment, the actual issue is the chasing of past performance that we all tend to do. Gold may do well or it may do badly. But the way to make money in gold in was to have realized back in 2001 that gold was at a historic low and then to have started buying it gradually.
To suddenly become a gold investor when the price has already run up more sharply than it has for a generation is folly indeed. Gold may have given returns of 40 per cent over two years, but the last time it did such a thing was perhaps in the mid to late 1970s. Do you really want to take a call on whether such a thing is sustainable? Whether it's gold or it's stocks or funds, what has already happened is generally not a great guide to what's going to happen. Gold won't be an exception to this rule. Gold as a small holding-perhaps five per cent of one's financial assets is fine, but it can't be anyone's main investment.
The sensex dipped 20% in 3 months but gold ETFs have given over 25% returns. It's time to look at gold for safe investments
WITH THE stock markets on a downhill trek, a wave of panic has gripped the retail investors. In these uncertain times, you may have also found yourself struggling, and sometimes worried, on how to get the right portfolio mix and avoid the bear's claws. The same stands true for many, who ran out of his wits after his year-long investments eroded in a matter of few seconds. If analysts are to be believed, in such turbulent phases, you can always look up to gold as an investment option not only as insurance against the choppy markets but for better returns as well.
THE GOLDEN SCENARIO
With an expected slower US growth momentum, Fed rate easing, a weakening dollar, rising oil prices and heightened geopolitical concerns, gold prices appear to be firmly supported in the months ahead. Strong investor demand coupled with strong jewellery demand from Asia and the Middle East is also likely to push the prices. In the present context, gold is expected to provide better capital appreciation, provided it is bought at a right price. It is also a good hedge against inflation
Strong fundamentals put aside, gold has also given a return of 18% in the first two months of 2008. Today, it is the most recession-proof asset and is actually playing the role of insurance in the investor's portfolio.
THE ETF ROUTE
Analysts feel that in the present market conditions gold is expected to provide better capital appreciation. While the sensex has fallen more than 20% in the last three months, gold Exchange Traded Funds (ETFs) have given returns of over 25%. "If you're looking for gold as an investment then it is better to invest through ETFs instead of holding gold physically.
It has a triple advantage:
1) Gold held via ETF would be treated as a long-term asset in one year whereas you'll have to hold the physical gold for three years to classify it as long-term.
2) There is no wealth tax attached and if you hold it in demat form
3) There are no issues about its purity.
GOLD FUNDS
If you're bullish about gold and other precious metals, it can be an interesting move to buy a mutual fund scheme which in turn invests in the shares of mining companies of gold, silver and platinum.
If you invest through an ETF, it is kept for three years and the amount of gold backing remains the same (it does not grow). However, in those three years, a gold mining company could have increased in the share price, could have given dividends and achieved higher valuation (share price) on account of corporate actions (like mergers, acquisitions).
Investing in a gold fund would benefit more as with the increase in gold prices, the profits of gold mining companies increase manifold on account of operating leverage. Launched in 2007 in India, DSP ML Gold Fund has given a return of over 60% in last six months.
GLITTER EFFECT
According to analysts, though gold is expected to provide very good returns this year, it would also come with higher volatility. So before you plan to invest in ETFs or gold funds, it is pertinent that you should get an outlook of dollar and crude price behavior, physical demand for gold in the global market and performance of equity markets. The entry time is very important while investing in gold. One should consider the seasonal pattern such as wedding seasons. Analysts caution that if you don't understand the dynamics of the commodity markets, avoid buying through futures because when the price goes against your position (price falls after you have bought) then you have to give the difference (known as marked-to-market) immediately to the broker.
Saturday, October 20, 2012
Gold Recycling For High Value Metals
The shiny yellow metal that is Gold still remains one of the most
treasured of the precious metals. For hundred of years Gold has been an
indicator of wealth and a status symbol for many. Used extensively in
jewelery designs still today Gold remains ever popular.
Gold has always been used as a form of currency and monetary exchange throughout the ages and around the world. Gold bullion coins that used to be used as currency in circulation are now mostly collected for their investment value or collectible rarity. The majority of bullion coins minted are of 22 carat or 24 carat pure fine Gold. Most countries do not produce Gold bullion coins for use as currency anymore as the price of Gold makes it unfeasible. For investment purposes many Gold bullion rounds are now pure 99.99 Gold or 24 carat, although 22 carat coins are still in mint. The Gold Sovereign is one such 22 carat bullion coin still minted today.
Some of the higher rated Gold purity bullion coins are listed below :
The many industrial uses for Gold as well as the high investment market for the precious metal all help make Gold so valuable. The high value of Gold also supports a healthy trade in the recovery of scrap Gold metal from unwanted jewelery, industrial components, computer circuit boards and countless other avenues where Gold is present. Even a small amount of Gold is worth cashing in for the scrap value of the precious metal. There are various methods for recovering the Gold present in electrical components, such as reverse electroplating which can yield good levels of recovered metal. Other precious or high value metals such as Platinum, Silver, Palladium and Rhodium also have high scrap value and are well worth recycling through a scrap Gold refiner.
Gold has always been used as a form of currency and monetary exchange throughout the ages and around the world. Gold bullion coins that used to be used as currency in circulation are now mostly collected for their investment value or collectible rarity. The majority of bullion coins minted are of 22 carat or 24 carat pure fine Gold. Most countries do not produce Gold bullion coins for use as currency anymore as the price of Gold makes it unfeasible. For investment purposes many Gold bullion rounds are now pure 99.99 Gold or 24 carat, although 22 carat coins are still in mint. The Gold Sovereign is one such 22 carat bullion coin still minted today.
Some of the higher rated Gold purity bullion coins are listed below :
- Canada Maple Leaf 99.999% fine Gold
- Gold Kangaroo from Australia 99.99% pure Gold
- Australia Gold Nugget 99.99% Gold
- Lunar Calendar Coin from Australia 9999 Gold
- American Gold Buffalo bullion coin 99.99% Gold
The many industrial uses for Gold as well as the high investment market for the precious metal all help make Gold so valuable. The high value of Gold also supports a healthy trade in the recovery of scrap Gold metal from unwanted jewelery, industrial components, computer circuit boards and countless other avenues where Gold is present. Even a small amount of Gold is worth cashing in for the scrap value of the precious metal. There are various methods for recovering the Gold present in electrical components, such as reverse electroplating which can yield good levels of recovered metal. Other precious or high value metals such as Platinum, Silver, Palladium and Rhodium also have high scrap value and are well worth recycling through a scrap Gold refiner.
Sell scrap Gold online
through precious metal refiners that will pay the highest prices for
any unwanted precious metals.Platinum scrap wire, Silver jewelery,
unwanted broken jewelery Gold scrap and Rhodium can be scrapped within
the UK for top prices.
Buy Gold bars Silver bullion online in the UK to make an investment in the Gold or Silver bullion market. Gold bars are available in many sizes from 1gram upwards and Silver bullions bars can be purchased in sizes from 1oz up to 1 Kilogram.
Buy Gold bars Silver bullion online in the UK to make an investment in the Gold or Silver bullion market. Gold bars are available in many sizes from 1gram upwards and Silver bullions bars can be purchased in sizes from 1oz up to 1 Kilogram.
Collect And Invest In Gold Coins
With the security that precious metals provide from the recent
economic and political instability, most investors understand that it is
a wise idea to invest in gold or silver. But many can't decide what the
best way to invest in gold or silver is. The way you choose depends on
your reasons for investing in gold, and how much you are looking to
spend.
One of the best way for the average person to invest in gold is with gold coins. Gold coins have several benefits over large gold bars. With the exception of the smaller gold bars (say, an ounce or less), gold bars come in large denominations that are somewhat illiquid. For example, if you have a 10 ounce gold bar and you want to sell a half-ounce of it, you can't slice off a piece of the bar. You have to sell the whole thing. On the other hand, if you have 20 half-ounce coins (or small bars, which are available), you can sell just one coin and keep the rest of your investment intact. This liquidity would also be useful in times of severe crisis. Imagine a time of total war and hyper-inflation. Let's say you wanted to exchange some gold for an escape option, or for some necessities such as food or clothing. Smaller denominations would be more useful for buying such necessities. Otherwise you could easily be exploited by people who demanded the entire gold bar. Like being stuck with taxi driver who pretends he doesn't have change for a twenty, you could get taken.
Gold coins are durable and last hundreds of years. Alloys (gold with another metal added) can last for thousands of years. They don't tarnish and don't scratch easily. They're also easily stored because of their small size. Many investors prefer to store their gold coins in their homes, stashed in some secret place, unlikely to ever be found because of their small size. Large gold bullion bars require professional storage and security services, which costs you money. And obviously the reputability of the storage provider needs to be confirmed.
Coins and small bars are also easy to buy, with reputable vendors existing in basically every major city and also online. So how do you choose which gold coins to invest in? There are two things to keep in mind:
1) Some gold coins are pure (999/1000 is considered pure gold, also known as 24 carat gold), but others are only 917/1000 parts gold (aka 22 carat gold). Both are reasonable investments, and as long as the real weight of gold contained is printed on the coin then two one-ounce gold coins will contain the same amount of gold. But pure gold does have slightly higher prestige and may be more easily sellable because they can be melted down easily. In a time of crisis that ability to be melted down may be worth something to someone. I personally prefer the purest gold I can find because I just find it aesthetically more pleasing, and more impressive to imagine its contents. And if you are going to invest in gold coins you should enjoy it!
Some popular coins of 917/1000 purity are:
The US American Eagle
The South African Krugerand
The British Sovereign
Some popular coins of 999/1000 purity are:
Canadian Maple Leaf coins
Australian Kangaroos
The Chinese Panda
(Nice stereotypical names, I know!)
2) Some coins, particularly older coins and rare coins, have "numismatic value", or additional value due to collector's prestige. While these can be just as good investments as any because their prestige is unlikely to decrease, their value doesn't depend only upon the official gold spot prices. If your motivation for buying gold is not as a hobbyist but rather as an investor, it may make more sense to buy a common coin whose value is based strictly on the official gold spot prices (plus a markup/commission, generally ranging from 1% to 5%).
One downside to buying coins or small gold bars rather than large denomination gold bars is that the markup on gold is often higher the smaller the amount you buy. Buying one ounce of gold may cost you 5% more per ounce than buying 5 ounces of gold. With the current gold prices per ounce hovering around $900, that means you could pay $45 extra if you only buy a single one ounce coin. Also remember that, as with large denomination gold bars, there is a bid/ask spread. That means that the price you buy the gold at will be different from the price you can sell the gold back at on any given day. The buy price is typically 3% higher than the sell price. So you can see that buying and selling coins quickly to make quick profits is not a very enticing option. It's a much wiser idea to buy gold with the intention of holding it for security, wealth preservation, longterm investment, and enjoyment. And with such reasonable goals in mind, gold coins are one of the best ways to invest in gold.
One of the best way for the average person to invest in gold is with gold coins. Gold coins have several benefits over large gold bars. With the exception of the smaller gold bars (say, an ounce or less), gold bars come in large denominations that are somewhat illiquid. For example, if you have a 10 ounce gold bar and you want to sell a half-ounce of it, you can't slice off a piece of the bar. You have to sell the whole thing. On the other hand, if you have 20 half-ounce coins (or small bars, which are available), you can sell just one coin and keep the rest of your investment intact. This liquidity would also be useful in times of severe crisis. Imagine a time of total war and hyper-inflation. Let's say you wanted to exchange some gold for an escape option, or for some necessities such as food or clothing. Smaller denominations would be more useful for buying such necessities. Otherwise you could easily be exploited by people who demanded the entire gold bar. Like being stuck with taxi driver who pretends he doesn't have change for a twenty, you could get taken.
