The gold market and the gold posts are now back on track. Back in early August the news hit that the Federal Reserve had started a new large scale program of buying bonds, coins and other assets that will be used to counterbalance the huge portfolio of debt that it currently owns. Most of this news was interpreted correctly by all, including gold. But the news and speculations were not that far off the mark.
In early September the New York Fed released another statement. This time it reported that it had purchased a further $600 million worth of gold from the London Gold Fixing and Exchange. Gold has been falling for almost a year now and the news caused even more downward pressure in the market. So even though the FED may have bought gold to keep the market from falling further, the price of gold immediately dropped to all time lows. This sudden run up in the market has sent shock waves throughout both the gold market and the world economy.
The London Gold Fixing and Exchange released a statement on its website claiming that the Swiss government had granted permission to the firm to resume selling gold to the public once again. Gold sales were suspended due to the huge amount of demand for gold in the market. The news sent the market scrambling, and the news spread like wildfire. Gold is considered a hedge against economic trouble in today’s shaky world. It is no wonder that the value of the precious metal has sky rocketed in recent days.
For those who own some gold and silver, the situation has become even more alarming. The world seems to be descending into darkness as precious metals such as gold and silver are no longer safe havens in times of economic or political uncertainty. Economic bubbles are now crashing to earth, and the value of paper currency is plummeting daily. If you’re holding some gold or silver in your portfolio, now might be a good time to sell.
Gold and silver are highly unlikely to suddenly gain in value again anytime soon. In fact, the two are such a long term investment that they might take a very long time to recover from any losses. In addition, it would take a major financial collapse for the value of gold or silver to fall to their historical lows. That being said, however, you should get your gold posts, silver bars, and bullion coins out of the metal market while prices are still low.
Historically, gold has always been one of the most lucrative metals. Right now, its price is still up over 40% over last year. That’s not to say that it will happen tomorrow, but there is a strong likelihood that it will occur soon. While you wait, you can make money by purchasing gold posts, silver bars, and bullion coins in the market.
Gold investment is a long term strategy. You don’t sell your gold until you are ready to sell it. This is because physical gold is not something that can be “thrown away” in a moment of crisis. Plus, if you choose to sell, you’ll need to have the funds to pay for transaction fees.
When investing in silver, you want to buy up as many bars or bullion coins as you can afford. As the price of gold rises, your investment will go up as well. If you have several investments in silver, then you are better off to sell all of those silver bars or silver coins at once and reinvest the money into more gold. Just remember to keep buying the coins in a form that will be acceptable as a legal tender in your country.