Increase in Gold Demand Does Not Result in Increase in Gold Prices

There seems to be no correlation between the demand in gold and its prices this time. It just doesn't conform to the usual law of supply and demand. It is so puzzling that in spite of the high demand in gold and in the investment of gold that there is now a shortage of it all over the world, there is not much going on in the prices of gold.

Many know the value of stocks or Wall Street is going down and the government is already going way beyond its boundaries.  What is not known yet is that average people all over the world in Europe, Asia and America have been purchasing more and more gold and German gold dealers have been discontinuing the sale of  gold coins. Also, the demand for gold has soared to ten times normal this past week so more orders are impossible to be met for the future. This is also true for all around the world such as in Dubai where gold stocks are depleting.

Since this unmatched demand in precious metals, Muenze Osterreich, producer of gold and silver  Philharmonics, has to work overtime to make more coins. Also, the Mint has been discontinuing the sale of the popular gold Eagles since it introduced the gold Eagle twenty years ago. The reason is because the Mint has a plan to provide a more dependable supply to dealers just on a rationing basis. The shortages are everywhere, so buyers are taking their chances at  Ebay where auctions are available for one ounce Krugerrands and Maple Leafs at $260 over spot price. As believed by experts, supposedly an ounce of gold should now have reached $1100 instead of  just $800/$900.  Why is this so? The answer is because "Comex gold is not gold" and it is pretending to be the price- setter for real gold. "Comex gold" as paper pretending to be gold is in the process of being divulged.

Here is what needs to be known...

Fund managers and not actual gold investors are the determinants for the supply and demand. They especially bet on Comex gold contracts, which they believe will go up in value, to offset their other bets that are losing.

Another thing is that when a fund gets redemption requests from clients who really need cash, there is forced liquidation on account of redemption requests which has nothing to do with the real physical gold market where demand levels are so high which leads to serious shortages of gold. Thus, this forced liquidation then results in the going down in the prices of gold.

In conclusion, demand is just too high yet the price is too little. Not only that but also governments and institutions do not show the correct statistics whenever the need arises.

You may want to read;

1) Investment Protection: Things to Consider in Buying Gold Bars
2) What Makes the Gold Price Increase? (The opposite of this article)
3) Gold - A Smart Investment?

Things That You Should Know About Gold

Since its first appearance, gold has captured mankind's fascination. Its lustre, which enables it to be seen even among other materials, is only of its own that attracts our eyes. With its lustre, even at its tiniest form it can still be distinguished. Also, it cannot be questioned that gold was the first element that has gained favour from man since the Stone Age which was proven by the anthropological excavations of burial sites in this Age. However, at first gold was not fashioned into weapons and useful tools because its rating on Moh's scale of hardness is 2.5- 3. Thus, in ancient times, gold did not have practical applications and was just considered a thing of rare, intrinsic beauty worthy to be admired and treasured alone. 

The Gold History

Gold was first explored in Egypt around 2000 B.C. large quantities of gold deposit can be found in Nubia, between the Nile River and the Red Sea. The range of the exploration was over one hundred square miles. About one thousand tons of gold were extracted by the first miners using the most primitive of tools and toiling to a depth of about six feet. By then, man discovered numerous applications for gold. Egyptian artisans started fashioning it into jewellery, ornaments and idols of awesome beauty. Throughout history, aside from being highly prized for its beauty, it is also highly prized for its lasting quality. No natural substance can destroy gold. Gold is so precious indeed that it is never affected by air, moisture, heat or cold. What is more is it never tarnishes, corrodes or rusts. Since time immemorial all gold deposits have survived geologic and climatic changes such as volcanic eruption, earthquakes, etc. Also, gold treasures in the form of jewellery, bullion and coins which were buried for so long beneath land and sea have been found undestroyed as they were.