Gold coins are durable and last hundreds of years. Alloys (gold with another metal added) can last for thousands of years. They don't tarnish and don't scratch easily. They're also easily stored because of their small size. Many investors prefer to store their gold coins in their homes, stashed in some secret place, unlikely to ever be found because of their small size. Large gold bullion bars require professional storage and security services, which costs you money. And obviously the reputability of the storage provider needs to be confirmed.
Coins and small bars are also easy to buy, with reputable vendors existing in basically every major city and also online. So how do you choose which gold coins to invest in? There are two things to keep in mind:
1) Some gold coins are pure (999/1000 is considered pure gold, also known as 24 carat gold), but others are only 917/1000 parts gold (aka 22 carat gold). Both are reasonable investments, and as long as the real weight of gold contained is printed on the coin then two one-ounce gold coins will contain the same amount of gold. But pure gold does have slightly higher prestige and may be more easily sellable because they can be melted down easily. In a time of crisis that ability to be melted down may be worth something to someone. I personally prefer the purest gold I can find because I just find it aesthetically more pleasing, and more impressive to imagine its contents. And if you are going to invest in gold coins you should enjoy it!
Some popular coins of 917/1000 purity are:
The US American Eagle
The South African Krugerand
The British Sovereign
Some popular coins of 999/1000 purity are:
Canadian Maple Leaf coins
Australian Kangaroos
The Chinese Panda
(Nice stereotypical names, I know!)
2) Some coins, particularly older coins and rare coins, have "numismatic value", or additional value due to collector's prestige. While these can be just as good investments as any because their prestige is unlikely to decrease, their value doesn't depend only upon the official gold spot prices. If your motivation for buying gold is not as a hobbyist but rather as an investor, it may make more sense to buy a common coin whose value is based strictly on the official gold spot prices (plus a markup/commission, generally ranging from 1% to 5%).
One downside to buying coins or small gold bars rather than large denomination gold bars is that the markup on gold is often higher the smaller the amount you buy. Buying one ounce of gold may cost you 5% more per ounce than buying 5 ounces of gold. With the current gold prices per ounce hovering around $900, that means you could pay $45 extra if you only buy a single one ounce coin. Also remember that, as with large denomination gold bars, there is a bid/ask spread. That means that the price you buy the gold at will be different from the price you can sell the gold back at on any given day. The buy price is typically 3% higher than the sell price. So you can see that buying and selling coins quickly to make quick profits is not a very enticing option. It's a much wiser idea to buy gold with the intention of holding it for security, wealth preservation, longterm investment, and enjoyment. And with such reasonable goals in mind, gold coins are one of the best ways to invest in gold.
Basic Gold Coin Investing
Investing in gold coins can be as simple or as complicated as you
want to make it. If you are just starting out on your gold investments,
this basic gold coin investing strategy will simplify things greatly
for you. This article will discuss the most popular and recognized gold
coins you can invest in.
Basic Gold Investing-Gold Bullion Coins
If you are just starting out with gold investments, I recommend investing in gold bullion first. Gold bullion has the least premium over the spot price (or melt value) of gold at the time of your purchase. So it is the least expensive way to start acquiring gold. Gold bullion comes in coin or bar form with coins being more popular with U.S. investors.
American Gold Eagle
My top recommendation for investing in gold bullion coins is the American Gold Eagle. First issued in 1986 by the U.S. Mint, American Gold Eagles are said to be the most popular gold bullion coins in the world. Each coin is minted in 22-karat solid gold and has an image of Lady Liberty on the obverse (front) and A Family of Eagles on the reverse.
American Gold Eagles are backed by the U. S. government for weight, content and purity which is why they are widely accepted (and quite easy to convert back to cash). American Eagle gold bullion coins can be purchased in four different denominations:
one-ounce with a $50 face value; half-ounce with a $25 face value; quarter-ounce with a face value of $10; and tenth-ounce with a $5 face value. You will pay more of a premium over spot gold for the half, quarter and tenth-ounce coins than the one ounce coin.
Canadian Gold Maple Leaf
My second recommendation for investing in gold bullion are coins from our friends to the north - the Canadian Gold Maple Leaf. Produced by the Royal Canadian Mint starting in 1979, these beautiful 24 karat gold coins are 99.99% pure gold (in 2007, the Royal Canadian Mint began producing 99.999% pure gold, one-ounce Maple Leaf coins). The Gold Maple Leaf has an image of Great Britain's Queen Elizabeth II on the obverse side. The coin's reverse image is that of a maple leaf - Canada's national symbol.
Gold Maple Leaf coins are guaranteed by the Government of Canada for their weight and purity. They are as widely recognized and accepted as the U.S. Gold Eagle and make good investments. Gold Maple Leaf bullion coins can be purchased in the following sizes: one ounce with a face value of 50 Canadian dollars; half-ounce with a face value of 20 Canadian dollars; quarter-ounce with a face value of 10 Canadian dollars; and tenth-ounce with a face value of 5 Canadian dollars. Premiums over spot gold are similar to that of the American Gold Eagles.
Let me caution you if you decide to invest in Canadian Gold Maple Leaf coins. Because gold is a soft metal, pure gold coins are easily scratched or nicked if not handled carefully. Always handle your coins by the edges only (regardless of what gold coin it is) and be especially careful handling your Gold Maple Leaf coins.
South African Krugerrand
My third recommendation for investing in gold bullion coins is the South African Krugerrand. Produced by the South African Mint beginning in 1967, this coin gets its name from Paul Kruger, the last president of the Republic of South Africa, and the "rand", the monetary unit of South Africa. The one-ounce Krugerrand contains one troy ounce of gold and is alloyed with copper (1/12 copper, 11/12 pure gold) resulting in a 22-karat coin. They are more durable and scratch-resistant than pure gold coins. The obverse side of the coin has the image of Paul Kruger. The coin's reverse image is that of a springbok antelope, one of South Africa's national symbols.
South African Krugerrands are as internationally recognized and accepted today as the American Gold Eagle and the Gold Maple Leaf. In the mid-1980's, the U.S. Congress banned the importation of South African Krugerrands as part of the anti-South African boycott. Krugerrands already in this country were allowed to continue being traded. Because of this action, Krugerrands lost some of their luster (no pun intended). As a result, these coins have about the lowest premium and are among the cheapest way for you to own a one-ounce gold coin. Krugerrands also come in fractional sizes.
When Buying Gold Coins - Buyer Beware
Before you start shopping for gold coins, let me just say that when the price of gold gets this high, precious metals dealers come "out of the woodwork". You must be careful when selecting a dealer as there have been several incidents over the years where precious metals dealers have gone out of business resulting in big losses for their customers. I will be writing a more complete article on finding good dealers at a later date.
Disclaimer: I have made every reasonable effort to produce an informative and helpful article on Basic Gold Coin Investing based on my research and experiences. However, I make no representation or warranties of any kind with regard to its completeness, accuracy or suitability for any specific situation or purpose. Only you can decide if investing in these gold coins is right for you. I take no responsibility for your gold investment decisions.
Basic Gold Investing-Gold Bullion Coins
If you are just starting out with gold investments, I recommend investing in gold bullion first. Gold bullion has the least premium over the spot price (or melt value) of gold at the time of your purchase. So it is the least expensive way to start acquiring gold. Gold bullion comes in coin or bar form with coins being more popular with U.S. investors.
American Gold Eagle
My top recommendation for investing in gold bullion coins is the American Gold Eagle. First issued in 1986 by the U.S. Mint, American Gold Eagles are said to be the most popular gold bullion coins in the world. Each coin is minted in 22-karat solid gold and has an image of Lady Liberty on the obverse (front) and A Family of Eagles on the reverse.
American Gold Eagles are backed by the U. S. government for weight, content and purity which is why they are widely accepted (and quite easy to convert back to cash). American Eagle gold bullion coins can be purchased in four different denominations:
one-ounce with a $50 face value; half-ounce with a $25 face value; quarter-ounce with a face value of $10; and tenth-ounce with a $5 face value. You will pay more of a premium over spot gold for the half, quarter and tenth-ounce coins than the one ounce coin.
Canadian Gold Maple Leaf
My second recommendation for investing in gold bullion are coins from our friends to the north - the Canadian Gold Maple Leaf. Produced by the Royal Canadian Mint starting in 1979, these beautiful 24 karat gold coins are 99.99% pure gold (in 2007, the Royal Canadian Mint began producing 99.999% pure gold, one-ounce Maple Leaf coins). The Gold Maple Leaf has an image of Great Britain's Queen Elizabeth II on the obverse side. The coin's reverse image is that of a maple leaf - Canada's national symbol.
Gold Maple Leaf coins are guaranteed by the Government of Canada for their weight and purity. They are as widely recognized and accepted as the U.S. Gold Eagle and make good investments. Gold Maple Leaf bullion coins can be purchased in the following sizes: one ounce with a face value of 50 Canadian dollars; half-ounce with a face value of 20 Canadian dollars; quarter-ounce with a face value of 10 Canadian dollars; and tenth-ounce with a face value of 5 Canadian dollars. Premiums over spot gold are similar to that of the American Gold Eagles.
Let me caution you if you decide to invest in Canadian Gold Maple Leaf coins. Because gold is a soft metal, pure gold coins are easily scratched or nicked if not handled carefully. Always handle your coins by the edges only (regardless of what gold coin it is) and be especially careful handling your Gold Maple Leaf coins.
South African Krugerrand
My third recommendation for investing in gold bullion coins is the South African Krugerrand. Produced by the South African Mint beginning in 1967, this coin gets its name from Paul Kruger, the last president of the Republic of South Africa, and the "rand", the monetary unit of South Africa. The one-ounce Krugerrand contains one troy ounce of gold and is alloyed with copper (1/12 copper, 11/12 pure gold) resulting in a 22-karat coin. They are more durable and scratch-resistant than pure gold coins. The obverse side of the coin has the image of Paul Kruger. The coin's reverse image is that of a springbok antelope, one of South Africa's national symbols.
South African Krugerrands are as internationally recognized and accepted today as the American Gold Eagle and the Gold Maple Leaf. In the mid-1980's, the U.S. Congress banned the importation of South African Krugerrands as part of the anti-South African boycott. Krugerrands already in this country were allowed to continue being traded. Because of this action, Krugerrands lost some of their luster (no pun intended). As a result, these coins have about the lowest premium and are among the cheapest way for you to own a one-ounce gold coin. Krugerrands also come in fractional sizes.
When Buying Gold Coins - Buyer Beware
Before you start shopping for gold coins, let me just say that when the price of gold gets this high, precious metals dealers come "out of the woodwork". You must be careful when selecting a dealer as there have been several incidents over the years where precious metals dealers have gone out of business resulting in big losses for their customers. I will be writing a more complete article on finding good dealers at a later date.
Disclaimer: I have made every reasonable effort to produce an informative and helpful article on Basic Gold Coin Investing based on my research and experiences. However, I make no representation or warranties of any kind with regard to its completeness, accuracy or suitability for any specific situation or purpose. Only you can decide if investing in these gold coins is right for you. I take no responsibility for your gold investment decisions.
