BullionVault Review

BullionVault Logo

Who and what are BullionVault? They are are the world’s largest online investment gold service, for three reasons.

  1. $100  million in gold and silver is traded every month on their platform
  2. They manage $2 billion of client assets
  3. They have over 65,000 clients from around 175 different countries

Credibility:

The company is in part owned by two large and highly reputable organizations. The first is Gold Bullion Investment Trust [GBIT] which became the registered owner. GBIT who is connected to the World Gold Council. The second is Augmentum Capital. Augmentum Capital is a subsidiary of RIT Capital Partners plc, which is listed on the London Stock Exchange.

As is mentioned in the information box above, BullionVault are members of the London Bullion Market Association. The London Bullion Market Association (LBMA)  The LBMA is an internationally recognised trade association that represents the UK market for gold and silver bullion. Their clients comprise of the gold-holding central banks, mining companies, producers of bullion, refiners, and fabricators, along with private sector investors.

Also, the company has won the Queen’s award on two separate occasions. The Queen’s Award for Enterprise is awarded by the UK Government to companies for outstanding achievement in 4 key areas. BullionVault won the award for Innovation in 2009, and in 2013 they won the award for international trade. Only companies with the very highest standards are even eligible to enter the Queens’s Awards, so for BullionVault to win it on one occasion is impressive, to win it twice emphasises they are a company of the utmost credibility.

And finally with regards to their credibility, BullionVault won the MoneyWeek award for best gold broker in 2014. MoneyWeek is the UK’s leading financial magazine, and their awards are actually voted for by their readers.
 

Benefits of Purchasing Precious Metals Via Bullion Vault:

  • BullionVault manages $2 billion of clients assets, of which $1.3 billion is in gold – This figure is actually more than the gold reserves of most countries.
  • They charge the maximum of 0.50% when buying precious metal on their live order board. If you are looking to purchase over $75,000 of metals then you will pay less than 0.50%
  • Whereas a number of providers have a minimum order value of $5,000, BullionVault allow you to buy as low as $100, with no maximum.
  • You can sell your precious metal for instant settlement any time you wish. Your funds will usually arrive within in your bank account by the next working day.
  • You own what you buy outright. BullionVault only deal in allocated metals.
  • Able to buy and sell precious metals 24 hours a day 7 days a week.
  • With BullionVault you can buy and sell in Euros, Pounds Sterling, Japanese Yen or US Dollars. The choice is yours.
  • Your purchases are stored in professional bullion market vaults, selected from among multiple locations worldwide.You can choose where you want it stored.

What Makes BullionVault Different?: 

It used to be difficult for a person to purchase precious metals in a manner that enabled them to do, so that was easy and efficient, plus unless you were buying bullion in vast quantities, you weren’t able to obtain the best price for your purchase. BullionVault was started to change all that. What they do is they provide private investors like you and me with the opportunity to gain access to the bullion market, while at the same time benefiting from the lowest costs involved in buying and selling precious metals. As far as I know, while there are other brokers out there who offer the opportunity to purchase precious metals, such as GoldBroker, they do not do so on the scale and availability as BullionVault.

How easy is it to open an account?

It is extremely easy to open an account. All you need to open your account is an email address. Upon opening your account you will receive risk-free 1/8oz (4g) silver bullion.This is a currently running promotion at the time of writing this review, so it is quite possible that it may no longer be available when you sign up. Nevertheless, starting your account is very simple.

Click Here To Open Your BullionVault Account

How do you fund the account?

If you live in the UK you can deposit funds into your account (minimum amount is £100 and the maximum is £5,000) by debit card. Due to the high fees on credit cards, and the low commissions BullionVault charge (0.5% or less) they don’t accept credit cards. If you wish to deposit more than £5,000 you need to do so via bank transfer.

If you live outside the UK you can also fund your account via bank transfer.

Can USA residents use BullionVault?

