Buy Gold and Silver Coins Investment

New Rekordhochs while gold prices are possible …

Even from analytical perspective seems to be some evidence. This indicates, among other things, the 38th Edition of the Gold Survey of independent research company GFMS in London. “Gold prices of more than 600 US dollars are now not only in sight, but further price gains in the coming one or two years are possible. Under the appropriate circumstances, it seems to be even conceivable that the high in 1980 at 850 US dollars out, “Philip Klapwijk seized as GFMS chairman the key results of the analysis.

Background of the recent price gains of the precious metal were primarily purchases of international investors. They should his assessment in the current year for a further price boost. Investors often sought after for reasons such investments, Klapwijk. And did with the Hurricane Katrina and induced him by the rally in the energy complex because even find. At the same time had not only the well-known concerns about global imbalances and the American double deficit played a role, but also the perception of investors that the central bank the precious metal again positive than in the past considered. In Japan, the interest also of a strong yen weakness has been driven.

In view of the current year was the core motivation for the purchase of precious metals in the likelihood of an economic slowdown in the United States and the possible decline of the dollar. Other factors can be in the form of inflation but also geopolitical concerns with regard to the Middle-East and Middle East. But that is not all. Because “you play with fire if you ignore the liquidity argument,” said Klapwijk to look forward. If new “players”, such as pension funds on the basis of past performance in the commodity markets should be considered, then the gold price could really take off. If only a small part of the huge assets to be transformed into gold, the gold market is relatively small, then, the price would significantly upward.

… But rather because of speculation because of industrial demand

Such a development would have a lot to do with speculation. For example, look at the demand from the jewellery production, as they did last year increased by 100 tons. But in the first half, where the growing acceptance of prices above 400 dollars in connection with a strong economic growth in Asia for a certain momentum had ensured. On the other hand, the demand in the fourth quarter was weak because the price has significantly tightened and the increased volatility.

A similar trend was also in the market for gold to scrap observed. Here is the offer in the first half, while in the second it increased significantly. For this reason Klapwijk look with a degree of scepticism on the demand from the jewellery industry in the current year. “After what we saw in the first few months have heard, it could be in the year 2006 to 500 tonnes fall. That would be the use of this site some 400 tonnes below mine production. And this is not a sustainable long-term development, “said Klapwijk.

The trend was reversed in 2001, largely due to higher prices of other raw materials including oil. In 1999, black gold had fallen to 10 dollars per barrel, whereas it is now between 85 and 100 dollars. It is therefore not surprising to see or exceed the $ 900 early this year. However, adjusted for price drift in the United States, the precious metal has not regained its purchasing power. Indeed, the current historic gold at $ 850 an ounce in 1980 corresponds to a price of around $ 2200 today.

The market price of gold resulting from the confrontation between supply and demand, just like any market, but also in reference to the ingot. In addition, the documents are initially intended to serve as a medium of exchange for goods and services, they have not been beaten in pure gold, but contain an alloy to enhance hardness. Thus, our humphead wrasse (20 francs), whose gross vehicle weight is 6.4516 grams, comprises only 5.8 grams of fine gold. The $ 20 coin of the United States, which has a gross weight of 33437 grams, 30.09 grams requires of fine gold. This weight is taken into account to calculate the premium or discount parts.

The disinterest of investors for gold coins because of an unfavorable tax, the declining price of gold on the end of the last century, the risk of theft and damage have long created a selling pressure. Until recent months, the documents showed even a discount to their weight in gold. This discount is roughly the cost required for the melting of parts to recover gold.
The runway collection pieces
The return of sustained demand for physical gold is gradually an end to this situation. However, the fluctuations are not negligible, hence the need to move purchase orders and sales to current limit. Thus, the humphead wrasse showed a premium of 0.51% on Jan. 15, while on January 30 it externalising a discount of 0.83%. The half-humphead wrasse (10 francs), which is the subject of transactions more comprehensive, contains a higher premium (10.59% to 30 January), but markedly lower than in mid-January (14.04% ).

Some parts are subjected to particularly large fluctuations. Thus, the 50-piece Mexican pesos, which contains 37.5 grams of pure gold, keeps up with a premium (2.29% at January 30), whereas in the middle of the month décotait 2.84%. In contrast, the premium on the 20 United States dollars amounts to a more reasonable level (6.21% vs. 16.79%) previously. Under these circumstances, should never rush to buy or sell coins.

