How Gold Storage Works

Gold is the ultimate value of any currency capital. Governments, companies and individuals leverage on gold for their capital and liquid cash investments against possible financial collapses and currency crushes. In the yesteryears gold used to be an exclusive preserve of the few “haves” but nowadays the proliferation of knowledge has opened up many doorways for ordinary people to invest in gold.

Picture Credit- Royal Canadian Mint On Amazon

Ordinary people can invest in gold. Even though many doorways have been opened to enable people to access this precious metal, gold is still a closely guarded metal. Some countries have opted for gold as their currency for making international payments. Various economies around the globe are well known in gold production and exportation. No (Read More….)

Should You Invest in Gold?

Given global economic uncertainties, many investors are considering investing in gold as a store of value and hedge to inflation. Historically, gold has performed well during periods of high inflation, since the supply of gold increases only modestly each year from mining activity, whereas paper currencies can be inflated by central banks at will.

The History of Gold as Money

Gold has been used as money for at least 5,000 years, due to being rare, durable, divisible, and fungible. With its unique physical properties, gold is universally recognized as money, and therefore can be taken across borders to be exchanged for a local currency with ease. Though silver shares many characteristics with gold and also historically has been considered a monetary and precious metal, gold is more practical for central banks to store, since its value is about 55 times greater per ounce. Gold requires significantly less space than silver for storage and is easier to transport.

Gold As a Hedge to Inflation

Since the collapse of American and European real estate markets in 2008, Western central banks have been printing massive amounts of money to keep asset prices (Read More….)

Why Do Precious Metals Constitute “Safe Haven” During Crisis?

During times of economic crisis, like the in the 1930’s and during the current economic turmoil, it’s not a bad idea to invest in precious metals. It’s trendy, it’s nice, but most importantly: it has solid financial basis.

As you probably know, fiat money is prone to devaluation and we’re living in terrible times when almost anything can happen to any currency. The euro is on the brink of collapse, the US debt is shooting through the roof and experts are predicting a coming dollar crash.

Smart investors like billionaires and major banks keep at least a small part of their wealth in gold, silver, platinum or, they hold land.

Even if you have a very small budget, you could afford to buy at least a few silver coins.

Experts like entrepreneur Robert Kiyosaki and economist-investor Peter Schiff, as well as advisor sites like (Read More….)

Scraps of Paper Be Damned

By MN Gordon, Economic Prism

Today we begin with several data points…

First, if you hadn’t noticed, gold and silver bullion coins are selling faster than boysenberry funnel cakes at the county fair.  January 2013 U.S. Mint bullion sales of the American Eagle 1-ounce gold coin increased 47 percent from January 2012.  In addition, American Silver Eagle (1-oz) bullion coins sold by the U.S. Mint rose 22 percent in January 2013 from January 2012.

Second, Olin Corporation, the biggest retail supplier of small-caliber ammunition, enjoyed a jump in pretax earnings at its Winchester unit to $16.5 million during the fourth quarter from $500,000 the year before.  By our rough calculation that’s an increase in pretax earnings of 3,300 percent.

Third, the S&P 500 just notched its best January in 16 years.  For the month, it (Read More….)

The Importance of Precious Metal Portfolio Diversification

Don’t put all your eggs in a single basket!

Precious metals are a great hedge against inflation, but diversifying it is essential for long-term financial planning and investment risk reduction, as

PrimeValues.org (precious metal investments advisor) advises us.

Here are the main reasons why you should and how you should diversify your precious metals portfolio:

1. It splits the risk:

every investment is risky, even if only slightly – by investing in multiple assets, you split the risk, thus becoming more secure on the long term.

2. More opportunities for growth:

if one of the metals in your holdings “jumps up” in terms of price, then you’ll rejoice gathering profits on it – silver and palladium are for instance, metals with higher potential for growth than gold

3. Gold is the most convertible precious (Read More….)

Why Can You Catch A Breath Before Hyperinflation in the US Sets In?

You must have been reading a lot about how hyperinflation is the first phenomena that you will come across when you wake up tomorrow morning. You must have also started looking for shelters and making contingency plans with your friends and family. Stop all this noise right there and read on to find why you are wasting precious time and energy. Here are 2 reasons why hyperinflation will not be there for breakfast tomorrow:

1. It Is A Mid-Range Possibility

Almost all economists agree to the fact that the decline of the dollar has started with the world superpowers starting to favor Yen over Dollar (to be specific, anything that is not the US dollar). Some people have also been routing for gold and silver reminding everyone of the Greek and Roman civilizations. But every economics and currency expert agree on one thing, this change will take at least a decade to set off in full motion and a couple more to complete the transformation (Read More….)

Chinese Silver Demand Surges Incredible Four Fold in Just One Year

Gold is flat and silver marginally lower despite dollar weakness this morning. Some market participants are blaming the precious metal sell off on speculation that China may take more monetary action to curb surging inflation. This is unlikely to be the reason for the sharp selloff, rather it looks like another paper driven sell off in the futures market by leveraged players on Wall Street with various motives.

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The fact that silver is again in backwardation at the front end of the curve suggests that tightness in the physical bullion market continues and may even be deepening. Indeed, the massive increase in silver bullion demand from China (confirmed overnight – see below) suggests that silver’s bull market remains very much intact despite becoming overvalued in the short term towards the end of 2010.

Table Courtesy of Mitsui

Surging inflation in China, India, wider Asia and much of the world is of course positive for gold and silver as it will likely lead to an even greater appetite for the precious metals in order to protect against the ravages of inflation and the further (Read More….)