Yes is the answer to that question. According to their website, nearly a 1/4 of users reside in the US. They do have a dedicated FAQ’s page for US residents which is very helpful, addressing issues such as sales tax, FACTA, and reporting. If you so wish you can also set up a self directed IRA and fund it with your purchases. For more information on setting up a gold IRA, check out our gold IRA companies reviewed page.

What are the costs involved?

BullionVault charge a maximum of 0.5% on your trade for the first $75,000 in purchases per year. This then drops to 0.10% for the next $750,000 and then 0.05% afterwards. The same rates are used if you choose to sell.

There is an additional 0.3% fee for currency switching. More information on the website under their Quick Start section.

Storage costs – BullionVault offer some of the lowest storage costs on the market as the table below shows.

 BullionVault Fees (including Insurance) ETF Fees
METALPER MONTHMINIMUMPER MONTH
Gold0.01%$40.033%
Silver0.04%$80.042%
Platinum0.04%$80.050%

Do they provide training on using their platform?

Yes they do. The platform is quite simple to be honest but they do provide you with a set of comprehensive  instructions on how to trade on their user interface. Watch the video below for a demonstration.

Click Here To Open Your BullionVault Account

Summary

BullionVault are a multi-award winning company who are leading the way in precious metals trading. They offer a very flexible and easy to use platform which enables you to trade 24/7 365 days a a year. All your purchases are stored outside of the banking system, which has huge benefits, and furthermore, you can select the vaults in which you want to store your purchases, from Switzerland, UK, US, Canada or Singapore.  Furthermore, with BullionVault you are able to deal directly with other users. This means both and the person you wish to trade with save dealing costs by cutting out the middleman.


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GoldBroker Review

GoldBroker Review


GoldBroker Logo

GoldBroker Information

GoldBroker Information

  • London Address: FDR Capital Ltd, Commerce House 2nd (floor6), London Street, W2 1HR, London, UK
  • New York Address: FDR Capital LLC, 300 Park Avenue (floor 12), New York, NY 10022, USA
  • BBB Rating: A  with zero complaints in the last 3 years
  • Trust Pilot Rating: 9.1 based on 19 reviews
  • website: www.goldbroker.com

On this page we give you a simple GoldBroker review. Other websites can at times give way too much information that you end up with information overload. We like to keep our reviews simple, so here is our ‘simple but factual GoldBroker review.

Credibility:FDR Capital, also known online as Goldbroker.com who do specialize in actual bullion ownership and are in fact recognized as one of the leading international gold brokers. So if you are looking to invest in metals, other than for an IRA, you may want to consider them.

FDR Capital / Goldbroker.com was founded by entrepreneur Fabrice Drouin Ristori. They provide 100% physical ownership of silver and gold, which means they do not offer mutual or fractional ownership.

Also, what makes Goldbroker one of the leading metal providers around, is the fact that one of their board members  is Mr Egon Von Greyerz. Mr Von Greyerz is the founder of Matterhorn Asset Management and is recognized within the financial sector as one of the top 5 gold fund managers worldwide.

Goldbroker.com is one of the very few companies that offer direct storage of physical gold and silver.

  “Direct storage” means that our clients have a storage account opened in their own name and that Goldbroker.com doesn’t store for its clients. So there is no exposure to intermediation risks in terms of storage for our clients. A storage contract is signed in between our clients and the secured storage company we partnered with, Malca Amit. This proves that first our clients store in their name and second, that their identity is known by the storage company. » Fabrice Drouin Ristori.

So when it comes to storing your gold purchases it is done in secure warehouses in Switzerland, The US, Canada and Singapore. Additionally, storage in Switzerland is within a VAT Free zone, so you do not pay value-added tax on your purchases. The storage company who keep hold of your items is independent of FDR Capital so there is no confusion over who actually owns the gold.


