Dealer gold continues to be an attractive investment opportunity in light of ongoing concerns about the slow economic recovery, but there are other precious metals worth taking a look at as well.
One such example is platinum, which was featured in a recent personal finance column on Forbes.com. In the column, Christopher Helman notes that platinum is needed for catalytic converters in automobiles, as well as LCD televisions and other products.
Helman added that platinum is easier to invest in because of recently introduced exchanged-traded funds, and he added that the metal tends to be particularly strong when an economy is recovering because of the increased industrial demand.
Investors can also consider silver as a promising precious metal investment because of the many industrial applications that require it. Gold demand has also remained strong in light of increased demand and overall economic activity in emerging economies such as India and China.
The strength of platinum and other precious metals means that investors should consider their full range of opportunities when consulting with a silver and gold dealer.
Wednesday, March 31, 2010
Monday, March 29, 2010
Social Security budget concerns could fuel interest in precious metals
Consumers have more than one reason to take a look at dealer gold and other traditional safe haven investments.
This is because along with a rapidly growing national debt, the Social Security system is also expected to pay out more this year than it generates from taxes.
A report in the New York Times cited past government expectations that this would not happen until 2016, and suggested that much of this trend was due to the economic downturn, where more people at or near retirement age decided to start collecting their benefits instead of continuing to search for jobs.
The newspaper also quoted former Federal Reserve Chairman Alan Greenspan as saying that "the revenues of the trust fund will be tracking lower for a number of years" barring an increase in economic growth.
Looking ahead, the growing cost of Social Security and other federal entitlement programs is likely to continue contributing to the growth of the national debt, barring effective action by Congress. If such action is not taken in the coming years, it might make sense to set aside some investments in dealer gold.
This is because along with a rapidly growing national debt, the Social Security system is also expected to pay out more this year than it generates from taxes.
A report in the New York Times cited past government expectations that this would not happen until 2016, and suggested that much of this trend was due to the economic downturn, where more people at or near retirement age decided to start collecting their benefits instead of continuing to search for jobs.
The newspaper also quoted former Federal Reserve Chairman Alan Greenspan as saying that "the revenues of the trust fund will be tracking lower for a number of years" barring an increase in economic growth.
Looking ahead, the growing cost of Social Security and other federal entitlement programs is likely to continue contributing to the growth of the national debt, barring effective action by Congress. If such action is not taken in the coming years, it might make sense to set aside some investments in dealer gold.
Saturday, March 27, 2010
U.S. losing jobs to trade deficit with China
One reason why the price of dealer gold has remained strong is that many Americans remain unconvinced that an economic recovery has completely taken hold, and that a double dip recession could be on the horizon.
Among the various economic indicators that have provided mixed news in recent months, unemployment has been perhaps the most closely followed, having hovered at or around 10 percent since late last year.
The recession has resulted in millions of lost jobs, but it's not the only thing fueling the unemployment situation in the U.S., notes one report. According to new data from the Economic Policy Institute, the ever-increasing trade deficit between the U.S. and China resulted in 2.4 million lost jobs nationwide between 2001 and 2008.
The report cited an artificially low currency value in China as one of the leading contributors to the job losses, as well as the $2 trillion in foreign exchange reserves it has acquired since 2001.
One problem to watch for with a stubbornly high unemployment rate is whether consumer spending will be held back to a point that undermines the overall economy and continues to contribute to high loan and mortgage default rates.
Among the various economic indicators that have provided mixed news in recent months, unemployment has been perhaps the most closely followed, having hovered at or around 10 percent since late last year.
The recession has resulted in millions of lost jobs, but it's not the only thing fueling the unemployment situation in the U.S., notes one report. According to new data from the Economic Policy Institute, the ever-increasing trade deficit between the U.S. and China resulted in 2.4 million lost jobs nationwide between 2001 and 2008.
