Archive for the ‘Gold’ Category

Some Fun Facts About Gold

by Rebecca in Gold with Comments Off on Some Fun Facts About Gold

We all know that gold is a great investment that holds its value no matter what the economy is doing. But even the most serious matters have an interesting or humorous side. Gold can certainly help you in achieving a comfortable retirement, build your wealth, and be an excellent investment. But who know there were so many interesting and amusing aspects to this beautiful precious metal?

How is Gold Measured?

Gold and other precious metals are usually referred to in ounces. Because they are worth so much, hardly anyone owns pounds of precious metals or if they do, they’re certainly not advertising it! Therefore, precious metals are measured in ounces.

Even the ounces measurement, though, is special. Precious metals are measured in Troy ounces, which are slightly heavier than an ordinary ounce. A Troy ounce is 31.1034768 grams as opposed to an ordinary ounce that weighs 28.3495231 grams. There are 32.1507466 Troy ounces in a kilogram and 32,150.6466 Troy ounces in a metric ton.

How Much Gold is There in the World?

There have been an astonishing 165,000 metric tons of gold mined since the dawn of human history. That equals 363,762,732 pounds or a whopping 5,820,203.717 (ordinary) ounces.

This can be pretty difficult for most people to visualize so lets try to put it in more familiar terms. An Olympic pool measures 82 feet wide and 164 feet long and holds 660,000 gallons of water. In metric terms that’s 50×25 meters and 2500 cubic meters of water; each cubic meter of water equals one metric ton of weight. Therefore, an Olympic pool could hold 48,250 metric tons of gold. It would take just shy of 3 ½ Olympic swimming pools to hold all the gold that’s ever been brought above ground by miners throughout history.

What if all that gold was shared by every single person on the planet? Assuming the most recent census of about 7 billion people is correct, every person would have .83 ordinary ounces of gold. If you wanted to wear it instead of having an ingot, dust, or nuggets it would make about 5 gold rings per person.

Gold is still being mined, of course, every day of the year. Each year all the gold that is brought above ground could be crammed into a room that is 20’ long, 30’ wide, and 8’ deep. That’s a lot of gold!

Is There any Gold Left?

According to National Geographic more than half of all the gold mined throughout history has been brought above ground in the last fifty years. The most profitable deposits are being quickly depleted and it’s rare that any new discoveries are reported. The huge nuggets of the California Gold Rush are unheard of now and the fantastic gold reefs of South Africa are no more. It’s unlikely that we’ll ever again hear of a huge, rich vein of gold being discovered unless its buried in a corner of the world that has remained undiscovered.

Most of gold is mined in China with the U.S. producing the second most tonnage.

Gold Has Caused a Lot of Trouble!

When Spain sent their soldiers to conquer the New World in the 16th century they thought that they would be sailing home with ships full of gold. Those ambitions were not fulfilled since the Incas and Mayans had more silver than gold. They got a mere 154 metric tons of gold but 7,440 metric tons of silver. To any normal person that would be an unbelievable fortune but for a country hoping to finance the conquest of the world it was very disappointing. Thousands of lives were lost in the looting.

In the 19th century the British went to war with the Ashanti tribe in Africa over a gold stool that was supposed to represent the power and authority of the tribal leader. The Ashanti King was exiled in 1896 and the British governor, Sir Frederick Hodgson, claimed that since the Queen had jurisdiction over the Ashanti territory the golden stool was her majesty’s property. He demanded the stool be delivered to his residence to be added to his furnishings. The tribe was stunned that anyone would even consider applying their backside to the sacred golden stool and the two sides went to war. After months of battling and thousands of deaths the British declared victory over the Ashanti tribe. But they never did lay hands—or their backsides—on that golden stool!

Does Gold Have Any Practical Uses?

Gold is more than just a pretty metal, it’s been used in dentistry for at least 3,000 years. Two molar teeth held together by gold wire were found in the ancient burial grounds at Giza. The first textbook on dentistry, published in Germany in 1530, suggested using gold leaf to fill cavities. Gold is completely compatible with the human body; no one is allergic to it or suffers any ill effects if it is on their body or used in their dental work. About 80 tons of gold is used each year for dental crowns, fillings, orthodontic appliances and dental bridges.

Gold has not been confined to dentistry but was used in Chinese medicine as far back as 2500 B.C. to remove mercury from human skin and to treat smallpox, skin ulcers, and furuncles (abscesses under the skin). Modern medical practitioners use gold salt injections to treat arthritis but it’s a slow process. Patients typically experience relief after 4-5 months of weekly injections.

There’s about a half dollar’s worth of gold in every cell phone. Before you start collecting old cell phones, though, be aware that industrial gold is not nearly as pure as the gold used for investment purposes. About $500 million in gold is used in cell phones annually. Gold is an excellent conductor and won’t corrode so it is used in most electronic devices including ordinary desktop and laptop computers.

Gold is not only a good conductor but a great reflector. Polyester film coated with gold is used on space vehicle to reflect radiation and stabilize core temperatures. It is also used to thinly coat the visors of astronauts’ helmets to protect them from the sun’s rays.

Most of us have seen photos of buildings like St. Basil’s Cathedral in Moscow that are topped by domes covered in gold. Gold is very soft and can be made into sheets as thin as a few millionths of an inch. These sheets are called gold leaf and can be applied to buildings no matter what the climate. Gold does not corrode and is easy to work with so it makes an excellent building material. The Sripuram Golden Temple in India is the biggest golden structure on earth and a truly incredible sight. The temple builders used 1.5 tons of gold leaf in its construction.