Where Gold Is Mined

Gold is considered a rare element, with the exception of iron, yet it is the most widely distributed metal on the earth's crust. Not only that but also it ranks fifty eighth in abundance among the ninety-two natural elements present on earth. Gold is naturally found and usually mined in some areas in the mountain ranges, soil in the tropics, in the deserts and even in the frozen tundra of the Arctic. Actually it is mined on every part of the globe continentally except in Antarctica. The Yukon District of Alaska and the famous Mother Lode District in California in the USA, the Porcupine District in Ontario in Canada and Siberia in the former USSR are some of the places famous for gold of which the Witwatersrand District of South Africa is considered the  world's richest producing area which has produced 18 thousand tons of gold with limitless possibilities. Moreover, in the USA, thirty-two states are abundant in gold. These include Colorado, Alaska, Nevada, South Dakota, Georgia, Arkansas, Idaho, Utah, Montana, New Mexico, Wyoming, North and South Carolina, Tennessee, Michigan, Vermont and New Hampshire.

Gold's malleability makes it an extraordinary metal to craftsman. It can be formed into different shapes, can be drawn and stretched into an ultrathin wire without breaking, crumbling or disintegrating. It can also be easily carved, heated repeatedly without any discoloration and joined to itself or other metals by soldering without the use of a bonding flux.

Gold As A Symbol

Gold , without question, is a symbol of wealth, power and status. Take the example of Tutankhamen, the Egyptian boy king whose casket was elegantly cast from 242 pounds of solid gold. Ever since men and women have considered gold as a precious metal that they use to adorn their bodies with. In some marriage ceremonies, gold is still being exchanged based on the custom observed in some marriages until today. In Medieval Europe, the affluent sprinkled gold in the form of dust, flake or leaves on their food to display their great wealth. Gold is still often present in food which has the E Number 175. Metallic gold is inert to all body chemistry, so even if it is used in food it still does not add any taste nor has any nutritional effects on the body.  Primitive man believed gold to possess some mysterious and magical powers. Sun-worshippers for example regarded gold as the tangible essence of their god -referred to as solid sunshine.

Today in Japan, a bathtub especially designed in the form of a phoenix crafted from 400 pound of pure gold is believed to have medicinal magic, thus believers immerse their bodies in it in the hope of getting cured after. Gold has always been associated with health based on the belief that something so rare and of beauty can exude an aura of healing. The healing properties of gold are acknowledged by esotericists and forms of alternative medicine. Gold's anti-inflammatory properties are useful in the treatment of arthritis and the like. One thing you should remember is, since elemental or metallic gold is inert to all body chemistry, only salts and radioisotopes of gold are used in pharmacology.

Gold as Security

Gold gives security when it comes to investment. It is considered a "storehouse of value" since it is the natural way for man to preserve capital and protect against financial erratic activity and monetary collapse. It is a protection against inflation and considered a safe investment. Gold has the ability to prevent government attempts at inflating the currency of their country and prevent those in political power from controlling the economy of other nations. Considered the ultimate monetary exchange, gold is the king of metals. No one else is responsible or liable for gold. Gold has its value in and of itself and its worth is not dependent on the economic stability of a country, political power or financial cartel.

The London Gold Market has a say in the current world price of gold since it trades gold bullion and coins with other financial world centers in Zurich, Hong Kong, Frankfurt and Paris. The price of gold is based on its purity. Raw gold that is sold as specimen or jewellery has higher prices. Some gold may be sold for as much as five times its value by weight such as a nugget with an extraordinary characteristic and form.

Now, you might ask if you can also sell your broken gold bracelet, necklace, etc. The answer is absolutely yes. First, you must know the karat count of your gold before you sell it. The higher the karat the higher is its price. Lastly, if you only have a few pieces of jewellery to sell, look for a local jeweller or an antique jeweller since with this, the jeweller will consider the artist's craftsmanship and give some credit to it paying you a much higher price than for just the weight of your gold.

Investment Protection: Things to Consider in Buying Gold Bars

Gold bars and gold coins also considered as gold bullion have various sizes, weights and types. This article focuses solely on buying gold bars and protecting them.