Friday, October 19, 2012
Gold - Where To Find Gold, Where Is Gold Found? A Love Story About Gold
Gold Nuggets - The Ultimate Love Affair
It was a barmy scorching hot day somewhere out in the Pacific Ocean, a rather nondescript place where the ocean waves heaved and sighed in their relentless rise and fall. A single particle a tiny droplet of water within the ocean felt itself being drawn upwards towards the ever increasing strong light above, to start on it's course an amazing journey, until now untold, a love affair between the elements, which would result in one very happy individual like you, holding in their hand, one of the most precious gifts known to man and a lifelong cherished memory of good and happy times.
Upon breaking the surface of the ocean, the particle of water felt itself being lifted up and away from the surface which was still heaving below. Along with billions of other similar particles of water, this particle felt itself rising higher and higher until the ocean home it had known for so long was now far, far below.
Swirling on the winds above, the feeling was very much similar to being in the watery deep which so far had been it's only memory, but this was altogether a totally new environment, at least she thought to herself, 'I Am not alone', for there were still billions of other particles of water also it seemed destined for this new and strange journey. What is to become of me the particle of water said to herself as yet another gust of wind carried her higher still.
Before too long, she happened to bump into another particle of water and together they held hands and talked about their individual journeys and how they had got to where they were now, it felt good all of a sudden not to be so alone, so they made a pact to try to bump into as many other friendly looking particles of water, for it felt as though at least, in the safety of numbers, they might at least defy this ever increasing upward lift that they were still experiencing, in the hope that one day, they might just be able to find their way home again, to the ocean which was now way, way below them.
In the very far distance storm clouds were brewing and as the day went by, they were drifting ever closer to their present position, high in the sky. By now their number had swelled to a very good number of them all holding hands together so that they did not lose any one of their fellow particles of water. Suddenly the storm system was upon them and they held hands ever tighter than before, grouping themselves together so that they formed by now a tiny droplet of water.
The storm was now gathering speed, rushing westwards and within several hours they saw land ahead. Some of the other particles of water in the great ocean had told them about this strange substance called land and the stories shared had always been rather fantastic, so although with a little trepidation and trembling they anticipated a great adventure ahead, one which they all knew individually one day they too would be sharing with other particles of water in the ocean, which was now starting to recede as they crossed over onto the land mass itself. The droplet of water all the while had been growing larger and larger in size and they could see now that many other particles of water had had exactly the same idea and were all now gathered together in little clumps bouncing and swirling around on the the swirls and rushes of wind which enveloped them. In fact there was quite the party atmosphere and everyone was immensely enjoying themselves.
On and on they flew over the land crossing first the coastal cities sitting on their rivers, up up and away they continued, the rolling landscape below in all it's shades of color, never had they all experienced something so exciting as this. Up ahead they could now see on the horizon a chain of mighty mountains. Suddenly they realised just how many of them there were in this single droplet of water and how heavy all of a sudden they were. You could certainly see them now with the naked eye and it was getting more and more difficult for them to stay airborne.
Before they knew it, they were right on top of the mountain range, when suddenly without warning a huge clap of noise thundered all around them, making every droplet of water quiver and shiver excitedly, when suddenly, slowly at first and then faster and faster they felt themselves falling towards the landmass far below.
Faster and faster they went, tumbling over and over and every other droplet of water around them was doing the same. Without warning they were right on top of the mountain when Plop! - they connected with it and instantly dissipated in many different directions. All the particles of water were highly surprised by the experience but at least the surface upon which they all now found themselves was wet, so they still had a very good feeling about the journey in front of them. Slowly and surely, they felt themselves still being drawn on downwards. Thankfully they had all landed on a rather friendly looking small tree, on one of it's leaves in fact, so sliding over the surface of the leaf, they approached the edge and again felt themselves falling, only this time, not so far, for the next leaf below them caught them safely where they thereupon repeated this several times, landing at last on the actual surface of the earth, and it actually felt very good. Calling goodbye to the tree and saying thank you for being so kind they now slid across the surface of this 'thing' that they had heard was called the ground, arriving shortly in a small puddle of water, where much to their delight, all the other particles of water with which they had shared their journey so far, were now in, with just the last few particles arriving.
All around it was still raining very heavily and already many other particles of water were far ahead of them down below on the mountainside, grouping themselves once again together in little rivulets and then tiny streams and then bigger streams and further ahead still, even greater torrents of water.
The puddle by now was really getting quite full, so joining together again, the droplet formed it's previous friendship with as many other particles as they could muster and they started to teeter towards the edge of the puddle. With a sudden swoosh they went over the edge to begin the great water roller coaster journey of their lives.
Somewhere below, the first torrents of water were now really gushing at full pelt, stirring up the rocks which too were starting to tumble all around them in the same direction. Such was the force of the water at this point, that some rocks were now becoming dislodged from the bedrock upon which they had been attached to for a very long time, and along with them, one small nugget suddenly felt itself being forced away from it's mother and this rock seemed to glow that much brighter than all the other rocks around it. Down and down further the nugget was forced to go and way above him, another droplet of water was experiencing similar emotions. Some time passed, many hours in fact and eventually the very heavy rain started to ease off, however, on the ground, all was still a very great turmoil, as everyone seemed to have the same purpose, which was to get as far down as possible.
The little gold nugget eventually came to a stop in a somewhat perilous location, caught by a tiny projection of rock. He surveyed the scenery flying past him. Billions of droplets of water rushing past, now and again lifting him slightly, before his weight conquered the force and he settled backwards again into his resting place. The water was getting stronger all the time though and he knew that eventually he would be lifted out again and most likely would continue his onward journey to the valley below.
A roaring noise assailed him just a few minutes later from further up the mountainside. Lo and behold it was the droplet of water now rushing downwards with an even mightier force of similar droplets, when suddenly the two came face to face for the very first time. Bang! 'Oh hello', said the droplet diving underneath the nugget of gold, and with another sudden whoosh, the gold nugget felt itself finally lifted up, over the edge of the little projection of rock which hither-to-fore had been holding him back and together they bounced and swirled downwards, finally reaching the valley floor. The gold nugget was ever so thankful to the droplet of water for depositing him in such a quiet and peaceful looking spot and he settled back into his new home, resting place. Checking that he was ok, the droplet swirled around in the eddy a few times, each time passing by the gold nugget and calling out, checking to see that all was well. On the final go around, they called out to each other and bade their goodbye's as the droplet joined the river which was now moving more slowly downstream
Meanwhile somewhere far away, another beautiful event was unfolding. A handsome young man was down on one knee and saying something to a gorgeous looking lady.
On and on the droplet of water journeyed, until eventually after the passage of quite some time, it felt itself tasting salt again and knew instantly that by now it must be very close to the ocean once more.
The nugget of gold was pleasantly pleased with his new surroundings too, the sunlight sparkled like a million diamonds above him and all around him were similar little tiny nuggets of gold just like him. The weeks passed into months, the seasons changed, the water level rose once more for a few months until once again, they dropped and their was a faint discernible difference in the temperature of the water. It was spring and then summer all over again.
Bouncing along the track in his four wheel drive meanwhile, a young handsome man was behind the wheel on one of his many expeditions into this part of the county to prospect for gold. He had already enjoyed quite a few successful seasons and was hoping that today too, he could turn up a decent yield of gold for the surprise gift he was hoping to give to his girlfriend, to whom he was now engaged. Upon arriving in a beautiful and serene very peaceful spot, he turned off the track, parked up and started to pull out his gold prospecting equipment.
He was pleased that by now, with several seasons experience behind him, that he had a few, very good lightweight tools that he knew would help him in his search for gold. He had a plan up his sleeve too, the gold that he found today, was to go with other gold that he had found on previous gold prospecting trips, and via a jeweler craftsman friend of a friend, he was going to have this made into a very beautiful wedding ring, with which to marry his girlfriend. She would see it for the very first time on the actual wedding day. Without further ado, he set to work, setting up the equipment and started the enjoyable experience of looking for gold using his sluice and panning equipment.
As the day was drawing to a close, he thought he would try just one more spot about fifty feet away from where he was presently toiling away.
The nugget of gold saw the shadow first above the surface of the water getting closer and closer and once again a warm glowing feeling came over him as he sensed with a degree of excitement that the next finger of his journey was about to begin.
This young man moved closer with something in his hand, a long tubular device. Suddenly this was right on top of the nugget of gold and with great surprise he felt himself being sucked up out of his lovely resting place and together with other silt and tiny stones and sludge, being conveyed towards the bank, whereupon he was put through several processes which involved being swirled around in a pan. After a very short while, there was less water in the pan than before and then suddenly with a whoop of joy, the man saw for the very first time the little nugget of gold, knowing instantly that he now had enough for his gold ring. Hooray! he thought, talking to himself about how he would have the ring designed.
So this is what is to become of me the gold nugget said to himself, I am to become a gold wedding ring, well, what finer privilege could I have than to help this kind man share his love with the lady of his dreams. What a beautiful item I am to become a part of and to think, everyone will admire me for so many years to come, what could be a more beautiful destiny?
The months passed by, the seasons came and went, the years rolled along and the gold nugget was very happy. He loved his new home, he loved what he stood for, he loved the fact that he was part of a symbol of eternal love and affection between two such very special people. Years rolled into decades and everything was very good.
As if it was yesterday, the couple walked along by the shore of the ocean, still holding hands, arms gently swinging, talking about their life so far together. Still very much in love, it was their golden wedding anniversary. Fingers joined, entwined together in love the little gold nugget could not be happier. The sun was warm and everything felt so very good. Laughingly the couple kicked off their sandals and walked together, the waves now and again rushing up to greet their toes scrunching into the soft golden sands. They embraced, her hand caressing his warm facial features, the gold ring glistened in the sun, a small wave crashed at their feet as they kissed and a tiny droplet of water flew upwards through the air and landed on her third finger onto her gold wedding ring. Everything had come around once again, full circle.
It was a barmy scorching hot day somewhere out in the Pacific Ocean, a rather nondescript place where the ocean waves heaved and sighed in their relentless rise and fall. A single particle a tiny droplet of water within the ocean felt itself being drawn upwards towards the ever increasing strong light above, to start on it's course an amazing journey, until now untold, a love affair between the elements, which would result in one very happy individual like you, holding in their hand, one of the most precious gifts known to man and a lifelong cherished memory of good and happy times.
Upon breaking the surface of the ocean, the particle of water felt itself being lifted up and away from the surface which was still heaving below. Along with billions of other similar particles of water, this particle felt itself rising higher and higher until the ocean home it had known for so long was now far, far below.
Swirling on the winds above, the feeling was very much similar to being in the watery deep which so far had been it's only memory, but this was altogether a totally new environment, at least she thought to herself, 'I Am not alone', for there were still billions of other particles of water also it seemed destined for this new and strange journey. What is to become of me the particle of water said to herself as yet another gust of wind carried her higher still.
Before too long, she happened to bump into another particle of water and together they held hands and talked about their individual journeys and how they had got to where they were now, it felt good all of a sudden not to be so alone, so they made a pact to try to bump into as many other friendly looking particles of water, for it felt as though at least, in the safety of numbers, they might at least defy this ever increasing upward lift that they were still experiencing, in the hope that one day, they might just be able to find their way home again, to the ocean which was now way, way below them.
In the very far distance storm clouds were brewing and as the day went by, they were drifting ever closer to their present position, high in the sky. By now their number had swelled to a very good number of them all holding hands together so that they did not lose any one of their fellow particles of water. Suddenly the storm system was upon them and they held hands ever tighter than before, grouping themselves together so that they formed by now a tiny droplet of water.
