Venezuelan President Chavez To Nationalize Gold Reserves
Venezuela’s President Hugo Chavez has announced plans to take control of the country’s gold industry, both exploration and extraction in an attempt to increase international reserves. Chavez’s announcement pushed gold futures in New York, where contracts for August delivery rose 0.5% closing $ 1,791.20 per ounce, a new record.
The movement is a result of the confrontation between his government and foreign mining companies operating in the country, which complain that the rules limiting the amount of gold that can be exported weighing down its efforts to develop local projects and create jobs.
Chavez said on state television that Venezuela has the largest gold reserves in the world, but the Latin American country is a minor player in this market. According to figures from World Gold Council, gold reserves of Venezuela amounted to 365.8 tons of gold (60.8% of its reserves) and occupies the fifteenth place in the ranking, behind even countries like Portugal.
The announcement came a day after The Wall Street Journal reported the Venezuelan government plans to transfer billions of dollars in cash reserves maintained by foreign banks in Russia, China and Brazil and tons of gold from European banks the vaults of his own central bank. The South American country would have the intention to move 211 tonnes of gold held abroad valued at 11,000 million dollars to the Central Bank of Venezuela in Caracas, where the government has other 154 tonnes of metal.
The Chavez government has already intervened earlier in the gold market.
In February, the contract was annulled with Canadian company Crystallex International Corp. to develop the Las Cristinas deposits. The company is appealing the decision.
A year ago, the government allowed companies to extract gold exports up to half of its production, easing a previous law that required them to sell 70% in the domestic market.
So far, the Venezuelan gold industry has played an important role in the economy since the oil industry has attracted the most attention.
As a result, the precious metal deposits, which are in forested areas near the border with Brazil, have been dominated by small producers and illegal.
Why Investment Gold Makes Sense Now in 2011
Gold reached a record of $1800 this past Wednesday.
It began to fall shortly after due to fears amongst traders that a particular trade might not have any new investors.
To understand what may happen in the future, let’s take a look at some recent facts of the past. We were able to take a look at a Bank of America assessment of CFTC documents. The documents note that back on August 2, hedge funds in charge of large gold deposits “hit readings that are the highest ever in our records.”
At one point, the gold contracts were worth $38.1 billion, but just one week later the notional value of those same contracts was up to $40.6 billion.
This, of course, is outlined in the documents from Merrill Lynch.
Right now, fear is running rampant through Wall Street amongst its traders. Their fears are based around the volatility in the markets and they are worried that the hedge funds that control large amounts of gold will begin to sell off those assets to raise money.
$100 Gold and Silver plates © by tsuihin - TimoStudios
At this point in time people are searching for answers more and more. They are concerned about the economy and because the media does not have a full understanding of what is going on in the markets, the masses are unsure of what’s going to happen. As you can plainly see the stock market is not a guarantee for investment. With the looming debt crisis and the recent downgrade by Standard & Poor’s, markets around the globe are now desperately searching for safe haven.
Right now precious metals, in particular gold and silver, are the safest investment anywhere in the world. Have you noticed that in recent days during this moment of market volatility, that oil prices have not fared well either? Much of that is based around fears that a faltering economy will greatly affect all oil demand in the US. Investment gold is a quick and easy way for you to put your money into an ever-growing asset. Brian Kelly of Brian Kelly capital said, “The risk of the latest bullet lag being kicked out is reductions at large hedge funds that have a significant stake in gold.”
The simple fact is, the current Fiat money system employed by the US Treasury Department is very unstable. Since our US dollars are not backed by any precious metal, which would therefore give our money some intrinsic value, it’s only prudent that one would seek to transfer at least some of one’s wealth into gold. This is going to represent a very stable investment for many years to come, extending your wealth into a solid growing asset.
If you have been thinking that you should buy gold and silver, this may be the best time to make a purchase.
Gold is currently settling around $1781 per ounce.
However, gold and silver will only continue to rise. It’s barely the end of summer and gold is already flirting with $1800 per ounce. There is a very good chance that gold could reach as much as $2200 per ounce by year’s end. Gold and Silver will continue to be great investments for many years to come.
The current instability in the market will subside. The stock market will rebound as it tends to do. But, investment gold and investment in precious metals in general is a solid idea for the foreseeable future.
So if the stock market rebounds, why would gold continue to rise?
Good question. The reason is because the economy will continue to tank. Unemployment is rising. There seems to be no response to the current economic situation and no mention of a jobs bill that would help to alleviate the strong unemployment numbers.
For this reason, you can continue to expect that gold will continue to rise regularly. Until the markets around the world become stable and begin to grow again, coupled with the importance of US job growth, gold will remain the standard for safe investment.
