Gold Bullion Price

The Gold Bullion Price can vary as much as $125  in current market conditions, a traders dream, or it would be if they were equipped with a fortune tellers crystal ball.

Anthony Bennett Gold Marketer

As I write the market is down, waiting for the next crisis which is just around the corner.  If you are a day trader, enjoy the thrill.  Is it only a few short years ago that Gold was regarded as ‘spent’ – no longer attractive as investment – dull – unprofitable, will you look at it now, being snapped up by investors and countries worldwide to provide its traditional role as a hedge against financial chaos.

Gold and silver are attractive in the short term certainly but the ……

Current Gold Bullion price is even more attractive when viewed over the long term.

Should you buy gold now?. There will never be a better time. When the financial going gets tough investors buy gold.  Gold coins, Gold bullion and Sliver too -  all have their roles as investment, as hedge against inflation or even for survival in extreme circumstances. Are circumstances that extreme? Some pundits believe they are.

Many believe the Euro will soon collapse and the Dollar is under extreme pressure too

When I first wrote this article about the Gold bullion price in April 2010 that  seemed an extreme view.  Gold was $1099 an ounce now it hovers around $1600.  If you invested then as a result you will be very happy but is it too late – are we at the top of the Gold bubble?

It has proved itself time after time, investors who want to protect themselves against inflation buy silver and gold.
Just a few decades ago gold and silver prices escalated in response to the price inflation of 13% the 1970′s.  Then silver and gold investments of any kind – silver bullion, silver rounds, pre-1965 U.S. Silver Coins  and silver bars competed with Krugerrand gold coins as the investment of choice.

Inflation came under control in the following decade and the Gold bullion price took a dip as stocks and property enjoyed their time at the top.

We now know that Bank misjudgements and downright fraud fuelled that bubble and left us in a terrible state when the bubble burst because there were no real assets backing up the currency.

Things are quieter right now but is it the eye of the storm?
Silver and gold are bought by investors who fear the worst and those fears include what is happening right now in the second decade of the 21st Century ?

To get out of a financial fix the Federal Reserve are still creating money out of thin air and putting off the evil day.

Time was it used to be that they literally printed more paper dollars but today there are much more devious ways of creating money. Quantitative Easing they call it but it means the same, money not backed up by assets.

To keep the economy working so much ‘virtual money’ has been pumped into circulation as loans by the Fed to the troubled banks  that the dollar is at risk of becoming ‘virtually’ worthless. That is what happens to what are called ‘fiat’ currencies – that is a paper currency not redeemable in gold or silver. It happened in Argentina and Paraguay as recently as 2002 and like it or not the Dollar is a ‘fiat’ currency now.
Forward looking Argentinean and Paraguayan investors who had the savvy  to convert their assets to Silver or Gold were show to be wise investors. Argentinean Peso’s and Paraguayan Guarani’s plummeted and shortly after the Brazilian Real followed suit.

What about the Euro? America would have us believe that some sort of European mismanagement is wholly to blame. They are getting out of trouble they claim but the world is being threatened again by European excesses.  Truth is America is mortally sick and Europe is bleeding to death.

In a general collapse of paper currency Gold and Silver Bars are of course hugely valuable but not really that practical and that is why coin silver and small gold coins are so sought after.  They are in small practical weights that can be used as legal tender and of a value that can be exchanged for goods and services.

In a crisis small is beautiful
For day to day use  1-oz silver rounds pre-1965 and U.S. 90% silver coinsare the most useful forms of silver but of course gold is so much heavier. The tiny gold coins, like 1/10-oz Gold Eagles, 1/10-oz Krugerrands, ¼-oz Gold Eagles and the ¼-oz Krugerrands are far more practical. Not all coins are created equal though and some are simply wrong for tender or barter.

Surely it can’t be that bad?
Well some analysts think it could. They wonder how long the United States can remain the world’s largest economy while also being the world’s largest debtor.

“Not indefinitely,” is the opinion of Federal Reserve Chairman Alan Greenspan. “History tells us that great powers when they’ve gotten into very significant fiscal problems have ceased to be great powers.” It has happened so often before, Spain was the fiscal power of the 16th century, France in the 17th century and the UK for most of the 18th and 19th before the American Dollar reigned supreme in the 20th century.

If financial meltdown comes the Gold bullion price will be sky high you will want  silver coins and small gold coins with their gold or silver contents stamped on them. That means modern bullion coins.

In April 2010 I said “It may never happen” It is happening now!
China Russia, Brazil and the Arab States are buying Gold and for the same reasons – to  protect our day to day liquidity people like you and I will need Gold and silver.

Silver and Gold have many attributes.
Silver and Gold are money, legal tender, and represent the value of the prescious metals they contain.  They are “Currencies of last resort” as Greenspan has often stated and so long as you buy bullion coin cannot be worth less.  Precious metals can’t be debased or manufacture at the will of a company or government and they hold their purchasing power. If you think the Gold bullion price is high now just wait till you see what it will be when the brown stuff hits the propellers.

It seems some people in the know are expecting trouble ahead and I for one am sitting up and taking notice. Despite the high Gold bullion  price Gold and Silver all have a large place in my portfolio right now and just like China I am going to buy as much as I can afford.

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