The storm was now gathering speed, rushing westwards and within several hours they saw land ahead. Some of the other particles of water in the great ocean had told them about this strange substance called land and the stories shared had always been rather fantastic, so although with a little trepidation and trembling they anticipated a great adventure ahead, one which they all knew individually one day they too would be sharing with other particles of water in the ocean, which was now starting to recede as they crossed over onto the land mass itself. The droplet of water all the while had been growing larger and larger in size and they could see now that many other particles of water had had exactly the same idea and were all now gathered together in little clumps bouncing and swirling around on the the swirls and rushes of wind which enveloped them. In fact there was quite the party atmosphere and everyone was immensely enjoying themselves.
On and on they flew over the land crossing first the coastal cities sitting on their rivers, up up and away they continued, the rolling landscape below in all it's shades of color, never had they all experienced something so exciting as this. Up ahead they could now see on the horizon a chain of mighty mountains. Suddenly they realised just how many of them there were in this single droplet of water and how heavy all of a sudden they were. You could certainly see them now with the naked eye and it was getting more and more difficult for them to stay airborne.
Before they knew it, they were right on top of the mountain range, when suddenly without warning a huge clap of noise thundered all around them, making every droplet of water quiver and shiver excitedly, when suddenly, slowly at first and then faster and faster they felt themselves falling towards the landmass far below.
Faster and faster they went, tumbling over and over and every other droplet of water around them was doing the same. Without warning they were right on top of the mountain when Plop! - they connected with it and instantly dissipated in many different directions. All the particles of water were highly surprised by the experience but at least the surface upon which they all now found themselves was wet, so they still had a very good feeling about the journey in front of them. Slowly and surely, they felt themselves still being drawn on downwards. Thankfully they had all landed on a rather friendly looking small tree, on one of it's leaves in fact, so sliding over the surface of the leaf, they approached the edge and again felt themselves falling, only this time, not so far, for the next leaf below them caught them safely where they thereupon repeated this several times, landing at last on the actual surface of the earth, and it actually felt very good. Calling goodbye to the tree and saying thank you for being so kind they now slid across the surface of this 'thing' that they had heard was called the ground, arriving shortly in a small puddle of water, where much to their delight, all the other particles of water with which they had shared their journey so far, were now in, with just the last few particles arriving.
All around it was still raining very heavily and already many other particles of water were far ahead of them down below on the mountainside, grouping themselves once again together in little rivulets and then tiny streams and then bigger streams and further ahead still, even greater torrents of water.
The puddle by now was really getting quite full, so joining together again, the droplet formed it's previous friendship with as many other particles as they could muster and they started to teeter towards the edge of the puddle. With a sudden swoosh they went over the edge to begin the great water roller coaster journey of their lives.
Somewhere below, the first torrents of water were now really gushing at full pelt, stirring up the rocks which too were starting to tumble all around them in the same direction. Such was the force of the water at this point, that some rocks were now becoming dislodged from the bedrock upon which they had been attached to for a very long time, and along with them, one small nugget suddenly felt itself being forced away from it's mother and this rock seemed to glow that much brighter than all the other rocks around it. Down and down further the nugget was forced to go and way above him, another droplet of water was experiencing similar emotions. Some time passed, many hours in fact and eventually the very heavy rain started to ease off, however, on the ground, all was still a very great turmoil, as everyone seemed to have the same purpose, which was to get as far down as possible.
The little gold nugget eventually came to a stop in a somewhat perilous location, caught by a tiny projection of rock. He surveyed the scenery flying past him. Billions of droplets of water rushing past, now and again lifting him slightly, before his weight conquered the force and he settled backwards again into his resting place. The water was getting stronger all the time though and he knew that eventually he would be lifted out again and most likely would continue his onward journey to the valley below.
A roaring noise assailed him just a few minutes later from further up the mountainside. Lo and behold it was the droplet of water now rushing downwards with an even mightier force of similar droplets, when suddenly the two came face to face for the very first time. Bang! 'Oh hello', said the droplet diving underneath the nugget of gold, and with another sudden whoosh, the gold nugget felt itself finally lifted up, over the edge of the little projection of rock which hither-to-fore had been holding him back and together they bounced and swirled downwards, finally reaching the valley floor. The gold nugget was ever so thankful to the droplet of water for depositing him in such a quiet and peaceful looking spot and he settled back into his new home, resting place. Checking that he was ok, the droplet swirled around in the eddy a few times, each time passing by the gold nugget and calling out, checking to see that all was well. On the final go around, they called out to each other and bade their goodbye's as the droplet joined the river which was now moving more slowly downstream
Meanwhile somewhere far away, another beautiful event was unfolding. A handsome young man was down on one knee and saying something to a gorgeous looking lady.
On and on the droplet of water journeyed, until eventually after the passage of quite some time, it felt itself tasting salt again and knew instantly that by now it must be very close to the ocean once more.
The nugget of gold was pleasantly pleased with his new surroundings too, the sunlight sparkled like a million diamonds above him and all around him were similar little tiny nuggets of gold just like him. The weeks passed into months, the seasons changed, the water level rose once more for a few months until once again, they dropped and their was a faint discernible difference in the temperature of the water. It was spring and then summer all over again.
Bouncing along the track in his four wheel drive meanwhile, a young handsome man was behind the wheel on one of his many expeditions into this part of the county to prospect for gold. He had already enjoyed quite a few successful seasons and was hoping that today too, he could turn up a decent yield of gold for the surprise gift he was hoping to give to his girlfriend, to whom he was now engaged. Upon arriving in a beautiful and serene very peaceful spot, he turned off the track, parked up and started to pull out his gold prospecting equipment.
He was pleased that by now, with several seasons experience behind him, that he had a few, very good lightweight tools that he knew would help him in his search for gold. He had a plan up his sleeve too, the gold that he found today, was to go with other gold that he had found on previous gold prospecting trips, and via a jeweler craftsman friend of a friend, he was going to have this made into a very beautiful wedding ring, with which to marry his girlfriend. She would see it for the very first time on the actual wedding day. Without further ado, he set to work, setting up the equipment and started the enjoyable experience of looking for gold using his sluice and panning equipment.
As the day was drawing to a close, he thought he would try just one more spot about fifty feet away from where he was presently toiling away.
The nugget of gold saw the shadow first above the surface of the water getting closer and closer and once again a warm glowing feeling came over him as he sensed with a degree of excitement that the next finger of his journey was about to begin.
This young man moved closer with something in his hand, a long tubular device. Suddenly this was right on top of the nugget of gold and with great surprise he felt himself being sucked up out of his lovely resting place and together with other silt and tiny stones and sludge, being conveyed towards the bank, whereupon he was put through several processes which involved being swirled around in a pan. After a very short while, there was less water in the pan than before and then suddenly with a whoop of joy, the man saw for the very first time the little nugget of gold, knowing instantly that he now had enough for his gold ring. Hooray! he thought, talking to himself about how he would have the ring designed.
So this is what is to become of me the gold nugget said to himself, I am to become a gold wedding ring, well, what finer privilege could I have than to help this kind man share his love with the lady of his dreams. What a beautiful item I am to become a part of and to think, everyone will admire me for so many years to come, what could be a more beautiful destiny?
The months passed by, the seasons came and went, the years rolled along and the gold nugget was very happy. He loved his new home, he loved what he stood for, he loved the fact that he was part of a symbol of eternal love and affection between two such very special people. Years rolled into decades and everything was very good.
As if it was yesterday, the couple walked along by the shore of the ocean, still holding hands, arms gently swinging, talking about their life so far together. Still very much in love, it was their golden wedding anniversary. Fingers joined, entwined together in love the little gold nugget could not be happier. The sun was warm and everything felt so very good. Laughingly the couple kicked off their sandals and walked together, the waves now and again rushing up to greet their toes scrunching into the soft golden sands. They embraced, her hand caressing his warm facial features, the gold ring glistened in the sun, a small wave crashed at their feet as they kissed and a tiny droplet of water flew upwards through the air and landed on her third finger onto her gold wedding ring. Everything had come around once again, full circle.
All that Glitters - Investing in Gold
Perhaps one of the most recognizable precious commodities in
existence, gold has long been a treasured element in the eyes of the
people. Gold is the treasure which sent explorers crossing the Atlantic
centuries ago. In fact, until the mid 20th century, most countries used a
fixed amount of gold to determine the value of their currency. The
United States did not abandon this gold standard until 1933. While it
may no longer be practical for entire nations to use gold as the
barometer for their economies, many still put considerable investment
into the glittering metal. After all, gold is widely considered to be
one of the most reliable investments for long or short term.
For consumers, investing in gold is not a new trend. One of the earliest examples of such investment was in California, following the gold rush. Towns like San Francisco saw a huge increase in the demand for gold dust, scrap and nuggets to be converted into a more liquid form of cash. Investors quickly supplied this demand by setting up record numbers of banks which issued a uniform currency to the gold owners. The gold was then melted into bars which were transported across the country. This enabled a greater amount of people to become involved in the gold investing boom.
After the stock market crashed and most governments switched from a gold standard to an economy driven currency, some investors lost interest in gold. However, unlike many other precious metals, gold is extremely versatile. Even before it became ingrained as a form of insurance on currency, gold was valued for its beauty and durability. Still today, gold is most easily recognized through its use in fine jewelry and elaborate décor.
Gold's undeniable presence in the jewelry and luxury market has surely helped increase its value. However, none of this can fully explain just how valuable gold has become in the last quarter of a century. From the beginning of the 20th century until around 1980, the value of gold hovered at around $25.00 per ounce. From the early 80's up until present, gold's value has skyrocketed to over $1,000 per ounce. Few other investment options can show this type of track record. Put simply, gold has shown a marked increase in value of almost 4000%. It has more than doubled in the last three years alone.
One of the most popular ways of investing in gold is through buying and selling gold minted coins. In addition to older, antique coins, newer coins are still being minted today. Such examples are the Gold Eagle and the Gold Buffalo. The Gold Eagle coin was first minted in 1986 and is issued in 5, 10, 25 and 50 dollar mints. The Gold Buffalo is a more recent coin and was first minted in 2006. It is available in a $50.00 mint only.
In addition to investing in gold coins, investors can place their money directly in the ownership of gold bullion or bars. While there is a certain panache that comes with having gold bars tucked away in one's home, there are disadvantages. Since gold bullion is heavy, and extremely valuable per bar, they are both cumbersome and potentially unsafe to store at home. For these and other reasons, many companies offer indirect ownership of gold through the purchase of certificates and share ownerships. These allow the owner to prosper from the continued increase in the value of gold without storing it themselves.
Whichever way it is invested, gold continues to show that it is a dominant force on the market. The metal that has forever been tied throughout history as regal and majestic is no less so today. However, perhaps the most unique characteristic of the precious metal is its mystic and magical properties. Maybe it is for this reason that the value of gold continues to rise even as other markets fail. There is an undeniable mystical connection between us and that glittering gold.
For consumers, investing in gold is not a new trend. One of the earliest examples of such investment was in California, following the gold rush. Towns like San Francisco saw a huge increase in the demand for gold dust, scrap and nuggets to be converted into a more liquid form of cash. Investors quickly supplied this demand by setting up record numbers of banks which issued a uniform currency to the gold owners. The gold was then melted into bars which were transported across the country. This enabled a greater amount of people to become involved in the gold investing boom.