But the problem is that I think that for the forums is confusing to people. Arguments are being very rare.

The first thing to bear in mind is that the Bank of Spain is not only selling gold, but all you have. Bonds, currencies, etc.. This invalidates the argument that “gold was at maximum values and want profitable.” Clearly, there is a massive liquidation for a specific reason. What we do not want is to clarify that reason. The popular deputy asked Solbes did just about the gold, which is the most striking, “Moscow gold”, and so on. But that was a mistake because Solbes quickly threw the ball away with a chorradilla.

Then he thinks that that can be done to balance the current account deficit. In what sense? I say this because in these technical issues, I note more insecure because I am not conversant. Does Balancing the balance of payments by selling gold to make this record as “exports”? Do liquidate reserves to mask a figure? After I had that figure unchecked for years and they so quiet? The truth is that we do not understand.

Then it came to the “12 days of imports.” Is that imports of Spanish private companies are paid by the Bank of Spain? I believe that the twelve days is used as a measurement to show the little size of the reserves with respect to the size of our economy.

Another issue is the “gold no longer needed because we are in the euro.” First, gold is needed because the same ECB has no reserves, remain the central banks of member countries of the euro. And second, that does not explain why malvende gold at full speed below its market value, or where that money goes. If Solbes said that it was buying bonds, we must ask exactly what and why bonds also sold bonds Americans (US Treasuries) and English (British gilts).

And another thing: why Kiener said that we are bankrupt? Why has basa? Well, I think that he is a specialist in the gold market, basa is simply that these sales as hasty, below market value, by a central bank has seen only in situations of extreme liquidity and very close into bankruptcy. That alone I think basa, in his experience of 25 years in this market.

So, nobody knows what is really happening, of course. I have a hypothesis, now you count. But make it clear that is only a hypothesis:

If poceros be around 25% of GDP at banks (especially those boxes), and those debts were paid with the sales floor, so if the floors are not sold debts not being paid. Promoters middle always working on credit. If you have the money to do uncle hundred houses, borrow ten times more to his friend in the housing and construction thousand. That is how we have been winning pasta in a frantic race.

So this promoter has a thousand homes built, a thousand euros per month for each mortgage, a milloncito a month has to pay the cash. If he has three or four million euros and loose, because it’s going to pay and in the meantime will subrogando mortgages to those who buy pardillos there in the booth. But of course, if pardillos fail, spend one, two, three months, the milloncito euros, plus the wages of bricklayers (300’s in the gang, to 2,000 euritos each, 600,000 per month), plus machinery, diesel, and so on.

As time passes and pardillos fail. The pasta is just and savings will run out of charge. But the money provided by the savings was not theirs was interbank loans or deposits of the people. And that these deposits and interbank credit have some interest to be paid each month (about interests ranging climbing). So goes paying until he was also run out of money. From there, informed the Bank of Spain and requests him to see if there are more pasta. The Bank of Spain has an obligation to be the last of the other lender banks. He responds in a crisis. Then, once that money loose from the Bank of Spain also just, the only solution is going to sell gold, currencies and bonds to be pulling pasándolos euros and the savings banks.

Because at the time that some of these savings will enter into “default” because it can be given by the bubble pinchada altogether. People go to the cashier and the money is not. From there, it would be very difficult to cover this scandal. The Government does not want to hear or talk about it, at least until the end of March 2008.

Of course, the ECB is aware of that and advises the rest of central banks to be provisionándose also because very soon interbank credit that may not be repaid.

So this is a hypothesis of mine and of course you can put it to the level of a novel by Lecarré. But I wonder about one thing: if only with some promotions unsold we have reached this situation, what will happen when they start the recession, layoffs that are falling and crashes in prices? If the promoters should the 25% of GDP, the “families” should be over 85% of GDP. Revisions massive mortgages, unemployment, decreases in salaries and especially the knowledge that her flat and is worth nothing and are “throwing money into a mortgage.” What we believe is going to happen?

And all this would have to add a so-called “panic banking,” if it is the voice of that savings banks are like the Forum Filatélico, that the money is Pocero bricks can not be sold. From there, the last ladybug. This was what triggered the Argentine corralito.

There is enough gold to return to the gold standard, always qu confidence in the promise was re. There is no hard and fast rule about how much credit solvent can be financed on the basis of gold, especially in this era of communications instantánteas and free.