The report cited an artificially low currency value in China as one of the leading contributors to the job losses, as well as the $2 trillion in foreign exchange reserves it has acquired since 2001.
One problem to watch for with a stubbornly high unemployment rate is whether consumer spending will be held back to a point that undermines the overall economy and continues to contribute to high loan and mortgage default rates.
Thursday, March 25, 2010
Price dips can offer gold buying opportunity
Now may be a good time to talk to silver and gold dealers about the buying opportunities that may currently exist for precious metal investments.
According to a recent ABC News report, gold prices hit a point below $1,100 per ounce for the first time in about a month. The decline was seen as reflecting investor anxiety about sovereign debt concerns facing Greece.
The news network added that other commodities were showing mixed results and that many investors are now seeking out safe haven investments amid uncertainty about what will happen will Greece. So far, there has been speculation that a bailout package will be forthcoming, either from the International Monetary Fund or from the European Union.
Still, this is just one of many serious economic question marks facing investors for the foreseeable future. Other countries are facing their own problems with debts and deficits, and some economists have warned that the current economic recovery could turn out to be more of a double dip recession.
With this in mind, dealer gold is a traditional safe haven investment that has long benefited investors during times of economic uncertainty.
According to a recent ABC News report, gold prices hit a point below $1,100 per ounce for the first time in about a month. The decline was seen as reflecting investor anxiety about sovereign debt concerns facing Greece.
The news network added that other commodities were showing mixed results and that many investors are now seeking out safe haven investments amid uncertainty about what will happen will Greece. So far, there has been speculation that a bailout package will be forthcoming, either from the International Monetary Fund or from the European Union.
Still, this is just one of many serious economic question marks facing investors for the foreseeable future. Other countries are facing their own problems with debts and deficits, and some economists have warned that the current economic recovery could turn out to be more of a double dip recession.
With this in mind, dealer gold is a traditional safe haven investment that has long benefited investors during times of economic uncertainty.
Friday, March 19, 2010
Idaho legislation would allow silver coins for state debts
A report in the Spokane Spokesman-Review focuses on Idaho state representative Phil Hart, a Republican who has introduced a bill that would allow residents to pay their state taxes with silver currency.
The currency would reportedly be minted within the state and the legislation would also provide tax incentives for any company that set up a silver processing facility in the state, including for manufacturing the silver medallions that would be used under the bill.
The newspaper noted that the House State Affairs Committee in recent days had unanimously approved the introduction of the bill to the full house.
By introducing the legislation, Hart is aiming to help boost Idaho's silver mining industry, which has suffered along with many other industries in the current economy.
Elsewhere, an Associated Press report notes that last year, Georgia state lawmakers considered a similar measure that would have allowed residents to pay their taxes with gold and silver.
More recently, a South Carolina state lawmaker, Mike Pitts, made national news earlier this year with his own legislation that would require gold and silver coins to be used for state debts, as opposed to currency from the federal government.
In explaining his own proposal, Pitts has told media outlets that he is motivated by concern about runaway government spending, which could result in serious financial problems in the coming years.
Around the world, concern has been rising about the sovereign debt issues and large budget deficits being maintained by many countries. So far, Greece has been the latest poster child for this situation after Dubai's financial situation called attention last year to the problems posed by large deficits.
Spain and Portugal have also been generating worldwide news for their looming debt problems, but there has also been increased attention focused on the United States. While U.S. officials have repeatedly maintained that the government will never default on its debt, the national debt is now approaching $14 trillion and costs hundreds of billions of dollars per year just to finance.
Given the recent track record of out of control spending and the serious financial repercussions that will eventually present themselves if government spending is not properly addressed, now may be a good time to consider dealer gold as a financially stable long-term investment.
Wednesday, March 17, 2010
Government spending more than it generates on Social Security
One reason to consider investing in dealer gold has long been concern about whether the U.S. government will be able to fully fund its obligations to the Social Security system in the coming years.
