Tuesday, 08 October 2013

How to Rollover Your IRA Into Gold

An IRA is a special type of savings account created for the purpose of reducing taxation and preparing for retirement. There are two main types of IRAs, Traditional and Roth. Each one has specific benefits, and they can be used to help save and accrue money that can be accessed on a tax beneficial basis, once you reach the age of 59.
Published in Gold Investing
When it comes to modeling success, I was taught to do so by looking at those who have accomplished what I want to accomplish. So, why wouldn't I look at the fact that there is a trend, in which the richest people in the world are protecting themselves from a potential recession by investing their money in gold and silver?
Published in IRA & 401k
Certainly one benefit of waiting till the world ends to buy gold, is that you don’t have to worry that much about price. Chances are that the party you buy it from will be more worried about where he’s going to hide and where his next meal is coming from, than the price he’s going to charge you for his gold stash. Another benefit of buying then is you don’t have to be all that concerned with technical indicators. Will you really care if you defy a trend line that indicates you might get a better deal next month, if you know that next month probably won’t happen?
Published in Gold Investing
Gold is a highly valued investment haven in times of economic or political crisis.  Ever since the introduction of fiat currencies, which have value only because a government backs them, gold has been a safe place to invest when paper money destabilizes.  When American politicians abuse our economic system to jostle for power, gold can seem like an especially attractive investment.  Before you ramp up your gold investments, however, you should take a closer look at what’s really going on.
Published in United States Economy
Thursday, 17 January 2013

The Gold Capitol of the World

If there’s a contemporary city capitol for gold, it’s Kerala, India. Some might think that New York should wear such a crown, with Wall Street, the Federal Reserve and other massive stores of wealth on the island. However, though such wealth is clearly evident in the Big Apple, the prevalence of gold among the populace doesn’t hold a candle to Kerala.

Not a small city by any stretch, Kerala’s 33 million residents represent2.76 percent of India’s entire population. Why then does the city consume 20% of the nation’s gold annually? In fact, with India being the largest consumer of gold in the world, claiming 30% of the total demand, Kerala represents 6% of total world consumption.

Published in World Economy

Isn’t it always the case?  The price of gold dips, and investors new to the yellow metal begin panicking. And media pundits begin moaning that it’s all over for gold. Seasoned gold investors know better though.  True to form in the last few days, gold took quite a dip, flirting with a downward slide to the 1600s on the exit of longs and an increase in short positions.  Yet here we are after a quick turnaround late Friday and a healthy follow-through today.  And here gold sits at $1,713, up $9.00 per ounce.

What in Sam Hill happened?  Well, for one thing, the economic community is anticipating Ben Bernanke’s announcement of continued quantitative easing at The Fed’s FOMC meeting this Wednesday.  This anticipation is based less on inside information than on the widespread assumption that The Fed Chairman doesn’t want to be the bad guy to slow down the economy just in case President Obama and House Speaker John Boehner finally come up with optimistic news during fierce fiscal-cliff battle.

So it seems reasonable to expect an announcement this week that the dollar printing presses will be alive, well and turned back on at full speed.  What’s particularly significant is that the announcement of an improvement in the nation’s employment numbers didn’t suppress the gold market back for a second.  Total nonfarm payrolls rose by 146,000 jobs in November.  From Ben Bernanke’s past comments, we can safely infer that this number is insufficient for The Fed to put a stop to quantitative easing.

First-Strike

To compound the difficulty, the country is now undergoing a dramatic drop in its consumer spending.  This is particularly bad news during the final quarter – news that certainly won’t be lost on The Federal Reserve FOMC when it convenes Wednesday.  Meanwhile, while we hold out for optimistic news from the hill on fiscal cliff negotiations, an article in yesterday’s Wall Street Journal suggests we might not want to hold our breath:

“Democrats say they are waiting for Republicans to agree to raise tax rate on the highest-earning households, and Republicans say they are waiting for Democrats to agree to cuts in safety-net programs.”

All of this economic uncertainty is definitely encouraging news for gold.  Particularly in the wake of increased gold buying by central banks, observant investors are fast becoming persuaded that the economy is far from entering a recovery mode.

Under the circumstances, it’s time for you to look at your own portfolio. You’ve seen where gold’s been, and you know where it can go.  Don’t bet against an $1,800 price per ounce in the next several weeks.  Time to start accumulating.

Published in From The CEO

Coin sales have been really heating up lately, especially with collectors and investors wanting to buy something tangible. That being said, last week coin sales took a hit, which was probably due to Hurricane Sandy and other outside forces. Other factors involved include falling silver prices and the fact that no new coins have been introduced over the last week. That being said, gold coins didn’t take a hit, as a matter of fact, sales for gold coins actually went up.