1) Check Your Purpose In Buying Gold Bars
Gold coins, nuggets, jewelry, etc. are purchased for their innate quality. However, gold bars are bought mainly for investment purposes as a means of protection from inflation and diversification of an investor's portfolio to avoid a total loss. There are also some risks present in buying gold bars. That is why in order to minimize these risks, it is important to observe the dos and don'ts.

2) Check The Trend Of Gold Prices
Generally the price of gold keeps increasing. By the end of 2003, the spot price of gold was $414.80 a troy ounce. By the end of the first quarter of 2008, the spot price of gold was approximately $930 a troy ounce- more than double the price 5 years ago. The price increase may sound promising to you but you should bear in mind its volatility. Also, past performance of the promising increase in gold prices does not guarantee the same future results as the price is also based on the supply and demand. Click here to find out the price of gold currently.

3) Consider Gold's Purity and Weight
To determine a gold bar two factors should be considered such as its weight and purity. Its purity varies depending on the mint in which the average purity amounts to 99.98% but once it is a government-backed gold bar it can reach as high as 99.99% pure. As to its weight, its size vary ranging from about a gram up to 440 grams. It is wise to buy the largest gold bar if your budget can afford since larger bars come with an approximately lower margin than the smaller bars, so you will get closer to the actual value of the gold.

4) Carefully Check The Gold Bar Standards
Each gold bar has the following four marks which you should check carefully. First, is its refiner's mark otherwise known as the goldsmith's brand name. Second is its gross weight in troy ounces. Third is its purity percentage. Fourth is its serial number. When buying online, this can be hard to identify, so choose a reputable company.

If you buy gold bars online, make sure that you receive your purchase through registered insured mail for the full value of your gold or through other insured delivery processes. Also, purchases made in the hundreds of thousands of dollars should be delivered through an armored car delivery service.

5) Look For A Gold Bar Dealer
You should consider carefully the dealer before buying your gold bar. Look for a reliable and trustworthy dealer. It is the dealer's job to prove that the gold bar has been assayed and tested and to attest that it is solid and true. When finding a reputable gold dealer, consider the number of years it has been in this business.

6) Make Sure Your Investment Is Protected
Your gold bar either big or small should be kept in a safe deposit box or a vault facility which is primarily responsible for protecting your gold bars and other precious commodities. See to it that the place where you store your gold bars is insured as well.

Many experts predict that the price of gold can increase within the next decade in which it can double or triple the price more than today making it wise to invest in gold for in the long run you will surely profit.

What Makes the Gold Price Increase?

Investors, non-investors and the government have always considered gold precious eversince. Among other commodities, the price of gold has always been doing well and has had a greater value compared to other commodities. Why is this so? Let us consider the following reasons.

World Inflation

The inflation all around the world is one of the causes of the high price of gold. Gold cannot be separated from the world economic crisis. Thus, the decreasing value of the dollar is not the sole reason for the high price of gold. As the inflation increases, the faith of people in their economies decreases resulting in their lack of faith in the value of their currency too. That is why when this happens, they resort to investing in gold. Experts claim that gold prices have started increasing since the year 1972 during the so-called US Gold Standard that the then President Nixon abolished. Gold was then sold to the citizens while the US government gained profit from it.

Limited Supply of Gold

Gold is primarily found in India, the USA, Australia, South Africa, China, Canada, New Zealand, etc. The rise in the demand for gold resulted in the scarcity of its supply in mines. In fact, one major gold mine at Kolar in India is now gone due to its depletion in gold supply. There may seem to be enough supply of gold around the world, but the truth is, the gold supply is depleting. As its supply becomes limited, its price continues to rise based on the Law of Supply and Demand.

Greater Demand

The demand for gold is forever rising. Experts especially say that a high percentage of gold amounting to 75% is used for making gold jewelry, gold bullion as well as for medical puposes. Only 25% is used as an investment. Demand for gold is the greatest in India followed by the US.

Gold Market Predictions

When we speak of bulls market, the gold comes first since each day its price rises. The gold market is the game of hedge groups and speculators who try to make gains out of gold speculation. This results in the price of gold to rise. When it is speculated that there is a fluctuation in the gold rate, small-time  gold buyers worry about the rate of gold. To avoid losses from future speculated gold price, they start acquiring gold at an impulse. This aids in further gains on the side of the speculators yet this results in gold price hike.

