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Precious Metals Values

March 4th, 2010

Between platinum, palladium, gold, and silver, gold’ precious metal values move in an inverse accordance with dollar values, since gold is the precious metal that officially backs the perceived value all of the world’s fiat (printed) currency. Gold’s inverse correlation with dollar values is presently being demonstrated, with our dollar registering 80.02 on the Index, over an overextended euro that must contend with the combined economic problems of Greece, Italy, and Spain. Meanwhile our government has done precious little to bolster the strength of our U.S. currency, other than maintain their insipid pledge to maintain interest rates at near zero levels, and hope for yet another freshly printed stimulus package from our U.S. Treasury.

During times like this, when economic uncertainty threatens the very future of our nation’s currency, precious metals values carry much greater emphasis, as currency-based commodities like oil, sugar, cotton, flour, and gold, all appreciate in value. Meanwhile, the value of printed currency is forced to adjust through multiple interest rate hikes, and ever-rising consumer prices.

Gold generally claims the abundance of the attention on precious metal values, as the wealth of entire nations is often times reflected in their gold holdings. Nations like the United States, Russia, South Africa, Australia, China, and Tanzania have their own gold recourses to draw from, but nations like India have no domestic gold production, and therefore must acquire their bullion through the IMF, which is the International Monetary Fund.

Prospective buyers with unanswered questions about precious metals investing are encouraged to contact one of our friendly specialists, who offer institutional discounts on bullion, and certified rare gold coin to household investors like you.

Franklin Gold

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Precious Metal Hedges

March 2nd, 2010

Individuals who are wondering if precious metal hedges are effective for preserving wealth throughout prolonged inflationary cycles, should research gold spot prices throughout the 1970s. While inflation eroded the dollar’s purchasing power by more than sixty percent, certain types of gold investments increased by nearly 1000% during the 1970s. Bullion prices hover just above the current gold spot price, but rare gold coin investments are subject to much more dramatic appreciation during inflationary cycles, as investors gravitate to commodities like gold and silver, and dollar-based assets generally lose their value.

Most analysts believe that our economy will most likely become worse before it gets better, as our Federal Reserve continues to drag it’s collective feet on committing to any sort of feasible recovery plan. Anxious U.S. consumers eagerly await word of inevitable interest rate hikes, and the subsequent inflation that typically follows, and more and more investors are coming to terms with the fact that the economy is a critical state of disrepair. Precious metal hedges make a great deal of sense to multitudes of pragmatic investors, because they can be held for both long-term financial protection, as well as for short-term liquidations that may be needed in the event of a cash flow crisis.

Investors who have completed their research are encouraged to contact one of our friendly specialists, who can answer your precious metal investment questions, as well as offer you institutional discounts on gold and silver bullion, and certified rare gold coin.

Franklin Gold

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Precious Metals Market

March 1st, 2010

Precious metals prices turned in quite impressive performances last year, with silver gaining 36% and gold up 24%. Although silver and platinum are both far behind their historical highs, gold surpassed its’ record 2008 high of $1033 per ounce in mid-December of last year, going as high as $1226 before falling due to the weakening of overseas currencies and some profit taking.

Gold went as low as $1062 last month, and over the last few days gold has been evasive about which side of $1100 it can gain the most support. Gold is still on most economists’ “watch-lists” right now because the majority of mainstream projections place gold between $1350 and $1600 by the end of the year, which would be a demonstrative shattering of the current $1226 record.

The dollar is expected to lose 9-14% of its’ value this year, and the inverse relationship that many commodities have with the dollar applies to gold as well. Precious metals like gold and silver also benefit from a declining US dollar, although it doesn’t appear likely that silver or platinum could surpass their respective historic highs in 2010.

Platinum climbed to over $2200 in 2008, before the automotive industry took a dive and eliminated the need for many platinum-infused carburetors. Abundance of production silver, and profit taking have repressed silver prices as of late, and these two identical looking white metals are presently valued at $1509 and $16.18 per ounce, respectively.

While recent forecasts confirm prior predictions of higher prices across the board for gold, silver, and platinum, it looks like record-breaking precious metals prices could be limited to gold in 2010, as silver is $40 below its’ historical high, and platinum is over $600 beneath its’ record-high mark. If you wish to buy or sell precious metals, or if you simply need more information on a particular topic, our customer service experts will be glad to assist you.

Franklin Gold

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Precious Metal Transactions

February 27th, 2010

A significant precious metal transaction qualifies as such, by being large enough to affect the financial profile of a nation’s central bank, and which requires the facilitation of the IMF (International Monetary Fund). Global anticipation is mounting over which nation’s respective central bank will purchase 191.3 tons of bullion that the Fund intends to sell, and the most recent rumors about China’s pending purchase have been proven to be unfounded. Many consider India to be a far more likely candidate for the bullion buy, but India just raised her gold import tariff, and has also allowed her rhodium (which is used in polishing jewelry) reserves to decrease from 10 percent, to just 2 percent.