 

Benefits of investing in gold through FDR Capital / Goldbroker.com are:

  • You can buy physical gold and silver in bar and coin form
  • You have complete ownership of the purchase
  • You hold all stock in your own name with each purchase having its own unique serial number
  • All storage partners are fully insured for your safety
  • You can inspect your purchase at any time
  • You can have home delivery once you have completed 1 years minimum secured storage
  • It is stored in a VAT free zone
  • There is no exit penalty whenever you wish to sell

Minimum Investment amount: $5,000 minimum quantity of gold or silver

Reviews On GoldBroker Across The Internet

  • BBB Rating & Complaints: A rating  & zero complaints in the last 3 years (Find Details Here)
  • BCA Rating & Complaints: No Listing
  • CitySearch: N/A 
  • Complaints Board: No Listing
  • Facebook:  Click For Profile
  • Google+:  Click for Profile
  • RipOff Report:  No Reports
  • Trust Link:  No Listing
  • TrustPilot:  19 reviews generating  overall score of 9.1 (Find Details Here)
  • Yellow Pages: N/A 
  • Yelp:  No Listing

Do They Buy Back?:  They do offer a selling service where you can sell to them precious metals. You forward them a sell order by using the secured messaging service that is on  your account.  When GoldBroker have received your sell order they then send you a document to be signed to order the release of the products from the vaults.The resale price is based on the spot price at the time of the transaction.

GoldBroker History:

Goldbroker was founded by entrepreneur Fabrice Drouin Ristori. He graduated from Kedge Business School in France in 2004 when he then moved to  the Mediterranean island of  Malta where he started two companies  that specialized in the online gaming sector.

he went on to sell both companies and then he started his own private investment company, FDR Capital Ltd.. In 2008 the company started to invest in physical gold and silver.

In April 2011 Mr Ristori  launched Goldbroker.com. The purpose was to create a solution for investors where they could  store precious metals in their own name without any exposure to intermediation risks. With Goldbroker.com, clients have a direct legal relationship with the storage company thus removing counterparty risk at the storage level.

Well-known gold fund manager and founder of Matterhorn Asset Management, Egon von Greyerz joined the Board of directors and became a shareholder of Goldbroker.com Europe in 2012.

Goldbroker.com then expanded rapidly on the European markets, with a 250% growth rate of its turnover in five years, before opening an office in New York in 2015.

Things To Consider

GoldBroker are a relatively new player in the gold investment market, however, there are very few companies that have the backing and reputation as GoldBroker do. With one of the world’s leading gold fund managers on the board of directors the direction and future of GoldBrokers is in good hands. With Goldbroker also offering storage outside of value added tax zones, this benefit puts them ahead of many other precious metal providers.


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Disclaimer

Please note that the content on this website does not constitute financial advice and should not be taken as such. The owner of this site may be paid to recommend Regal Assets or other companies. The content on this website, including any positive reviews of Regal Assets and any other reviews, may not be neutral or independent. It is advisable to always speak to a certified financial advisor before making any investment decision.






retired couple looking at internet

What You Need To Know If Considering A Gold IRA Rollover 

What You Need To Know If Considering A Gold IRA Rollover retired couple looking at gold ira companies reviews on internet

Investing in a gold IRA rollover is growing in interest and the fact that you have landed on this page suggests that you are at least considering the option, maybe  you have not yet made up your mind. But why should you, at least, consider investing in a gold retirement account?

There are a number of various reasons why you should consider investing in gold, especially as an IRA investment, none more than the diversification of your investment / retirement portfolio.

With the price of oil currently falling and at a rapid rate, and the stock markets starting the year with a decline, a lot of people are showing concern with regards to their investment portfolios especially those connected to their retirement plans and this is one reason why they are looking to invest in alternatives. The gold market is a great way to increase your financial protection by diversifying your investments into something like a gold ira rollover.

In 1997, Congress passed the Taxpayer Relief Act which allowed investors to put away gold and other metals into a self-directed IRA. They were responding to investors who wanted to diversify their retirement portfolio from paper assets like cash, stocks, and bonds to add some tangible assets.

