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.
There are many people who believe that the United States Dollar has a huge impact on the current gold price. This is quite true, to a certain extent at least. While the United States dollar suffers from inflation, losing its worth, gold does not. Gold continues to be as valuable as it has always been. Many years ago, the dollar used to be backed up by gold. But by the late 70’s, the dollar was no longer backed up by gold and simply does not have much value at all. Investors have watched as the United States Dollar has lost its value over a span of years. The Great Recession, which began in 2007 and ended in 2009, causing the economy to crash, also showed just how much inflation has destroyed the United States dollar. In 2011, the credit rating the United States had been downgraded due to the inflation of the dollar. The dollar is currently at a shockingly all-time low.
In the meantime, however, while gold has inflated and lost its value, investors realize that the gold has not lost its value, even during a period of time where a recession basically ruined the economy. And, since the dollar is no longer backed up by gold, the price for gold has actually increased as the value of the United States Dollar has decreased tremendously. With such a weak economy, the price for gold continues to be at an all-time high, especially after people have lost their faith in the stock market and many people are no longer investing with the stock market. Instead, many of these people have made the wise choice to invest in gold because it is truly a safe and fool-proof method of investing.
It is believed that United States is on a path to destruction because of its lack of a monetary policy. Those who are smart will simply invest in gold, understanding that the dollar has lost its value and that the best way to be safe and make safe investments is to buy gold instead. It is not hard to invest in gold, especially with all of the coin dealers who are ready and available to help those who are interested in investing find the right gold for them. There are many different types of gold products to choose from, which include gold coins, gold bars, and even gold bullion, all of which can be bought from a coin dealer.