Top Three Ways To Sell Gold

There are times when your jewelry, watches and other ornamental accessories spend more time in cabinets and drawers than on your ears, neck, wrists or waist. This can go on for years or decades at a time, especially with inherited jewelry, antiques, or outdated watches and other items. So the various avenues to sell gold can become appealing as an opportunity to clear out some old pieces, receive the monetary means to reinvest in newer pieces, or to just get rid of old memories and move on.

There are three definite ways to sell gold. You can seek out a legitimate mail-in service, you can locate a pawnbroker, or you can find a gold appraiser for the best advice on an exchange for your property. With each choice, there is no guarantee or promise that you are going to hand your items over to him or her. The first step is to find not only the best price, but also the fairest price you are comfortable with based on the actual data of pricing in the market. Keep in mind that not all the above dealers in the three methods of selling are going to offer you fair value pricing, because not all of them understand the market thoroughly. So it is up to you to do your research and find the professionals who go the extra mile for their profession and value their position, their reputation and their client relationships.

The most popular method to sell gold is through a mail-in company. It is impersonal, but a lot of people have had satisfactory experiences with them. They will end up melting it down, so their pricing is based on the amount of actual gold present. There is no telling their criteria, standards, or pricing agenda, however, unless this is explicitly stated. Your second option is to seek out the instant gratification of a pawnbroker's suggested pricing. The objective for most shop owners is to pay as little as possible but make as much as possible. This is still a viable option for those in need of the money immediately and not necessarily as concerned with the value of the gold at that time. In such cases, there are similar options offered by upscale establishments where you can receive a loan for your property with the option to pay it back and have your jewelry returned, or the shop will keep it as repayment for the loan. You are trying to sell gold, though, not use it as collateral. The third option is a professional gold appraiser. There is no guarantee that this establishment will buy or resell your items for you. There is only the comfort that their reputations are dependent upon their up to date knowledge of the market.

No matter what method you choose, always get a second opinion. Even when you think that the money sounds just right, give yourself a day or two to think it over.

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Baking a Better Investing Cake Using Gold

Designing an investment portfolio can be accomplished with success if you have the correct ingredients, follow the instructions, and remain disciplined. If you have a "homemade" recipe that's been proven to work time after time - you are indeed ahead of the curve. Successful investing uses many of the same skills as baking a great cake.

I have never baked a cake from start to finish. I've helped people prepare to make a cake, and armed with bowls of sticky stuff and mixing whisks, assisted them with the work. A quick Internet search tells me I need sugar, eggs, milk, flour, etc. plus frosting to finish the job.

But what if I skipped some of the steps and assorted tasks and invited you over to eat the ingredients one or two at a time? Not very appealing, you would think, and you would no doubt decline gracefully. Many investors acting alone proceed within a vacuum or single mindedly design their investment accounts or retirement plans without a proven recipe I can offer a recipe for success that will perform well but also protect you from the.ravages of inflation AND the pain of recessions and stock market crashes.

Let's focus in my example on just two ingredients in the recipe: gold and stocks. The yellow metal has stolen the spotlight the past 5-10 years, performing quite nicely. Stocks have to be considered as the main staple in our investing diet. We just cannot avoid equities as they have been the major contributor to building retirement wealth for over 100 years. Most advisors just diversify among Stocks, Bonds, and Cash. Their plan has led to disastrous losses in the past. Our recipe requires gold, silver, other natural resources that protect and diversify your savings. Depending on the client we can provide for physical ownership of bullion, funds that hold physical bullion bars, and when warranted mining companies to produce the metals.

Do you believe gold and the stock market are risky places to invest? We answer YES, in isolation. However, when combined with other non-correlated investments, the combination often increases the returns but decreases the risk. Most investors have a sense and memory that gold had a great run in the 1970's after President Nixon took America off the 'gold standard' in 1973. Gold peaked under President Carter at $850/ounce and then languished for many years. So most would agree: gold wasn't such a great investment for 20+ years. That's all true. Naturally, if a big part of your investments were in gold over that time, you suffered mightily.

However, mixing in gold into your portfolio of stocks did have a dramatic and positive effect on your overall portfolio performance. We cited the benefits of this in a detailed report to our clients last month. Today we'll report to you a valuable subset of that report.