Edmund Moy, who is the leading Strategist for The Fortress Gold Group and was also the Director of the US Mint between 2006-2011, stated the following an article he wrote in September 2014: (click here for original source)

[note note_color=”#4387C4″ text_color=”#ffffff”]

By 2013, the total amount of assets held in all the Individual Retirement Account’s set up in the USA  totaled 6.5 trillion dollars, and out of that amount 2.5 – 4 percent were now in non-traditional forms, such as gold.

He went on to state:

And looking long-term, there are several risks that favor the continued growth in gold IRAs, such as the fragile global economic recovery, potential of aggressive inflation in the United States, growing concern of a major stock market correction and increased geopolitical risks.

[/note]

When it comes to building a diversified investment portfolio, investing in alternatives from the normal investments, needs to be considered. The main reason being that diversification helps balance out the variances in values of other types of investment commodities. Sometimes an investor may be heavily invested in a particular type of investment such as stocks or ETF’s, but with a diversified portfolio, they may well have stocks from various sectors from the retail sector to the tech sector.

When one of these sectors, such as the oil sector, is going through a bad patch, as it is at the time of writing this, the chances are good that sectors such as retail or tech stock may be doing quite well. This not only balances out losses from the oil sector, but it can actually help to increase the value of a portfolio significantly over time.

Investors Want More Diversification

True effective diversification is not just diversifying stocks and ETF’s, it is much more than that.  More and more investors are looking to broaden their horizons by investing in things like REIT’s, corporate bonds, gold, and silver, as well as stocks and ETF’s.

BullionVault, who are a leading peer-to-peer gold-and-silver-bullion exchange, based in London, recently produced their annual report and analysis on how varying assets have performed over the last 40 years (1976-2015) in both the UK and the USA.

As you can see from the facts below, although not the number one performing asset, gold has beaten other key assets in its returns over the past 40 years and has this century outperformed corporate bonds by a considerable margin.

[box title=”ASSET PERFORMANCE LAST 40 YEARS” style=”glass” box_color=”#72982B”]

  • Gold’s 40-year change (+669% gross of costs) has beaten inflation (328%), housing (598%, excluding costs + yield) and cash (cumulative 535%).
  • Commodities have dropped below end-1975 levels (-3.05%);
  • REITs are the best-performing asset both since 1976 (9,177% cumulative on reported performance before costs) and also so far in the 21st century (up 484% since 1999);
  • Gold is the next best performer since 1999 (+340%) and then corporate bonds (160%);
  • Since 1976 gold rose in all 3 years when US stocks lost 10% or more, averaging 9.6% gains. It averaged 11.3% when REITs fell the same, rising on 3 of 5 occasions;
  • Cash interest rates have lagged inflation 16 times since 1975. Gold rose in all but 4 of those years, three of them 2013-2015;

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 Why No Portfolio Should Ignore This Investment

When it comes to building a diversified investment portfolio, investing in a gold IRA rollover should seriously be considered. One of the reasons for diversification is that it helps balance out the variances in values of other types of investment commodities. As has already been mentioned, an investor may be heavily invested in stocks or ETF’s, but a diversified portfolio will have stocks from various sectors from the retail sector to the tech sector.

With all this being said, many people want to know how much this type of investment should be in a diversified portfolio. In addition, they want to know, why buy gold?

[service title=”How Much?” icon=”icon: info-circle” icon_color=”#72982B” size=”32″] [/service]The first thing to understand is that adequate levels of gold investment in a diversified portfolio should be somewhere between 5% and 10% of the entire portfolio. Some investors argue more is better, but levels from 5% to 10% are the industry standard.

[service title=”A Shelter Against Volatility” icon=”icon: info-circle” icon_color=”#72982B” size=”32″] [/service]The answer to why an investor should purchase this kind of investment is multifaceted. The first reason to invest is because it can be used as a hedge of protection against market volatility and inflation. Market volatility can affect the value of gold, but it typically affects it much less than other types of investments. One of the reasons for this is that the value of stocks, bonds and ETF’s are based on paper money and not in gold.