This is especially the case when considering a recent report from the Associated Press about the $2.5 trillion in IOUs the federal government keeps in Parkersburg, West Virginia for the Social Security system.
The report noted that for the first time in more than 20 years, the Social Security system is expected to pay out about $29 billion more in benefits than it collects in revenues. However, the IOUs that are the subject of the AP report have already been spent on other government spending priorities.
For the past two years, the government has run a deficit in excess of $1 trillion, and the national debt is expected to pass $14 trillion later in the year. Worse, it remains to be seen if there is enough political will in Congress to tackle a crucial topic that has been called the "third rail" of American politics over the years.
Given the financial chaos that a U.S. debt default would cause, let alone an inability to pay out Social Security benefits, those who invest in precious metals may find themselves well-protected against any possible market fluctuations.
This is especially the case when considering a recent report from the Associated Press about the $2.5 trillion in IOUs the federal government keeps in Parkersburg, West Virginia for the Social Security system.
The report noted that for the first time in more than 20 years, the Social Security system is expected to pay out about $29 billion more in benefits than it collects in revenues. However, the IOUs that are the subject of the AP report have already been spent on other government spending priorities.
For the past two years, the government has run a deficit in excess of $1 trillion, and the national debt is expected to pass $14 trillion later in the year. Worse, it remains to be seen if there is enough political will in Congress to tackle a crucial topic that has been called the "third rail" of American politics over the years.
Given the financial chaos that a U.S. debt default would cause, let alone an inability to pay out Social Security benefits, those who invest in precious metals may find themselves well-protected against any possible market fluctuations.
Monday, March 15, 2010
Long-term prospects for dollar could boost demand for dealer gold
People who are wondering if now is the time to talk to silver and gold dealers about precious metal investments may want to consider a recent media report that could invite speculation about the long-term strength of the U.S. dollar.
A recent article by AFP noted that financial experts are predicting that the Canadian dollar will trade just above the value of the U.S. dollar for a short term.
The wire service said that the experts believe this could happen by September, and that the Canadian dollar would fall back to a value of about 97 cents to the U.S. dollar by the end of the year.
The report added that the Canadian dollar was expected to get a boost with help from concerns about sovereign debt as well as higher demand for commodities like oil and certain minerals. It was also noted that the Canadian dollar's all-time high came in at 1.10 U.S. dollars in 2007.
For investors who are wary of the ever-increasing U.S. national debt, concern about the dollar may become more pronounced than ever in the coming years. With that in mind, talking to some silver and gold dealers may be an advisable strategy.
A recent article by AFP noted that financial experts are predicting that the Canadian dollar will trade just above the value of the U.S. dollar for a short term.
The wire service said that the experts believe this could happen by September, and that the Canadian dollar would fall back to a value of about 97 cents to the U.S. dollar by the end of the year.
The report added that the Canadian dollar was expected to get a boost with help from concerns about sovereign debt as well as higher demand for commodities like oil and certain minerals. It was also noted that the Canadian dollar's all-time high came in at 1.10 U.S. dollars in 2007.
For investors who are wary of the ever-increasing U.S. national debt, concern about the dollar may become more pronounced than ever in the coming years. With that in mind, talking to some silver and gold dealers may be an advisable strategy.
Saturday, March 13, 2010
U.S. debt magnitude continues to draw concern
The size of the U.S. national debt are raising concern about the long-stability of the dollar while also giving people more of a reason to talk to silver and gold dealers about precious metal investment opportunities.
In fact, one South Carolina state lawmaker has even made news with his proposal to end the use of federal dollars in the state and replace the money with silver and gold coins.
The lawmaker, State Representative Mike Pitts, a Republican, recently spoke to Neil Cavuto on Fox News about the idea. A transcript of the interview notes that Pitts has received a "mixed" reaction to his proposal, which he explained would amount to "taking the state to the gold-silver standard and backing up what would be our dollar."