After the stock market crashed and most governments switched from a gold standard to an economy driven currency, some investors lost interest in gold. However, unlike many other precious metals, gold is extremely versatile. Even before it became ingrained as a form of insurance on currency, gold was valued for its beauty and durability. Still today, gold is most easily recognized through its use in fine jewelry and elaborate décor.
Gold's undeniable presence in the jewelry and luxury market has surely helped increase its value. However, none of this can fully explain just how valuable gold has become in the last quarter of a century. From the beginning of the 20th century until around 1980, the value of gold hovered at around $25.00 per ounce. From the early 80's up until present, gold's value has skyrocketed to over $1,000 per ounce. Few other investment options can show this type of track record. Put simply, gold has shown a marked increase in value of almost 4000%. It has more than doubled in the last three years alone.
One of the most popular ways of investing in gold is through buying and selling gold minted coins. In addition to older, antique coins, newer coins are still being minted today. Such examples are the Gold Eagle and the Gold Buffalo. The Gold Eagle coin was first minted in 1986 and is issued in 5, 10, 25 and 50 dollar mints. The Gold Buffalo is a more recent coin and was first minted in 2006. It is available in a $50.00 mint only.
In addition to investing in gold coins, investors can place their money directly in the ownership of gold bullion or bars. While there is a certain panache that comes with having gold bars tucked away in one's home, there are disadvantages. Since gold bullion is heavy, and extremely valuable per bar, they are both cumbersome and potentially unsafe to store at home. For these and other reasons, many companies offer indirect ownership of gold through the purchase of certificates and share ownerships. These allow the owner to prosper from the continued increase in the value of gold without storing it themselves.
Whichever way it is invested, gold continues to show that it is a dominant force on the market. The metal that has forever been tied throughout history as regal and majestic is no less so today. However, perhaps the most unique characteristic of the precious metal is its mystic and magical properties. Maybe it is for this reason that the value of gold continues to rise even as other markets fail. There is an undeniable mystical connection between us and that glittering gold.
World of Warcraft Gold Farming
If you are a World of Warcraft player, you may often find
yourself envying those that seem to stumble upon loads of gold almost
effortlessly. Your interest is peaked, and your curiosity beckons when
it comes to finding out how these individuals manage to create so much
wealth with this massive multiplayer online role playing game. The
secret to success is to uncover the strategies that the more experienced
players use when venturing for gold.
We have all heard the saying that goes: "experience is the best teacher" and this holds true everywhere - even in the game. Here, you will be introduced to gold farming, and the many benefits associated with having a legitimate strategy guide when it comes to your own venture for gold.
WoW Gold Farming Guides
If you are a WoW player, it is essential to know and understand the methods of gold farming. One of the easiest methods of acquiring this knowledge is by using a WoW gold farming guide. When selecting your character, you will be able to select from an Alliance character or a Horde character. Regardless of your selection, having the right amount of gold is imperative.
WoW gold farming guides can provide you with all the essentials when it comes to gathering as much gold as possible in the shortest amount of time. There are many different areas where you can collect vast amounts of gold, many of which are virtually unknown by players who do not have access to a guide that will direct them!
While there are numerous gold farming guides on the market that promote the use of tactics that are considered to be "cheats" by Blizzard Entertainment, there are others that use perfectly legitimate ways to obtain gold in World of Warcraft. A good example of this type of guide is Valkor's Gold Making Guide.
By using this highly praised WoW gold farming guide, you can get information on the latest and greatest gold gathering techniques without having to worry about your account being banned by Blizzard Entertainment because of cheats, modifications, and other unethical techniques!
Gold Farming Strategies
There is a number of World of Warcraft gold farming strategies being implemented by millions of players on a daily basis. Many of these techniques have proven to provide a player with an outstanding level of riches, while others allow some players to barely get by. If you subject yourself to the advice of more experienced players through the use of a WoW gold farming guide, you are opening yourself up to the potential to heavily succeed in the game.
Seeing that we mentioned Valkor's Gold Making Guide previously, let's discuss his level of expertise. We feel that this is important because he contributes to the overall value of his product. Now, this individual started playing World of Warcraft on the first day of release. He started to realize the importance of gold in the game when he focused on leveling first, instead of his overall prosperity. He experimented with many different strategies to acquire gold and has ended up stumbling upon some really awesome get rich quick tricks that are completely legitimate, and does not require him to go out and purchase gold in an unethical matter outside of the game environment.
If he can do it, you can too! This is where we fall back to allowing experience to teach us. This is especially true if you are considered to be a low level character. Knowing the right strategies will pump up all that gold, silver, and copper that you are carrying around and increase your levels quickly too!
Some examples of effective gold farming techniques in WoW include the following:
o Choosing the right professions in the game can allow you to earn a load of gold. However, it is important to select locations where you can farm and use your professional skills. For example, the skinner will want to play in an area where he is permitted to skin the monsters that he destroys on a consistent basis. If you are in tailoring, you will want to play in areas where humanoids drop various types of cloths that you can use to create clothing.
o It is important to focus on destroying all those creatures that are off the main roads. Do not be afraid to venture off into the wild and explore. You are bound to run into some monsters and other creatures that will drop various types of WoW cash and loot that you can sell in the in-game auction house for cash. Focus on this endeavor more than quests and other adventures, and you are sure to see an increase in WoW gold.
o Check out the local vendors. Many times, on the last page of items for sale, the vendor will have a limited amount of an item that is considered to be unique. Examples may include patterns for certain type of clothing, and various bags. You may even find recipes for certain foods and potion items. Buy these items out and place them in the auction house. You have the potential to earn up to 10 times or more what you originally paid for the items!
Gold in World of Warcraft
Gold is an essential in the World of Warcraft game. You need gold to purchase items to assist you in your professions and also to purchase armor and weapons that can assist you on your quests. If you want to participate in the in-game auction house, you will need gold to bid or buyout items that you are interested in. You will also need gold to train on skills that are necessary in your two main professions, as well as the secondary professions of first aid, cooking, and fishing.
You will need gold to purchase the items that are necessary to participate in these professions and create items. So, what do you need gold for in World of Warcraft? Virtually everything.
In order to excel in this game, you must have gold. That is the simple and honest truth. One of the best ways to learn about how to create massive amounts of gold is to acquire a gold farming guide created by a "professional" World of Warcraft player. Why waste your time learning all the gold farming secrets yourself, when someone else is willing to share their experience with you? Gold making guides, such as Valkor's, is an essential tool when it comes to mastering the game.
Why This Guide is the Best
Now, we approach the question of what makes this Gold Making Guide the best. There are numerous reasons why this strategy guide stands above the rest. The first, and most important, is that the techniques listed in the guide are perfectly legal and do not violate the terms and conditions of Blizzard Entertainment in no way at all. This means, that you can legitimately use this guide and not be in jeopardy of having your WoW account suspended or banded. With so many cheats out there when it comes down to it, this guide is a breath of fresh air.
The second reason that this gold making guide has rated as one of the best gold farming guides on the market is because it offers so many unique benefits. These benefits include:
o Methods of acquiring gold by purchasing low cost items and then turning them for a large profits
o Details on locations throughout the game that offer numerous possibilities in acquiring WoW gold that many people do not realize are there
o Techniques on how to dominate any market within the WoW game
o Location and information regarding the uncommon and rare sought after items
o And, LOTS more!
If you are ready to excel in World of Warcraft, a gold farming guide is the way to go. One of the best guides available is that which is available from Valkor himself. You can virtually go from making about five copper an hour to two hundred or more gold an hour!
We have all heard the saying that goes: "experience is the best teacher" and this holds true everywhere - even in the game. Here, you will be introduced to gold farming, and the many benefits associated with having a legitimate strategy guide when it comes to your own venture for gold.
WoW Gold Farming Guides
If you are a WoW player, it is essential to know and understand the methods of gold farming. One of the easiest methods of acquiring this knowledge is by using a WoW gold farming guide. When selecting your character, you will be able to select from an Alliance character or a Horde character. Regardless of your selection, having the right amount of gold is imperative.
WoW gold farming guides can provide you with all the essentials when it comes to gathering as much gold as possible in the shortest amount of time. There are many different areas where you can collect vast amounts of gold, many of which are virtually unknown by players who do not have access to a guide that will direct them!
While there are numerous gold farming guides on the market that promote the use of tactics that are considered to be "cheats" by Blizzard Entertainment, there are others that use perfectly legitimate ways to obtain gold in World of Warcraft. A good example of this type of guide is Valkor's Gold Making Guide.
By using this highly praised WoW gold farming guide, you can get information on the latest and greatest gold gathering techniques without having to worry about your account being banned by Blizzard Entertainment because of cheats, modifications, and other unethical techniques!
Gold Farming Strategies
There is a number of World of Warcraft gold farming strategies being implemented by millions of players on a daily basis. Many of these techniques have proven to provide a player with an outstanding level of riches, while others allow some players to barely get by. If you subject yourself to the advice of more experienced players through the use of a WoW gold farming guide, you are opening yourself up to the potential to heavily succeed in the game.
Seeing that we mentioned Valkor's Gold Making Guide previously, let's discuss his level of expertise. We feel that this is important because he contributes to the overall value of his product. Now, this individual started playing World of Warcraft on the first day of release. He started to realize the importance of gold in the game when he focused on leveling first, instead of his overall prosperity. He experimented with many different strategies to acquire gold and has ended up stumbling upon some really awesome get rich quick tricks that are completely legitimate, and does not require him to go out and purchase gold in an unethical matter outside of the game environment.
If he can do it, you can too! This is where we fall back to allowing experience to teach us. This is especially true if you are considered to be a low level character. Knowing the right strategies will pump up all that gold, silver, and copper that you are carrying around and increase your levels quickly too!
Some examples of effective gold farming techniques in WoW include the following:
o Choosing the right professions in the game can allow you to earn a load of gold. However, it is important to select locations where you can farm and use your professional skills. For example, the skinner will want to play in an area where he is permitted to skin the monsters that he destroys on a consistent basis. If you are in tailoring, you will want to play in areas where humanoids drop various types of cloths that you can use to create clothing.
o It is important to focus on destroying all those creatures that are off the main roads. Do not be afraid to venture off into the wild and explore. You are bound to run into some monsters and other creatures that will drop various types of WoW cash and loot that you can sell in the in-game auction house for cash. Focus on this endeavor more than quests and other adventures, and you are sure to see an increase in WoW gold.
o Check out the local vendors. Many times, on the last page of items for sale, the vendor will have a limited amount of an item that is considered to be unique. Examples may include patterns for certain type of clothing, and various bags. You may even find recipes for certain foods and potion items. Buy these items out and place them in the auction house. You have the potential to earn up to 10 times or more what you originally paid for the items!
Gold in World of Warcraft
Gold is an essential in the World of Warcraft game. You need gold to purchase items to assist you in your professions and also to purchase armor and weapons that can assist you on your quests. If you want to participate in the in-game auction house, you will need gold to bid or buyout items that you are interested in. You will also need gold to train on skills that are necessary in your two main professions, as well as the secondary professions of first aid, cooking, and fishing.
You will need gold to purchase the items that are necessary to participate in these professions and create items. So, what do you need gold for in World of Warcraft? Virtually everything.
In order to excel in this game, you must have gold. That is the simple and honest truth. One of the best ways to learn about how to create massive amounts of gold is to acquire a gold farming guide created by a "professional" World of Warcraft player. Why waste your time learning all the gold farming secrets yourself, when someone else is willing to share their experience with you? Gold making guides, such as Valkor's, is an essential tool when it comes to mastering the game.