52% of gold is used in the jewelry business, 12% for industrial use and 34% is in investments and holdings. That leaves 2% unaccounted for. I’m sure we would all like to stumble across that “small” amount!

So you see, gold is a very versatile metal with more uses than people are aware of. The next time you need to start a conversation or break the ice you can use these entertaining and interesting facts. Investing in gold, though, is the best use of gold for the average person!

Gold’s Role in a Cashless Economy

by Rebecca in Gold with Comments Off on Gold’s Role in a Cashless Economy

Most of us interested in gold coins, gold bullion, and gold rollovers have read some articles and heard rumors about a cashless society.  Any major change can be upsetting both personally and financially but there are other things to consider, too.  What about personal safety and liberties?  How does a person protect themselves from the consequences of going cashless?  Can gold and other precious metals protect you when currency has been made obsolete?

People who educate themselves are able to minimize the impact of important changes in their lives, whether those changes are personal or financial.  By finding all the available facts about the impending cashless society and dispelling baseless, sensationalist rumors you can protect yourself and your loved ones and even thrive in the economy of the future.

What is a Cashless Society?

It’s hard to imagine doing business or everyday errands without currency or coin but in the 21st century that’s what many of us do, for the most part.  It began with the checking account; people could write checks that represented money in order to pay bills or buy goods and services.  Banks encouraged check writing because it left a lot of room for error—those who did not keep track of their account balance often “bounced” checks and the banks could charge them a penalty for doing to.  Checking accounts are quickly falling out of favor now that banks issue debit cards, and electronic way to immediately access cash from a bank account.  Plus, if someone doesn’t have enough money in their account they can use a credit card.

A cashless society would depend on credit and debit cards for purchases.  No one would have coins or currency, only cards or access numbers.  There are already hand held key fobs that one can swipe rather than a card and some think that a human UPC code is not far behind.  These methods made purchases and payments very easy but they also have many disadvantages.

You may not think that a cashless society would be so bad.  Crime would presumably go down since people would no longer carry cash.  You would no longer be shortchanged as computers and not cashiers would be making the final transactions.  There would be no more fumbling for the proper change or quarters for toll booths.  Children would no longer lose lunch money.

So much inconvenience could be done away with!  However, any conveniences from a cashless society would be outweighed by its impact on personal freedom.  As with many conveniences, a cashless society could come with a heavy price.

Why do Banks and Governments Want to Ban Currency? 

Currency can be hidden away, nearly impossible to find by anyone but the person that stashed it.  It can also be collected from sales of illegal goods or services than “laundered” through legitimate businesses, thus protecting criminals and allowing their businesses to thrive.  If we had only digital currency it would be nearly impossible for criminals to disguise the trails of revenue.

Without currency there also won’t be “runs” on banks.  In 2015 the Greek economic crises sent the populace into a panic; $894 million was withdrawn in just one day.  That kind of activity could collapse the U.S. economy as well as many others.  The banks can’t control your cash very efficiently but they can control digital currency—and they do!  Have you ever deposited a check only to be told that the bank will hold it for days until it is deemed to be good?  They can do that even with a cashier’s check.  Many banks even make you present identification if you dare to deposit cash!

Paper money keeps controls things like negative interest, which benefits banks.  Basically, negative interest means that you are paying the bank to handle your money.  For instance, most banks charge a monthly fee for checking accounts and even for savings accounts.  If these rates become too great, consumers can just withdraw their money and hoard it at home.  This leaves the banks with a big chunk of their assets gone.  Getting rid of currency gives the banks control of your wealth because it will all be digital and you can be locked out at any time with a few keystrokes.

A cashless society would also allow government agencies to manipulate accounts, impose and collect taxes, and punish dissenters by freezing or confiscating their money.  You could not even get medical help unless the government decided to permit you to by leaving your finances alone.  Now, these are admittedly over the top theories and projections but you need to prepare for the worst and hope for the best when it comes to the future, both personally and financially.

There is every reason for the banking industry and the government to encourage a cashless society.

When Can We Expect Cash to be Eliminated?

There have been proponents for a cashless society ever since the dawn of the digital age.  In recent years many people have encouraged the government to start eliminating currency including Willem Buiter, chief economist at Citigroup, and Kenneth Rogoff with Harvard University.  In the last couple of years they have proposed what’s come to be called Economic Totalitarianism, the elimination of cash from all rungs of society.

Believe it or not, there have been some actual test runs of a cashless society to find out how consumers would react.  In 2014 a group of Manchester, England shops banned the use of cash and accepted credit or debit only to see if British citizens would welcome a cashless economy.  The buses in London stopped accepting cash payments that same year and the dealers on the Currency Exchange started a campaign to offer debit cards rather than cash, citing the greater safety of the cards.

You may think a cashless society is in the distant future given the number of countries in the world and the inability of governments to work together.  However, the world’s finances are controlled not so much by governments as by wealthy individuals with a great deal of influence over their governments.  A cashless society could come at any time, especially since consumers prefer ease over liberty.

How Does Gold and Other Precious Metals Protect Me?

Gold and other precious metals will always be valuable even when alternate forms of trade are worthless.  In a society whose wealth structure lies in the digital universe, where is the underlying value?  A cashless society requires trades on assumptions of wealth; your bank says you have five hundred dollars to spend but there is nothing to back it up.  There is no paper currency, no metal coinage, and no guarantees whatsoever.  All you have is numbers in cyberspace representing wealth with no physical goods to back them up.

