I attended an investment conference this weekend, and during the precious metals part of the discourse the keynote speaker asked the audience a question. He asked, “What is the single most important factor driving gold prices?” Having been in the precious metals industry for decades, I knew the answer immediately. My hand shot up, and I whispered the answer to those around me, some of whom looked at me as if I was either a genius or insane. After some coaxing, I noticed a few others cautiously raise their arms as well. The vast majority of the audience, however, looked clueless.

The speaker then took out his wallet, removed a crisp one dollar bill from within and held it up for everyone to see. “The value of the dollar,” he said, “decides gold prices more than any other single factor. A strong dollar means weak gold prices, and vice versa.” I was vindicated in front of my peers, but the initial response of the group stuck with me. How could gold’s inverse relation to the dollar not be more commonly known?

When I was growing up in a little town in South Carolina, there wasn’t much to do in terms of recreation besides catching lightning bugs and going to the local school’s playground. The see-saw, or teeter-totter (depending on where you grew up) was a staple on many playgrounds, and it serves as a simplified example of the relationship between gold and the dollar.

When the dollar loses value due to overprinting, it requires more dollars to purchase the same amount of gold. Thus, lower dollar = higher gold. Granted, this is a simplification of sorts, but one that is surprisingly accurate in terms of technicalities. So, if you think the dollar has hit rock bottom and will soon rebound, avoid gold. If you think that U.S. monetary policy is too loose and could result in the dollar losing more purchasing power, gold could be your new best friend.

The Sheldon Scale of coin grading was developed by Dr. William Sheldon, an American born in Rhone Island in 1898. He was a psychologist and numismatist. His coin collections were copper coins which were large cents. These coins became models for a system of grading which he decided to develop.

The system he developed is now in use today, particularly by the Professional Coin Grading Service (PCGS) and the Numismatic Guaranty Corporation (NGC).It uses a scale of 1-70 The numbers 1-59 are used for grading gold coins that had been circulated and the numbers 60-70 for gold coins classified as uncirculated.

Before the advent of the Sheldon scale coin grading consisted merely of three descriptions which were broad imprecise: 1) Good: Details visible but surface worn out; 2) Fine: Details less worn out and a bit of mint luster visible; and 3) Uncirculated: Details sharp, luster approaching state of the coin at mint.

The system developed by Sheldon eliminated the guesswork. The lowest grade is Poor-1 or P-1, for a coin that is badly damaged or worn out, the type barely discernable. The highest grade is AU-59 (Choice About Uncirculated), virtually uncirculated except for minor wear marks on high points. .

In between are grades like G-8 (Very Good) for a coin with full rim and clearly discernible devices but coin significantly worn. VF-20 (Very Fine) for a coin with clearly readable but lightly worn legends. XF-40 (Extremely Fine) for a coin whose legends are sharp, devices are clear with slight wear.AU-55 (Good About Uncirculated) for a coin with sharp legends that show only a hint of wear on the high points.

For the uncirculated coins the grades from MS-60 to MS-70 (Mint State coins), as well as the proof designations, are all based primarily on eye appeal, quality of luster and/or toning, and the presence or absence of contact marks, hairlines, etc.

Franklin Gold

Will gold ever run to $2000 or beyond as was the expectation in 2009? We’re into the fourth month of 2010 but gold has not so far behaved the way it was predicted.

As early as February 2009, months before gold posted its record breaking price of $1104 in December, one respected industry leader fearlessly predicted that gold prices would quadruple in 2010 to $3500 from the then current price of $994. Also early in 2009, another industry leader made a more optimistic prediction — $5,000 per ounce by 2010. Many more had expressed optimism for gold in various, though in much sober, degrees in 2010.

The two-week advance of gold prices that accentuated the end of the first quarter of 2010 was accepted by some as a positive sign “…reflecting the general commodities tone, which is bullish.”

But many were of the opposite sentiment. True, the end of the first quarter ended higher but prices were still in the vicinity of the decade-ending number of $1100. They recalled that prices even dipped to a low $1073.85 in January, an indication of gold’s uneasy footing.

“I’m not bullish about these prices,” reacted an industry leader. “Gold is still trading within a narrow range and prices have been propped up by investor interest, not fundamentals…”

Will gold ever runs as predicted? Could it be that it is too early to make a judgment on gold? The year 2010 is an extension of the 2000-2009 bull run and could be just a brief respite before the run is resumed. It will be recalled that the bull run of the 1970s started slowly from $34.94, reached $50 only two years later before it finally settled at $594.92 in December 1980.
Franklin Gold

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

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

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:

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

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

Prospective precious metals investors needn’t be deterred, nor intimidated by the concept of liquidating precious metal IRAs, as this transaction is an everyday occurrence for reputable, large-volume, precious metals exchanges. These exchanges regularly handle transactions for corporate buyers, like banks, and insurance companies, and also handle setting up, and liquidating precious metal IRAs for household investors like you.