Why This Guide is the Best
Now, we approach the question of what makes this Gold Making Guide the best. There are numerous reasons why this strategy guide stands above the rest. The first, and most important, is that the techniques listed in the guide are perfectly legal and do not violate the terms and conditions of Blizzard Entertainment in no way at all. This means, that you can legitimately use this guide and not be in jeopardy of having your WoW account suspended or banded. With so many cheats out there when it comes down to it, this guide is a breath of fresh air.
The second reason that this gold making guide has rated as one of the best gold farming guides on the market is because it offers so many unique benefits. These benefits include:
o Methods of acquiring gold by purchasing low cost items and then turning them for a large profits
o Details on locations throughout the game that offer numerous possibilities in acquiring WoW gold that many people do not realize are there
o Techniques on how to dominate any market within the WoW game
o Location and information regarding the uncommon and rare sought after items
o And, LOTS more!
If you are ready to excel in World of Warcraft, a gold farming guide is the way to go. One of the best guides available is that which is available from Valkor himself. You can virtually go from making about five copper an hour to two hundred or more gold an hour!
Thursday, October 18, 2012
Selling Gold - Don't Get Ripped Off
Selling gold, like your old rings and necklaces, looks enticing
these days. When you see the advertisements on TV and the Internet for
gold buyers, all telling you that you'll get top dollar for your junk
gold, remember that you are trading a precious metal for
inflation-ravaged US dollars. All things being equal, you'd be better to
hold onto your old junk gold. The prices for gold are going to
skyrocket in the coming months and years. Don't be surprised to see spot
prices for gold above $5,000 within the next three years.
Gold is a pretty cool substance. One ounce of pure gold can be stretched into a wire five miles long, or hammered into a sheet so thin that it would cover an area 100 square feet in size and light would pass through it. The word "carat" (of which the notation for gold, "karat," is a variation) comes from the Arabic word "qirat," which means "bean pod." In Oriental bazaars, a tiny carob seed was a unit of weight measurement.
This list below shows the karat number of gold, followed by the percentage of pure gold in the alloy.
10K 41.7%
14K 58.3%
18K 75.0%
24K 100%
What kind of alloys go into gold products?
GOLD COLOR CHART
These are the alloys added to pure 24K gold to make its distinctive color.
o Yellow Gold: Copper and silver. Yellow gold comprises 85% of the gold sold throughout the world.
o White Gold: Nickel, Zinc, Silver, Platinum, and Palladium. White gold symbolizes friendship and is the most important of the colored golds.
o Pink (Rose) Gold: Copper. Pink gold has become increasingly popular and looks lovely when combined with yellow or green gold.
o Green Gold: Silver, Copper, and Zinc Green gold is being used more and more with pink gold and yellow gold and is an important part of Black Hills Gold's signature grape leaf design.
I decided to test the market yesterday, and sell a piece of jewelry at the highest price I could find that day. So I called five gold buyers and visited the one that gave me the highest quote on the phone.
Today, July 4, 2009, gold's spot price is $931.50 per ounce of 99.99% pure gold. So, every tenth of an ounce is worth $93.15 today.
The old 14K ring I sold to the gold buyer fetched $90.00. The ring weighed 0.3 ounce. So, I was paid $30 per tenth ounce. Big difference from $93.15, huh?
Here is how the buyer explained the pricing process. They start with the daily spot price of 24K gold. Then, they determine the karat of the gold, and multiply the spot price by the percentage of pure gold in it. Then they deduct the refining costs to smelt and recover the 24K gold. Finally, they deduct 10% as their profit.
So, my transaction's numbers looked like this:
Spot price $931.50
Times 58.3% $543.00 of 24K gold in 14K gold
Times weight 0.30 ounce
Gold value $162.90
Less refining ($ 18.60)
Less 10% profit ($ 54.30) actually 33% of $162.90
Net cash value $90.00
This was the best price I could find. So, as you see, the dealers can and do play games with the percentages, prices, and deductions. It's almost as honest and easy to understand as buying a used car. Almost.
I don't really know if the refining cost is high or not. I don't know if the profit deduction is high or low. And neither will you. So, after the gold buyer lays out his bid for your gold, negotiate to get your best price.
My recommendation is that if you are desperate for cash, call around and get phone quotes from dealers before you get in your car and start making visits to dealers. They won't want to tell you anything by phone because they want to you to be in the store so they can close the deal. Then approach your gold selling transactions with knowledge, which will keep you from getting ripped off.
So, I got killed on this transaction, and the gold buyer will make a big profit at today's gold price. He'll likely wait until gold prices go up before he smelts the gold, and then he'll make more. If you try to sell your gold without knowing their games, you'll also get the lowest price, not the highest price.
Gold is a pretty cool substance. One ounce of pure gold can be stretched into a wire five miles long, or hammered into a sheet so thin that it would cover an area 100 square feet in size and light would pass through it. The word "carat" (of which the notation for gold, "karat," is a variation) comes from the Arabic word "qirat," which means "bean pod." In Oriental bazaars, a tiny carob seed was a unit of weight measurement.
This list below shows the karat number of gold, followed by the percentage of pure gold in the alloy.
10K 41.7%
14K 58.3%
18K 75.0%
24K 100%
What kind of alloys go into gold products?
GOLD COLOR CHART
These are the alloys added to pure 24K gold to make its distinctive color.
o Yellow Gold: Copper and silver. Yellow gold comprises 85% of the gold sold throughout the world.
o White Gold: Nickel, Zinc, Silver, Platinum, and Palladium. White gold symbolizes friendship and is the most important of the colored golds.
o Pink (Rose) Gold: Copper. Pink gold has become increasingly popular and looks lovely when combined with yellow or green gold.
o Green Gold: Silver, Copper, and Zinc Green gold is being used more and more with pink gold and yellow gold and is an important part of Black Hills Gold's signature grape leaf design.
I decided to test the market yesterday, and sell a piece of jewelry at the highest price I could find that day. So I called five gold buyers and visited the one that gave me the highest quote on the phone.
Today, July 4, 2009, gold's spot price is $931.50 per ounce of 99.99% pure gold. So, every tenth of an ounce is worth $93.15 today.
The old 14K ring I sold to the gold buyer fetched $90.00. The ring weighed 0.3 ounce. So, I was paid $30 per tenth ounce. Big difference from $93.15, huh?
Here is how the buyer explained the pricing process. They start with the daily spot price of 24K gold. Then, they determine the karat of the gold, and multiply the spot price by the percentage of pure gold in it. Then they deduct the refining costs to smelt and recover the 24K gold. Finally, they deduct 10% as their profit.
So, my transaction's numbers looked like this:
Spot price $931.50
Times 58.3% $543.00 of 24K gold in 14K gold
Times weight 0.30 ounce
Gold value $162.90
Less refining ($ 18.60)
Less 10% profit ($ 54.30) actually 33% of $162.90
Net cash value $90.00
This was the best price I could find. So, as you see, the dealers can and do play games with the percentages, prices, and deductions. It's almost as honest and easy to understand as buying a used car. Almost.
I don't really know if the refining cost is high or not. I don't know if the profit deduction is high or low. And neither will you. So, after the gold buyer lays out his bid for your gold, negotiate to get your best price.
My recommendation is that if you are desperate for cash, call around and get phone quotes from dealers before you get in your car and start making visits to dealers. They won't want to tell you anything by phone because they want to you to be in the store so they can close the deal. Then approach your gold selling transactions with knowledge, which will keep you from getting ripped off.
So, I got killed on this transaction, and the gold buyer will make a big profit at today's gold price. He'll likely wait until gold prices go up before he smelts the gold, and then he'll make more. If you try to sell your gold without knowing their games, you'll also get the lowest price, not the highest price.
Now, I'd like to offer you two special reports at no cost. One is
"5 Things To Do When Shopping For Car Insurance," and the other is "5
Things To Avoid When Shopping For Car Insurance." Each one is a $9.95
value, but free to you when you sign up for my newsletter at the website
address below.
Confused About Gold and the Dollar? Understand Their Relationship Before You Invest
It's not known for sure where the concept that an ounce of gold
could always buy a nice businessman's suit came from, but the analogy is
used today by many who want to paint a positive picture for gold. The
premise of the story is used to reveal the fact that the dollar has lost
95%-98% of its purchasing power since the creation of the Federal
Reserve in 1913.
The typical story goes something like this:
"In the early 1900's an ounce of gold was worth $20.00 and could buy a nice men's suit. During that time an ounce of gold was worth $20. Today an ounce of gold is worth around $960.00 and can still buy a very nice men's suit whereas $20 might get you a necktie."
But how much of the story is fact, and how much is fiction? Are we really comparing apples to apples when we use this analogy of the price of a businessman's suit and the price of an ounce of gold both then and now?
There's the assumption that the $20 cash just sat there earning nothing. Is this what a person did back in the beginning of the 20th century? Who in their right mind would do this? Would you do it today? Today's investor is always trying to have their money earn more money. In the 20's, they did the same.
The parable assumes that people did in fact take the $20 and put it under their mattress.
My grandmother was from that era and one of those who feared losing money. When she passed away in the 90's, we found some old birthday cards that she had received with the $10's and $20's still stuck in the card. But she probably didn't want to lose money in the stock market, so kept it from her husband who liked to dabble. Her husband, my grandfather, like many in the 20th century, did like to play the stock market or put their money in bonds or a bank where it could earn interest.
They called it the roaring 20's for a reason and the stock market was doing well and so were the banks.
But the stock market crashed in 1929 and the thousands of banks failed soon thereafter. In 1933, gold was even confiscated.
So stocks, bonds, dollars and gold all had their problems, but for the sake of argument, let's ignore the various problems of that era and deal with what's happened since that time with gold, bonds and stocks.
While it is true that the purchasing power of gold in and of itself has kept pace with inflation over the years, the dollar in and of itself has not. But the dollar does offer the investor something that gold doesn't, and that is interest.
Gold does not offer the investor any interest while the dollar that is put in the bank offers the depositor a return on their deposit. Bonds and some stocks offer interest (dividends) as well.
The bank offered a depositor interest on their savings account and this is what normal people did back in the 1920's. This accumulated interest is what the price of an ounce of gold should be compared to today.
So to do apples to apples historical comparison, one has to measure the value of one investment that they held at that point in time versus the other based on what a rational, reasonable investor would do.
Naturally, you would agree, a rational investor would not put the $20 under their mattress back in the 1920's just as they wouldn't today (emphasis on the word rational here). On a side note, I'll also leave out of this analysis the fact that the businessman's suit bought in the 20's, today would be rather old and musty and more than likely didn't retain its purchasing power and I'll also leave out the fact that those folks who put their dollars under the mattress back then would get a decent amount for them today from collectors if they were kept in good condition.
The Historic Analysis of Gold vs. the Dollar
Since we already know the price of gold today, we need to go back and calculate the interest paid on dollars and bonds from that period of time to today. I've also included a comparison to stocks.
I picked the year 1929 to do my calculation. Gold was priced about $20 an ounce1 then and had been holding steady at that price for years.
The dollar had not yet depreciated by 60% with the revaluing of gold to $35 an ounce in 1934, so in a sense, I'm allowing for the fact that the price of gold was artificially moved higher and the dollar was knocked down a peg or two. This depreciation of the dollar didn't help most as they were not allowed to own gold at the time. It only helped the government and the Federal Reserve, but that's a story for another time.
