US Fed Rate – A Persisting Dilemma

dollar_1999092bFinancial pundits have been forecasting US Fed rate hike for quite sometime now. However, many internal and external factors have resisted the Federal Reserve from hiking it from the persisting 0.250 per cent. Though the market expected the fed rate to increase in September 2015, it didn’t because the central bank was worried about derailment of resurging U.S. growth due to instability in Chinese economy and economic slowdown. If the minutes of September 16-17 discussions by the board members of Federal Reserve are taken seriously, it might take 9 years to increase the concerned rate.

Why US Fed failed to increase Fed Rate in September 2015?

One of the reasons that restricted board of Federal Reserve from increasing Fed Rate in September 2015 is the dismal job growth data. Per official figures, in September 2015 just 142,000 jobs were added, which is 64,000 jobs lesser than analysts’ expectation. Another figure published by US Labor Department is the “zero” rise in average pay. More alarming is the fact that thousands of workers left their jobs and the participation rate of workers fell to a dismal low, last seen in 1970s. In fact, slow down in Chinese economy also held the board back from increase interest rate.

To top it, US Consumer prices fell by 0.2 per cent during September. In fact, inflation rate has been steadily falling since May 2015, signaling persistent sluggish pace of inflation. This persistent fall is exactly opposite of Fed’s stated target of 2 per cent. All these phenomenon including slowing economy of China, falling inflation (both globally as well as domestically), and market disruptions are again making it difficult for Federal Reserve to increase the interest rate, which is stuck to the current near-zero level (0.25 per cent) since 2008 (the year US economy was in deep recession).

What analysts are Predicting about Fed Rate Hike?

On the expectation of US Fed holding interest rate hike till 2015-end, gold buying is witnessing rally since mid-September. Strength of dollar is also weakening. US Dollar has fallen significantly with respect to other currencies such as Euro in the recent past. Last week, Euro was up against US Dollar by 2.3 per cent, which is a striking phenomenon as Euro fell sharply in the past touching a 12 years low earlier in 2015. These phenomenons gave overall market all the reasons to park its money in the yellow metal for hedging risk.

Colin Hamilton, head of commodities research at Macquarie, said that they conducted a poll in their base metals summit survey earlier this week and found out that most of the audience is expecting a Fed rate hike only after December 2015.

Gold_industryJessica Fung, analyst of metals and mining at BMO Capital Markets, said during a press meet that overall market is currently expecting Fed rate hike around March 2016. She went on to explain that expectation of US Dollar drive gold price and pricing of the futures market is indicating towards a steeper gold price rise in latter part of the year. The momentum of gold price hike is expected to go on along 2016. Along with this increase in price of yellow metal, interest rate increase is expected to be during March 2016.



Should You Save or Sell Your Valuable Heirlooms?

Gold_industryThis question tends to pop up at difficult times in life. It’s not uncommon to find yourself in possession of some odd goods when a friend or relative dies. And it’s at times like these that you might be ill-equipped to manage these goods, especially if you are feeling a lot of grief at the time. There are many considerations to make, and not all of them have to do with the precious metals exchange rate that applies to your situation.

This is because many of these items will have sentimental value in addition to monetary value. People might feel guilt for trading an item that reminds them of a lost loved one for cash. But this isn’t always the way to think about it. Death happens, and memories of loved ones should be afforded a certain place in your life. But it should also be compatible with how you live. If an item, such as a piece of furniture of a painting, can be loved and displayed in your home on its own merits, not just because it belonged to a loved one, it might be a good addition to your life, as well as an appropriate reminder of your loved one. But if the item doesn’t have any value to you other than it’s sentimental value, it isn’t appropriate to sell it after a certain amount of time. In most cases, the individual who passed it on to you would rather you have security and happiness than perpetual possession of the item in question.

That aside, let’s talk money. Oftentimes, people inherit items made of precious metals, like gold, jewelry, and coins. Because these items have no function in themselves, other than to serve as placeholders for wealth/value/buying power, it makes sense to sell them when they’ll command the highest price. But when is that? Do metals like gold always increase in value?

Well, not really. Gold, for instance, has something of an inverse relationship to the standard economy. If you look at charts of gold value, you’ll notice that gold tends to be in high demand when the US economy isn’t doing so good, and vice versa. This is because gold represents inherent value, while the economy is based largely on perceived value and good will. The economy works well when people spend money without much worry. When people are worried, they don’t spend money. Keeping gold is the epitome of “not spending money”, and it’s an example of people putting their trust in something they feel might have more staying power or foundation than a particular market.

So in general, I say buy gold when the market is good, sell it when it’s down. As you can see, this would’ve worked out to great effect if you bought a bunch of gold in the hot-economy days of the 90’s and kept it till the financial crunch of 2008. But because these things are impossible to predict, and because gold doesn’t have inherent factors which determine it’s value, I generally sell gold a lot more than I buy it. And that’s how I generally treat stuff if I’m ever in a position to inherit money or goods. A lot of top finance blogs agree.