Precious metal IRAs have boomed in popularity since 1997, when legislation was passed by congress, which allowed for U.S. citizens to store gold bullion bars and coins in precious metal-backed retirement accounts. This long-term investment strategy is widely popular among baby-boomers who cannot afford rare coin prices, and who are using government-approved bullion for their financial protection. Rare coins like Double Eagles aren’t permitted for IRA storage, and bullion, $50 American Eagles are the only acceptable 22-karat coins for gold-backed IRAs.

By dealing with a reputable, large-volume, precious metal exchange, household investors can also receive institutional discounts on their government-approved bullion, which includes 24-karat bullion bars with reputable brand names like Credit Suisse, Engelhard, PAMP Suisse, and Johnson Matthey.

Acceptable 24-karat bullion coinage includes American Buffalos, Chinese Pandas, Canadian Maple Leafs, Austrian Philharmonics, and Australian Kangaroos, Koalas, and Lunar coins. These bullion coins are also available in fractional denominations like ½-ounce, ¼-ounce, and 1/10th-ounces, to accommodate a wide range of budgets. Investors are encouraged to complete their research, and then to contact one of our friendly specialists, who offer institutional discounts on bullion, and rare gold coin to household investors like you.

John Burke

Even the most reputable and trusted precious metals market forecast can be skewed by false rumors and/or conjecture, so investors are urged to conduct their own precious metals research, and to draw their own conclusions. Most people poke their heads outside before getting dressed every morning, regardless of what the weatherman says, and investors are strongly urged to view a precious metals market forecast with much the same scrutiny. Although forecasts are a useful tool in weighing precious metals investment options, there are other useful indicators to consider, like U.S. dollar values. This value historically moves oppositely to gold prices, so prospective investors ultimately must decide if they believe that dollar values will rise, or continue to struggle.

The current economic trends are maintaining a generally optimistic precious metals market forecast, as growing numbers of investors are converting their portfolios into rare coin, and bullion investments. A great many long-term investors are protecting their wealth through rare coin purchases in Double Eagles, and diversifying these costly holdings with much more affordable bullion. $20 Lady Liberty, and $20 Saint Gaudens, 22-karat gold coins are also known as Double Eagles, and are among the most widely sought precious metals items for long-term financial protection.

Modern American Eagle, 22-karat bullion coins are commonly used to diversify long-term holdings like Double Eagles, because their prices hover just above the current gold spot price, and because they contain exactly one troy-ounce of pure gold.

Investors can avoid paying outrageous retail prices for their American Eagle bullion, and Double Eagle rare gold coin by contacting one of our friendly specialists, who offer institutional discounts on these, and many other gold coins to household investors like you.

John Burke

Household investors are far more likely to benefit from a precious metal rate that is offered by a reputable large-volume exchange, so they are encouraged to avoid dealing with local gold dealers for their bullion, and rare coin needs. The over marked retail prices that local gold dealers typically charge, are “shiny bait” for gold bugs who fail to evaluate their finances, or to evaluate their bullion, and rare coin diversification needs.

Bullion bars and coins are generally used as short-term profit vehicles, as precious metal IRA contributions, or as diversifications for rare coins like Double Eagles, which are $20 Lady Liberty, and $20 Saint Gaudens, 22-karat, rare gold coins. Rare coins like Double Eagles are used to protect wealth throughout long-term episodes of economic indecision, malfunction and panic. They contain almost a full troy-ounce of pure gold, but it’s their numismatic value that “steal the show” in making them coveted long-term, safe haven assets.

Investors pay a fairly high precious metal rate for Double Eagles’ proven ability to protect wealth, so wise investors are certifying their numismatic value with official “mint state grades”. The highest possible grade that a rare coin can receive is a 70, but investment-quality rare coins like $20 Double Eagles, $10 Eagles, $5 Half-Eagles, and $2.5 Eagles, carry mint state grades that range between 61, and 66.

Popular bullion diversifications for Double Eagle coinage are 22-karat American Eagles, which contain a full troy-ounce of pure gold, and whose prices hover slightly above the current gold spot price. Investors are encouraged to complete their research, and then to contact one of our friendly specialists, who offer institutional discounts on bullion and rare coin to household investors like you.

John Burke