3 Issues that Influence Gold Bullion Coin Prices

3 Issues that Influence Gold Bullion Coin Prices

If you’re purchasing gold coins as a safe-haven investment, clearly, you want the best possible rate for those gold bullion coins. But how is that rate determined? Here are three factors that will affect the price you’ll ultimately pay.

 There are numerous reasons why gold bullion is an excellent addition to your portfolio; not only is it a liquid asset, it is also a solid hedge against inflation. However, when purchasing gold bullion coins, you might notice that the price of different coins varies, even though for many coins, the amount of gold content is often the same. Here’s why.

Investors like certain coins. Yes, even though gold bullion buyers don’t view the coins as necessarily being collectible in the sense that rare, numismatic coins are, some bullion coins are just more popular than others, which does affect the price. For example, American Buffalo and American Eagle coins are priced slightly higher than Canadian Maple leaf coins.

Dealer mark up. Precious metals dealers add a premium to the price of bullion in order to function as a business and cover the cost of acquisition, customer service, storage, insurance, rent, and other factors.

Coin weight. Coins that are lighter than one troy ounce will be costlier in the long run than single ounce coins, since the premiums will be higher.

If you are interested in adding gold or other precious metals to your portfolio, contact the professionals at Birch Gold Group today for a thorough consultation. Visit blog link for more information.

The Most Compelling Reasons For Owning Physical Gold

For thousands of years, precious metals have occupied a prestigious place in trade. In fact, the acquisition of these metals gave rise to the concept of market and currency. This is why precious metals such as gold have consistently retained their high value despite changes in economic climates. Precious metals will always have integral value because of their tangibility and rarity. Thus, a lot of people nowadays are becoming open to the idea of buying precious metals because of benefits, such as the following:

Image source: bizjournals.com

Image source: bizjournals.com

Hedge against inflation

For the past few years, gold’s value has remained strong despite fluctuating economic conditions. Analysts say these values are not showing signs of decline, at least not any time soon. As observed in the past, when prices of major commodities rise, the value of this precious metal also tends to rise. Gold could be one of the many ways to preserve wealth while beating inflation at the same time.

Balancing asset mix

Smart financial decisions involve diversifying asset ownership. With uncertain economic conditions, placing all assets in one basket (such as in stocks or real estate) may prove dangerous. Buying precious metals as an addition to paper assets can enhance portfolio stability and balance the overall asset mix. When all other asset classes decline, physical gold can be a reliable fallback.

Image source: ask.com

Image source: ask.com

Marketability and storage

High demand for precious metals means higher marketability. Gold may not be as liquid as equities but in its physical form—such as coins, bars, jewelry, and equipment—this metal is very easy to sell. In addition, because they are tangible assets, they can be taken into possession and be stored for a period of time. While in storage, their value can continue to rise.

Start building and preserving your wealth around gold now. Contact Birch Gold Group through this website.

Fear of Things that Glitter: Don’t be Scared of Gold | BirchGold.com

Fear of Things that Glitter: Don’t Be Scared of the Bright Yellow Metal

Why don’t more Americans have gold in their portfolios? Could gold bears have made them skittish?

In spite of the fact that gold is a safe-haven asset that is roundly described as being a “crisis commodity,” gold isn’t a widely-purchased asset. However, in times like these, where economic and political stability is in flux, gold might be the one addition to your portfolio that could deliver financial security.

The lack of responsibility on the part of global banks has created tremendous economic turmoil all over the world. Moreover, Europe is in absolute crisis due to the proliferation of terrorist activity that shows no sign of abating, the burden of a flood of refugees, and Great Britain’s ongoing threat to leave the European Union. Every day, we may be coming closer and closer to economic collapse, and our individual defenses are relatively few.

Except for gold.

Historically, the price of gold spikes when markets crash. When intangible stock values evaporate, people turn to the physical comfort of gold. Every global culture recognizes the value of gold and will continue to recognize the value of gold in spite of the fluctuation of other assets, such as oil, natural gas, and corn. Central banks amass gold as a protection against fiscal downturns. Gold has the benefit of being both a hedge and a safe haven.

So, in spite of all analytical and historical evidence to the contrary, why do bears insist upon ignoring all of gold’s merits?

Because people don’t know how to buy it.

Even though gold is more likely to retain value more consistently than even bread, buying gold isn’t automatically fool-proof. You have to have the right objective, consultation, and action-plan before buying gold can be considered a truly safe strategy.

Before you make the decision to buy gold, contact us today for a comprehensive consultation.

Here’s Why You Should View Gold as Being “On Sale” Right Now

With the price of gold down in the past few years, one market watcher argues that current conditions present a perfect opportunity to buy some of the metal. Find out why here.

While many are rushing for the exit as the price of gold declines, some folk are making a different play: They’re buying. Why’s that? Writing for Forbes, Frank Holmes argues that they know gold is a safe bet in the long run – perhaps the safest – and see gold’s current status as ‘on sale’.