Even though neither India, nor China has actually purchased the available IMF bullion, mere rumors of such significant precious metal transactions have been enough to influence the gold spot price dramatically. Just since Thursday, the spot price reached depths of below $1090 per troy-ounce levels, and since then, flimsy rumors have managed to help propel the spot price to renewed heights of near $1120 per ounce levels.

Our U.S. dollar continues to compete with the euro for superiority, but even though the greenback is at around 80 on the Index, this in no way reflects as a legitimate indication that our nation’s economy is recovering. Unemployment levels are still around ten percent, yet the media’s attention has been redirected toward Greece’s outstanding debt these past few days.

Trend savvy investors who seek long-term financial safety are encouraged to contact one of our friendly specialists, who can answer your questions about your own physical gold purchase, and offer you institutional discounts on bullion, and certified rare gold coin.

Franklin Gold

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Precious Metal Market

February 26th, 2010

February’s precious metal market has both risen above, and dipped below $1100 per troy-ounce levels, continuing a tradition of volatile February gold prices that has become customary in recent years. After shooting radically to $1226 in mid-December of last year, many reasoned that gold was overbought and began to downplay the value of futures contracts. Still others thought gold spot prices would be around $1050 by the end of February, and some market analysts speculated that silver would fall below $15 per ounce by March 1. Gold, silver, and platinum all struggled during January and into the beginning of February, as profit-taking pulled gold to $1062, silver to $15.50 and platinum to sub-$1500 levels.

Gold has been quietly been climbing the charts over the past two weeks, ultimately reaching $1122 late last week. The market experienced a pullback this week after the Federal Reserve revealed plans to hold interest rates at zero, although most economists believe that Fed Chairman Ben Bernanke will have no choice but to boost interest rates soon, due to the growing threat of inflation.

February’s precious metal market has shown some negative movement in response to the news that the International Monetary Fund (IMF) is looking to gradually unload another 200 tons of gold onto the open market. The last time the IMF did this the gold was already earmarked for India’s central bank, without private investors getting a chance to bid. The way the IMF gold sale plays out should also have a bearing on the precious metal market as a whole, and whether the sale occurs in February, March, or December, you could expect to see volatile silver and platinum prices that same day, as was the case during India’s large buy last year.

Precious metals are traditional hedges against devaluing currency, and our US dollar definitely fits that description. If you want protection from the collapse of the dollar then give our advisors a call to inquire about setting up a hedge for physical delivery, as well as for qualified retirement accounts.

Jonathan Monroe

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Precious Metals

February 25th, 2010

This web-Blogger has recently been fielding more than his fair share of questions surrounding the precious metals given as awards in the Olympics, so the following is a brief overview on the actual precious metals that comprise each of the coveted awards, which are meant to embody the purest ideals of sport, fair play, and peace on Earth.

Plenty of people share the opinion that Olympic medals should be pure, solid precious, or semi-precious medals, believing that the award should truly match the accomplishment. The International Olympic Committee, who has always maintained that the honor of competing, excelling, and winning is prestigious enough, however, does not share this opinion. In ancient Olympic games, medals weren’t awarded at all. Rather, an olive wreath was placed on the victor’s head, representing god-like qualities to honor victorious mortals here on Earth. The modern Olympic Charter was originally drawn up in 1896, and specifies the following criteria for modern Olympic medal awards:

  • First place medals are made of gold-gilded silver medals of 925-1000 grade, and are gilded with at least 6 grams of pure gold. A diploma accompanies the gold medal.
  • Second place medals are made of silver, and must be of 925-1000 grade. The medals must all be at least 60 millimeters in diameter, and 3 millimeters thick. A diploma also accompanies silver and bronze medals.
  • Each medal must also mention the name of the sport, and the individual event that was held, and must come with a detachable chain or ribbon to be placed around the athlete’s neck upon awarding.

    Those with questions about precious metals investing are encouraged to contact one of the Precious-Metal.org specialists for answers and a free copy of our award-winning investment tutorial. Go USA!

    Franklin Gold

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    Precious Metal Industrial Uses

    February 23rd, 2010

    It is always advisable for investors to keep abreast of the latest advances in medical, technological, and industrial arenas, as precious metal industrial uses are incorporated in all of these disciplines. Precious metals like gold, silver, and platinum are widely known to be used in dentistry, but these metals have other medical benefits in the manufacturing of cancer fighting drugs, as well as in orthopedic, and microsurgery.

    Precious metals like gold, silver, and platinum are malleable (easily manipulated by hammering), ductile (able to be drawn, or stretched into fine thread, or filament), as well as biocompatible, which means that the human body doesn’t readily reject them as a health-threatening foreign body. For these reasons, precious metal industrial uses also include making surgical instruments, as well as foil that can be used for preserving damaged nerve endings.

    Probably the most widely observed precious metal industrial uses are evident in jewelry manufacturing, but the auto industry also uses silver and platinum for manufacturing exhaust systems (catalytic converters), as well as for thermocouples that are used in heating and cooling systems.