Pitts also told Cavuto that gold "is more valuable than that paper dollar you're trying to spend" and suggested that his bill had largely been intended to ignite a debate and a dialogue over the issue of government spending and the handling of debt and currency issues.
The issue of the national debt has gained more prominence after two consecutive years of deficits exceeding $1 trillion, with more on the horizon as the national debt rises to levels once thought unthinkable. Further fueling the attention to fiscal responsibility is the state of the economy and news headlines from countries like Greece about the economic uncertainty their own sovereign debt problems are contributing to.
In fact, things may be even worse in the United States than some had previously thought. An Associated Press report cited government data noting that for February, the deficit had been $220.9 billion, which was 14 percent higher than the record for that month set last year.
For the first five months of the current budget year, the AP added that the deficit stood at $651.6 billion, which was said to be 10.5 percent higher than at this time last year. In a somewhat positive sign, the wire service also noted that government revenues had posted a year-over-year improvement in the monthly report for the first time since April 2008.
Since the debt is reaching a point where it costs hundreds of billions of dollars a year just to pay the interest on it, economists and others are becoming increasingly alarmed about the long-term prospects for the world economy. However, it remains to be seen if the political will exists in Washington before solid action is taken on the matter.
In fact, one South Carolina state lawmaker has even made news with his proposal to end the use of federal dollars in the state and replace the money with silver and gold coins.
The lawmaker, State Representative Mike Pitts, a Republican, recently spoke to Neil Cavuto on Fox News about the idea. A transcript of the interview notes that Pitts has received a "mixed" reaction to his proposal, which he explained would amount to "taking the state to the gold-silver standard and backing up what would be our dollar."
Pitts also told Cavuto that gold "is more valuable than that paper dollar you're trying to spend" and suggested that his bill had largely been intended to ignite a debate and a dialogue over the issue of government spending and the handling of debt and currency issues.
The issue of the national debt has gained more prominence after two consecutive years of deficits exceeding $1 trillion, with more on the horizon as the national debt rises to levels once thought unthinkable. Further fueling the attention to fiscal responsibility is the state of the economy and news headlines from countries like Greece about the economic uncertainty their own sovereign debt problems are contributing to.
In fact, things may be even worse in the United States than some had previously thought. An Associated Press report cited government data noting that for February, the deficit had been $220.9 billion, which was 14 percent higher than the record for that month set last year.
For the first five months of the current budget year, the AP added that the deficit stood at $651.6 billion, which was said to be 10.5 percent higher than at this time last year. In a somewhat positive sign, the wire service also noted that government revenues had posted a year-over-year improvement in the monthly report for the first time since April 2008.
Since the debt is reaching a point where it costs hundreds of billions of dollars a year just to pay the interest on it, economists and others are becoming increasingly alarmed about the long-term prospects for the world economy. However, it remains to be seen if the political will exists in Washington before solid action is taken on the matter.
Thursday, March 11, 2010
Gold prices continue to offer stability
Dealer gold prices have continued to remain strong even in light of a supposed economic recovery in recent months. This is largely due to the considerable uncertainty that continues to surround the global economy, especially in the area of jobs.
Gold has long been seen as a traditionally safe alternative to equities markets during times of economic uncertainty. However, it may be time to revise this formula as gold continues to enjoy strong support from investors even in light of a rising gross domestic product in recent months.
Part of this is due to lingering uncertainty about whether a recovery is actually at hand. There is also an increase in demand for gold from emerging economies that are building a middle class for the first time, or which have industries that use precious metals for manufacturing activities.
"Investors want to hold a currency that’s going to maintain its value. Gold is a part of the currency crosses now. The international currency is gold," Frank Lesh of FuturePath Trading LLC in Chicago was quoted as saying in a recent Bloomberg News report.
Given the stability that gold and other precious metal investments have produced in recent years, now may be the time to speak with a dealer about the market.