A cashless society is prone to inflation, deflation, and stagflation (persistent deflation with accompanying low employment and low demand for goods).  Since there is nothing backing the method used for purchase, there is no value in the goods and services themselves.  If I trade you digital numbers for a window that you bought with digital numbers that is not true commerce.  That type of transaction is like passing clouds back and forth—worse, because at least clouds have water, which has real value.

Eventually a cashless society will either collapse or achieve total governmental control of all physical, mental, economic, and health aspects of its population.  Given the love of liberty in human nature, a collapse is more likely.  Whoever has something valuable to trade when the collapse approaches will come out in better shape than those who have none.

Gold and other precious metals have many advantages over jewels, art, and other physical investments.  It can actually be used industrially, as can silver.  It comes in a variety of shapes and sizes, thus it can be traded for a variety of good or services.

Practically anyone can own gold no matter how much money they have.  You don’t have to buy a whole ounce of gold in bullion or coin, although that’s the method many people prefer.  You can buy small increments of gold and other precious metals in a variety of forms.  You don’t have to be the victim of a cashless economy and a society in chaos unless you choose to be.  You can protect yourself and your family with the enduring value and security of gold.



25+ Ways & Reasons to Invest in Gold (Full Guide)

by IRA Rollover in Gold with Comments Off on 25+ Ways & Reasons to Invest in Gold (Full Guide)

There are so many ads for gold investment that a lot of people are confused as to what gold investment actually is. Simply put, youInvest in Gold are spending paper dollars to buy a precious metal that has been respected and valued all over the world since civilization began.
There are many ways you can invest in gold and it’s wise to choose more than one method. The more types of gold investments you have, the more options are available to you if you should ever need to move or liquidate those investments.

There are a lot of ways to invest in Gold such as:

Gold Investment ways

1. Gold certificates

2. Shares in a gold mine

3. Gold bullion bars

4. Gold IRA accounts

5. Collectible gold coins

6. Gold bullion coins

Each form has its advantages and drawbacks but all these ways to invest in gold will yield more wealth than if you invested in stocks, bonds, mutual funds, or stockpiled cash.

One of the advantages of investing in gold is that you can liquidate quickly and easily should you need to. You’ll always have a means of funding should the currency become worthless and since gold is portable, you have the option of always having some of it on hand for immediate access. You can invest gold in IRA funds so you can reap the rewards in retirement and it allows you to have a physical asset to pass onto your heirs.

Investing in gold is also more enjoyable than other forms of investment. You have a solid, physical asset instead of digital funds or paper certificates of stock. Gold is beautiful as well as valuable and it never loses that value no matter how much the world’s currency rises and falls.

With all that in mind, let’s examine 25 reasons why you should invest in gold.

1. Gold is Always in Demand (Best Investment)

There are few things that the modern world can’t or won’t do without, things like oil to run our power plants and vehicles and clean water to drink. Gold is one of those things, not because of its beauty or value but because it is the perfect medium of exchange when currency becomes so inflated that it’s useless. Gold has been used as funds for thousands of years and has always been representative of wealth. In the ancient world of the Egyptians, gold was highly prized both as a means of commerce and a display of status.

2. Buying and Selling Using Gold is Simple

When you conduct a transaction using gold, whether you’re buying food or luxury items, the exchange is over the moment one person is paid and the other receives their goods. If you conduct the same transaction with paper money it is not final. The seller receives the currency and has to bank it, store it, or spend it in order to realize the value of it. To make matters worse, the seller has received nothing of real value, just an IOU from the government on a piece of paper that isn’t backed by any sold asset. And since the value of that paper changes from day to day he or she may ultimately receive less value than what they sold their goods for.

3. Currency has no Real Value

In 1971 the U.S. abandoned the gold standard; since then, the country’s currency has been backed by nothing but promises of payment. Even our coins have been devalued by degrading their metal content to the point where even a penny doesn’t contain a cent’s worth of precious metals. In fact, it costs nearly 2 cents to mint a penny! The metal value of a penny is a little over half a cent while a quarter is worth about 3 cents when melted down for the metal content. Conversely, the same $20 gold piece that bought a fine, custom made suit in the mid 19th century will buy that same quality suit in 2015. A $20 today bill will not even cover one tie to accessorize that suit.

4. Currency is a Bad Investment

The average person who depends on currency to live is at the mercy of politics, Wall Street, and social values. Any of these three factors can manipulate the value of currency. Currency accumulates in banks and other financial institutions but does not create wealth by investing in the economy. Most of the money made or collected by banks is stockpiled for the interest it earns, not invested in creating jobs or

services. Not only is currency not backed up by anything of value, it is of no real value to the average person when it is in the hands of the banking industry and financial tycoons.

5. Currency Devaluation may be a Permanent Condition

Ever since the gold standard was abandoned in 1971, American currency has been very unstable. Its devaluation is an ongoing condition and from the way things look it will not improve in the future. Because of our financial structure, if currency devaluation did stabilize and halt it is likely to happen again and again. The substantial nest egg that a person has now could be less than half its current worth by the time that person retires–and goods and services will certainly cost proportionately more. Add to that burden of new taxes that are constantly being instituted by city, state, and the federal government and there won’t be much left by the time you need it.

6. The Debt-Based Economy Doesn’t Affect Gold

Since gold has held its value for thousands of years you will not be affected by the global debt-based economy. Don’t let the cost of goods fool you into think that your gold is worth less than it was last year. 1913 you could buy as much with a dollar as you can in 2014 with $23.63. This is because of the consumer price index (CPI) which devalues currency as it increases. When the CPI decreases, U.S. currency’s buying value increases. However, an ounce of gold in 1913 will still buy the very same goods of the same quality in 2015. As the dollar continues to fall in value, gold retains its value.