[service title=”Protection from Inflation-Deflation” icon=”icon: info-circle” icon_color=”#72982B” size=”32″] [/service]Inflation has always been a concern because inflation weakens the value of paper money. However, gold does not labor under the same constraints as paper money. It has a value that is established mainly through demand. Paper money can be weakened when there are shifts in power from one country to the next, or when there is some sort of political upheaval. In some cases, paper money can be rendered completely worthless, should the affairs of a particular country get bad enough. It is in these situations, gold benefits the investor.

Gold has had a remarkable performance during times of inflation and also deflation. Inflation is basically a period when the economy of a nation is struggling and the cost of living is high. During these times, gold prices tend to increase and that’s why it is often regarded as a ‘hedge against inflation’. Deflation, on the other hand, is when the economy is also struggling and business activity is quite slow. During deflation, it has been seen to perform well too. (check out my page on inflation and how it has impacted on us over the years)

[service title=”Value” icon=”icon: info-circle” icon_color=”#72982B” size=”32″] [/service]Another thing to consider is its value. While the value of gold did skyrocket some years back, reaching almost $2000 per ounce, it has since slipped to around $1200 per ounce (Current gold price can be found in the sidebar to the right). There is some discussion as to its value throughout the rest of 2016. Some experts are expecting gold to experience an explosion in value sending it closer to $2000 per ounce again. Other investors feel that while gold may not rise to this level, its values will steadily increase throughout 2016 and into 2017. Regardless, gold is at a good value and purchasing gold at current prices may be a wise investment as it is poised to increase in value, both in the short-term and the long-term.

[service title=”The Various Options for Investing in Gold” icon=”icon: info-circle” icon_color=”#72982B” size=”32″] [/service] Lastly, there are many different opportunities for an investor to purchase gold. It can come in the form of jewelry, collectible coins, legal tender numismatics as well as bullion. In addition, a gold investment can take the form of self-directed IRAs or gold backed investments, such as stocks in gold mining and refining companies. With coins being sold with as little as 1/10 of an ounce of gold, even an investor with limited capital can still invest.

It’s not difficult to see why it has been a popular investment for professional investors for many years. It’s also not hard to see why it still remains an extremely popular investment. If you’re looking to diversify your investment portfolio, but you’ve yet to venture into this kind of investment before, you may want to consider it now. With all the upsides of investing in it, it’s hard to ignore this valuable commodity.

Click here to elarn more about a Gold IRA rollover

 


investing in platinum

Platimum Investment – Is it Worth It Today? (2016 Info)

Here is Why You Should Invest in Platinum

Platinum is probably the most under appreciated precious metal amongst investors historically, but we are now starting to see an increase in Platinum investment.

Its value is closer to gold than it is silver (at the time of writing an ounce is $866), however, the return on investment is not as great as either gold or silver, yet. This is probably due to the fact that over 70% of it comes from one country, South Africa and therefore, the return depends on mining and the economic state of the country. Currently (over the past 5 years 1/2010-11/2015) the return has been poor as its value as steadily decreased from $1,697 to $866 an ounce.
platinum investment

For the smart investor, diversification is key. It is for this reason that many investors have taken to investing in gold and silver, with an aim of protecting their savings in the face of an unpredictable investment environment. It does have a much shorter history in the financial markets than gold and silver, and this is because, for a long time, the price has remained significantly higher than that of gold. In fact, less than a decade ago, the price was 150 percent that of gold. Fast forward to today and the price has fallen to levels that are permissible for the willing investor. That being said, it remains scarcer than other precious metals, and for this reason, tends to attract higher prices per unit. These prices tend to change depending on supply and demand. During periods of economic uncertainty, the price tends to go down. This offers an opportunity for an investor to acquire it at reduced prices and diversify their investment portfolio in the process.