Political and Economic Turmoil

Political and economic turmoil is not new to the world since it has been through World War I and World War II. During those times, the US government implemented a ban on hoarding gold since people preferred keeping gold nuggets instead of paper currency.

There is a tendency for the price of gold to keep rising. Since 2001, the price of gold has been rising quite fast. There is no speculation yet that it will stop rising unless more gold will be discovered in unexplored places on Earth making it a commonplace thing.   

Buying Gold Bullion Bars At the Present Economic Trend is A Surefire Decision

In today's economic trend, buying gold bullion gives you the most assurance in profit. Financial analysts predict that the unpleasant global markets will not end soon. As a result, gold continues to be the leading investment today. This means that gold is a solid investment that keeps your wealth secured and prevents you from having losses in the global market.

In the past few years, shares in different business institutions plunged very quickly which kept the value of money in banks to keep deteriorating. On the contrary, during those times, the price of gold greatly increased. At the outset of the present unpleasant global trend, an ounce of gold cost around $900. About five years later, its cost doubled!

Purchase your gold online- instantly, securely and at low rates...

The truth is since other investments failed, the rate of gold increased. Basically, money is just paper and a simple metal. Originally, there is no value in it and it becomes only a thing of value because of our confidence in it. It is the confidence that we place in it that makes it an important thing in our everyday business transactions. When we stop placing our confidence in it, its value also goes down. Long ago, the affluent lost all their wealth very rapidly. For instance, in Gemany in the 1920s, in the middle of 1922, the rate of true mark was 320 per dollar. However, by the end of 1922, it increased to 3000 per dollar. This example of hyperinflation remained for several years and has hit other places in other times since.

However, no matter how secure an economy may be, hyperinflation may still strike again. Making gold investment a part of your portfolio is the only way to protect yourself against such financial disaster. Since the supply of gold is scarce in the world, it will give you an assurance that the gold will always be of value if you buy gold bullion bars unlike money which could be created by the government of a country whenever it wishes. This could result in the deterioration of the value of the money present.

It provides a secure profit to take physical possession of gold when buying it. Purchasing a gold fund is similar to buying into a commodities market which is under a financial institution. If it failed, gaining profit would be impossible, so prefer to purchase physical gold for your financial security.

What are you waiting for? Find the right gold bullion dealer to maximize your potential in profit and because now you know that it is the best time to buy gold bullion bars.

Protect your wealth, Buy Gold

Buying gold is the best way to guarantee your wealth. Nowadays, as recession takes place, dollars are fluctuating and getting a lower value than before.  On the other hand, gold increases its price as years go by, and it has been continuously used as the real basis of money’s value.

How will you protect and maintain your wealth?  It’s simple.

These are ways to do them:

·         Buying gold items or gold coinsand bullions. This is done by obtaining minted gold coins produced by the government. Some of the popular ones include American eagle gold coins and South African krugerrands. These often have higher value, thus, more expensive than other types of gold, but are sold in a lower, premium price.

·         Obtaining gold investments through mutual funds.  This is an alternative for you, if you don’t want to buy gold physically. Find a company who’s doing it and invest your money, much like being a partner. You can do this by investing in funds that holds stocks in a well-established company.

·         Through gold ETF. Exchange traded gold or ETF is the newest way of investing.  You will invest your money and obtain units.  Each unit (1 unit=1gram of gold) represents 99.5% pure gold and these units can be traded like a company’s single stock in the stock exchange market. It allows the investors to mount up gold in a certain period as they can exchange it in smaller numbers or quantities.

·         Junior gold stocks are another way to invest in gold. Though they are considered risky investments because they are still in exploration stage, they have less capital and they rely solely on their future production.

·         Gold futures. This is done by making a deal to trade gold now (agreeing to prices and amount to be bought), but settling the deal in the future, usually after 3 months (but this mostly depends on the agreement). This is considered to be risky because a change in gold price determines the loss or win of the investment. That is why this is usually done by most experienced investors.