7. Gold is Based on Value While Our Economy is Based on Debt

You can use paper money in your everyday transactions but by the time you spend it, it won’t be worth what it was when you received it. Our currency is based on a system of debt-directed spending that depends on the government’s wisdom in budgeting. Most of us know that if we conducted our personal or business finances in the same way the government spends our tax dollars, we would quickly be bankrupt. Thus, the dollar is constantly losing value as our debt increases. The dollar is currently hanging in there because the country has is very liquid; the country’s securities can be cashed in with a daily turnover of nearly $600 billion. Plus, the bond market is a substantial asset with $11 trillion in government bonds among to total bond

market of $32 trillion. While the economy (and the dollar) suffers inflation, deflation, and stagflation the value of gold remains the same.

8. Gold Protects You from Government Excess

People have become progressively poorer, particularly in the past twenty years. These people have come to depend on the government–tax dollars paid by wage earners–more and more. The way entitlements are set up the average person, working or not, can most likely take advantage of one program or another even if it’s only a tax break. One out of every 6 people is on Medicaid and close to 50 million are on food stamps even though many of them are employed. Our government can’t possibly keep all the promises it has made; it must print more and more money that’s worth less the more it prints. Gold is immune to government excess and no matter how devalued the dollar becomes, gold is still worth what it has always been worth.

9. Gold and the Debt Based Economy

You would think that a debt based economy would be unconstitutional–it’s certainly unwise and destructive. However, it is legal because the Federal Reserve Act of 1913 allows the government to use tax dollars to pay principle and interest payments. Thus, the people no longer run the government but the banking industry dominates it at all levels. Our debt passed $17 trillion in 2014. Unless policies drastically change, it’s only a matter of time until currency is worthless. Gold, however, never inflates or deflates. You can’t drive the value of gold up or down, only how many dollars it takes to buy it. With the right type of gold investments, you can be assured that you’ll always be able to provide for yourself and your family.

10. Gold is the Great Equalizer

Most people will be affected in one way or another by stagflation while others may find a way to profit from it. You hear a lot about the income gap and most people know that just 1% of the population owns 33% of the country’s wealth. Only 2.5% of the wealth is owned by the poorest 50%. The income gap today is as significant as it was in the 1920s, thanks to the banking system and our debt based currency. Most people don’t have “money” to shift around and do well just to keep their heads above water. The advantage to owning gold is that you have real value. Those wealthy enough to invest typically put their money in stocks, bonds, and paper assets that have no real value if the currency collapses. Anyone can own gold since it is sold in

very small as well as large units. You can buy as little as 1/10 of an ounce of gold, which means that just setting aside a few dollars a week will allow you to have a full ounce in a very short time. Gold equalizes the gap between the wealthy, the middle classes, and the poor.

11. Why the Poor will Remain Poor–But You Can Prosper

Our debt based economy insures that the poor will always be with us. People are encouraged to save money, invest it, budget well, and told that will lead them to prosperity. Since our economy is based on debt, inflation insures that the poor will never get ahead because they depend on currency and think they can’t own gold because it is too costly. Inflation is caused by the never ending government spending as well as the monetization of the debt that allows a sick economy to support the banking industry, Wall street, and more government borrowing. The average person is left with inflationary dollars that buy less and less and a stagnant economy. No one tells them that even the poor can afford to buy some gold because you can buy it in very small quantities.

12. Gold Protects You When Other Governments won’t Accept the Dollar

Governments have in the past and are now again beginning to refuse to accept others’ currencies. This is because of inflation and so many volatile political climates. When this happens, they will still accept gold, which is recognized as payment everywhere in the world. Banks stockpile gold, as do countries who want stability. China and India are the top buyers of gold in the market today. Banks finance their empires through debt but when global debt rises too much they can profit during economic collapse because of their stockpiles of gold. They do not want gold-backed currency because that would seriously inhibit their ability to attain power as well as wealth. Investors who own gold will retain their wealth in years to come, whereas those that stockpile currency will find themselves with practically nothing.

13. Gold Cannot be Confiscated

In 1933 the government called in all the gold owned by citizens in order to save the banks from collapse. This resulted in the devaluation of the dollar. Unscrupulous sellers of gold coins will tell you that they’ll do it again soon but antique gold coins (100 years old or more) are the exception. The truth is that the government can’t confiscate gold no

matter what form it is in. In 1977 Congress legislated away the president’s ability to regulate gold transactions during a time or war or national emergency. Your gold cannot legally be confiscated but your currency can–through inflation, currency collapse, or a changeover to a new type of currency.

14. Gold Has No Liability

Gold has no liability whatsoever other than safe storage. Currency is an instrument of debt, nothing but an IOU from the government that is not backed by anything but promises.

15. There’s Enough Gold for Everyone

An amazing and little known fact is that the amount of gold available has been about the same as the world’s population throughout history. Money destabilizes economy as well as society because it has always been printed or struck in excess of the population. Currency soon loses its value because of its quantity but gold retains purchasing power because its value always remains the same.

16. Gold is Portable

You can carry gold anywhere. In fact, you can easily carry enough on your person to support yourself for years. It doesn’t need to be exchanged for a different currency in order to be used. Its only drawback is its weight but because it is so valuable you’ll need very little for an emergency.