In fact, gold is only the apex of the pyramid credit. His role is not to be present at each exchange, but to settle balances net debtor. By compensatory mechanisms, can be funded by an enormous amount of transactions with very little gold.

Indeed, the current problem is that the dollar has been used as an apex of this pyramid of credit, but the trust money (unable to retain its value in linking its existence to the market demand) does not pre-emptively to purge the bad debt , so that its creation will spread to exorbitant limits. As Fekete said, the dollar inconvertible we have reached a situation in which:

Debt alive today may not be settled through the normal procedure, that is, and withdrawing amortizándola shortcuts without resorting to inflationary or deflationary (ie, by default or depreciation). It is absurd to think that the pyramid of debt can grow indefinitely without result in a catastrophe. Any debt will be liquidated in the same way as subprime mortgages: by default - or, in his case, envileciendo currency.

Second interesting idea. Once this happens, the value of all assets denominated in dollars is going to fade. There is only one way to avoid buying gold to diversify our portfolio at a price that is still very cheap:

Not too late to use the gold with the purpose of covering the value of our asset portfolio. The private and institutional investors have investments worth 180 billion dollars. However, there are only 600 billion dollars in the form of gold bullion that can be used for cover. In other words, only 0.33% of all investments are protected by gold, while more than 99% is not (…) International If investors decide to use a third of their assets in gold to buy cubrire, the result would be that 6 billion dollars would be chasing 0.6 billion current gold prices (one-tenth). This means that there would be ten suppliers for each ounce of gold available. Buying gold is still cheap, but the cost could increase more than tenfold when the stampede begins.

The shares of the firm Bear Stearns fell by 50 percent, due to news of liquidity problems prompted the investment bank to secure financing for JPMorgan Chase and the Federal Reserve Bank of New York.

“All this fear of a crisis far from over loans seems to have escalated on a daily basis,” said analyst Daniel Hynes at Merrill Lynch.

“This has been a key driver of gold in the last couple of months. With this announcement only adds momentum,” he added.

The gilded metal, seen as an asset safe haven during political and financial problems, has come to raise up to $ 1.007,10 ounce. The spot gold closed at 996.90 / 997.70 dollars at 18:15 GMT, compared with 991/991, 80 dollars in New York close of the previous day.

Gold has gained nearly 20 percent in 2008 and 32 percent in 2007.

Future transados gold in the United States touched a maximum of 1,009 US dollars an ounce. The contract more active metal for delivery in April closed with a rise of 5.70 dollars, to 999.50 dollars metals COMEX division of the New York Mercantile Exchange.

In recent weeks has suffered a major violent correction from the highest to the area of 620, but that is no less proportional to the last mile climb. And now it seems resume its uptrend.

At that juncture, the upside in the gold come to light publicly again and resume their predictions of a gold at $ 1,000. But that is nothing new in this market. What is new is that gold can reach $ 3,000 in the long term. Some people said and what is someone important: Harry Schultz, a true veteran of the markets that publishes its newsletter since 1960.

In early May, Schultz warned of a possible major correction due to the overbought registering metal. But maintaining an overview bullish based on the economic environment. In his view, the public was asleep, and when they woke up, “the price of gold would go up in a way never seen before.”

After the fall, believes that gold has fallen to a very important area of support (620), which offers a clear opportunity to purchase: “I recommend increasing the percentage of gold holdings to 25% -30%. But I am not sure that the correction has finished, it is better to defer purchases until the channel is broken bearish upward. ”

But where Schultz was completely leaves the average is at its long-term vision, the more bullish impossible. Their reasoning is as follows: “My vision is that current governments (which are in the hands of the banks) will not return voluntarily to the gold standard, with its discipline on money creation. But when the price of firing, say, $ 1,600, will probably be obliged to do so in order to appease an outcry for money healthy, ie Breton Woods II. The price could reach 2,000 while discussing the new rules. Washington may see this as their last chance to save the dollar as a reserve currency. If they do not, the euro, the yen or the yuan could snatch that status … If there are new rules on levels of $ 1,600, gold could continue to rise until they become. Hello, 3,000. ”

Germany 407 Kilogr. That 1.14 million Mk
Austria-Hungary 1714 Kilogr. That 4.78 million Mk
Russia 41899 Kilogr., 116.90 million Mk
Africa 2444 Kilogr. That 6.82 million Mk
Mexico 1542 Kilogr. That 4.30 million Mk
Colombia 3834 Kilogr., 10.70 million Mk
Peru, Bolivia, Chile 2223 Kilogr. That 6.20 million Mk
USA 56744 Kilogr., 158.32 million Mk
Australia 46122 Kilogr., 124.87 million Mk
Japan 594 Kilogr. That 1.66 million Mk
Andre 6044 Kilogr countries., 16.85 million Mk

Total: 163567 Kilogr., 452.54 million Mk

Further statistical information on the acquisition of G. since the discovery of the New World, see precious metals.