How To Buy Gold For Investment
For wealthy individuals, to buy gold may be the safest way to preserve what you have.
The reason why it is considered safe by many, is that gold typically does well in a downturn economy. Now, if you’re worried about making interest on your investment or having to pay fees for storage, it may not be for you. Whereas, in the past you would never see seasoned investors running from Fiat currency, today it is fairly commonplace because so many no longer believe in its stability.
Take into consideration for instance that the US dollar is not backed by gold and a central bank depository. In today’s world, you would be hard-pressed to find a government that is fully backed by gold. Most governments are not. Still, there are very many reasons why you should buy or consider making an investment.
Buy Gold Coins
If you are looking for ways to buy gold that will stretch your investment farther, you may want to consider gold coins such as Krugerrands. The market for coins is quite wide and extensive. Your earning potential with coins is great but you typically have to pay just a little more than there actual weight price because these coins are considered premium investments. Investors far and wide search high and low for coins such as sovereigns, Indianhead US gold coins, and Krugerrands. These coins are prized by collectors and art easily storable.
gelt © by Muffet
Buy Gold Bullion Bars
There are always security concerns when purchasing gold, whether it be coins or bars. Investors have often complained of issues with storing as well as insuring it. There are literally thousands of scammers worldwide that are looking to steal your gold or money. Safety is key. Luckily, there are reputable organizations and actual gold mints that will store and keep track of your investment in their vault. Once you deposit, you’ll receive a certificate that states exactly how much they are holding on your behalf.
Buy Gold Funds
If you are more interested in investing in gold without having to worry about storage issues, certificates, or mints, you should consider an ETF, otherwise known as
- gold exchange traded funds
. But, if you plan to buy funds, please make sure they are backed by actual gold.
Buy Gold Shares
Although gold has done typically well this year across the board, shares in particular have not fared so well. With so much uncertainty in other parts of the economy, investors are now concerned about higher costs for everything from their energy costs, equipment purchases, employee payouts and more.
But, it looks like happy days may be here again soon.
If you’re currently located in London, you may want to consider the extensive list of gold mines there. If you’re one of those people who are concerned about volatility in the precious metals markets, this may be the best and safest way to invest.
Take the time and research qualified brokers to deal with. Safety is always key when looking to buy gold or when you’re looking to make any sort of investment in gold and precious metals. Whether you are buying coins, buying bullion bars, buying shares, or whether you decide to invest in mining, and adventure and possibly a great deal of wealth can be waiting for you.
Read 5 Good Reasons To Buy Gold Coins Now
Buying Gold Coins – A Wise Investment
Buying gold coins is one of the best and safest ways to invest in gold.
Coins are usually more expensive; when it comes to the content of gold compared to bars. This is because coins are more expensive to manufacture. One benefit of gold coins over bars is it tends to build more numismatic value over time. The reason for this is most coins are struck with a date on it. The older the coin usually the more numismatic value it will build, once it is kept in good condition.
Gold-and-Silver-Bars © by digitalmoneyworld
Another benefit of buying gold is its ability to preserve your wealth from inflation or any other economic downturn a nation might face.
Coins and bars have intrinsic value. This means unlike a stock in a company it will not become worthless over night because of human action. Gold especially coins are known to preserve wealth even when the organization that struck it ceases to exist. Some examples of this are the Roman Empire and the Byzantine Empire (Eastern Roman Empire). Gold does not rust or tarnish, so once it is not damage or scratched it will retain and usually build more value over time.
One last benefit of buying gold coins is its ease to liquidate.
Gold especially coins are one of the easiest assets to sell. Most investors that invest in gold are likely to buy coins because of its ability to accumulate numismatic value over time. Another reason why gold is easy to liquidate is coins and bars usually have a uniform weight and purity stated on it. If an investor is not familiar with a coin, they can look at it and know how much and what purity they are buying. Investing in gold has its benefits; some of the benefits are hard to find in other investments. This is what makes gold one of the best investments out there.
Please keep in mind that as long as you have a fiat financial system in place around the world, there will ALWAYS be a need for gold investments. Since most currencies are no longer backed by actual gold in actual vaults, investor constantly worry about the stability of their country’s currency and how it affects the markets. Making an investment like this may insulate you somewhat from volatile markets. Since gold prices are currently through the roof, it should take little to no time to find a buyer should you decide to liquidate your gold assets. Everyday, more and more people look for stability. As long as that is happening, you should easily be able to sell you gold stash when the time comes.
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How To Buy Gold Coins
Wondering how to buy gold coins? Want to know which ones are best for you?