17. Gold is Easy to Store

You can store gold on your premises as long as you have a secure container. Most people prefer an in-ground safe that can be concealed if they choose to keep their gold in their home. Some choose secure storage from the dealer they buy it from while others use a safe deposit box at their bank that provides 24 hour security and protection from the elements. Any way you choose to store your gold, it is easy to secure and protect.

18. Gold Comes in Convenient Forms

You can buy gold certificates or credits in gold accounts that can be turned in for real, physical gold. When you use currency, it is only away to exchange credits that are not redeemable for any physical asset since there is nothing to back it up.

19. Gold Protects You from Destructive Economic Cycles

Debt based economies like the U.S. have a repetitious cycle of boom and bust caused by a hollow monetary system. Gold-backed economies are stable and while they may be unstable at times they are backed by something of value. Owning gold insures that you always have something of value with which to secure food, shelter, and other necessities.

20. Gold Gives You Independence

You can own gold that is not controlled by banks or the government, both of whom control currency. Dealing with currency puts you at risk since it is controlled solely for the needs of those institutions, which are not usually the needs of the people they purport to serve.

21. Currency Subjects You to Control by Others

A government can’t fund wars when its currency is backed by something of value. Our currency now gives free rein to spending and debt since more can be printed any time the government wants to spend more. If you own gold you cannot be controlled economically. You are free to make decisions that are right for you and not be subjected to the whims of whomever is in office.

22. The Next Generation Will Thank You!

Gold is something you can proudly pass on to your children and grandchildren because it will be just as valuable when you bought it as when your heirs come into possession of it. When you pass currency, stocks, or digital wealth on to your heirs it may be worth a fraction of what it was when you purchased it because it has no solid foundation, just empty promises.

23. You Know You Will Always Have Something of Value

When you own gold, you can keep your wealth outside the reach of banks and governments. If you choose to accumulate only currency, you let others decide the value of your wealth.

24. Gold Gives You Freedom

Gold enables anyone to accumulate riches while currency concentrates the wealth and power in banks and government, enabling them to abuse the populace. Gold insulates you from economic abuse and persistent hand to mouth existence that most of the populace now suffers thanks to our worthless currency and capricious politics.

25. Gold Allows You to Claim Your Life as Your Own

Citizens are little more than slaves when governments finance bailouts and wars with the citizens’ tax dollars. What the government can’t pay, it borrows; the present generation and succeeding ones are burdened with debt not of their making. The banks access the peoples’ wealth through taxes since they are the ones that finance every government whim. Thus, people don’t even own their labor, which is taxed in order to pay back government debt to the banks. This is financial tyranny at its worst and most of the citizens don’t understand it nor do they care as long as they have distractions. By owning gold you have freedom and independence from the unstable dollar and a self-centered, uncaring government.

Now that you know why you should own gold, you may want to decide which form or forms you would like to own. Depending on your budget you can start with a very small amount or a more substantial order and build up real, substantial wealth that will never lose value.

Types of Gold Investing

by IRA Rollover in Gold, Gold Bullion, Gold Investing, Gold IRA with Comments Off on Types of Gold Investing

If you are thinking of buying gold as a retirement investment there are a few ways you can accomplish that goal.  Some buy gold as a hedge against inflation while others are investing in gold for retirement.  With both you’ll have security and wealth that inflation and fickle economies can’t touch.

Buying Gold Stocks

Gold stocks are actually shares in working gold mines.  This can be a lucrative investment, especially if the mine runs smoothly and finds some great veins of gold that require minimal expenditure to extract.  There are some risks to gold stocks because their value depends on how well the mine does.  Like any other type of stock, you can monitor it closely and sell at a profit if the company appears to be in trouble.

If you decide to invest in gold stocks you should make sure that you deal with a licensed commodity broker that has a good reputation among his or her clients.  You should avoid those who try to pressure you into an investment during your first contact.

Mutual Funds

Mutual funds are a “basket” of investments that are comprised of several interests.  They may hold interests in several precious metals, including gold, as well as other commodities such as oil, grains, or technology.  Mutual funds generally do well because if one of the stocks performs poorly the others might be making money hand over fist.  This basket of investments spreads your funds across several strata of interests so that you can make consistent profits even if some of the stocks or commodities that comprise the basket don’t do well at times.

Mutual funds are considered a conservative investment because of their generally consistent returns.  Many people over the age of 50 like mutual funds because they are generally low risk and allow them to invest in gold, other precious metals, and many profitable commodities.

Gold Bars and Bullion

When investing in physical gold and silver you’ll have several options.  Both come in bars or ingots as well as in bullion form such as coins.  If you’re using it for a gold backed IRA account you must buy certified purity in an approved form.  Bullion is a bulk quantity of a precious metal that can come in bars that are stamped with their purity content after having been melted and cast.  Bullion coins are not used as legal tender but kept as assets.  Several countries around the world produce bullion coins but those made in the U.S. are guaranteed as to quality, purity, and weight.

There are many reputable gold bullion dealers that you can buy bars or coins from.  If you’re considering buying bullion you can shop around for dealers who charge the lowest premiums and who have the most satisfied clientele base.

Collectible Coins

Often called numismatic coins, these assets are valued according to their condition and how rare they are.  You can buy a US gold double eagle (face value of $20) from 1877-1907.  These are 90% gold and weight .9675 ounces.  When you buy such coins you will be paying not only for the gold content but for the rarity and collectability.  You usually end up paying much more for numismatic coins than you would for a similar weight in a gold bullion coin or bar.  You are gambling that your coin will rise in value due to its rarity.

