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.
What are some of the most popular hobbies in the world? Stamp collecting, hiking, biking, and collecting baseball cards and comic books are some hobbies that instantly come to mind. One of the most popular and rewarding hobbies is collecting rare gold coins. Long ago, collecting coins was considered a hobby of kings because most people couldn’t afford to collect money. Today, though, just about anyone can start a collection of rare coins.
Gold performs at one of the most impressive rates among all precious metals. Owning gold means either owning bullion or coinage, unless you happen to pan your own or are fortunate enough to find a nugget. Rare gold coins take the performance of gold one better. These coins can accrue incredible value and, among collectors, gold is as popular as it is among investors. The metal itself can be worth a lot of money, even if the coin accrues little value among collectors. There are some coins, however, that you can purchase that are already rare, have already become desirable among collectors and that can be certified as being authentic. This certification process is vital for those who collect rare and historic coinage, as well.