Gold has the qualities to act as a hedge in a portfolio to lessen the negative effects that a bad stock market serve to your table. So, just as investing in the yellow metal alone could cause sleepless nights, when mixed with stocks it contributes to the overall portfolio performance and prevents wild ups and downs. What is critical is not how each component of your portfolio preforms but what is the PROFIT earned at the end of the year.

A portfolio of half gold and half stocks would have hedged or lessened an all stock portfolios' losses in 6 of 7 major down (bear) markets over the past 40 years. When stocks turned down, gold delivered. Gold helped your portfolio in 1973, 1974, 1977, 1990, the 2000-2002 bear market, and the most recent 2007-2009 ugly bear market when stocks fell 50% in just 17 months! Gold rose $200 an ounce or 30% during that stock meltdown. That's the diversification or balancing effect. In just two years did Gold fall enough for your total portfolio to decline and not show a profit.. That's a record and a prize winning recipe that even Betty Crocker would proud of.

In summary; Gold does act as a hedge and lessen the ups and downs of an all-stock portfolio. The proof's in the pudding recipe, so to speak. The ingredients chosen and the quantity of your holdings in stocks, gold, bonds, and cash can truly make a difference in both providing decent portfolio returns and sleeping well.

For a free consultation and some strategies and ideas on using gold and precious metals in your portfolio's design, give us a call.

Barry L. Unterbrink, CRPC (954) 719-1151

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Assessing The Impact - On Gold Purchases, For Central Banks

Currently we're already seeing central banks acquiring larger amounts of gold bullion. Gold bullion reserves that were reported have surpassed 439.7 tons last year. This is seen as the largest annual increase in nearly 50 years, which does not include any major un-reported purchases during this time. It is well-known that many central banks have snapped up tonnage when market prices are at near bottoms on market corrections.

Official gold holdings for the central bankers reported to the IMF were recently released. These holdings have increased by 49.8 metric tons in March alone. Total holdings had increased to 55.1 metric tons during the first four months of 2012. Unofficially, the actual quantity of gold reserves will be greater. Because several countries including China and others as they did not report or make public any recent gold bullion purchases.

For this year, March was seen as a very significant month for many central banks to acquire gold. Of the central banks who did report their purchases to the IMF, it was Mexico who became the most significant buyer of bullion for March. Mexico added an additional 16.8 tons of bullion on top of the 98.8 tons they bought in 2011 thus rounding out Mexico's total bullion supply to 115.6 tons. Turkey also added 11.5 tons to their reserves. Russian increased its gold supply with 15.6 tons for March and then added one additional ton within the first three weeks of April while Kazakhstan acquired 4.3 tons of gold for March.

Just as private investors, central banks themselves will turn to gold for protection of currency debasement and devaluation of fiat currencies such as the US dollar and the euro. Gold is only one of a few financial assets that are free of counter-party risks. Central banks will hold this as a safe haven asset because it is also free from any confiscation or political risks. Iran and Venezuela who have been under political risks from economic sanctions, sent home some or all of their gold bullion reserves, held in vaults at the Bank of England last year.

Globally, the total amount of gold reserves official reported was 31,000 metric tons, or 997 million ounces. The total gold mining output globally per annum is 2,218 metric tons or 90 million ounces. Clearly, if we compare these, we can see that it would only take a very small change in central bank holdings to greatly apply upwards pressure on the market prices for the metal. From 1989 through 2009 official records show approximately 15 percent to 20 percent of net gold sales contributed to market supplies annually. It is possible to envision this additional supply would create a substantial negative impact towards the metal's price.

Equally central bankers in recent years are changing gears. They are now transforming into net buyers and not net sellers. Again, this action has positively affected the price of the metal. It is a safe bet to say that official gold accumulation will keep expanding now and for several years to come. Leading the pack, are China and Russia. A large number of central banks are now low in physical gold, yet heavy in both dollars and euro's. These banks are all lining up and purchasing bullion to add to their reserves.

Saudi Arabia purchased a large amount of gold in June of 2011. 180 metric tons, however they never officially reported the transaction. In all likelihood, the Saudi Arabia Monetary Authority will remain buying quietly, alongside other oil producing nations. Saudis and others are in-fact heavily invested in US dollar denominated assets and are severely in short supply of gold bullion. Mexico was one of the largest buyers last year. They are also America's next door neighbor to the south and a major trading partner. Mexico is interested in increasing its precious metal reserves which could be seen as a global sign that "faith is being lost" in the US dollar.