    Gold is a highly reflective precious metal, and is used in the crafting of high-powered lenses, as well as for light filters in eyewear. Our soldiers and astronauts benefit from this technology, as well as everyday people who wish to protect their eyes from Ultra Violet radiation damage. Precious metals are also excellent conductors, which is why they are also used in electronic components like microchips, and circuitry boards.

    For all of these, and many other reasons, it is wise to invest in precious metals, since the next technological breakthrough could mean an increased demand for gold, silver, platinum, or palladium.

    Franklin Gold

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    Today’s Precious Metal Rally

    February 18th, 2010

    Two main factors are to thank (or to blame if you are dollar heavy) for today’s precious metal rally:

    1. The US dollar took a major spill on Monday and Tuesday, and further downfall in the American greenback is expected throughout the week. After flexing some muscle early on in 2010, the juicing is over and the dollar’s value is thinning out once again. While gold tends to have the closest tie to the dollar out of all the precious metals (gold, silver, platinum, rhodium, and palladium), the full gamut posted gains this week directly because of the dollar’s struggles. Other commodities, like sugar and food, also become more valuable when the dollar moves downward, because it requires a larger amount of dollars to purchase the same amount of the commodity. If that doesn’t make sense, just think about pushing a wheelbarrow full of dollar bills to the grocery store in the hopes of purchasing one (1) loaf of bread. That’s dollar devaluation at its worst.
    2. Gold and silver surpassed key benchmarks this week, with gold regaining ground above $1100 and silver breaking through the $16 per ounce mark yet again. These levels were expected to be reached later in the year, because more profit-taking was expected in the first quarter. However, continued gains by both of these metals is strong evidence that the latest bout of profit-taking has subsided and that more individuals are buying into the precious metal market right now.

    There is no way for us to know if today’s precious metal rally will continue, but experts from Citigroup and Bank of America Merrill Lynch believe that the next stable levels for gold will be around $1160 per ounce. If you want to take your position in the precious metal market, call or email Precious-Metal.org for a free investment tutorial and help from someone who can point you in the right direction.

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    Precious Metals Market

    February 16th, 2010

    The precious metals market consists of five main precious metals that investors ally themselves with: gold, silver, platinum, rhodium, and palladium. Most of us are familiar with the first two, and maybe platinum as well, but could rhodium and palladium actually outperform the other metals during the current cycle?

    While some technical trading indicators say yes, the fact that most investors know nothing about rhodium and palladium does not bode well for the future prices of these two metals. Additionally, the inverse relationship that gold has historically maintained with the US dollar is not always present with rhodium and palladium. These two metals gain most of their value from industrial use, and the sad fact is that most industries in the US and abroad are fighting to stay afloat.

    Platinum has exceeded analysts’ expectations recently, though a quick look at a historical platinum chart shows that this white metal has a tendency to swing high and low radically, with little to no forewarning or obvious cause. If you are investing for safety, surely this isn’t what you want. If you are speculating, you may consider vesting funds in platinum, although the downside potential is rather large at the current time.

    That brings us to gold and silver. Silver recently pulled back from over $17 per ounce to less than $15.50, so some economists believe that the “poor man’s gold” is due for a rise. Many market experts polled said that a 70/30 split between gold and silver historically works best, although you need to consider your own investment goals before adopting this philosophy. Gold’s exclusive inverse ties to the US dollar and its’ high investment demand make it the most attractive precious metal to invest in right now, even though jewelry demand is down and gold’s use in appliances has faltered. The precious metals market is constantly evolving, so visit Precious-Metal.org often to keep up with all of the aforementioned metals.

    Franklin Gold

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    Buying Precious Metals For Safety

    February 15th, 2010

    Since it seems like our nation’s policy makers would much rather continue to quibble over political party superiority, and useless blame, our nation’s more pragmatic investors have recognized this eco-political stall, and are buying precious metals for safety. Our dollar has rebounded slightly, due to the euro’s complications involving Greece’s bad debt, and Germany’s hiccupping economy, but these types of dollar gains are born of other currencies’ hardships, and do not reflect a truly strong greenback. Individual-minded investors realize this phenomenon, and are buying precious metals for safety, as well as for potential future profit.

    Investments in certified rare gold coins are widely considered to be the ideal way of buying precious metals for safety, since rare coins’ numismatic value has a historic tendency to appreciate throughout long-term recessions like the one we currently face. Investment-quality rare gold coins like Double Eagles, are long-term investments that are sometimes held for years, so it is wise to diversify with much less costly bullion bars and/or coins, for any short-term liquidations that may be needed while rare coins appreciate.

    The aforementioned Double Eagles are $20 Lady Liberty, and $20 Saint Gaudens, 22-karat, rare gold coins, and investors are advised to trust only either the PCGS (Professional Coin Grading Service), or the NGC (Numismatic Guaranty Corporation), for official numismatic certification. Those who have completed their research, are encouraged to contact one of our friendly specialists, who offer institutional discounts on bullion, and certified rare gold coin to household investors like you.

    Franklin Gold

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