Numismatic coins are not eligible for inclusion in a gold back IRA.  Their value is also tied to what people will pay for them beyond the gold content.  Since you are paying much more for a numismatic coin than for a non-collectible gold bullion coin, you must consider the chances of getting your investment back before you buy them.  A numismatic coin that costs you $2500 today may sell for much less if you have to liquidate for any reason.

Gold as a Hedge against Inflation

Gold will always have value no matter which form you buy it in.  People are using gold as a retirement investment specifically for that reason since it is not affected by whether the economy is doing well or poorly.  Whether you buy it for a gold IRA account or store it yourself on your premises or in a secure facility, you can be sure that your gold will never lose its value.  Gold is a foolproof way to preserve your wealth and build a secure retirement plan.

If you are thinking of buying gold as a retirement investment there are a few ways you can accomplish that goal.  Some buy gold as a hedge against inflation while others are investing in gold for retirement.

regal assets

Why Physical Gold Storage is Important

by IRA Rollover in Gold, Gold Bullion with Comments Off on Why Physical Gold Storage is Important

If you’re thinking about making your IRA more secure by purchasing gold and other precious metals you may be wondering about physical gold storage — can you keep it in your home?  Where will it be safe from damage, vandalism, natural disasters, or theft?  You can rest assured that your gold and other precious metals that you buy for your IRA will be safe, secure, and available if and when you decide to make a withdrawal.

The Tax Payer Relief Act was passed in 1997 to allow precious metals to be included in IRA accounts.  This means you can purchase gold, silver, palladium, and platinum for your IRA rather than be confined to investing in the stock market and other riskier ventures.  However, the metals have to be 99.9% pure no matter which metal you choose.  Examples of acceptable gold are bars, ingots, US gold and silver eagles, Canadian Maple Leaf, etc.

Federal law mandates that all precious metals purchased for IRA accounts be stored at a federally licensed IRA custodian.  It is the

physical gold storage

same law that applies to stock certificates or a money market account that is part of your IRA—you cannot physically hold these assets but must store them in a safe, impenetrable facility.

One of the most well known depositories for gold and precious metals is the Delaware Depository Service Center (DDSC).  This is located in Wilmington, Delaware, and is an approved center for storage and distribution of precious metals.  It stores precious metals and provides shipping services to investors worldwide, including financial institutions and industrial giants.  It is heavily insured so that if anything should happen to your gold despite the security systems and environmental protection amenities (such as sprinklers and smoke detectors), you don’t lose the value of your precious metals.

There are two ways your precious metals are stored.  Fungible storage means that your gold or other precious metals are grouped with other depositors’.  When you take a distribution you may get a different item of gold than you deposited but the purity and value is exactly the same.  Segregated storage means that your metals are stored separately and you get the exact same items that you purchased when you take a distribution or sell them in the future.

You will pay a storage fee for your precious metals based on the value of your account. Segregated storage fees are a bit higher than Fungible storage fees.

So what if you want to store gold or precious metals in your home or a bank box?  You can certainly do that but they cannot be a part of your IRA.  Some people do purchase gold and store it in a safe on their own premises.  However, there is always the possibility of theft or natural disaster that can compromise its safety.  You can also store it wherever you choose once you withdraw it as a distribution from your IRA but that can be risky.

Purchasing gold for your IRA is an excellent way to escape the ravages of inflation, hyperinflation, and economic uncertainty.  Having a secure place for physical gold storage will give you peace of mind as you watch your gold and other precious metals appreciate.

 physical gold storage

The Best Place to Buy Gold

by IRA Rollover in Gold, Gold IRA rollover with Comments Off on The Best Place to Buy Gold

It’s not that simple to tell a new investor the best place to buy gold.  There are a lot of factors in figuring out the best place to buy physical gold.  For instance, if you want to hold physical gold in an IRA account there are fewer places to buy that gold than if you wanted to keep possession of the gold yourself.

Finding a Gold Dealer

There are a lot of gold dealers to choose from both online or off.  The best place to buy precious metals is from a dealer or company that you trust and that deals fairly with its clients.  Look carefully at fees and premiums and compare them from one dealer to another.  Gold dealers have a right to make a profit on their service but some premiums are exorbitant and you should avoid those businesses.

Check to see if a dealer gives you proof that your gold has been delivered, either to your home or office or to your gold IRA.  Look up any complaints that may have been lodged against them—did they resolve those complaints quickly and to the clients’ satisfaction?   Look for a dealer that has membership in the Professional Numismatists Guild so you know you’re not dealing with a scammer but an ethical business.  Some dealers that don’t handle coins but only gold bars may not be members of PNG and in that case, look for other associations they may have. Ask your friends and coworkers as well as your investment advisor for recommendations.

Can you buy Physical Gold in an IRA?

You can buy physical gold for a gold IRA but it must be stored in a federally approved facility that is both secure and insured.  You may see dealers or banks that offer to “hold” it for you but if the gold is for your IRA this type of storage is not legal.  You can have a bank or firm hold your physical gold if it is not for an IRA but it would be a very bad idea.  If the firm goes bankrupt you will have a difficulty recovering your assets.  If the bank fails you are not covered by FDIC insurance because by allowing them to store your gold you have become a creditor, not a depositor.

Use Common Sense

Although you may be tempted by lower prices, never buy uncertified coins!  Many of these appear to be bargains because they are counterfeit.

If you are making inquiries and the sales representative begins to pressure you into buying, cross them off your list.  Some will tell you to buy gold coins rather than bars because the government can confiscate the bars.  This is not true but some unscrupulous sellers use this rumor to scare potential clients into buying a pricier product.  Don’t allow anyone to pressure you and if they do, end the call or blacklist the email address.