Gold has long been seen as a traditionally safe alternative to equities markets during times of economic uncertainty. However, it may be time to revise this formula as gold continues to enjoy strong support from investors even in light of a rising gross domestic product in recent months.
Part of this is due to lingering uncertainty about whether a recovery is actually at hand. There is also an increase in demand for gold from emerging economies that are building a middle class for the first time, or which have industries that use precious metals for manufacturing activities.
"Investors want to hold a currency that’s going to maintain its value. Gold is a part of the currency crosses now. The international currency is gold," Frank Lesh of FuturePath Trading LLC in Chicago was quoted as saying in a recent Bloomberg News report.
Given the stability that gold and other precious metal investments have produced in recent years, now may be the time to speak with a dealer about the market.
Wednesday, March 10, 2010
Portugal follows Greece in lowering spending - Superior Gold Group
Portugal's government is reportedly following in the footsteps of Greece by adopting austerity measures to help hold off looming budget problems.
For several weeks now, the fiscal situation in Greece has alarmed investors who are concerned about the long-term damage a debt default could inflict on the euro. Greece has taken some steps to control its spending, casing angry demonstrations by some of the country's public employees.
More recently, an Associated Press report notes that Portugal is trying to raise about $1 billion from a bond issue this week and is hoping to cut its own deficit by reducing welfare benefits and other costs while also using strategies such as privatization of some services.
These are hardly the only countries that have alarmed investors in recent weeks. Spain is also among the European nations thought to be facing serious debt woes, while some investors have become increasingly wary of the debt situation in the United States on the heels of a deficit that has exceeded $1 trillion for two consecutive years.
Given the difficulties that a major nation's debt default could cause for world financial markets, it may make sense to speak with a silver and gold dealer about some of the stable investment opportunities that may be available.
For several weeks now, the fiscal situation in Greece has alarmed investors who are concerned about the long-term damage a debt default could inflict on the euro. Greece has taken some steps to control its spending, casing angry demonstrations by some of the country's public employees.
More recently, an Associated Press report notes that Portugal is trying to raise about $1 billion from a bond issue this week and is hoping to cut its own deficit by reducing welfare benefits and other costs while also using strategies such as privatization of some services.
These are hardly the only countries that have alarmed investors in recent weeks. Spain is also among the European nations thought to be facing serious debt woes, while some investors have become increasingly wary of the debt situation in the United States on the heels of a deficit that has exceeded $1 trillion for two consecutive years.
Given the difficulties that a major nation's debt default could cause for world financial markets, it may make sense to speak with a silver and gold dealer about some of the stable investment opportunities that may be available.
Friday, March 5, 2010
Finance expert warns of potential market difficulties
A prominent economist is highlighting the value of dealer gold as a long-term investment option that could help protect people in the event of serious financial problems in the foreseeable future.
A report in the United Kingdom's Times newspaper, Marc Faber, who is credited with predicting the 1987 stock market crash a week before it happened, advised an audience in Tokyo recently that investments in things like gold and farmland will help protect against the chaos that things like future terrorist incidents and market meltdowns could bring.
The newspaper said that Faber also advised investors to consider the likelihood of future shortages of food and water in some regions of Asia, and to also weigh the possibility of an eventual military conflict between the United States and China. Also, Faber's belief that the United States will eventually go bankrupt because of its growing debt was also cited.
Even if such difficulties never do present themselves, gold prices have enjoyed remarkable strength in recent years, making that and other precious metals an attractive investment even if and when the economy regains momentum.
With these things in mind, consulting with a silver and gold dealer could be a wise long-term investment option.
A report in the United Kingdom's Times newspaper, Marc Faber, who is credited with predicting the 1987 stock market crash a week before it happened, advised an audience in Tokyo recently that investments in things like gold and farmland will help protect against the chaos that things like future terrorist incidents and market meltdowns could bring.