Recent sales of physical gold fully support with this, having already reached multiyear records and still on the rise. In contrast to the gold futures derivatives market, American Gold Eagle sales reached 161,500 ounces in July – the highest since April of 2013. Individual Americans aren’t the only ones still having faith in gold – the Fed maintains its 8,133 ton reserve, European countries are repatriating gold and Texas is in the process of creating its own bullion depository.

So what is beating the price of gold down? Holmes notes that conspiracy theories often abound when gold plummets. Price manipulation might not be such a stretch this time around, given some odd recent events. Last week’s five-ton sale on the Shanghai Gold Exchange (SGE) caused gold to experience a mini ‘flash crash’ for the first time in 18 months. The so-called bear raid was thought to have been caused in China, but later information pointed towards New York as the culprit.

Yet another conspiracy theory focuses on the relatively mild interest in gold as a safe-haven asset during the Greek crisis. This has led some to speculate that European central banks possibly sold gold down, likely making the crisis seem less severe in order to dissuade people from turning to the yellow metal for protection.

Regardless of the veracity of these claims, Holmes says that gold’s long-term status remains untouched thanks to two key demand drivers: What he calls the “Love Trade” and the “Fear Trade”. The Love Trade refers to gold purchases for weddings, anniversaries and cultural events; these intensify in the wake of upcoming holidays, especially ones in Asia, such as Diwali and the Chinese New Year. The Fear Trade stems from available money supply and real interest rates turning negative, a scenario seen beneficial for the metal – current positive real interest rates have been acting as a headwind for gold.

But can gold benefit with a looming interest rates hike? Regarding the hike, Holmes says: “With a struggling global economy and commodity deflation odds favor rates will not rise soon in America, and gold will revert back to the mean.”

For all the latest on physical precious metals and financial news, be sure to check out our blog.

U.S. Economic Anxiety Rises As Big Name Retail Chains Continue to Close Massive Quantities of Stores

All over the U.S., retailers big and small are closing dozens – or even hundreds – of their stores. Why is this happening and, more importantly, what does it mean for the future of the country’s economy?

Michael Snyder, the man behind the Economic Collapse Blog, is not the only one who thinks this is a sign of sinister things to come. Middle class families have long been the main driving force behind the economy, thanks to the ‘spending money’ they could put aside from their incomes. But now, as the middle class is being “systematically destroyed”, as Snyder puts it, consumer spending just isn’t there anymore.

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Photo Credit: ronaldhennessy via Compfight cc

Large and well-known retailers like Abercrombie & Fitch and Barnes & Noble will have closed hundreds of stores by the end of 2015. Sure, part of that could be attributed to the rise of online retailing, but that’s far from the real culprit behind struggling sales: lack of money to spend.

A troubling statistic sheds light on why people suddenly have less – if any – money to spare. An analysis performed by Enterprise Community Partners revealed that one out of four American citizens now spends half of his or her income on rent. With the rest being spent on things like groceries and gas, it’s not hard to see why little is left for discretionary spending.

This situation sounds bad enough, but Snyder believes the worst is yet to come. He quotes Thad Beversdorf’s belief that consumer spending is showing “the initial signs of a severe pull back” to strike an unpleasant point: the current trajectory of our economy is eerily reminiscent of the build-up to the collapse of 2007/2008.

Snyder concludes by wondering: if thousands of stores are being closed already, what will things look like when an economic crisis truly hits the U.S.? “Once it does, the business environment in this country is going to change dramatically, and a few years from now America is going to look far different than it does right now,” he warns.

Why Birch Gold Group?

The Birch Gold Group Difference

Birch Gold Group is a leading dealer in precious metals, serving all of the United States with our unrivaled knowledge, customer service and personal attention. For an easy and comfortable way to purchase gold, silver, platinum and palladium, and to discover how to plan for your future with precious metals investment, Birch Gold Group is your only choice.

Birch Gold Group was founded in 2003, and since this time, the company has helped countless clients safeguard their financial futures with a thorough education in precious metals investments. Birch Gold Group prides itself not just in providing a wide selection of precious, but also in the education, individual attention and overall satisfaction that they offer to their clients. This is the Birch Gold Group Difference, and this is why they are the leader in precious metals dealing.

Motivated By Your Success

Birch Gold Group works every day to set itself apart from the countless other precious metals dealers by providing a superior level of attention to its clients. Their elite team of IRA specialists and investment professionals listen attentively and work tirelessly to suggest a tailored investment solution for each client. Where other dealers are motivated by sales transactions,Birch Gold Group is motivated by client satisfaction and success stories.

Serving Beginners to Expert Investors

Due to its philosophy of not using sales gimmicks or high pressure tactics, Birch Gold Group is able to give every client the same high level of service and personalized attention. Whether you are a beginner precious metals buyer, a skilled investor, or you’re just looking to safeguard your financial future; you will receive the same level of superior service, respect and attention. It is thanks to these principles that Birch Gold Group has operated under for the past 10+ years that they have achieved their success in the industry.

Visit their official webpage at www.birchgold.com