An Introduction to Buying Gold 101

Part 1: Why Own Physical Gold?

As opposed to our usual format of discussing a hypothetical scenario, we thought an article along the lines of “An Intro to Gold Buying” might be in order. Both novices and sophisticated investors can benefit from a review of the basics. The following is a list, in no particular order, of some but not all of the reasons to purchase tangible gold. Read more

Why You Should Own Tangible Precious Metals

It appears precious metals are once again enticing investors. After ignoring gold and silver for much of 2015, investors added nearly $400 million to U.S. exchange-traded funds backed by precious metals through October 20th. That figure represents the largest ETF inflow since February. Bullion sales at both the U.S. and Royal Canadian Mints surged over the summer. Gold and silver seem to be gaining favor based on expectations that the Federal Reserve could wait until early 2016 or later to raise interest rates. Statistical data attempting to show a correlation between interest rates and commodity prices are inconclusive. Higher interest rates have historically taken money out of the stock market. Whether those funds go into precious metals or fixed income options often depends on the political climate at the time. Read more

Lower Metal Prices Creating Supply Issues

Recent depressed prices for precious metals have led to the usual market response, a surge in physical demand for bullion coins and bars globally. This is not only confirmed by the volume of our local and national sales of late, it’s confirmed by sales figures and production issues at both government and private mints and refiners. There have been frequent shortages of many of the most popular silver and gold bullion items both locally and nationally over the past several weeks. Here at Jack Hunt Gold & Silver we have been out of virtually every product we offer at one point or another over the last month. Ultimately these production glitches, delivery issues and shortages have led to rising premiums on physical metal. Read more

New Technology Replaces Traditional London Gold Fix

Almost a century of tradition will disappear from the gold market as technology finally takes over. Thursday March 19th was the final day that traders at four Bullion Banks conversed by phone twice daily to determine the London Gold fix. The London Gold fix is used by miners, central banks, precious metals brokers and jewelers amongst others to deal and value gold bullion. Gold was the last precious metal to drop the traditional London fixings after silver, platinum and palladium converted to electronic auctions last year. Deutsche Bank AG triggered these reforms in 2014 when they abruptly withdrew from the precious metal benchmark process after allegations of price manipulation. Read more

The Gold-to-Silver Ratio: Definition and History

Chart courtesy of www.macrotrends.net

For many investors, the gold-to-silver ratio is one of many indicators used to determine the right (or wrong) time to buy or sell their precious metals. Other factors… including economic uncertainty, inflation concerns, fiat currencies and government debt have encouraged millions to invest in gold and silver. Yet to many the gold-to-silver ratio is a vague elusive mystery. Read more

Gold Series – Visual Capitalist

The following links are to a five part infographic series on gold from Visual Capitalist. Series does excellent job of telling the story of gold from its history, supply, demand, to reasons to own, and future trends. Visual Capitalist creates and curates enriched visual content focused on emerging trends in business and investing. Visit them at VisualCapitalist.com Read more