The newspaper said that Faber also advised investors to consider the likelihood of future shortages of food and water in some regions of Asia, and to also weigh the possibility of an eventual military conflict between the United States and China. Also, Faber's belief that the United States will eventually go bankrupt because of its growing debt was also cited.
Even if such difficulties never do present themselves, gold prices have enjoyed remarkable strength in recent years, making that and other precious metals an attractive investment even if and when the economy regains momentum.
With these things in mind, consulting with a silver and gold dealer could be a wise long-term investment option.
Wednesday, March 3, 2010
Interest in dealer gold high among buyers, sellers
The ongoing strength in the dealer gold market is being fueled by a mix of economic uncertainty, increased industrial activity in some countries and a growing middle class in emerging nations like China and India.
Prices have enjoyed a run-up for much of the past decade, in part because gold has long been seen as a traditionally safe option for investors wary of trusting their money to a shaky stock market.
The strength in gold investments has also led to more people taking advantage of high prices by selling off possessions, with a popular cable television show about a Las Vegas pawn shop apparently helping to fuel the public's interest in precious metals.
"Because of the recession and increasing gold speculation by investors, gold is at an all-time high. We are seeing lots of people realize that now is a great time to sell their gold. As a result, we are paying more for gold than at any time in the 30-year history of the company," Maryland pawn shop owner Steve Kottman told the state's Delmarva Daily Times.
While prices are high for people selling gold, many economists expect precious metal prices to continue to rise even more in light of current economic conditions.
Prices have enjoyed a run-up for much of the past decade, in part because gold has long been seen as a traditionally safe option for investors wary of trusting their money to a shaky stock market.
The strength in gold investments has also led to more people taking advantage of high prices by selling off possessions, with a popular cable television show about a Las Vegas pawn shop apparently helping to fuel the public's interest in precious metals.
"Because of the recession and increasing gold speculation by investors, gold is at an all-time high. We are seeing lots of people realize that now is a great time to sell their gold. As a result, we are paying more for gold than at any time in the 30-year history of the company," Maryland pawn shop owner Steve Kottman told the state's Delmarva Daily Times.
While prices are high for people selling gold, many economists expect precious metal prices to continue to rise even more in light of current economic conditions.
Tuesday, March 2, 2010
IMF selling small portion of gold reserves
Gold has long played a crucial role in international financial markets and it continues to do so - as evidenced by a recent announcement from the International Monetary Fund that it will be taking another step forward in its plan to sell 403.3 metric tons of the precious metal.
The gold sale was approved by the IMF's executive board last September, and a previous sale saw 212 metric tons sent to the Reserve Bank of India, the Bank of Mauritius and the Central Bank of Sri Lanka, noted the organization in a recent announcement.
The IMF still has 191.3 metric tons left to sell in its program, but is doing so gradually in an effort to avoid any potential disruption to world gold prices.
Still, this is just a small part of the IMF's overall gold holdings. In another announcement, the global financial body noted that as of the end of January, it held about 3,005 metric tons of gold reserves, with an estimated value as of February 1 of about $105 billion.
In the past, according to the IMF, it has sold gold to meet various financial priorities, including replenishing its currency holdings and to generate funds for its Heavily Indebted Poor Countries Initiative.
The gold sale was approved by the IMF's executive board last September, and a previous sale saw 212 metric tons sent to the Reserve Bank of India, the Bank of Mauritius and the Central Bank of Sri Lanka, noted the organization in a recent announcement.
The IMF still has 191.3 metric tons left to sell in its program, but is doing so gradually in an effort to avoid any potential disruption to world gold prices.
Still, this is just a small part of the IMF's overall gold holdings. In another announcement, the global financial body noted that as of the end of January, it held about 3,005 metric tons of gold reserves, with an estimated value as of February 1 of about $105 billion.
In the past, according to the IMF, it has sold gold to meet various financial priorities, including replenishing its currency holdings and to generate funds for its Heavily Indebted Poor Countries Initiative.
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