Economists won't admit it, but we are now in recession, and with the inflationary pressures on the horizon...can you say food and gas prices? The question on the minds of many is, how can I preserve my investments against the declining dollar? Enter gold and American Eagle Bullion Gold Coins.
One very simple way to hedge against inflation is gold, and a smart way to get into the gold market is through diversifecation in US minted American Eagle Gold Coins.
With it's introduction in 1985, Congress authorized the creation of the American Eagle as a way for investors to easily and conveniently gain access to small stakes of gold for their investment portfolios. The first actual minting and release came a year later in 1986, with 4 sizes, which are the same that are available today. The sizes, starting from smallest to largest are: 1/10 oz, 1/4 oz, 1/2 oz, and 1 oz. Interestingly, law states that the gold used in the American Eagle can only be from mines in the United States, and this practice is still in use today.
Per the U.S. Mint, the American Eagle gold coins are the only officially investment grade gold bullion coin whose weight, purity, and content are guaranteed by the government. Each coin is 22 karats. The other 2 karats that make up the total metal of the coin come from silver. The silver is necessary as gold is a soft metal, and a pure coin would not hold up without significant defacing.
The American Eagle Gold Coins are very liquid and can be quickly sold for cash at many dealers and auctions, and technically can also be used as legal tender. The 1 oz coin, for example has a face value of $50, how ever, the metal value in the coin is easily worth twenty time that at this time of writing.
As the US dollar continues to weaken, the value of the gold coin continues to rise, and no ceiling is in sight.
Buying Gold For Investing
In the present economic scenario of recession and the declining trend of many businesses, one area where the economical issues are not affected is Gold market. The stock market loses many points index every day or fluctuates wildly without any option of a creditable trend prediction, many investors are worried about putting their hard earned money in stock options. Similarly the decline in the real estate business and hence the stagnation in the market, prohibits many investors from putting their money into real estate market. The viable alternate for an investor is gold market. It is important that when you buy gold from market, you should be very attentive and you need to pay much attention and care. Otherwise you will be cheated point blankly. You will at last end up with humiliation and money loss.
While buying gold or gold ornaments, you have to check for the purity of the yellow metal. You can get gold of much purity. Perfect sovereign will be 24 carrot or 100% pure Gold. Generally gold for ornaments are gold mixed with copper in a less fraction, 22 carrot or known as 916 is the purity of the ornamental gold. Make sue that when you buy gold, you are getting only 24 carrots or 22 carrots gold. If you take with you an expert in gold business, he will able to identify even the small variations in the metal's purity. He requires only mostly hand weighing and the view of the color. So it is better to take the help of an expert while buying gold for investing.
Most of the reputed jewelries will be giving guarantee for purity of 916. Make sure that you collect the guarantee card with the purchase voucher. This will assure up to a level good gold quality. There are many markings on the gold, like hologram markings, telling that it is pure Gold. Purchasing such hallmarked gold materials will be mostly provide pure items.
It is better to avoid ornaments for investing. Gold coins are the best option for buying gold. Ornaments making is very costly. If you want ornaments, you are forced to pay about 15% to 20% more than the actual gold price. Here gold coins play a role. Also it is a truth that gold coins only provide the purity maximum, as they are not processed for converting into ornaments. Make sure that when you purchase gold for investing, you getting it from only reputed firms with long history of existence and selling. Make sure that the gold piece what you take have all symbols of quality as prescribed the federal governments. Members of the PNG are the better dealers for reliable Gold.
With the advent of Internet, the gold purchase is easy. Many online vendors offer pure gold coins apart from usual local dealers. It is advisable to take the help of some skilled personals to check the purity before buying.
While buying gold or gold ornaments, you have to check for the purity of the yellow metal. You can get gold of much purity. Perfect sovereign will be 24 carrot or 100% pure Gold. Generally gold for ornaments are gold mixed with copper in a less fraction, 22 carrot or known as 916 is the purity of the ornamental gold. Make sue that when you buy gold, you are getting only 24 carrots or 22 carrots gold. If you take with you an expert in gold business, he will able to identify even the small variations in the metal's purity. He requires only mostly hand weighing and the view of the color. So it is better to take the help of an expert while buying gold for investing.
Most of the reputed jewelries will be giving guarantee for purity of 916. Make sure that you collect the guarantee card with the purchase voucher. This will assure up to a level good gold quality. There are many markings on the gold, like hologram markings, telling that it is pure Gold. Purchasing such hallmarked gold materials will be mostly provide pure items.
It is better to avoid ornaments for investing. Gold coins are the best option for buying gold. Ornaments making is very costly. If you want ornaments, you are forced to pay about 15% to 20% more than the actual gold price. Here gold coins play a role. Also it is a truth that gold coins only provide the purity maximum, as they are not processed for converting into ornaments. Make sure that when you purchase gold for investing, you getting it from only reputed firms with long history of existence and selling. Make sure that the gold piece what you take have all symbols of quality as prescribed the federal governments. Members of the PNG are the better dealers for reliable Gold.
With the advent of Internet, the gold purchase is easy. Many online vendors offer pure gold coins apart from usual local dealers. It is advisable to take the help of some skilled personals to check the purity before buying.
The Candlesticks Speak and Silver Shudders
The price of silver has been quite volatile over the past several years. There were times when interest in the silver market has reached manic proportions, to the point where prices exceeded $21 per ounce in March 2008. Prices collapsed on March 19 and 20, and then rose and fell in a general but broad sideways pattern which led to a runup to a high of $18.33 on May 23. However, the price bar which was left behind by that day's trading was an easily-recognizable Japanese Candlesticks "Hanging Man" pattern, which is a bearish pattern subject to confirmation by a lower close the next day; and it was also the first phase of an "Island Top," which is also a bearish warning.
The next trading day, which was May 27, did in fact produce a lower closing price, so the "Hanging Man" was confirmed. It was the depth of the decline - 83 cents - which carried even greater significance, because price action on that day formed a powerfully bearish variation on the "Evening Star" pattern and thereby foretold an even greater decline to follow. The next day after that was a very modestly "down" day; but prices declined another 113 cents today, May 29, for a total decline of about 183 cents over three trading days, which converts to $9,150. In other words, if an investor had sold one contract of July silver at the closing price on May 23 and bought it back at the closing price today, he would have earned $9,150.
The beauty of it all is that this decline was predictable. This is not brain surgery or putting a lander in a precise position on the surface of Mars. It simply involves a proper reading of the pictures which prices leave behind them as they make their way across the charts. This is not unlike a skilled physician's ability to read the lines and squiggles of an electrocardiogram. Recognition of key Candlesticks reversal patterns can lead to a very quick payday when the perfect setup appears.
The next trading day, which was May 27, did in fact produce a lower closing price, so the "Hanging Man" was confirmed. It was the depth of the decline - 83 cents - which carried even greater significance, because price action on that day formed a powerfully bearish variation on the "Evening Star" pattern and thereby foretold an even greater decline to follow. The next day after that was a very modestly "down" day; but prices declined another 113 cents today, May 29, for a total decline of about 183 cents over three trading days, which converts to $9,150. In other words, if an investor had sold one contract of July silver at the closing price on May 23 and bought it back at the closing price today, he would have earned $9,150.
The beauty of it all is that this decline was predictable. This is not brain surgery or putting a lander in a precise position on the surface of Mars. It simply involves a proper reading of the pictures which prices leave behind them as they make their way across the charts. This is not unlike a skilled physician's ability to read the lines and squiggles of an electrocardiogram. Recognition of key Candlesticks reversal patterns can lead to a very quick payday when the perfect setup appears.
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