Is it too late to buy gold?
Since the beginning of the year the price of gold has been very volatile bouncing between £910 and £870 per ounce without any clear direction or reason for the volatility. This reflects the current market environment quite well as governments are trying to convince investors that they are on top of the situation but the data released by the independent market researchers tells something totally different.
Portugal, Spain and Italy were pretty successful in their bond auction yesterday and managed to get the money they wanted but this amount is not even close to the figures they actually need. Ireland received a 90bn Euro rescue package last month and Spain gathered 3bn Euros from the auction. Spain’s economy is six times the size of Ireland so 3bn Euros is nothing when thinking about the actual figure the country needs.
Presently everyone is focused on Europe and how the Euro is going survive but an even bigger issue is the U.S. The country’s debt levels are even higher than the Euro zone countries and as the economic power is shifting to East, the U.S will struggle to assure other countries that it can pay back its debts. Large eastern economies, such as Russia and China, are constantly reducing their Dollar reserves as they don’t believe that it will regain its reserve currency status anytime soon if ever.
As they are selling their Dollars and there is no other reliable reserve currency available, the safe option is to invest in gold. Both China and Russia are absorbing almost their whole domestic production themselves leaving the markets clueless about the actual size of their gold reserves. This way they can buy gold without interrupting open markets and keep the actual reserve size in secret.
There have been rumours that China and Russia have started to trade in their national currencies instead of Dollars, if this is true it will be a major setback for the Dollar’s recovery. Both countries are major players in the oil business and the Dollar has traditionally been the only currency used in oil trading.
The seasonal demand for gold bullion is likely to stay strong up until March as Chinese people are rather keen to buy gold as a New Year’s gift. After March the demand traditionally quietens down for the summer but in the last few years it has continued to be strong because of the issues in global economy.
Most gold experts are anticipating big and fast moves up and down in the gold price as more and more people are getting interested in investing in gold and entering the markets. China is likely to become the biggest gold importer within few years as its economy is growing faster than India’s and the Chinese government is encouraging people to buy gold bars and coins. The issues in western economies will dominate the price fluctuations but in the background the eastern traders will buy on every price drop and this way a major dip in the price in unlikely as long as the current global problems remain unsolved.
About the Author
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Spanish Gold Coins – The History of Spain in Coins
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Philippines Spain 1P Isabel 1868 GOLD Coin $137.50 |
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1800 GOLD 8 ESCUDOS MEXICO UNDER SPAIN, VERY SCARCE $1,860.00 |
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1809 GOLD 8 ESCUDOS COLOMBIA UNDER SPAIN, VERY SCARCE $1,750.00 |
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1880 Spain 25 Pesetas Alfonzo XII gold coin $595.00 |
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1800 GOLD 8 ESCUDOS MEXICO UNDER SPAIN, VERY SCARCE $1,690.00 |
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1803 GOLD 8 ESCUDOS CHILE UNDER SPAIN, RARE $1,690.00 |
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1809 GOLD 8 ESCUDOS COLOMBIA UNDER SPAIN, VERY SCARCE $1,690.00 |
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1793 GOLD 8 ESCUDOS COLOMBIA UNDER SPAIN, VERY RARE $1,640.00 |
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1787-CM GOLD ESCUDO SPAIN-MADRID, VERY SCARCE $265.00 |
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1787-DV GOLD ESCUDO SPAIN-MADRID, VERY SCARCE $265.00 |
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Eight reales; obverse Photo Mugs A Spanish dollar of British currency. Obverse Bust of King Charles IV of Spain in a tie-wig, laureate, armour and mantle (right) a small bust of King George III (right) stamped upon the neck. Reverse The royal arms of Spain crowned, within columns entwined by a scroll. During the run on gold in 1797, the Bank of England put into circulation these Spanish coins (held for their bullion value). They … |
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Eight reales; reverse Photo Mugs A Spanish dollar of British currency. Obverse Bust of King Charles IV of Spain in a tie-wig, laureate, armour and mantle (right) a small bust of King George III (right) stamped upon the neck. Reverse The royal arms of Spain crowned, within columns entwined by a scroll. During the run on gold in 1797, the Bank of England put into circulation these Spanish coins (held for their bullion value). They … |
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Doubloon $69.6 Used – Please note that the content of this book primarily consists of articles available from Wikipedia or other free sources online. The doubloon was a two-escudo or 32-reales gold coin, weighing 6.77 grams. Doubloons were minted in Spain, Mexico, Peru, and Nueva Granada. The term was first used to describe the golden excelente either because of its value of two ducats or because of the double portrait of Ferdinand and Isabella are marked as “2… S” are equivalent to $4 in US gold coins were |
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Spanish Maraved $57.6 Used – Please note that the content of this book primarily consists of articles available from Wikipedia or other free sources online. The maraved was the name of various Iberian coins of gold and then silver between the 11th and 14th centuries and the name of different Iberian accounting units between the 11th and 19th centuries.The gold dinar was first struck in Spain under Abd-ar-Rahman III, Emir of C rdoba (912-961). During the 11th century, the dinar became known as the morabit or morabotin |
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Standard Catalog of World Coins 1701-1800 $293.2 New – From the smallest mining pfennigs to the largest multiple ducats in gold, this single volume represents a definitive collection of 18th century world coins, based on more than 30 years of research by hundreds of numismatic experts. The listings for issues from China, the German states, and the Holy Roman Empire, along with Transylvania, the Papal States, France, and Spain contain a wealth of information not found in other world numismatic references. Listings are presented in a new easy-to |
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Standard Catalog of World Coins 1701-1800 $295.58 New – From the smallest mining pfennigs to the largest multiple ducats in gold, this single volume represents a definitive collection of 18th century world coins, based on more than 30 years of research by hundreds of numismatic experts. The listings for issues from China, the German states, and the Holy Roman Empire, along with Transylvania, the Papal States, France, and Spain contain a wealth of information not found in other world numismatic references. Listings are presented in a new easy-to |
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Standard Catalog of World Coins 1701-1800 $63 Used – From the smallest mining pfennigs to the largest multiple ducats in gold, this single volume represents a definitive collection of 18th century world coins, based on more than 30 years of research by hundreds of numismatic experts. The listings for issues from China, the German states, and the Holy Roman Empire, along with Transylvania, the Papal States, France, and Spain contain a wealth of information not found in other world numismatic references. Listings are presented in a new easy-t |
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Standard Catalog of World Coins 1701-1800 $56.35 Used – From the smallest mining pfennings to the largest multiple ducats in gold, this single volume represents a definitive collection of 18th century world coins, based on more than 30 years of research by hundreds of numismatic experts. The listings for issues from China, the German states, and the Holy Roman empire, along with Transylvania, the Papal states, France, and Spain contain a wealth of information not found in other world numismatic references. Listings are presented in a new easy- |