Reasons For PLATINUM Investment

If you are wondering whether you should be thinking of investing in alternative, like Platinum investment, the answer is yes. And here are the reasons why:
1. It has recorded a steady and improved performance in the market, compared to silver and gold (although of course, like all investments it fluctuates). In the past, there was not much popularity surrounding this metal, and many investors opted to go for gold and silver. In today’s market, it has proved to the point that it can hold its own, and many investors are turning to it in a bid to get better returns.
2. A strong demand for vehicles creates a higher requirement for it. It is not only a precious metal but an industrial one as well. It is used in catalytic converters, creating over 40 percent of its use. It is also used in other areas as a replacement for gold, such as for jewelry, dentistry and even in electronics. As auto sales increase, the demand will go up, resulting in better prices and higher returns for investors.
3. There are certain factors that could result in a lower supply, meaning better prices for the investor who already has it in their portfolio. Key on the list of factors is the fact that almost all (75 percent) of the world’s supply comes from South Africa. Reliance on one main producer means that any upsetting developments and instability in that country’s mining industry have a huge impact on prices. An example is the mine strikes and turmoil that occurs in South Africa.
4. Renewed growth in China is an opportunity for demand to grow, bearing in mind that China is one of the world’s biggest consumers of platinum jewelry. In fact, China is responsible for 23 percent of the world’s  demand, and an increase in this demand will result in an increase in demand for the metal, hence higher production.
In order for it to be saleable in the commodity market, the ingots must first be assayed in a similar manner to what is done to gold and silver. If you wish to buy and store it in its physical form, you have the option of getting  bars, coins, and bullion. If you are thinking of adding it to your retirement account, you will require the services of a custodian. The custodian will find the it for you, get the paperwork sorted on your behalf and keep the it safe for you.
Alternatively, if it is not for an IRA, you can opt to utilize various routes to invest in it. For instance, Swiss banks give the option of buying and selling the metal like foreign currency, by making specific trading accounts available. What this means is that you, the investor, will not own the actual metal. Rather, you will have a claim against the bank for a certain quantity of metal. This is a much easier route to follow, especially if you are freshly ventured into the field of investing in this and other precious metals.

If you are interested in investing, then check out this selection from Regal.

Current Price

There are several steps that you should take when considering Platinum investment.

• The first thing you need to do is gather as much information as possible. Investing in precious metals is a great way to protect yourself and your finances against economic uncertainties, and Platinum investment is no different, but you must be knowledgeable about what you are doing in order to succeed. If you are in doubt, always consult a financial advisor. In fact, a financial advisor should be the first person you talk to once you decide that you want to invest.
• Decide how much risk you are willing to take on. This should be arrived at after intelligent financial calculations. You must correctly determine how big a portion of your finances you are ready for Platinum investment. Precious metals are much less volatile than stock markets, mutual funds and so on, but it does not mean that they come with zero risk.
• Follow the correct procedure when investing. Unfortunately, many investors are scammed when investing in precious metals because they have no clue that there are proper channels and regulations that have been stipulated to regulate this type of investment. To avoid falling into this kind of trap, seek the services of a reputable financial advisor and only use the services of financial institutions that have been accredited and approved for such investments.
If you have been wondering how to protect your financial future, consider diversifying your investment portfolio. It does not matter whether you are building a nest egg for your retirement, or just saving something for a rainy day, precious metals, and platinum, in particular, have the ability to offer you financial protection.

[button url=”http://transfs.com/buy-platinum” style=”flat” background=”#e3e0db” color=”#100e0c” size=”8″ center=”yes” radius=”round” icon_color=”#0f0d0d”]Click here to check it out[/button]

Investing in Platinum vs. Goldplatinum or gold as an investment

Just like silver, this metal is both used for investment product and industrial use. As such, it can move out of direct linkage with gold based on the pushing and pulling occasioned by industrial demand. In the recent past, the platinum/gold spread has narrowed down to below $100 per ounce. This has been mainly due to gold’s falls. There continues to be widespread support for this alternative to gold, although the demand for it sometimes gets relatively muted.

