Another weak unemployment report in the United States has helped gold on 4/27/2012. The price gold rose to $1659 per ounce. Un-employment claims were virtually unchanged from the previous week. While the economy in the United States is growing it is hardly robust, and has not been strong enough to spur new hiring.
The FED also announced that interest rates would remain low. Gold tends to like low interest rates because it spurs investment in the metal. In addition, Central Banks continue to buy gold at a fast pace. Investors should follow this lead because banks are buying gold to further insulate themselves from the debt crisis in Europe, especially now that Great Britain and Spain have officially dipped into recession.
There is enough bad economic news in the US and abroad to keep the gold spot price high and stable. The strong dollar against the weakened Euro has stopped gold from soaring, but other economic factors have been able to keep gold stable and strong. The current fear in Europe is that Spain might need to be bailed out by its EU partners much like Greece was. Spain’s government is doing all it can to avoid that, because doing so means they will lose much of their financial freedom.
However, it is likely that Spain will need some help soon from the EU. Especially troubling in Spain is their high un-employment rate which is over 22 percent. During the Great Depression the United States hit 25 percent un-employment. This gives an indication of just how serious the situation in Spain is.
Although Great Britain has hit recession their economy is in better shape than Spain’s, and they will likely be out of recession sooner versus later. However, this news keeps gold high. Investors should still keep their eyes on Europe. China’s most recent manufacturing numbers showed that sector continues to grow, although at a slower pace. China’s is working hard to ensure their economy makes a soft and not a hard landing as their economic growth slows.
In the end the continued weakness in the American job market along with continuing problems in Europe have kept gold steady and high, despite the stronger dollar. The FED recently helped gold by announcing they will continue to keep interest rates low. Gold performs better when interest rates are low because investors are reluctant to buy into low return investments, and therefore turn to gold.
The truth of the matter is that there aren’t that many investment options in these hard days that carry the assurance of rising values and expanding profits. Perhaps if you are among the most wealthy of folks you can afford to enter the burgeoning field of modern art investments and make grow your personal wealth in that market. However, if you are a person of more modest means, things are not so easy. The investment options that used to be the gateway to personal wealth for so many people in the past, things like real estate or the stock market, just aren’t what they used to be. In fact, it can often seem like an awfully big gamble to put your hard earned money into these fields at this time. But what then is a wise investment choice for these trying times? According to many of the leading experts in the field of personal investing, people should be looking toward the purchase of gold to protect and grow their personal wealth. With the gold price on the rise, many folks are making excellent returns on investment in this lucrative field.
The thing many people may not know about gold is that it is becoming a more and more rare metal as demand for it outstrips the available stockpiles. In addition to the storing of gold for investment purposes, gold is also increasingly used in many very important manufacturing processes such as the consumer electronics field and the growing medical manufacturing industry. At the same time that the demand on gold continues to rise, much less of this metal is being produced, with the most important gold producing regions in the world greatly cutting back on gold mining operations. Due to economic and political troubles in these gold producing nations, it has become harder and more expensive to mine gold. Thus, with demand for gold rising and available stockpiles shrinking, the gold price has been on the rise.
Because neither of these factors—high demand and low supply—are expected to change in the coming years, most industry insiders are predicting that the gold price has only begun its upward climb. Because of this, those with gold holdings right now can expect significantly high returns on their investments. In this way, now is certainly the time to invest in gold, joining the many people all across the country that have made the wise decision to buy gold and secure their financial futures.
The precious metals market is the safest place for your money to be right now. As world financial institutions crumble, the abstractions implicit in the financial industry have com to rear their ugly head. If, like most investors, you scratched your head at the logic of sub-prime loans, or credit practices, or wagering on commodities futures, you were right all alone. These common practices, coupled with even scarier forms of gambling within the financial industry, have left the entire world in financial ruin. Fortunately, the precious metals market is as resilient as ever, and remains a great place to invest. In times of economic instability, the precious metals market always maintains consistent value, and can often flourish in this environment. We will never not need precious metals. Precious metals are a physical form of value—for as long as humans have been civilized, we have dealt in this form of currency. This is why now, more than ever, it is important to keep some of your assets in the form of precious metals. A great way to do this is by investing in gold.
Gold is a very special precious metal. Humans have always valued gold, and always will. For this reason, gold will never be devalued. While normal price fluctuations always occur on the short term, or in day-to-day trading, the price of gold will always steadily increase in value over time. This makes gold an opportune investment vehicle in times of economic uncertainty. Investing in gold is easy. First, you should research the current gold price. The price gold is at can change drastically during a given day, so it is best to continually check gold spot charts to stay informed. If you find that gold is at a low point, you should use this opportunity to buy as much gold as possible. When the price of gold regulates, you have the option to hold or sell your gold. If you see the price f gold surge to usual levels, then it may be the right time to sell some gold.
As you can see, investing in gold for a shiny financial future is easy! Staying aware of the current value of any commodity is always the most important thing that you can do. If you keep yourself informed, you will be able to assess the best time to sell and buy your gold.
Have you ever considered investing in gold bars? What advantages do gold bars have over coinage? For one thing, gold bars are easy to transport and are an easy form of storage for gold. Some people prefer having golden bars rather than having to carefully sort through new types of coinage. Gold bars are ideal for someone that is primarily interested in bullion content and not so concerned about coin collecting.
One thing is for sure: the world supply of gold is limited. It’s so critical at this point (though not totally scarce) that some people are already looking to search the world’s oceans for gold deposits. Thus far, it’s not turning out. Recently, National Geographic published a figure stating that about 161,000 tons of gold have already been mined throughout human history. If this number is somewhere near truth, then there’s almost six trillion dollars worth of gold somewhere on the planet.
There has never been a better time to buy gold, and Monex.com has the resources and the information that you need in order to do just that. You will be offered pages upon pages of vital inside information from the world’s leading experts and traders in the precious metals field, and this is a priceless commodity in and of itself. As you settle in to learn about the many forms and grades of gold available to you for investment purposes, you will begin to understand why Monex.com is the leading site of its kind in the country.
In order to buy gold that will perform in a certain manner on the market, you will need to know what grades and forms are called for in specific trades on the market. Because Monex.com not only offers a plethora of information regarding each of the forms that they sell, but allows for free live customer service so that you might discuss any concerns or questions with an informed professional. This way, when you buy gold, you know exactly which direction you are headed in, whether it be a long term or short term investment.