So to find the interest earned from 1929 to 2008, I turned to this website; http://www.measuringworth.org/interestrates/ and used the "short term"3 rates as my guide.4 Keep in mind I'm not using CD rates5 which have actually averaged 1.1% higher than short term rates over the last 10 years, but I did analyze long term bond rates6
Compounding the data, the $20 would have grown to $393.86 in the short-term asset account and $1,904.23 in the long-term asset (at a term of one year's account) by the year 2008.7 The DOW Jones Average would have returned you $562 (before dividends).8
These figures you can then compare to the current price of gold at $981.751
You can see from this analysis that the gold price historically fits somewhere between a short term savings account and a long term "one year bond" account. Gold has performed 42% better than the DOW during this time-frame.
So if someone put all their money each year into short-term asset accounts, they wouldn't be able to buy the same businessman's suit as they could if they had put it in gold, but they'd still be able to buy a decent suit at Men's Warehouse but not what $981 could buy you at Brooks Brothers.
Either way, it's a bit of a false conclusion comparing what a $20 ounce of gold can buy in 1929 versus what $20 cash can buy today. There has been a benefit of compounding interest one has received on that $20 put in the bank over the years. There is also the fact that the dollar still had gold backing for 42 years of this analysis until Nixon took the U.S. off the gold standard.
Now the Good News Concerning Gold...
Let's take a look at the dollar's performance after Nixon took the U.S. off the gold standard in August of 1971. The price of gold in August of 1971 averaged 42.73 an ounce.
What have the interest bearing savings accounts and long-term one year asset bonds earned versus gold during this 1971-2008 time-frame?
Beginning with $42.73 in 1971, the short-term savings account would have returned you $350.87 while the long-term one year asset would have returned you $832.93. The Dow Jones Industrial Average return would have been $425.34, again without dividends, but keep in mind that stocks since 1971 weren't paying anywhere near the dividends like they had been).
You will notice that the difference between the short-term savings account compounded from 1929 to 2008 isn't much different than the 1971 to 2008 figure, about $43.00. Why is this? ....because for 42 years, up until 1971, gold backed the dollar. At that time, gold and the dollar were perceived as equivalents. So since 1971 interest rates have had to rise to keep pace with the loss of purchasing power of the dollar. The problem is they haven't.
Not even the glorious stock market has kept pace with gold yet this is where most people invest their money. Long term bonds have held their own, but are now weakening compared to the price of gold.
Bottom line: Gold is breaking free!
The Great Decoupling of Gold from the Dollar
What you are seeing folks is the decoupling of gold from the dollar, short and long term bonds as well as stocks. Since 1971, gold has outperformed cash, stocks and bonds, yet you never see your financial adviser, sans a few, recommend gold as an investment. Why is that?
The answer is simply they can't make any money selling it...so they don't, plus the fact they don't understand it. Most people don't understand gold as an investment or how it fits into one's portfolio.
Gold needs to be a part of every person's portfolio. Gold is insurance as the dollar falls. Gold is the wealth you need to pay for things. Gold used to back the dollar. Now it has decoupled from it.
1 kitco.com (Click on Historical Charts for gold)
2 See actual year by year interest rates by inputting the years 1929 and 2007. They had only calculated through the year 2007 by the time of this writing.
3 Short-term (similar to a savings account at a bank): assumes that the principal investment is made in equal installments throughout the initial year at the average short-term rate for that year. The principal plus the interest accumulated is then reinvested at the average short-term rate for the second year. This continues until the final year, when the withdrawal is assumed to be made over equal installments throughout that year.
4 I calculated the year 2008 by using the short term rate of 3% and for the five months ending May 31st, 2009 I utilized a rate of 1.5%.
5 CD Rates Last 10 years; jumbocdinvestments.com
6 Long-term (assumes a government or corporate bond): assumes that the principal investment is made in equal installments throughout the initial year at the average long-term rate for that year. The principal plus the interest accumulated is reinvested at that same rate for the second year, and continues at that rate for the number of years of the term you have selected. At this point, the calculator will use the long-term rate of the next year and repeat the process. This continues until the final year, when the withdrawal is again assumed to be made over equal installments.
7 I used 1.83% for 2008 one year Government bond and .56% for the average of 5 months ended 5/31/09. Source: http://www.federalreserve.gov/releases/h15/data.htm
8 Keep in mind that taxes are not taken into account in this analysis as tax rates have varied over time for both income and capital gains. Tax deferred annuities could have been utilized in the analysis with gold where the accumulated value withdrawn at the end of 2008 would result in a combined federal and state tax rate close to 50% (depending on your state) while the sale of gold would result in a 28% tax on the capital gain. If one was taxed all along in the short-term and long-term account, the effective rate would be about 60% on average for the top tax bracket and possibly 15% or no tax for the lower tax brackets. There are too many variables involved, so I have just compared each asset with no tax ramifications.
The typical story goes something like this:
"In the early 1900's an ounce of gold was worth $20.00 and could buy a nice men's suit. During that time an ounce of gold was worth $20. Today an ounce of gold is worth around $960.00 and can still buy a very nice men's suit whereas $20 might get you a necktie."
But how much of the story is fact, and how much is fiction? Are we really comparing apples to apples when we use this analogy of the price of a businessman's suit and the price of an ounce of gold both then and now?
There's the assumption that the $20 cash just sat there earning nothing. Is this what a person did back in the beginning of the 20th century? Who in their right mind would do this? Would you do it today? Today's investor is always trying to have their money earn more money. In the 20's, they did the same.
The parable assumes that people did in fact take the $20 and put it under their mattress.
My grandmother was from that era and one of those who feared losing money. When she passed away in the 90's, we found some old birthday cards that she had received with the $10's and $20's still stuck in the card. But she probably didn't want to lose money in the stock market, so kept it from her husband who liked to dabble. Her husband, my grandfather, like many in the 20th century, did like to play the stock market or put their money in bonds or a bank where it could earn interest.
They called it the roaring 20's for a reason and the stock market was doing well and so were the banks.
But the stock market crashed in 1929 and the thousands of banks failed soon thereafter. In 1933, gold was even confiscated.
So stocks, bonds, dollars and gold all had their problems, but for the sake of argument, let's ignore the various problems of that era and deal with what's happened since that time with gold, bonds and stocks.
While it is true that the purchasing power of gold in and of itself has kept pace with inflation over the years, the dollar in and of itself has not. But the dollar does offer the investor something that gold doesn't, and that is interest.
Gold does not offer the investor any interest while the dollar that is put in the bank offers the depositor a return on their deposit. Bonds and some stocks offer interest (dividends) as well.
The bank offered a depositor interest on their savings account and this is what normal people did back in the 1920's. This accumulated interest is what the price of an ounce of gold should be compared to today.
So to do apples to apples historical comparison, one has to measure the value of one investment that they held at that point in time versus the other based on what a rational, reasonable investor would do.
Naturally, you would agree, a rational investor would not put the $20 under their mattress back in the 1920's just as they wouldn't today (emphasis on the word rational here). On a side note, I'll also leave out of this analysis the fact that the businessman's suit bought in the 20's, today would be rather old and musty and more than likely didn't retain its purchasing power and I'll also leave out the fact that those folks who put their dollars under the mattress back then would get a decent amount for them today from collectors if they were kept in good condition.
The Historic Analysis of Gold vs. the Dollar
Since we already know the price of gold today, we need to go back and calculate the interest paid on dollars and bonds from that period of time to today. I've also included a comparison to stocks.
I picked the year 1929 to do my calculation. Gold was priced about $20 an ounce1 then and had been holding steady at that price for years.
The dollar had not yet depreciated by 60% with the revaluing of gold to $35 an ounce in 1934, so in a sense, I'm allowing for the fact that the price of gold was artificially moved higher and the dollar was knocked down a peg or two. This depreciation of the dollar didn't help most as they were not allowed to own gold at the time. It only helped the government and the Federal Reserve, but that's a story for another time.
So to find the interest earned from 1929 to 2008, I turned to this website; http://www.measuringworth.org/interestrates/ and used the "short term"3 rates as my guide.4 Keep in mind I'm not using CD rates5 which have actually averaged 1.1% higher than short term rates over the last 10 years, but I did analyze long term bond rates6
Compounding the data, the $20 would have grown to $393.86 in the short-term asset account and $1,904.23 in the long-term asset (at a term of one year's account) by the year 2008.7 The DOW Jones Average would have returned you $562 (before dividends).8
These figures you can then compare to the current price of gold at $981.751
You can see from this analysis that the gold price historically fits somewhere between a short term savings account and a long term "one year bond" account. Gold has performed 42% better than the DOW during this time-frame.
So if someone put all their money each year into short-term asset accounts, they wouldn't be able to buy the same businessman's suit as they could if they had put it in gold, but they'd still be able to buy a decent suit at Men's Warehouse but not what $981 could buy you at Brooks Brothers.
Either way, it's a bit of a false conclusion comparing what a $20 ounce of gold can buy in 1929 versus what $20 cash can buy today. There has been a benefit of compounding interest one has received on that $20 put in the bank over the years. There is also the fact that the dollar still had gold backing for 42 years of this analysis until Nixon took the U.S. off the gold standard.
Now the Good News Concerning Gold...
Let's take a look at the dollar's performance after Nixon took the U.S. off the gold standard in August of 1971. The price of gold in August of 1971 averaged 42.73 an ounce.
What have the interest bearing savings accounts and long-term one year asset bonds earned versus gold during this 1971-2008 time-frame?
Beginning with $42.73 in 1971, the short-term savings account would have returned you $350.87 while the long-term one year asset would have returned you $832.93. The Dow Jones Industrial Average return would have been $425.34, again without dividends, but keep in mind that stocks since 1971 weren't paying anywhere near the dividends like they had been).
You will notice that the difference between the short-term savings account compounded from 1929 to 2008 isn't much different than the 1971 to 2008 figure, about $43.00. Why is this? ....because for 42 years, up until 1971, gold backed the dollar. At that time, gold and the dollar were perceived as equivalents. So since 1971 interest rates have had to rise to keep pace with the loss of purchasing power of the dollar. The problem is they haven't.
Not even the glorious stock market has kept pace with gold yet this is where most people invest their money. Long term bonds have held their own, but are now weakening compared to the price of gold.
Bottom line: Gold is breaking free!
The Great Decoupling of Gold from the Dollar
What you are seeing folks is the decoupling of gold from the dollar, short and long term bonds as well as stocks. Since 1971, gold has outperformed cash, stocks and bonds, yet you never see your financial adviser, sans a few, recommend gold as an investment. Why is that?
The answer is simply they can't make any money selling it...so they don't, plus the fact they don't understand it. Most people don't understand gold as an investment or how it fits into one's portfolio.
Gold needs to be a part of every person's portfolio. Gold is insurance as the dollar falls. Gold is the wealth you need to pay for things. Gold used to back the dollar. Now it has decoupled from it.
1 kitco.com (Click on Historical Charts for gold)
2 See actual year by year interest rates by inputting the years 1929 and 2007. They had only calculated through the year 2007 by the time of this writing.
3 Short-term (similar to a savings account at a bank): assumes that the principal investment is made in equal installments throughout the initial year at the average short-term rate for that year. The principal plus the interest accumulated is then reinvested at the average short-term rate for the second year. This continues until the final year, when the withdrawal is assumed to be made over equal installments throughout that year.