When you are looking for the best place to buy physical gold there are many ethical and reliable dealers.  One that you should seriously consider is Regal Assets, a company that gets consistently good reviews and whose customer satisfaction is very high.

buy physical gold

Can You Buy Gold Bars?

by IRA Rollover in Gold, Gold Bullion with Comments Off on Can You Buy Gold Bars?

When people are looking for safe investments that will hold their value they generally ask, can you buy gold bars?  Fortunately, the buy gold barslaws about gold have changed since 1933 when everyone had to turn in their gold to the federal government.  In 1974 that law was repealed by President Gerald Ford.  The new law allows people to own gold bars, gold coins, gold bullion and to buy gold ingots and gold certificates.  Gold cannot be specified as a payment of a specific contract, though.  In other words, you can buy gold but no one can contract for goods or service and demand payment in gold.

Gold bars come in many sizes, enabling people without vast amounts of cash on hand to buy and own gold.  Most people to buy gold save a little each month and buy gold bars annually or quarterly.  Some buy an ounce at a time, some several ounces, and some buy smaller gold bars according to what their budget can handle.

Buying gold bars is popular right now because bars carry lower premiums than gold bullion coins.  You can save as much as $50 per ounce when you buy a gold bar instead of an American Gold Eagle coin.  Gold bars come in all sizes:

  • 1 ounce bars
  • 10 ounce bars
  • 1 kilo (32.15 troy ounces)
  • 100 grams (3.215 troy ounces)

All these types of gold bars are at least 99.5% pure as per federal mandate.

One ounce bars are affordable for many people but more than 30 types of bars on the market today. You can get a gold bar as light as half a gram but generally, the lighter the bar the higher the premium.  The standard bars held in federal gold reserves by central banks are 400 troy ounces, which equals 438.9 ounces in standard measurement.

If you want a gold bar that easy to sell, should you have to, 100 gram bars fit the bill.  10 ounce usually bought by people that are buying several hundred ounces.  Those who want less than a hundred ounces may be interested in the 1 ounce bars or 100 gram bars since both offer more flexibility if you should need to sell some of your gold for some reason.

One ounce bars are a good buy for those who can’t spend a lot all at once.  The mark-up is less on a one ounce bar than on a one ounce bullion coin and you can save as much as $40 per ounce.

You can also buy 5, 10, and 20 gram gold bars at smaller premiums than fraction-ounce gold coins.

As you can see, buying gold bars rather than gold coins is smarter economically and they are easier to liquidate.  You have a lot of choices when it comes to buying gold bars, which makes them a great asset to include in an IRA.

So in a nutshell, when you ask “can you buy gold bars?” the answer is yes you can and yes you should!

Investing in Gold

by IRA Rollover in Gold with Comments Off on Investing in Gold

For investors seeking a safe and secure asset for their portfolio, investing in gold is an excellent option. Historically, gold has provided most cultures with a tangible source of currency, and it will always be a valuable asset regardless of the economic or political situation existing now or in the future. Few investments can give you as much security and value for your retirement as gold.

Why Invest in Gold?invest in gold

There are several significant reasons to invest in physical gold as opposed to other investments.

Since gold is an asset that is acknowledged as a monetary unit across the world, you can effortlessly convert gold to actual money whenever you choose. This means that gold is considered a liquid asset, and liquidity is an important facet of an investment.

Furthermore, it is imperative that your portfolio possesses diversity. To ensure diversity, investors must position their funds in several different investments. By investing in gold, you can confidently guarantee both diversity in your portfolio and security in your investment, since gold is an asset that will always enjoy universal value and purchasing power protection. The purchasing power protection afforded by gold is derived from gold’s ability to increase in value in accordance with the cost of living. An ounce of gold today can still purchase the same good or service that it could buy 100 years ago even though that item is now sold at a much higher price.

A Gold IRA also offers investors tax deferred growth. Tax deferred growth simply means that you will not be taxed on an investment until a later time, usually when retirement is reached or when you convert the investment into cash. Tax deference is an important consideration when choosing an investment option. Many other types of investments are taxable, which will cost you more money every year and could ultimately diminish some of your retirement funds.

Gold prices – Is this the time to take the plunge?

by IRA Rollover in Gold, Gold IRA with Comments Off on Gold prices – Is this the time to take the plunge?

In July, gold was selling for USD 1,249. That’s nearly half the price of July 2011, but nearly twice as much as its price in October 2008.  Needless, to say, gold has a turbulent history and most indicators predict gold’s prices will trend downward.

Remember, however, that you’re investing for the long term. Gold prices have risen 3,454% since 1968 – a period that includes the mid-‘80s, when gold was at a low point while CDs paid double-digit interest and the US dollar was nearly equal to the British pound.

Of course, that staggering price increase was because of the end of the Bretton Woods monetary management system by the Nixon Administration in 1971. This meant that US dollars could no longer be directly converted to gold currency. The dollar thus became “fiat currency” and thus its value is not dependent on its related value to any other thing, including gold. Such a move had a profound effect on the economy: A 1970 dollar could buy as much as $6 does today, according to the consumer price index (CPI). That’s 600% inflation in 43 years! Look at the Gold growth story – Picture taken from Zen Gold

buy gold

“Nothing can be said to be certain except death and taxes,” Benjamin Franklin famously said. He could have included inflation if he lived with our fiat currency. The Federal Reserve has been printing trillions of dollars over the past five years, which has deflated the dollar’s purchasing power even more.