6) Use and the future of gold.

The oldest use of gold jewelry begins with the human body (see goldsmiths art, p. 497), which is lined with the decoration of residential sites and the production of precious vessels, and it was only much later, the G. as a substance for the minting of coins money as characters. The G. served in antiquity as a symbol of the highest dignity, and the omnipotence of wealth. The grace chair of Moses is zentnerschwerem G. manufactured, the Temple of Solomon G. bursting of the Babylonian tower on the banks of the Euphrates is full of golden statues, etc. When the Persian kings audience grant, they will sit on a golden throne, a golden scepter in the hand; to their ceremonial dress is a golden Geschmeide whose value 12000 Greek historian with talent (46 million Mk) indicate (?). The use of gold as a replacement tool is made of this general appreciation of gold and deduce begins with the Zuwägen of G. bars and rods (by aes et libram), and then to real coins. The first gold coins likely influenced by the Egyptians have been, and recent research relocate their age on the 17th Century pre-Christian era. The real Münzgeschichte starts but only to the Greeks, from whom we have gold coins, which, in Cyzicus Mysia originating in the 7th Century BC marked. Throughout the spätern economic history shows that as a characteristic that you first silver and then gold coins.

Because of its corrosion resistance and aesthetic qualities will be in dentistry as a filling material or replacement for damaged or missing teeth. Also, the electronics industry uses gold because of the reliability of the properties, corrosion resistance and good processability: To be very subtle connection wires between chips and their housing legs from hochraffiniertem Feingold made, with, for example, a gram of the precious metal wire easily to a more than three kilometres long and undress leaves. However, today often aluminum threads in chips.

Gold foil, gold leaf, is used since antiquity. Made of high alloys, it is thinner than the wavelength of visible light, rolled and beaten. In the golden light shines it, the opposite seems greenish light - blue light source, and also the beating pattern of the metal, which is why it is usually on a specific document will be applied. Use it to nonmetallic objects, such as picture frames, books (gold cut), furniture, figurines, architectural elements, stucco, icons, etc., the look of real gold. With 1 gram of gold is a half square metres of space overdrawn.

Gold reflects infrared, red and yellow wavelengths of light much better than the energetic blue, blauvioletten and ultraviolet light rays, therefore wärmereflektierende coatings, glass, optics and mirrors so bedampft.

In the food area it serves in the form of gold leaf and gold leaf flakes as a food color to E 175 gold of food, for example, coatings of sweets and chocolates to decorate, and in beverages, such as gold water. Metallic gold is considered to be non-toxic, builds up in the body is not, and is usually with the rest of digested food back Ret.

Gold compounds can be due to the toxicity of the combination partner some very toxic effect. The colorless Goldcyanide and zitronengelbe Tetrachlorogoldsäure include.

Some gold salts are curative therapy for rheumatism. Not without mention should remain the gold Natriumaurothiomalat salt, which, although in the past a little out of fashion, as a basis therapy against chronic polyarthritis (rheumatoid arthritis) is applied.

In recent times, however oust cheaper drugs treatment with gold. However, gold medical side effects. It can cause allergic reactions, and it can be applied to an improper damage to the liver, blood and kidneys. About 50% of therapy with gold salts are due to the adverse effects canceled. The full effect of a gold therapy is only after several months.

Decorative gold finds wide application, for example, in galvanic coating of metals and plastics. On Porzellanglasuren, dentures ceramics and glass can burn gold pigments. Historically, the Feuervergoldung of metals with the help of gold - Mercury - alloys, so-called amalgam, demonstrably already in antiquity, the only viable way to long-term gilts on silver, bronze or Unedelmetallen. This method eliminates today due to the strong effect of toxic mercury vapors. The Feuervergoldung is now due to legislative provisions for environmental and health protection for the restoration. With the development of galvanic Vergoldungsbäder in the late 19 And 20th Century Century, this area in the expanded and qualitative ways.