First-Strike

With coin sales down a bit, many people have been able to find better deals on certain coins. Most of those deals are on currently released gold coins. Below you will find a list of coins and what they did last week in sales compared to the week before. As you can see, gold coins were still actually moving very well. At these prices it is a great time to jump in and start buying.

  • 2011- and 2012-W Proof American Eagle gold coins with combined unit sales advancing 587 versus the prior week’s 523. The one-half ounce was the only under performer, gaining 140 against the prior 197.
  • 2012-W Uncirculated American Eagle gold coins with an increase of 113 compared to the previous week’s gain of 6.
  • 2012-W Proof American Buffalo gold coins with a pick-up of 145 against the prior 106.
  • Star-Spangled Banner $5 Gold Uncirculated Commemorative Coins with a weekly advance of 39 compared to the previous week’s gain of 1.
  • Infantry Silver Dollar Commemorative Coins with an increase of 526 as a group (proof, uncirculated and Defenders of Freedom Set) versus 341.

Here now are the top selling coin products overall last week. Many of these are still available at low prices, so take some time to inquire within and look around for a great deal.

Top Selling Numismatic Products of the Week

  1. 2012 Proof Set (+10,237 to 591,014)
  2. 2012-W Proof American Silver Eagles (+5,567 to 795,915)
  3. 2012 Mint Set (+4,142 to 312,224)
  4. 2012 Silver Proof Set (+3,789 to 318,374)
  5. 2012-W Uncirculated Silver Eagles (+1,537 to 151,041)
  6. 2012 Presidential $1 Coin Proof Set (+1,222 to 220,068)
  7. 2011-W 9/11 Medals (+995 to 106,745)
  8. 2012 America the Beautiful Quarters Proof Set (+854 to 116,052)
  9. 2011 Proof Set (+844 to 1,088,918)
  10. 2011 Mint Set (+641 to 529,506)

Hurricane Sandy is now over, and while people are still trying to get back to normal life, there is still a great opportunity available to invest in gold and silver coins at a lower than usual rate.

Published in Gold Investing

If you’re hanging in for the perfect gold price, you’ll never find it.  Better to stop thinking of yourself as an investor and find something else to do.  And what is aperfect price anyway?  If gold goes up, you’ll be unhappy because you’ll think you missed a good thing on the way up.  If gold goes down, you’ll be unhappy because you’ll think the yellow metal has now turned bearish on you.

As we’ve stressed several times in the Investor’s Corner, if you buy the physical metal while the price of gold consolidates, you’ll be making a smart decision.Let me emphasize those words again:  “physical metal.”  Think about that for a second.  You won’t be buying on margin.  So there’s no interest attached to your purchase.  You won’t be buying shares in a gold mine.  So there’s no strike or management conflict inhibiting your purchase.  You won’t be buying a gold option.  So there’s no expiration date tied to your purchase.

First-Strike

Instead, you’ll be buying the physical metal and holding for the long term.  Given this scenario, you shouldn’t despair over a small price move.  Ah! you say: but today gold closed at $1709.50, down $82.25 from its peak of 1791.75 just three weeks ago.  A move down of $82.25 is no small price move. 

At current prices, we beg to differ.  That move down represents a mere 4.59 per cent.  Once you take into account the big picture – 4.59 per cent is a miniscule number in this bull market.  Financial advisors routinely advise their clients to be able to withstand a market correction of 20 per cent.  By this benchmark, a 4.59 per cent move down in gold is extremely conservative.Under the circumstances, if you buy and wait rather than wait and buy, you’ll remove virtually all of the risk from your decision.

Right now gold is in a neutral mode awaiting big news to motivate a breakthrough to the upside.  A report from Reuters this morning points out that gold is staying “resilient” and holding its own in the wake of a downturn in corporate earnings.  Also, investors have turned away from big moves in the last few days while they prepare for a severe hurricane now ripping through the East Coast.  Analysts at Reuters also suggest investors may be stalling since we’re only one week away from the presidential election.  But as Jaimini Desai sagely points out in his Seeking Alpha newsletter article, it matters little which candidate wins.  While Mitt Romney has pledged to replace Ben Bernanke, “his most likely choices – N Gregory Mankiw and Glen Hubbard – have publicly pledged support for the Chairman’s policies.”  Little will change in the Fed’s commitment to quantitative easing in the face of a grim U.S. employment picture.  In other words, the Fed will keep printing money to jump start the economy.  And central banks throughout the world are similarly committed to keep the printing presses running.

