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.
Showing posts with label gold101. Show all posts
Showing posts with label gold101. Show all posts
Wednesday, March 10, 2010
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.
Saturday, February 27, 2010
Gold can be a welcome addition to retirement portfolios
Dealer gold is much more than a potentially lucrative investment in the short term. It can also help provide stability to one's retirement portfolio, especially in light of the instability that has plagued the stock market in the past couple of years.
In fact, a recent survey from AXA Equitable Life Insurance finds that 24 percent of consumers expect the economy to remain unstable with little, if any improvement in the near future. In contrast, the same survey found that only 12 percent of economists believe this is the case.
The survey also found that only 19 percent are confident in their ability to invest in equities, even though many of them believe that such investments are important for their overall retirement planning.
At the height of the recession, many retirement portfolios were decimated by as much as 40 percent, creating long-lasting economic pain for those who were on the verge of entering their retirement years.
To avoid similar problems, those who are starting to lay out their long-term financial goals may want to talk to a silver and gold dealer about the stability and profits that adding precious metals to their portfolios can bring.
In fact, a recent survey from AXA Equitable Life Insurance finds that 24 percent of consumers expect the economy to remain unstable with little, if any improvement in the near future. In contrast, the same survey found that only 12 percent of economists believe this is the case.
The survey also found that only 19 percent are confident in their ability to invest in equities, even though many of them believe that such investments are important for their overall retirement planning.
At the height of the recession, many retirement portfolios were decimated by as much as 40 percent, creating long-lasting economic pain for those who were on the verge of entering their retirement years.
To avoid similar problems, those who are starting to lay out their long-term financial goals may want to talk to a silver and gold dealer about the stability and profits that adding precious metals to their portfolios can bring.
Monday, February 15, 2010
Gold momentum enjoys a strong week
Commodities, including gold, had a good week in part because of growing economic optimism in various countries around the world.
A report by Bloomberg cited positive economic signals in Australia and China as fueling gains in industrial metals including copper, while concerns about sovereign debt problems in Europe were further fueling the momentum for investing in gold coins and similar options.
"Gold is moving along with all of the commodities. There's some economic optimism that's bringing in buying. People want to embrace gold with the overall risk tolerance that is coming back into the market today," Adam Klopfenstein of Lind-Waldock told the financial news provider.
Gold prices had previously staged a small retreat, which gave more investors the potential to add to their positions or to get into the market at a lower price.
Looking ahead, demand for gold and silver is likely to remain strong in the coming months due to a mix of concern for the economy in some quarters, as well as the increasing demand for precious metals in developing nations, which have been especially seeing renewed financial activity so far.
A report by Bloomberg cited positive economic signals in Australia and China as fueling gains in industrial metals including copper, while concerns about sovereign debt problems in Europe were further fueling the momentum for investing in gold coins and similar options.
"Gold is moving along with all of the commodities. There's some economic optimism that's bringing in buying. People want to embrace gold with the overall risk tolerance that is coming back into the market today," Adam Klopfenstein of Lind-Waldock told the financial news provider.
Gold prices had previously staged a small retreat, which gave more investors the potential to add to their positions or to get into the market at a lower price.
Looking ahead, demand for gold and silver is likely to remain strong in the coming months due to a mix of concern for the economy in some quarters, as well as the increasing demand for precious metals in developing nations, which have been especially seeing renewed financial activity so far.
Tuesday, February 9, 2010
Gold demand abates; price falls eyed
Gold demand abated on Tuesday afternoon after picking up in the previous session as traders awaited price declines, with a strong rupee aiding sentiment, dealers said.
"Demand is not as much as it was in the last two days of last week, when prices fell. A lot of buying positions got initiated both in physical as well as on forwards at $1,050-1,060 (an ounce)," said a dealer with a state-run bullion dealing bank.
International spot gold, which guides the domestic market, was trading 1,069.15/1,069.95 an ounce at 2:41 p.m. as against the previous close of $1,062.80/1,063.60 an ounce.
"Traders want gold to fall below $1,040 an ounce," said another dealer with a private bank.
The rupee was at 46.675 per dollar at 2:41 p.m., from its previous close of 46.83/84, tracking mostly stronger Asian peers and on gains in domestic shares.
A strong rupee makes the dollar-quoted asset cheaper. India has imported 35-40 tonnes of gold during January 1-27, up from 9.8 tonnes in the whole of the same month last year, the head of a trade body and bank dealers said.
Traders are trying to stock up in anticipation of India's wedding season, which begins in April, when demand for the yellow metal peaks.
Source: Economic times
"Demand is not as much as it was in the last two days of last week, when prices fell. A lot of buying positions got initiated both in physical as well as on forwards at $1,050-1,060 (an ounce)," said a dealer with a state-run bullion dealing bank.
International spot gold, which guides the domestic market, was trading 1,069.15/1,069.95 an ounce at 2:41 p.m. as against the previous close of $1,062.80/1,063.60 an ounce.
"Traders want gold to fall below $1,040 an ounce," said another dealer with a private bank.
The rupee was at 46.675 per dollar at 2:41 p.m., from its previous close of 46.83/84, tracking mostly stronger Asian peers and on gains in domestic shares.
A strong rupee makes the dollar-quoted asset cheaper. India has imported 35-40 tonnes of gold during January 1-27, up from 9.8 tonnes in the whole of the same month last year, the head of a trade body and bank dealers said.
Traders are trying to stock up in anticipation of India's wedding season, which begins in April, when demand for the yellow metal peaks.
Source: Economic times
Friday, February 5, 2010
Overseas gold demand expected to remain strong
The market for dealer gold is likely to get a considerable boost in the coming years from emerging economies like India, and perhaps most significantly, China.
A recent article in Canada's National Post newspaper quotes analyst Alan Heap of Citigroup Global Markets as saying that China is the "most important source" of gold's demand growth in the future, also noting that in 2009, demand in the country was up by 10 percent.
The newspaper noted that gold is getting increased attention from Chinese investors in light of the recent decision by the government to slow the pace of bank lending activity, which has helped to fuel concern about possible inflation.
Also, the report added that Asian banks have great potential to increase their gold holdings because they hold relatively little of it in comparison to European banks.
Elsewhere, observers have noted that an emerging middle class in China, and other countries like India, is helping to further increase demand for gold products. In general, precious metals are likely to see substantial demand from emerging economies because as industrial activity resumes in the aftermath of the recession, many applications, from automobiles to electronics, require gold, silver and other materials
A recent article in Canada's National Post newspaper quotes analyst Alan Heap of Citigroup Global Markets as saying that China is the "most important source" of gold's demand growth in the future, also noting that in 2009, demand in the country was up by 10 percent.
The newspaper noted that gold is getting increased attention from Chinese investors in light of the recent decision by the government to slow the pace of bank lending activity, which has helped to fuel concern about possible inflation.
Also, the report added that Asian banks have great potential to increase their gold holdings because they hold relatively little of it in comparison to European banks.
Elsewhere, observers have noted that an emerging middle class in China, and other countries like India, is helping to further increase demand for gold products. In general, precious metals are likely to see substantial demand from emerging economies because as industrial activity resumes in the aftermath of the recession, many applications, from automobiles to electronics, require gold, silver and other materials
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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