4 I calculated the year 2008 by using the short term rate of 3% and for the five months ending May 31st, 2009 I utilized a rate of 1.5%.
5 CD Rates Last 10 years; jumbocdinvestments.com
6 Long-term (assumes a government or corporate bond): assumes that the principal investment is made in equal installments throughout the initial year at the average long-term rate for that year. The principal plus the interest accumulated is reinvested at that same rate for the second year, and continues at that rate for the number of years of the term you have selected. At this point, the calculator will use the long-term rate of the next year and repeat the process. This continues until the final year, when the withdrawal is again assumed to be made over equal installments.
7 I used 1.83% for 2008 one year Government bond and .56% for the average of 5 months ended 5/31/09. Source: http://www.federalreserve.gov/releases/h15/data.htm
8 Keep in mind that taxes are not taken into account in this analysis as tax rates have varied over time for both income and capital gains. Tax deferred annuities could have been utilized in the analysis with gold where the accumulated value withdrawn at the end of 2008 would result in a combined federal and state tax rate close to 50% (depending on your state) while the sale of gold would result in a 28% tax on the capital gain. If one was taxed all along in the short-term and long-term account, the effective rate would be about 60% on average for the top tax bracket and possibly 15% or no tax for the lower tax brackets. There are too many variables involved, so I have just compared each asset with no tax ramifications.
After over 20 years as an investment adviser, Doug Eberhardt left
the business to write & expose what's really going on in America's
economy & help investors keep and grow their wealth. You can follow
his blog at http://www.fedupbook.com/blog
If you would like to know more about investing in gold, read my free White Paper, "How Gold Investments Can Secure Your Retirement Years" available at http://www.fedupbook.com/whitepaper
If you would like to know more about investing in gold, read my free White Paper, "How Gold Investments Can Secure Your Retirement Years" available at http://www.fedupbook.com/whitepaper
Stocks Will Fall 37% Or Gold Will Rally 60%
How's this for a bubble?
In 1965 one in ten Americans owned stocks. In 1990, one in five Americans owned stocks. Put another way, it took 25 years for stock ownership to double in the US. And most of that growth came between 1983 and 1990 with the introduction of 401(k)s, IRAs and other stock-based retirement plans: suddenly anyone with a large scale employer could invest in stocks without having to open a brokerage account.
Thanks to the Internet and low fee online brokerage accounts, it only took seven more years for stock ownership to double AGAIN. Put another way, the rate at which new participants entered the stock market accelerated four fold between 1990 and 1999. By the end of the 20th century, 48% of US households owned stocks.
This is the one bubble no one talks about.
I'm talking about the bubble in "investing in stocks." Never before have so many Americans done this. It gave us one of the biggest bull markets in stock history: a mega-18 years run from 1982 to 2000. But it also means that stocks have got a long ways to fall to get back in line with their historic relationships to other asset classes.
Particularly gold.
A lot of commentators talk about how gold is near an all-time high and that stocks have fallen 50%, making them cheap again. However from a long-term perspective, gold and stocks are nowhere near their normal relationship.
According to Dr Marc Faber, editor of the Gloom Boom Doom Report, gold and stocks move in distinctive long-term trends. Over the last 110 years, these trends has staged six major phases:
1900-1929: stocks outperform gold
1929-1932: gold outperforms stocks
1932-1966: stocks outperform gold
1966-1980: gold outperforms stocks
1980-2000: stocks outperform gold
2000-???: gold outperforms stocks
Overall, the median stock to gold ratio for the last 106 years is 5.4. In other words, throughout the 20th century, on average 5.4 ounces of gold would buy one unit of the DJIA.
Today, gold trades at $980. The DJIA trades at 8,500. This puts the ratio of gold to stocks at 8.6. Thus, the DJIA needs to fall to 5,292 (a 37% drop from today's level), gold needs to rally to $1,574 (a 60% rally from today's level), or some combination of the two, in order for gold to be appropriately priced relative to stocks again.
When exactly this will happen is anyone's guess. The gold vs. stocks trends over the last 106 years have ranged in length from three years to 29 years. However, judging from the Fed's money printing and the recent action in gold, it's quite possible we'll see a mammoth run in the precious metal sometime in the next 18 months.
During the last bull market in gold, the precious metal rose 2,329% from a low of $35 in 1970 to a high of $850 in 1980. However, during that time, there was a period of 18 months in which gold fell nearly 50%.
From mid-1971 to December 1974, gold rose 471%. It then fell 50%, from December '74 to August '76. After that, it began its next leg up, exploding 750% higher from August '76 to January 1980.
Now, in its current bull market (2001 to March 2008), gold rose over 300% from $250 to a little over $1,000. And just like in the mid-70s, it began showing signs of weakness after its first big rally up to $1,014 in March '08. At one point, it even fell to $700, a 30% retraction. Granted, it wasn't a full 50% retraction like the one that occurred from 1974-76. But we are experiencing a financial crisis. And gold is the most common catastrophe insurance.
If we were to go by the historic pattern of the gold market in the '70s, gold should experience upwards resistance for 19 months after its first peak today. Gold's recent peak was $1,014 in March '08 (roughly 14 months before the writing of this report). If this bull market parallels the last one, then gold should renew its upward momentum in a very serious way starting in October 2009. And this next leg up should be a major one (the biggest gains came during the second rally in gold's bull market in the '70s).
In fact, it's already happening...
According to Capital Gold, a precious metals dealer, the demand for gold from self-directed IRAs has more than doubled since January 1, 2009. The World Gold Council notices similar spikes in demand for the gold ETF, writing "Inflows into gold ETFs continued to grow throughout the quarter, with investors buying a record 469 tonnes of gold, dwarfing the previous quarterly record of 145 tonnes, set in the third quarter of last year."
Globally, entire gold markets that didn't exist in 1980 are now beginning to buy the precious metal. Vietnam started trading gold futures in June 2007. Already the exchange trades around $100 million in gold futures a day. China's Shanghai Futures Index started trading gold futures just a few months ago. The latter country has already surpassed the U.S. as the second largest consumer of gold behind India.
Prepare in advance.
Bottomline: don't let the talking heads fool you. Stocks are not cheap, especially compared to gold. And the bull market is gold is nowhere near over. Over the last 35 years, more Americans began investing than at ANY other period in history. As stocks collapse later this year, they'll either pull out their money pushing the DJIA lower OR they'll shift their money into alternate investment classes like gold. When they do, the DJIA will fall further and gold will erupt higher.
Good Investing,
Graham Summers
In 1965 one in ten Americans owned stocks. In 1990, one in five Americans owned stocks. Put another way, it took 25 years for stock ownership to double in the US. And most of that growth came between 1983 and 1990 with the introduction of 401(k)s, IRAs and other stock-based retirement plans: suddenly anyone with a large scale employer could invest in stocks without having to open a brokerage account.
Thanks to the Internet and low fee online brokerage accounts, it only took seven more years for stock ownership to double AGAIN. Put another way, the rate at which new participants entered the stock market accelerated four fold between 1990 and 1999. By the end of the 20th century, 48% of US households owned stocks.
This is the one bubble no one talks about.
I'm talking about the bubble in "investing in stocks." Never before have so many Americans done this. It gave us one of the biggest bull markets in stock history: a mega-18 years run from 1982 to 2000. But it also means that stocks have got a long ways to fall to get back in line with their historic relationships to other asset classes.
Particularly gold.
A lot of commentators talk about how gold is near an all-time high and that stocks have fallen 50%, making them cheap again. However from a long-term perspective, gold and stocks are nowhere near their normal relationship.
According to Dr Marc Faber, editor of the Gloom Boom Doom Report, gold and stocks move in distinctive long-term trends. Over the last 110 years, these trends has staged six major phases:
1900-1929: stocks outperform gold
1929-1932: gold outperforms stocks
1932-1966: stocks outperform gold
1966-1980: gold outperforms stocks
1980-2000: stocks outperform gold
2000-???: gold outperforms stocks
Overall, the median stock to gold ratio for the last 106 years is 5.4. In other words, throughout the 20th century, on average 5.4 ounces of gold would buy one unit of the DJIA.
Today, gold trades at $980. The DJIA trades at 8,500. This puts the ratio of gold to stocks at 8.6. Thus, the DJIA needs to fall to 5,292 (a 37% drop from today's level), gold needs to rally to $1,574 (a 60% rally from today's level), or some combination of the two, in order for gold to be appropriately priced relative to stocks again.
When exactly this will happen is anyone's guess. The gold vs. stocks trends over the last 106 years have ranged in length from three years to 29 years. However, judging from the Fed's money printing and the recent action in gold, it's quite possible we'll see a mammoth run in the precious metal sometime in the next 18 months.
During the last bull market in gold, the precious metal rose 2,329% from a low of $35 in 1970 to a high of $850 in 1980. However, during that time, there was a period of 18 months in which gold fell nearly 50%.
From mid-1971 to December 1974, gold rose 471%. It then fell 50%, from December '74 to August '76. After that, it began its next leg up, exploding 750% higher from August '76 to January 1980.
Now, in its current bull market (2001 to March 2008), gold rose over 300% from $250 to a little over $1,000. And just like in the mid-70s, it began showing signs of weakness after its first big rally up to $1,014 in March '08. At one point, it even fell to $700, a 30% retraction. Granted, it wasn't a full 50% retraction like the one that occurred from 1974-76. But we are experiencing a financial crisis. And gold is the most common catastrophe insurance.
If we were to go by the historic pattern of the gold market in the '70s, gold should experience upwards resistance for 19 months after its first peak today. Gold's recent peak was $1,014 in March '08 (roughly 14 months before the writing of this report). If this bull market parallels the last one, then gold should renew its upward momentum in a very serious way starting in October 2009. And this next leg up should be a major one (the biggest gains came during the second rally in gold's bull market in the '70s).
In fact, it's already happening...
According to Capital Gold, a precious metals dealer, the demand for gold from self-directed IRAs has more than doubled since January 1, 2009. The World Gold Council notices similar spikes in demand for the gold ETF, writing "Inflows into gold ETFs continued to grow throughout the quarter, with investors buying a record 469 tonnes of gold, dwarfing the previous quarterly record of 145 tonnes, set in the third quarter of last year."
Globally, entire gold markets that didn't exist in 1980 are now beginning to buy the precious metal. Vietnam started trading gold futures in June 2007. Already the exchange trades around $100 million in gold futures a day. China's Shanghai Futures Index started trading gold futures just a few months ago. The latter country has already surpassed the U.S. as the second largest consumer of gold behind India.
Prepare in advance.
Bottomline: don't let the talking heads fool you. Stocks are not cheap, especially compared to gold. And the bull market is gold is nowhere near over. Over the last 35 years, more Americans began investing than at ANY other period in history. As stocks collapse later this year, they'll either pull out their money pushing the DJIA lower OR they'll shift their money into alternate investment classes like gold. When they do, the DJIA will fall further and gold will erupt higher.
Good Investing,
Graham Summers
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Good investing!
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Delivered every morning to your inbox before the market opens, Gains, Pains, and Capital shows you the REAL story behind market fluctuations.
We've already uncovered the following opportunities:
How to Buy Gold at $188 an ounce...
Three Investments that will SOAR in the coming Inflationary Holocaust...
A SECRET Investment offering the largest payouts permitted by US law...
And MORE!
To become a subscriber to Gains, Pains, and Capital go to [http://www.gainspainscapital.com/subscribe.html]
Good investing!
Gains, Pains, & Capital
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