Gold bullion coins are one of the best ways to invest in gold. You can benefit from the rising price of gold and at the same time protect your purchasing power from inflation. Gold bullion coins are tied to the price of gold and, unlike rare coins or numismatics, are much easier to buy and sell on the open market. They usually sell for the spot price of gold plus a small premium.
Here are some tips on how to buy gold coins when you’re first starting out:
#1 Knowing What To Buy
There are several different gold bullion coins produced by different countries. They are all similar in the sense that they all are basically gold bullion in minted format. The premiums differ slightly but all are easily traded and sold. The most popular ones to invest in are the
- American Eagle
- Canadian Maple Leaf (pictured below)
- South African Krugerrand
Other coins that are slightly less popular (but still widely recognized) are the Austrian Philharmonic, Chinese Panda and American Gold Buffalo.
#2 Knowing Your Sizes
Gold coins come in different sizes or weights.
For example, you can get 1 ounce, 1/2 ounce, 1/4 ounce and even 1/10 ounce coins.
Obviously the smaller bullion weights will cost you less – however that’s not really the true picture in terms or value. All coins sell at the gold spot price + a small premium. It takes just as much to create a 1/10 ounce as a 1 ounce coin – so technically you end up paying a higher premium per ounce of gold on the smaller ounce coins.
Put another way, a 1 ounce eagle gives you more gold for the money than a 1/10 ounce eagle.
#3 Knowing Your Purpose
What is your purpose in buying gold? Do you want an emergency cache close to home, in case of a crisis or bank “holiday”? Do you want to protect yourself and your family from a falling dollar? Knowing your purpose determines what kind of gold you buy.
So for example, if you want to have something that you could easily trade for bread, medications or other necessities in a crisis, you may want to go with smaller coins (who wants to spend a 1 ounce gold piece on a loaf of bread or a bottle of aspirin?)
However if your main goal is to protect your purchasing power from a falling dollar, you may want to build up as many ounces as possible. So from that standpoint, higher 1 ounce gold coins may be the better option to store your wealth safely.
#4 Knowing Where To Buy
You have a couple of options here – local and online dealers. You can always try searching for local dealers. However be aware that they usually charge higher premium per coin than online dealers (since they have rent to pay and a storefront to manage).
Plus they make more money on rare numismatics (vs gold bullion coins) so they may try to persuade you to invest in these instead – which do not give you access to rising gold prices and can be very difficult to sell for what you paid for them in a crisis.
So those are a few things you should know about how to buy gold coins. It’s actually much easier than many people think it is. Just make sure to do your homework and buy through a trustworthy BBB-accredited dealer with a proven history of dealing with bullion coins.
For more on where to buy gold bullion coins visit Gold Coins
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Here are 5 Good Reasons To Buy Gold Coins Now
5 Good Reasons to Buy Gold Coins Now
We can think of many reasons to buy gold coins now.
As the world’s economy stutters along, and the economic future looks a bit cloudy, it would be a good idea to consider how the ordinary man in the street could go about protecting his hard earned nest egg if the world slipped into a full recession.
One of the more practical ways to protect your wealth is to find coins for sale and add them to your investment portfolio. Here are 5 good reasons Why that be a good idea.
1) Gold has an intrinsic value that has been recognised and utilised by man for thousands of years.
In times of economic instability, it has maintained or even increased it’s value .
2) Coins are a practical and legal way for individuals to physically keep gold.
3) Most bullion coins have a certifiable content of gold (usually 1 oz or fractions thereof) and thus the value of coins is easily determined as it will track the quoted value of 1 oz on the open market. In some cases, rare coins might have an enhanced value due to their scarcity factor.
4) You can easily sell coins as there is always a market for gold. In times of need you are thus not stuck with an asset you cannot liquidate.
5) You can buy one coin at a time and build your pool of wealth preserving coins up over time if you haven’t got much spare cash to invest right now.
Any investment guru worth his or her salt will advocate keeping a portion of your assets in gold. The percentage of your total assets that you choose to keep in coins depends on your individual circumstances of course, but there is not much out there that can match the wealth preserving qualities of bullion!
Le Doc loves gold coins. There are a wide variety you can choose from for preserving your wealth including the world famous American Eagle Coin and the Krugerrand Coin
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Click here for Benefits of Buying Gold Coins
Gold Coins 101 – Benefits of Buying Gold Bullion Coins
Thinking about investing in some gold coins?
With many people wanting to diversify out of the dollar and stocks, gold is becoming a popular way to protect your purchasing power. And one of the most popular ways of investing is to buy gold bullion coins.