Investors have been waiting on global stocks to get depleted, which would mean better prices because of the supply crunch. When it comes to comparing it with gold, it is important to remember that they have one main difference: while as mentioned it has investment and industrial appeal, gold is driven purely by speculators and investors. The market is also smaller and less liquid compared to gold.

During periods of low global economic growth, it is usual for both prices to converge. It is very rare for the price  to fall below that of gold, and when this happens, it usually does not stay there for long. This is because both metals have hedge qualities. When the economy is booming and growth is at an all-time high, its price tends to skyrocket faster than gold prices.

If you are thinking of Platinum investment as a gold alternative, it is important to keep in mind that the current prices may not seem very attractive. However, a synchronized global economic growth is something that would boost its price. At the moment, the global economic growth is not synchronized, as can be seen from the recovery in the US and the UK but struggles in Europe and China.

Keeping in mind that the two largest markets as mentioned are autocatalysts in Europe and jewelry in China, a growth in these two markets will have a direct impact on rising prices.

Gold is facing competition from other assets such as properties and equities, meaning that it has not done as well as expected. That being said, investors who are interested in reaping long-term rewards continue to invest in both too.

If you are wondering which precious metal to invest in between these two, a deeper analysis of market trends and a consultation with your financial advisor should make things clearer for you. And remember, he who does not invest, does not stand the chance to reap returns.

[button url=”http://transfs.com/buy-platinum” style=”flat” background=”#e3e0db” color=”#100e0c” size=”8″ center=”yes” radius=”round” icon_color=”#0f0d0d”]Click here to check it out[/button]

TransFS is a website dedicated to providing information for improving your finances find out more at https://www.transfs.com

We also discuss all issues relating to investing in gold ira’s

Gold bars and stock market

The Gold Market Experiences Historic 70-Year Breakout!

The Gold Market has Just Experienced A Historic 70 Year Breakout From Oiloil and gold comparison chart

A recent article on King Word News reported that the gold market has just done something that it has not done for 70 years, and that is it has held its price while the crude oil market continues to decline at an alarming rate. There have also been a number of reports in the financial media that gold too is on the decline, yet when you look at how gold has been performing over the last 12 months, it has fluctuated between $1250 and $1005 an ounce. Compare that to oil on the other hand over the same 12 month period and you will see that oil has dropped from a high of $60.13 a barrel to its current price of $31.35 a barrel.

As you can see from the chart to the side, both oil and gold have historically (although the chart only goes back to 2006) over the past 70 years, run almost along side each other, albeit except through the recession of 2008/2009.

What this chart, along with other data shows us, is that although gold has dropped in price since its 2012 peak, compared to other commodities and in particular, oil, it is performing very strongly, in fact, it is holding.

So what we are seeing here in this historic breakout, through gold holding its price while oil collapses, is that Gold is possibly now entering a bull market. It is of course too soon to predict, and many experts are saying although gold is not in a bull market yet, it is coming in 2016, the question is when?

What this separation from oil has shown us is that a bull market is getting close, closer by the day. Check out BullionVault for more information on gold investing

 

 

Russia buying more gold

Why does Russia want more gold?

Earlier this year, CNBC ran a sequence of articles where they raised a number of valid and important questions as to why Russia wants more gold. (source)

The Central bank of Russia has announced plans to increase its reserve level from $300 billion to $500 billion. Now how Russia plans to do this is unclear, however lets look at three major facts for a moment that have negatively impacted on the Russian economy:

  • Russia has for some time been trying to stabilise the value of the Russian currency, the ruble, by selling a mix of currencies including the US dollar.
  • Its war with the Ukraine has brought about sanctions that has put them under economic strain
  • As the world’s leading energy supplier, the fall in the price of oil has impacted on Russia greatly.

These factors, along with others, have contributed to the economy of Russia to actually contract by 1.29% and this is a result of 12 months of continual contraction.

price of gold investment

graph courtesy of http://www.tradingeconomics.com/russia/gdp-growth

Now when you consider that Russia is the largest country in the world and the fifth largest economy, along with being the world largest producer of oil (no it’s not Saudi Arabia, there output is only 13% compared to Russia’s 14% (figures courtesy of Wikipedia)) along with gas, you can see why having a stable economy is vital.