Along with Mexico, several other Latin nations are buying. Bolivia, bought seven tons in February, Colombia and Venezuela have also been buying more bullion, on top of their repatriated gold bullion that was previously held by the Bank of England. Several other countries are gearing up too, as faith in the US dollar is going down. Countries like Bangladesh, Belarus, Mauritius, Sri Lanka, Thailand and Turkey are all active buyers.

All the while, the ECB back in the 1990s was a huge seller of the precious metal. The European central bank managed to cut their bullion stocks to almost nothing. Almost all the gold bullion they have left is used to fill orders for commemorative coins.

There is actually a good reason for nations such as China, Saudi Arabia and others not to report gold bullion purchases. Because many of these central banks already hold extremely too much US dollar or euro reserve assets. They choose to make their purchases in private because when news comes out about their buying programs, the yellow metal's price will likely increase. This would effectively increase their acquisition costs.

Notably, a large percentage of gold bullion that central bankers have bought is long-term. It will more than likely not be held short (in terms of years) but rather held long (in the terms of decades) which would coincide with higher prices. Their now is upside favoritism upon markets being created by the central bankers. This effectively reduces the free-floating market that would allow future demand to meet at even greater market prices. As a result, investors can look forward to reduced downside instability and a prolonged bull market that will bring with it greater prices in the years to follow.

Tom Genot -

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Is Gold in a Bubble?

One question I receive frequently from clients, "is gold in a bubble?" Gold has been the best performing asset class since 2001 with an average 11% annual return and not one negative or down year over this period. So it isn't a silly question, especially considering we have experienced a tech stock and real estate bubble within the past decade. Additionally, many folks remember the gold bubble from the 1970s and 1980s so it is natural to assume this meteoric rise could easily crash.

If you prefer not to read this missive, the short answer is no. There is no bubble. For those who are intrigued as to my call, seven reasons exist why gold is not in a bubble: gold as money, debt relative to gold, gold's ascent relative to the 1980s rise, low portfolio allocation of gold and gold miners, and central bank ownership of gold.

Gold as Money

Since biblical times, gold was a primary means of exchange for goods and services. Merchants, craftsmen, and bakers would gladly exchange their wares for the shiny metal. This is the definition of money. Gold was money. Even in America, our dollars could be exchanged for the metal until President Nixon took the US off the gold standard in 1971. Even though the dollar is no longer backed by gold, its price has been strongly correlated to the US dollar.

Since 2002, the amount of money at the Fed and in the economy has exploded as has the price of gold. As more money circulated in the economy, the dollars you hold lose value, but the price of gold keeps up with the increased supply in dollars. You hold your purchasing power with gold. For example, in 1940, it cost approximately $1,000 for a mid tier car. At that time, the price of gold was $35 per ounce so it cost roughly 28 ounces of gold to buy a car. Today, a mid tier car runs around $40,000, which is close to 28 ounces considering gold costs $1,600 per ounce.

On a graph, one could see its price tracking the global monetary base almost perfectly. In 1984, the global monetary base was around $1 Trillion. It grew consistently until it reached a $2 Trillion plateua in 2002. From 2002 until the beginning of 2011, the worldwide monetary base increased from $2 Trillion to just under $12 Trillion. From 1984 until 2002, gold hovered between $200 per ounce and $350 per ounce. When the monetary base increased six-fold over the ensuing decade, the it's price did the same.

Increase in Debt relative to Gold

The second reason the yellow metal is currently insulated from a precipitous fall is our national debt compared to it's price. This is really a deviation of the first reason as the Federal Reserve will be forced to print money to cover our escalating national debt, but excessive debt reduces the value of the dollar, which means it's price should rise. With $1 Trillion deficits estimated for years to come, gold should avoid a large decline.

From the 1980s until 2006, our total government debt to Gross Domestic Product (GDP) ranged between 40% and 60%. Today, we are passing 100% government debt to GDP. The price of this precious metal correlated tightly with this rise.

Gold's as

Ever Buy a Fake Coin? What to Do If You Discover You Just Bought a Counterfeit Coin

Since there is no profile for a counterfeit coin, I check every raw coin I purchase. I've encountered counterfeit: old worn coins, new mint coins, cheap bullion coins, and expensive rare coins.

