Gold ETFs Hold Record Amounts of Bullion

It is estimated that by the end of last week Gold traded ETFs had increased their bullion holdings to a record of almost 1400 tonnes while sales of gold coins by the US Mint is running at double that of a year ago.

Morning trading in Asian markets saw gold under some selling pressure with traders pushing the price below $938 an ounce but Europe’s opening quickly saw the price back above $940 an ounce. Read more

Gold Bullion Price Takes a Breather

Tuesday morning trading on the London Bullion Market saw gold drop back to steady at around $895 an ounce from Mondays high of $916.30 on profit taking and conversely the dollar weakening against the euro.

More evidence of the loosening tie between the US currency and the price of gold! The bullion price was driven yesterday to all time record levels in non US dollar currencies as investors worldwide sought the safety of buying gold bullion either directly or via an ETF holding the physical metal.

An alternative that can appeal to investors who prefer to have their assets under their direct control is to buy gold coins when they can be delivered to their home. The best approach to this market is to buy newly minted coins that will reflect the going price for the metal plus a premium.

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Gold Bullion Trading on the Up

The Obama effect has started with gold bullion trading in Europe reflecting investors doubts over the level of spending to ‘kick start’ the economy envisaged by the new administration.

Although the US dollar has been showing strength against the euro, and particularly the pound sterling, the long term consequences of an unbridled Obama spending spree is bound to have a detrimental effect on the value of the dollar before very long.

Not that the European economies are looking any better as the banking sector follows in the wake of its US counterparts.

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Arguments For And Against Investing In Gold

This article has been reproduced by kind courtesy of Bullion Vault. It is a timely reminder of the arguments for and against investing in gold in a time of financial crises. Questions are posed that you will need to consider if you are either holding or contemplating buying gold in todays highly volatile economic climate.

Why Gold? Why Now?

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Advantages of and Disadvantages of Investing in Bullion and Coin

The simplest and most efficient method of participating in the precious metals market is by the direct purchase of the physical metal in the form of bullion or coin.

For the serious and financially secure investor large bullion bars are usually available at lower premiums than smaller shapes and coins.

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Definitions Of Bullion

Bullion

A negotiable precious metal with a trading weight and shape, for example an ingot or bar and, in certain cases, coin.

Bullion Coin

A precious metal coin that is legal tender and whose market value is only dependant upon its content and not its face value or collectible value

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