Gold has long been valued as a hedge against inflation because it has kept its worth over the long haul. Since leaving the gold standard, the US dollar and the British pound have declined in value after years of stability. Thus, it’s very likely that gold will continue to be a safe investment for you – definitely safer than the printed US dollar which will continue to decline in value as more currency is put into circulation.

Today’s favorable prices make this a great time to buy gold bullion or other gold products. You can open a precious metals IRA that includes gold, silver, platinum and/or palladium and protect your retirement funds from inflation and economic catastrophe.

Naturally the closer you are to retirement, the more cautious you should be. Be sure to consult a proven expert that combines excellent customer service with investment expertise such as Regal Assets. Check out the company’s Better Business Bureau ratings as well as its membership in reputable industry organizations such as TrustLink.

Once you’ve found a reputable investment company, ask how to protect your future by investing in gold. You’ll sleep better knowing your retirement is protected and as good as gold.

Gold is your protection from inflation, hyperinflation

by IRA Rollover in Gold, Gold IRA with Comments Off on Gold is your protection from inflation, hyperinflation

What is inflation, hyperinflation?

Gold may be your best best against inflation. But first, we need to see why. The easiest definition for inflation is that given by Ron Paul: More money means less value. By the same token, hyperinflation means, according to Investopedia: rapid or out of control inflation. Hyperinflation often occurs when a nation increases its money supply but without having a similar increase in its gross domestic product (GDP). The GDP measures the value of a country’s goods and services in a specific period of time.

hyperinflation - buy gold

GDP means nothing

However, at least one financial expert feels that the GDP is not a good economic indicator. Alasdair Macleod, former Guernsey bank director as well as a mutual fund manager and a stockbroker on the London exchange, said the GDP is impossible to measure because of the complexity of measuring an entire country’s production of goods and services. Instead, MacLeod says, economists measure a country’s total money supply.

But the economy is sound, so how can prices change?

Macleod says that if the GDP had been measured in the early days of Germany’s Weimar Republic (after World War I), that country would have been seen as having an economic boom. That’s because prices fall over time when the money supply is stable, thanks to greater production efficiency and new technology. Macleod also says notes that the US GDP has remained the same for 50 years, if one adjusts for government spending, flat currency and prices that rise because of money and credit expansion. If Macleod is wrong, he asks, how can the total value of goods and services vary if the money supply is stable?

The US dollar has fallen and will keep on falling

The Federal Reserve’s Open Market Committee announced in 2012 it would devalue the dollar by 33% by printing more money and using it to buy $85 billion in bonds every month. This could bring about more inflation and economic problems.

Since 1971, Gold Prices Have Risen X 44!

Or, put another away, the dollar’s purchasing power has fallen by 44 since the Bretton Woods system ended during the Nixon Administration. Although the dollar is a “reserve currency”, it decreases in value when more currency is printed. Although this is fine for the U.S. because we can print money whenever we choose, other nations have problems because the value of their currency is related to the value of the dollar. So, emerging countries, including India and China, are snapping up gold: China has doubled its gold reserves just since 2007. Those countries want gold to be part of the IMF (International Monetary Fund’s composite currency, or Special Drawing Right (SDR).

buying gold

Adjust gold pricing = protect the $

Many world markets are moving away from the dollar and the euro as their currency bases, but the Federal Reserve is still printing trillions of dollars. There will soon be more dollars than demand for them. In order to protect the dollar, the Fed is working with the price of gold. For example, clients at Goldman Sachs and other brokerage firms were told that hedge funds and other institutional investors were unloading gold and were advised to do likewise. (This was an effort to keep those clients from investing in gold.) The price of gold thus dropped but immediately recovered. However, the outlook is not good – when gold dropped 21% in July 2008, the stock market collapsed a few months later.

Thievery in Cyprus

The nation of Cyprus recently decided to tax its bank holdings, a move that usually would cause investors to turn to gold rather than currency as safer investments. However, the Fed’s manipulation of gold prices not only boosted the value of the dollar and the euro, it also resulted in a drop in gold prices. These trends are only possible through market manipulation.

The Fed is thus working toward “taxing” American bank deposits because:

  • there is more US currency available than demand for it
  • the Fed wants to finance the US budget deficit, keep interest rates down and support the US bond market by printing trillions of dollars
  • the dollar is depreciating at an astounding pace
  • the dollar has been abandoned by other countries

There are many signs that the dollar is headed for collapse: Germany recently decided to take back its gold from the US. The state of Texas has plans to create a bullion depository. Gold has long been used as a hedge against inflation.

Money in the bank is not YOUR money

You may not know it, but a bank legally owns your funds as soon as you deposit them. Basically, you hold IOUs to the bank and are considered an unsecured creditor.  The Federal Deposit Insurance Corporation (FDIC) announced plans in December 2012 to convert those IOUs into “bank equity” as needed in order to prepare for the next financial disaster. What’s more – there are not exceptions for FDIC insured funds.

Gold IRAs protect your money

These reasons show that now’s the ideal time to invest in gold. You can open and IRA or rollover an existing IRA backed by precious metals like gold. The safest way to do so is by buying gold coins such as American Eagles or Canadian Maple Leafs. An alternative is to consult a reputable fund management firm with an excellent performance record, such as Regal Assets.

Remember, no paper-based investments (i.e., stocks, bonds etc.) can protect you from inflation. (Remember how millions lost their savings in 2008.) Protect your hard earned money with gold. Visit our gold company today and ask how you can open a gold IRA.