·         Spot gold trading. This investment requires the least capital of them all. You can do this by going online and then buying certain gold coins or bullion at a specific amount.  Selling and trading can be done online so it’s much accessible and practical. It also brings higher profit at a low capital cost.

·         Buy real physical gold bars. Ultimately, they are safe as you own the bars, the only thing you need to worry now is where to keep them.

Gold is robust and dependable. It counters the effect of inflation and exchange rate fluctuation. It also sets the real value of money that is why it is best to get them. In this sense, I can say that wealth is where the gold is.

You may want to read "Gold - A Smart Investment?" too.

Is Gold Guarantee a Scam?

Gold metal is rare and naturally metal. Though it can be created artificially, the difficulty and costs
of production are much higher than the market price of natural gold. Apart from the intrinsic
beauty of the metal, history has added magnificence to gold due to its significance in generations of
coinage, jewelry and measures of wealth. Thus, gold is regarded by nations as precious and highly
valuable.

Countries all over the world strengthen their central banks reputation and securing wealth by
acquiring and retaining gold reserves. Even in times of economic turmoil and financial downturns
when currencies fold and even collapse, gold will still possess high value. It would even accrue
larger value in the long run. Securing gold reserves is a manner of insuring wealth and investing in
a precious commodity which will bring back good returns.

Due to rarity, gold increases in value. Looking at the law of supply and demand, gold maintains its
quantity. Though the gold mining industry, along with the difficulty and high costs of mining, is
constantly struggling to look for more and more sources, the demand for gold simply rises ahead.
Supply runs behind, thus making gold a precious and valuable commodity.

The price of gold in 2001 has skyrocketed to an average of US$271/oz to recent highs of over US$1600/oz over the last six years.

Is Gold Guarantee a scam?

Gold Guarantee is a Singapore company (listed in ACRA and in Malaysia, owned by Lee Song Teck) that buys that gold and they only buy and sell gold with purity grade of 999.9, either International Hallmark or 999.9 Fine Gold.

Compared to many other modern financial instruments that are on ‘paper’ thus having the risk of becoming ‘zero’ value, the value and price of Gold will continue to rise up as global demand continues to increase. With that said, securing your wealth with gold is a good insurance against paper money.

Their programme ensures you no loss not only that they take into account the price at which you purchased your gold, keeps it at that level should you sell it back to them. Share your thoughts using the comment below.

How It Works

The Gold Guarantee sell gold to customers at a selling price and offered them a certain discount. Depending on the contract, there are 2 different types of contract. One is a month (30 days) contract, the other is 3 months (90 days) contract.

Both gives customers a discount when they purchased gold from them, the 1 month contract discount is lesser than the 3 months contract. When the contract day is up, customers can choose to sell back the gold to the company at the selling price (100%), and customers will be able to cash out at the selling price.

The company pay the customers in cheque when the contract is up.

The main difference between Genneva and Gold Guarantee is their tight management where for example Gold Guarantee limits each day's gold transaction, whereas Genneva do not. They do have situation where it hits their daily limit for a few weeks. If you were to confirm buying gold from them, there is a booking fees of $2/gram.

I have to say that their pay backs scheme are great, and it's a promised win win situation for both company and customers.

Where are Gold Guarantee Located?

Here is the address of the Singapore office branch;

42A Boat Quay Singapore 049831
Telephone Phone: +65 6535 4052
Fax: +65 6535 4076

Here is their website information link; http://thegoldguarantee.com.sg, if you are interested do go for their weekly previews and their sales staffs will be able to help you in your question.


Conclusion

We have heard a lot of scammers, ponzi scams and other scamming deals happening in the news, BUT as of now Gold Guarantee is NOT LISTED by our Singapore authority to be dealing legally and no criminal reports.

I have been reading a lot of negative talks on forums and blogs about the other gold company, and Gold Guarantee is still standing strong in Asia Pacific countries like Singapore, Malaysia, Hong Kong and Thailand.