There aren't a lot of fake coins, but checking them is so easy that I make it a practice to check every raw coin I get. I continue to be relieved when they pass. I hate finding counterfeits and wish they didn't exist.

If I receive the coin in the mail, I check the coin by giving it the "ring" test that I've mentioned in other articles. If the coin rings and looks right, I rarely pursue further tests.

I even do the ring test in the coin store before I buy. I usually get strange looks from the counter person, but I decided that if there is an issue with the merchandise, I want to bring it up right in front of the dealer. I don't want them to say I walked out of the store, switched coins and demanded a replacement.

I try to only buy coins from sellers who guarantee the authenticity of their product. Even at that, claiming that someone just sold you a fake coin is a great responsibility. I have to be certain that the coin truly isn't what it was represented to be, before I go after someone for it.

In my hundreds of coin purchases, I've only gone back to two sellers for selling counterfeits. I felt like I needed such a strong case, that there was no doubt about the authenticity of the coin.

When I find a fake coin, I'm suddenly thrown into the quandary of what do I do about this. As in any situation, there are several options to choose from. 1. Do nothing. 2. Call the police. This is similar to option #1. 3. Contact the seller. This can be similar to #1, or more exasperating. 4. Call the counterfeit coin "Hotline" and report it.

I've found two types of coin sellers. The first is very concerned that they passed along a fake coin and didn't know it. The other seems unconcerned about the event, as if they expected a certain percentage of the fakes to be discovered. Both gave refunds however. I like dealing with the first type better.

When contacting a seller about an alleged fake coin, I show overwhelming evidence for my position. Most retailers want the merchandise returned in sellable condition. Unfortunately, if I cut the coin in half to look at the base metal, it won't be re-sellable (and I don't want it to be).

Counterfeiting is illegal, but is so difficult to trace that the police are largely unconcerned with the activity. Collectors have to be their own police. And, I have to admit I haven't found the phone number for the Counterfeit Hotline, yet.

In the end however, if you discover a counterfeit coin, it becomes your word against the seller's. It is pretty difficult to prove that you didn't exchange their "authentic" coin for a fake one in order to get a free coin out of them.

I have a special "cull" section of my collection for fakes. They are coins I couldn't return because I discovered them too late to pursue it, or didn't return them because I didn't want them resold.

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Investing in Silver Mine Stocks

Investors prefer to own silver as a hedge against the damages done by government fiscal and monetary prices. Trading in gold or silver is the best way to boost investment due to the simple economics of supply and demand. Industrial use, jewelry, photography, coins & medallions consume ninety five percent of silver leaving just five percent for investment.

As economics say, decrease in supply and increase in demand dictate higher silver prices. Moreover, when countries like China announce a sudden depletion of reserves, it fires up a rise in prices on silver. Rather, than appreciating silver from a distance why not invest in it and take advantage of the economic model of price determination.

Futures contracts, coins and bullion, and mining stocks are some of the common methods of silver investment, but for past couple of years owning shares of silver mining companies has gained interest. Silver is slowing growing out of it big bully brother, gold's shadow with a price double since the last 10 years.

Although, investing in silver mines is not new to the investor kin, for the newbies there are three basic categories of mining stocks: Junior Exploration companies, Conglomerates and Silver specific mining companies.

Conglomerates: Many a times, silver is a by-product of gold and zinc mining. Companies leverage their existing resources to expand their production. Silver as a diversified product, share prices of conglomerates do not hold the same value as silver prices.

Junior Exploration companies: These companies gamble their capital on finding proven reserves, which the conglomerates ultimately buy since they have the infrastructure to reap and process the reserves. Purchase shares of many companies in this group and increase the chance to strike it rich.

Silver specific mining companies: These are companies that primarily produce silver and the prices are co-related to the prices on silver.

While investing in silver mining companies look out for factors like proven reserves, short-term production forecast, proven good management team, any legal issues, good cash flow & return on equity and assets and a strong balance sheet.

Investing in mining shares may not hold the same value as holding silver, but if you want to invest at the risk end of the spectrum yet reap rich rewards, this method offers a good boost for an investor. In addition, investors look at purchasing silver mining shares as a part of an overall portfolio diversification strategy to help reduce risk.

Guidelines For Investments In Silver   Buying World Coins With Confidence - (Do You Desire More Information on the Coins You Love?)   Do You Own Mint Packaged or Graded Coins? China Is Producing Knock-Offs of These Too