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.
Showing posts with label gold investment. Show all posts
Showing posts with label gold investment. Show all posts
Wednesday, March 31, 2010
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.
Thursday, February 25, 2010
Lawmakers show little inclination to tackle national debt
Many investors have been talking to silver and gold dealers about concerns raised by the ever-increasing U.S. national deficit, especially in light of widespread doubt about whether substantial action will be taken to resolve the problem.
Still, members of Congress and the White House have acknowledged the national debt problem to some extent in recent weeks. For example, earlier this month President Barack Obama announced the creation of a National Commission on Fiscal Responsibility and Reform.
The panel will be headed by former White House Chief of Staff Erskine Bowles, a Democrat, and former U.S. Senator Alan Simpson, a Republican from Wyoming.
"For far too long, Washington has avoided the tough choices necessary to solve our fiscal problems - and they won't be solved overnight," said Obama in his announcement.
However, the commission's recommendations will not be binding upon Congress, which raises concern in some quarters that it will make little real progress in the long run.
Given the economic chaos that the nation's debt burden could eventually bring upon the financial system, considering an investment in dealer gold may be a wiser long-term choice than ever.
Still, members of Congress and the White House have acknowledged the national debt problem to some extent in recent weeks. For example, earlier this month President Barack Obama announced the creation of a National Commission on Fiscal Responsibility and Reform.
The panel will be headed by former White House Chief of Staff Erskine Bowles, a Democrat, and former U.S. Senator Alan Simpson, a Republican from Wyoming.
"For far too long, Washington has avoided the tough choices necessary to solve our fiscal problems - and they won't be solved overnight," said Obama in his announcement.
However, the commission's recommendations will not be binding upon Congress, which raises concern in some quarters that it will make little real progress in the long run.
Given the economic chaos that the nation's debt burden could eventually bring upon the financial system, considering an investment in dealer gold may be a wiser long-term choice than ever.
Friday, February 5, 2010
U.S. credit warning a new reason to consider dealer gold investments
People who are waiting for a return to normalcy in the stock market and the broader U.S. economy got some unsettling news this week in the form of a warning from Moody's Investors Service about the long-term state of the nation's credit rating.
According to the UK's Financial Times newspaper, the firm has warned that the triple AAA sovereign credit rating of the United States could be jeopardized by either weak economic growth or a failure to properly address the country's budget deficit and national debt.
The newspaper went on to note that Moody's sees the U.S. currently on a debt growth trend that is "clearly continuously upward," adding that if the economy grows less than project, it will result in an even larger budget deficit than currently projected.
With a national debt that is rapidly approaching $14 trillion, investors around the world have already been feeling growing reservations about the long-term prospects for the U.S. economy and dollar. Compounding this concern is looming debt problems in various other countries.
Still, investors have traditionally found a safe haven in gold and other precious metals when such doubts have emerged over the years.
According to the UK's Financial Times newspaper, the firm has warned that the triple AAA sovereign credit rating of the United States could be jeopardized by either weak economic growth or a failure to properly address the country's budget deficit and national debt.
The newspaper went on to note that Moody's sees the U.S. currently on a debt growth trend that is "clearly continuously upward," adding that if the economy grows less than project, it will result in an even larger budget deficit than currently projected.
With a national debt that is rapidly approaching $14 trillion, investors around the world have already been feeling growing reservations about the long-term prospects for the U.S. economy and dollar. Compounding this concern is looming debt problems in various other countries.
Still, investors have traditionally found a safe haven in gold and other precious metals when such doubts have emerged over the years.
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