If you have savings to spare and planning to invest, you can look into gold, it's still a good tool to invest in the long run. You can even pass it to your children's children. Important note is not to put all eggs into 1 basket, you should have savings as the main source.

“Winners are not afraid of losing. But losers are. Failure is part of the process of success. People who avoid failure also avoiding success.”
― Robert Kiyosaki

Gold - A Smart Investment?

Gold is a precious metal which occurs naturally and has a high economic value in commodity markets.

Investing in precious metal like gold, more specifically in physical gold, is a good hedge against economic downfall. Given the conditions of the global economy, the devaluation of the US dollar is still impending. However, the downward spiral in currency value can be hedged to secure wealth in the US setting through gold investments.

The federal government is currently trying to improve central bank credibility through increasing its asset purchases or quantitative easing. However, this does not guarantee anything as inflation is still predicted to be approaching. All the government can do is to delay this process.  Thus, we have the option to take the matter in our own hands by having our own reserves of wealth and investments in the form of gold.

Investment opportunities in gold are currently flourishing especially in the US, where national policies are favorable to those who have already started investing in the metal and will start to invest as soon as possible. There is no better timing to start now.

There are several opportunities in this trade that yield large profits. One of your options is buying stocks in gold-mining. This form of investment depends on metal yield of the mining companies you invested in and the US dollar value.  Another is acquiring gold mutual funds which are rather expensive and have profits that are historically fluctuating. You can also engage in gold exchange trading funds (ETF). This type, like the previous two, is dependent on prices of gold in the commodity market. Thus, it does not guarantee that your investments are secure from financial disasters.

Therefore, it is highly recommended to invest in the tangible material like gold bullions and gold coins, which are highly collectible. Owning pieces of the precious metal is a more secure manner of investment which secures high profits even in times of imminent inflation and currency devaluation.

Here are examples of physical gold which you may get a hold of:

·         Gold bullions are of high purity, usually 99.9% and can even go up to 99.9999%.

·         Gold coins are highly collectible and have high aesthetic value.

Physical gold needs to be handled with care and stored in proper and secure places as they are of extremely high value. You can secure them in personal safes or in banks.

Now is the best time to secure your wealth and ensure profit. Now is the time to get matters in your own hands and not depend on government movements for economic stability. And ultimately, now is best time to invest in gold.

Gold Bullion Dealings

Investing and storing money in the form of gold is becoming more and more of a necessity than an option among the larger businessmen nowadays. Before you decide to delve further in the business of gold dealings, let us first find out what kind of gold is used in the market and how to pick the right kind of gold.

First of, the gold used in the investment market is gold bullions. These bullions come in coins or bars and are graded according purity ranging from 22 karats to 24 karats. The amount of gold in the bullion determines the price and not the purity. Gold bullions should not be confused with other golden items such as jewelry. The gold bullion coins are the preferred ones to own as they are used globally by most dealers.

When choosing gold bullion coins, the less damaged and untouched ones are best. So better not tamper with the coin with your hands or be tempted to twirl it along your fingers. The better the condition the coin, the better the quality and price of the coin as well. Also take note that there are plenty of coin certifiers that supposedly grade the gold bullion coin and fool others into believing that the encapsulation of their coins makes it more authentic and of higher quality. Do not be ripped-off by these people; as long as the coin remains unscathed, it’s as good as mint grade.

Now onto the next phase which is on tips when purchasing gold bullion coins. The global market is ever-changing, so make sure to be up-to-date with the price of gold bullions by checking reliable sources to prevent being scammed or overcharged. The next thing you should always remember when buying gold bullions is that you should buy from a dealer with a good reputation. Dealers like this are more likely to give discounts especially when you order in bulk. Gold bullions can also be purchased on the internet but this is not highly recommended as the risk of being scammed is higher and the deals can be made more complicated with the shipping process and being insured that the package arrives. Click to find out about current gold price.

 So there, now you know the basic things to remember when dealing with gold bullion trade. Know that gold bullions will remain steady in the market even when the global economy won’t be. Keep these tips in mind and your gold bullion investment will have smooth sailing in the long run.