Dealer gold prices may offer investment opportunities
Friday, February 26, 2010
Short-term drops in the gold market can often produce investment opportunities.
- By Superior Gold Group
The price of dealer gold is once again giving first-time investors a window of opportunity to get into the market at what may be something of a bargain in the long term.
A MarketWatch report this week noted that Wednesday marked three consecutive days of lower gold prices, which were said to be coming off a one-month high in light of comments from Federal Reserve Chairman Ben Bernanke suggesting that low interest rates are likely to remain in place for now because of ongoing economic uncertainties.
Investors less optimistic about economic recovery
Gold coin investments remain an attractive option because of ongoing unease among many about the direction of the economy and how strong any pending recovery will actually be.
One such example of investor uncertainty comes from the February edition of the Bank of America/Merrill Lynch Survey of Fund Managers.
According to the survey, many have investors have reduced their expectations for economic growth and are looking to more stable options, including cash. The investors are also said to be less optimistic about economic recoveries in emerging nations like India and China.
In February, only 51 percent of European investors expected economic growth in their region of the world, compared to 74 percent in January. A total of 42 percent believe that there will be no interest rate increase by the Federal Reserve before 2011, which reflects a broader expectation of a stagnant economy.
“Investors are questioning whether this is a pause in growth or a trend reversal. We believe it’s the former,” said Gary Baker of BofA Merrill Lynch Global Research.
Fortunately, investors have long known that they can turn to gold and silver investments during times of economic uncertainty and other financial setbacks.
John March is the Chief Technical Officer for the Superior Gold Group, his financial insights on precious metals are sought after by Gold & Silver Dealers globally.
If you have any questions about how to buy gold coins, and want to learn how to grow your portfolio call 888.374.4032 or write to askjohn@gold101.com.
Concern over national debt shows little sign of fading
One reason that dealer gold remains such an attractive investment is the widespread concern that Congress will fail to take sufficient action to scale back the rapidly rising national debt.
The national debt is expected to exceed $14 trillion this year due to a combination of factors such as reduced government revenues and increased spending for stimulus purposes. The sheer size of the debt has led to greater attention being focused on fiscal responsibility, but so far, tangible attempts at fiscal responsibility seem to have largely been lacking among the nation’s leaders.
Sovereign debt woes could spread further
Greece is just one reason to be concerned about sovereign debt levels.
- By John March
Gold and silver dealers could be poised for some extra business as investors start to speculate more about what other European countries could be teetering on the brink of a sovereign debt crisis.
The problem is especially pronounced in the current economic climate with so many countries having dramatically increased their spending as part of their respective stimulus efforts. However, when the recession got underway, many of these countries were already carrying potentially heavy and expensive debt burdens.
Read the rest of this entry »
Gold momentum enjoys a strong week
- By Bruce Sands
Commodities, including gold, had a good week in part because of growing economic optimism in various countries around the world.
A report by Bloomberg cited positive economic signals in Australia and China as fueling gains in industrial metals including copper, while concerns about sovereign debt problems in Europe were further fueling the momentum for investing in gold coins and similar options.