So how are they going to do it?

Well one of the fastest and most common ways to bolster an economy is through the purchase of gold. In an article on CNBC, they stated:

“Rumors last week that Russia was on the verge of selling its gold reserves were quashed with the news on Friday that it has continued to add to its holdings. However, John Butler, chief investment officer at Atom Capital, and Alasdair MacLeod, the head of research at online bullion exchange GoldMoney Foundation, believe that Russian President Vladimir Putin could bring the country onto some sort of “gold standard” to try to shore up its economy. “

It is no secret that Russia does have an interest to distance itself from other currencies that are inflating in value. Putin wants to base the Russian economy on sound investments and the best way to do that is, through gold.

What evidence is there to suggest that?

Russia increased its holding of gold in December last year to just over 38 million ounces, an increase of over 1 million ounces from the previous month (source) and it continues to do so each month. Although the country is a long way off from having a currency that is backed completely by gold, it is moving in the right direction

silver coin investment

Is Investing in Silver Coins a Good Idea?

When it comes to precious metals, gold is usually preferred by more investors than silver. However, what you need to understand is that just because gold is more popular does not mean silver is less attractive. In fact, adding silver to your portfolio is a great way to diversify and protect your investments. There are two types of silver commonly traded in the market today, and these are silver bars and silver coins.

If you are wondering which one you should go for, the answer is that both of them make for good investments. However, there are certain characteristics that make silver coins more desirable. For starters, silver coins can be bought and sold more easily than bars. When selling bars, you do not have the option of selling a portion, either you sell everything or nothing at all. This is not a problem that is experienced with silver coins.

The fact that silver coins are government-minted is another reason why many people tend to trust, and want to invest in, silver coins. Even when silver prices wildly fluctuate, it is unlikely for government-minted coins to be called into question. It is also important to remember that coins are universally accepted, and so for an investor, it makes a lot of sense to invest in silver coins.

The gold/silver ratio analysis shows that investing in silver coins is a wise move. This ratio is used to determine the absolute and relative prices of gold and silver, and while it currently stands between 50:1 and 60:1, it is expected to normalize to 16:1 in the near future. Coupled with declining below-ground supplies, it is expected that silver will be a much sought after commodity in the near future.

It is also important to remember that silver has a wide variety of uses, especially in the photography industry. As demand for industrial silver soars, it is expected that owners of silver coins and even silver bars will get great returns on their investment.

Investing in precious metals is a great way to approach diversification and protect your portfolio against economic fluctuations and inflation. And while some investors are skeptical about adding precious metals to their portfolio, those who have report no regrets. Go ahead and get yourself some silver coins. You do not have to invest all your money in them; you can simply set aside a small amount to invest in silver coins, and decide how to proceed based on the returns you get thereafter.

If you are interested in investing in silver, be it coins or bullion, then if you live in the US, check out my recommended silver coin and bullion supplier. If you live outside the US then check out this leading supplier of silver.

investing in gold price

Gold increases AGAIN!

January 22nd – the European Central Bank announce that they will print over 1 Trillion euros to buy 60 billion euros worth of soverign bonds every month, for the 18 months )march 2014 – September 2015) See full story here at Bloomberg.com

George Soros, the billionaire investor announced that he strongly feels such action will “divergence between rich and poor bigger than it already is” He continued, “It will benefit the owners of assets and actually wages will remain under pressure through competition and unemployment.”

That benefit on assets has already started, with the price of gold increasing 3% in Euro terms, in just one day. (you can see how gold has increased over the past few months, and continues to do so on our precious metals price page)

So what effect has this actually had on the price of gold? Gold has returned to its key mark price of $1,300 and experts are already stating this is just the beginning.

If you are interested in looking at the investiture of gold further, check out our gold reviews.