Your purchase of physical gold during this lag time could be the smartest investment you ever made.  That said, procrastination could be harmful to your wealth.

Published in From The CEO

As the price of gold fluctuates, it’s useful to step back occasionallyand look at the big picture with respect to its price movement and how supplies are distributed throughout the central banks of the world.  We need to remind ourselves that paper money remains plentiful in our era of monetary easing, and that gold remains rare.  As financial writer Philip Coggan points out, all the gold that’s ever been mined in the world can fill a cube with sides the size of a tennis court.

A good way to take this larger perspective just now is to review The World Gold Council’s 3rd Quarter Report.  The report is revealing, and makes it clear that central bank activity in the United States and Europe are fueling demand for the yellow metal.

First-Strike

It’s also sobering to realize that gold returned 11.1% in the third quarter and, year to date, is up 16%.  And, as 24/7wallst.com observes from the WGC report, “gold still outperformed almost all the major equity markets in the largest gold-holding nations in 2012.”  It’s striking too that no longer is gold merely a financial hedge: it serves as protection against a world imperative to debase currency.  Since bonds now pay historically low rates, and investors are increasingly fearful of volatility in stocks, gold is more important than ever as a safe haven.

Again though, while concern over inflation through monetary easing is still the major factor driving the price of gold, central bank purchases play a greater role than in the past.  In fact it’s safe to say that, based on the numbers, gold is becoming the world’s largest reserve currency. In looking at the WGC report’s list of the ten largest nations that control the world’s gold, some of the countries like the US (1), China (5), Japan (8) and Russia (7) are predictable.  Still there are a few surprises.  The Netherlands, with gold reserves of 612.5 metric tons, ranks number 9 on the list.  Switzerland ranks number 6.  While it’s understandable that the country that plays largest private banker to the world would want to stock up on gold, Switzerland’s relatively high rank is amazing when you consider the country ranks 95th in world population at 7.9 million.

An amazing surprise is Italy as number 3 with 2,451 metric tons.  As observed in 24/7wallst.com, the bitter irony for this nation is that, even with its abysmal economy, it can’t afford to sell off its gold to improve conditions, because it would have no cushion if the euro failed.

What the officials of the central banks of the world understand is what bond king, Bill Gross of PIMCO, has been warning us about all along.  When hard assets rise in price through inflation, nations that store large amounts of gold will be much better off.

Which brings us back to you.  Armed with the knowledge of what central banks are doing, doesn’t it make sense to become your own central bank?  On the one hand governments create inflation through monetary easing; on the other hand they look to gold for a monetary cushion.  What are you doing for your own cushion?  With its current correction, gold is providing you with an excellent opportunity to accumulate.  At gold’s current price, can you really afford to ignore this opportunity?

Published in From The CEO

Gold remained steady today despite the fact that Hurricane Sandy is still wreaking havoc on the east coast and has forced the New York market to stay closed for a second straight day. The dollar weakened and the market rose overall, but gold was down just barely as traders and investors also wait on a jobs report that is due later this week.

Gold was able to take some support from strength in European shares, which were boosted by well-received company reports from BP and UBS, and the euro, after data showed the Spanish economy contracted at a slightly slower rate than forecast in September. This was a bit of good news for the yellow metal, especially since it is still trying to wait out Hurricane Sandy.

First-Strike

Spot gold dropped slightly by 0.31 or (-0.02%) to come in at $1,710, up 0.1 percent, while U.S. gold futures were up by 0.80 or (+0.05%) to come in at $1,709 per ounce. As you can see, no big gains for the yellow metal, but no significant losses either.

The yellow metal still does however remain on track for its biggest monthly loss since this past May of 2012 right before the Feds went ahead with their latest stimulus announcement. October has actually been an interesting month for gold, as the yellow metal hit an 11-month high above $1,795 earlier in the month after the Fed's stimulus plan but retreated after failing to break $1,800. Now, in the same month the yellow metal will end up taking a loss. However, the month of November is right around the corner, and since November has traditionally been strong for gold it should be interesting to see how much of an upswing gold takes during November of 2012.

A Reuter’s poll shows the economy is expected to have added 125,000 jobs last month, though the unemployment rate is seen at 7.9 percent, against 7.8 percent the previous month. I don’t think that data will be too much of a factor for the price of gold, as the 8 percent unemployment level is somewhat of a constant number.

Peter Fertig, a consultant with Quantitative Commodity Research, said the stubbornly high rate of unemployment in the United States suggested that monetary easing was not likely to end soon, signaling well-supported gold prices.

"The level of unemployment is still at a level where the Fed does not feel comfortable with it," he said.

Published in United States Economy
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