“The future leaders of tomorrow will be the ones who purchased gold and silver”? Bob Chapman (1935-2012)
(The legacy of Bob Chapman will live on through all of us who survive the economic crisis. We will always remember you and the help you provided to all of us! – Thank you Bob Chapman! I hope you are enjoying watching us from above in paradise)
November 2012 – Gold and silver prices consolidate after a huge run-up in September. In September we saw gold prices rise 9% and silver prices rise 23%. This was due to the large institutional trading firms covering their short positions. Also, many heavy metals speculators have gone long in gold and silver positions. They have done this in response to the money printing announced by the Federal Reserve.
September 2012 – Federal Reserve Announces Economic Stimulus Plan to Purchase Mortgage Backed Securities. According to the Federal Reserve announcement, the Fed will buy back mortgage back securities in the nature of 40 billion dollars a month. This plan is infinite and will continue until the Federal Reserve decides to end this stimulus plan. As a result, gold and silver prices have surged higher. Many traders are betting on higher commodity prices due to the money printing and it’s adverse effect on the U.S. dollar.
Official Announcement: http://www.federalreserve.gov/newsevents/press/monetary/20120913a.htm
Martha Lewis , Financial Reporter,New York
After saving money for a few years, you realize that your hard earned dollars could perform lot a lot better than simply keeping it in a bank account. Since it accumulates at a next-to-nothing rate and is actually depreciated over time. Have you seen advertisements on television encouraging a person to purchase Twenty-two or Twenty-four karat gold coins? The reason for this increase in many people? interested in gold is because the price of gold has increased exponentially over the past decade. Silver Prices have also been increasing as well. While at the same time the dollar is being depreciated due to all the economic stimulus, known as money printing.
Many people in the United States foresee a possible dollar crisis. In 2008 the money supply increased exponentially after the 17 trillion dollar bailouts given the banks. While many Americans are unaware that this will have a negative effect on the dollars they hold in the bank, a few savvy people are looking to hedge their dollars.? They know that their money in the bank account is being adversely effected by money printing. The more money put into circulation, the less the money in the bank is worth, due to supply and demand ratio. The greater the supply the lower the demand, the lower the value of the currency.
Never before in history has a currency ever survived more then 70 years. The only reason the U.S. dollar has been able to survive up until now was because it was the worlds reserve currency. Now with Brazil, China, India and Russia making plans to not use the U.S. dollar as their trading currency, the U.S. dollar will be moved out of favor as the worlds reserve currency. As foreign countries notice that the U.S. dollar is losing value there could be a run on the dollar. This will cause the value of the dollar to drop considerably in a short period of time. While this happens people will be moving into hard assets such as gold and silver, land and commodities. When the dollar devaluation happens, then gold and silver prices should surge much higher.
Therefore, whether you are dabbling in buying precious metals, you need to be smart when deciding how to invest in silver and gold coins. All things considered, you are using your hard earned money when making an investment decision to buy metals. For this reason you should keep in mind not to squander your money and chose the lower value coins. Rather, choose gold and silver coins that can make you money and appreciate in value over the decade. The most popular coinage are the silver and gold American Eagle Coins. These coins are widely known and minted by the U.S. Mint and therefore highly regarded. So when the time comes you can easily sell your gold and silver Eagle Coins. If you are located overseas, then buying your countries coin may be the best option for you, so when the time comes to sell it, you can sell it easily. For instance, if you are in Canada, you may want to buy Canadian Maple Leaf coins.
In case of a natural or financial disaster, if you have coins, you can sell them to scrap dealers; this is the swiftest way to sell your coins. And you can use them to barter for food or other items. Although, gold dealers will only pay you for that value of this gold contained in your current coins. This is because gold dealers usually are refiners who just buy old coins in addition to old damaged jewelries. Which they then need to melt them, extracting real gold or silver.
Selling your current gold coins to scrap gold sellers means that you will only receive the value of the gold in the coin. View silver coins on Wikipedia. All aesthetic benefits and rarity of your gold coin won’t be considered. Your coins may improbable be distributed at their particular real value from scrap gold dealers however you can give up since they are less difficult to find as compared to private debt collectors. They are buyers that you will just look for in event you are in serious need of cash in the quickest doable time.
US gold coinage can be classified as numismatic gold coins or non-numismatic gold and silver coins. The numismatic coinage undergoes a further classification as commemorative gold coins. Many forecasters advice people who are hedging their U.S. dollars with gold and silver bullion only recommend buying the non-numismatic coins. These coins have a close to 99% precious metals content. The numismatics may only be 50% gold or silver and this causes higher commissions when buying.
Since the start of the money printing gold and silver prices have skyrocketed by more then 100%. Many experts foresee silver prices over $100 an ounce and gold prices over $3000 an ounce over the coming 5 years. Oil prices are expected to move higher according to leading financial forecasters.