These coins are different from rare coins – which are based more on their rarity, year, country of origin etc. Bullion coins on the other hand are tied to the price of gold. When gold rises, your coin prices will rise too.
Gold coins are basically bullion in coin format, minted by various countries around the world.
For example, the most popular coins are the US gold eagle, Canadian Maple Leaf, South African Krugerrand and Austrian Philharmonic.
You can buy these coins in 1 ounce form, 1/2 ounce, 1/4 ounce and even 1/10 ounce coins. Of course there are other ways to invest in the yellow metal like gold bars, gold and other mining stocks and precious metals ETFs. But coins give you several distinct advantages:
#1 They are Liquid
Because they are so popular and easily recognized by almost any coin dealer, coins are more liquid than other forms of gold. Bullion bars for example, usually have to be assayed once you go to sell them to the dealer to make sure they are real. Gold coins however can be quickly cashed in – which makes them great for emergencies.
#2 They are Easily Transportable.
Unlike heavy bars (or stocks or mutual funds), gold coins are easily transportable and don’t take up a lot of room. So you can carry them with you and have all you need to buy food, gas, etc. when you need it.
#3 Gold coins are Real Money
Many people don’t realize that gold is, in fact, real money. It’s been used for centuries. It’s paper money (i.e. the U.S. dollar) that is relatively new. And bullion coins are also real money. In fact gold is a hedge against inflation and can help you protect your purchasing power as the dollar goes down and prices go up. So having a few gold bullion coins on hand is like having a real money insurance policy against disaster.
#4 You have 100% Ownership
Unlike other forms of the yellow metal (pool accounts, stocks, ETFs), you have full ownership of your gold bullion coins. They can’t be frozen by a bank (like cash in your accounts) expropriated by the government (like real estate) or mismanaged into oblivion (like stocks).
You have control of your money – which puts more power into your hands. In a world where power is being increasingly abused, this is an important way to protect yourself.
So those are some of the benefits of buying real gold coins. These coins usually sell for the current spot price of gold plus a small premium (around 6 – 8%). While you may be able to find them at a local gold coin dealer, the best prices (lower premiums) can be found online through trusted sellers.
For more information about buying gold bullion coins visit Gold Coins.
Or visit Buy Gold Coins 101 for tips on how to save and where to buy real gold bullion coins for less.
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Click here for the Beginners Guide To Buying Gold Coins
Beginners Guide To Buying Gold Coins
Today when attempting to buy gold coins, you have the option of individual sellers, the bank or numerous online sources. Here you will learn what you need to know on how to buy gold coins safely.
Buying precious metals means you understand that investing will secure your financial future. Gold is a tangible asset, it is a real investment, one that can be held in your hand. Gold is also a liquid asset, in tough economic times it can be sold to generate cash. The value of the metals fluctuates but will never fail due to the fact it is used worldwide.
Market Timing
Buy at the right time. The right time is dependent on your opinion of the American economy. As much as it is a personal insurance policy for financial security, it is one for the United States as well. When the economy is hurting the price of gold increases, when the economy is at a high – prices will fall. Keep this in mind when buying coins.
Making a Good Investment
Buying gold coins is an investment like any other.
Buy for a good price, buy at a low point to generate the greatest profit.
Types of Gold
Buying gold bullion coins is one option. There are also bars, certificates, mining stocks and low risk mutual funds. Within each category there are multiple sub categories. When it comes to buying gold coins make a decision on the type of gold coin to invest in. Four of the most popular gold coins are the:
* Canadian Maple Leaf Coin
* Chinese Panda Coin,
* American Eagle Coin
* South African Krugerrands.
They are popular and solid choices because they are in demand, meaning that there is a high potential for their value to increase. Invest in these gold coins to open the door to international sales regardless of the state of the American economy.
Where to Buy Gold Coins
Gold coins are sold online as well as through numerous real world providers. Online options include:
* eBay
* other auction sites
* precious metals sites
There are a few dangers to be aware of for online buying, most of which can be avoided with online research. Deal only with those that have a solid reputation in the industry of dealing in with quality coins as well as proper treatment of their customers. Buy only from direct dealers, avoid sites that work as the middle man.
Real world gold coins seller include:
* Banks
* Small coin dealers
* Coin shops
Banks today charge a very hefty fee on top of the price of the bullion coins this makes it a difficult option for most new investors.
Make the investment that works best for you. Know when your right time to buy is. Do research to make sure you are dealing with legitimate coin sellers.
Tom Harrison is president of Gold Coins Direct and author of the best selling “10 Things You Absolutely Need To Know Before You Buy Gold” Download this free report at:
http://www.GoldCoinsDirect.com
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