Think Gold! Why It Isn’t Wrong To Be Thinking About Investing In Gold

Though the price of gold has corrected significantly in the last two years, the correction has provided a great buying opportunity for savvy investors. The gold bull market will likely continue for many more years given that the fundamentals for owning gold are stronger than ever.

Why Investors Should Think About Gold

In 2008, due to the collapse of the real estate market in the United States and Europe, there was a significant risk of a global deflationary depression similar to that of the Thirties, requiring the coordination of central banks to recapitalize the banks and keep interest rates artificially low to avert such an outcome. The Federal Reserve then began a massive bond-buying program known as quantitative easing (QE), causing its balance sheet and the monetary base to grow multiples in size. Currently, the Fed is buying $85 billion in mortgage and sovereign bonds monthly, and, even if the Fed tapers as it has suggested, the money supply will continue its parabolic growth. Other central banks, such as the European Central Bank, the Bank of England and the Bank of Japan, have engaged in similar programs of monetary easing.

Gold, a tangible form of money that is recognized universally, moves inversely in value to paper currencies that are debased through the current policies of monetary easing. The reason for gold’s inverse correlation to paper currencies is that the supply of gold increases modestly each year, by about one percent, whereas paper currencies can be inflated until they are rendered worthless. Gold is therefore a hedge to inflation, with a value that rises as paper currencies lose value. As a portable form of money with intrinsic value, gold can be stored outside of financial institutions, protecting investors from Cyprus-style bail-ins should the financial system collapse once again.

The Gold Outlook

Though some have argued that there will be a full economic recovery and interest rates will rise, which is supposedly bad for gold, the level of indebtedness in western countries and Japan means that rising interest rates may trigger sovereign debt defaults, as occurred in Greece and Cyprus. A spike in interest rates in the United States, which has a debt to GDP ratio of over 100 percent, will mean that a significantly larger percentage of tax revenues will go to just paying the interest on that debt. With annual deficits of about $1 trillion projected into the next few years and millions of Baby Boomers about to retire, the United States simply cannot afford a spike in interest rates. The debt levels in much of Europe and Japan are even worse, particularly with the social safety net and aging populations of these nations.

With unsustainable debt levels in western nations and Japan, central banks will likely resort to the path of least political resistance, which is to print money to pay off the debts. Since a real market no longer exists to offer credit to these nations, the central banks will be forced to continue buying the bonds issued by governments, in effect acting as an extension to these governments and buying their own debt. Though such programs may provide temporary stability to an economy, in the long run investors are likely to bet against the bonds and currencies of these nations, potentially causing debt defaults and collapsing currencies. At the very minimum, these nations will experience very high inflation due to vastly weakened currencies at some point, causing the gold price to reach new highs relative to these currencies.

Though some have declared the end of the gold bull market due to gold’s correction since reaching $1900 per ounce in 2011, the gargantuan debts of many industrialized nations and the policies of monetary easing in vogue among central banks mean that the price of gold may move multiples above its current price before the bull market is over. Investors should therefore think about allocating at least a small percentage of their assets into gold to hedge themselves from the systemic risks that remain in the financial system.

Tom has a passion for precious metals and stones. Tom also loves sculpture, sourcing his metal from companies such as Dynamic Metals. Toms favourite metal to work with includes titanium and steel.

Pros & Cons Of Investing In Gold

There has been a lot of noise in the news lately about investing in gold, but very few credible sources are giving an unbiased look at the topic. Sure, the low price per troy ounce now make the precious metal extremely attractive to new investors, but like any investment, there are pros and cons to buying gold. In this article we’ll try to go over some important elements:

The Pros

1. The value of gold has never reached zero. Over the one hundred and sixty years that the price of gold has been tracked in America (it has been tracked longer in other countries), the price for the commodity has never reached zero. This means that there has always been someone willing to pay something for the metal. In other words, no one has ever lost their entire initial capital investment by buying gold.

2. Unlike other investments, it is possible to hold gold forever. Throughout history, gold has been used as a common currency between nations. It is relatively easy to determine it’s quality, and it is next to impossible to completely destroy. Essentially, this means that the gold an investor purchases today has the potential to last for centuries. This makes it different from stocks and bonds that are tied to a company that could go bankrupt, government bonds that require a government to recognize their worth, or even other commodities that have the potential to spoil and become useless. Gold is an investment that can be passed to future generations without the worry that they will inherit something that is worthless.

3. Many analysts believe the price of gold will continue to rise. Many economists such as Peter Schiff have published and publicly stated that they believe the market conditions are in place for gold to continue to increase in value. While exact opinions vary, many of these economists cite the instability in many world governments as driving up demand, as well as the falling value of many currencies and a general trend away from investing in stocks and low-yielding CDs.   4. For those interested in investing for their future, it is now possible to buy gold as part of one’s retirement investment strategy. Opening a Gold IRA has become a good strategy to balance & diversify one’s overall IRA investment portfolio.

The Cons

1. Gold can lose value. While it has never actually reached zero as we mentioned before, there have been several times where it has come close. In 1999, for example, it hit a low point of $252.90 an ounce. When compared to the nearly $1600 an ounce that gold recently was valued at, it’s possible to see how an investor could lose a lot of money simply by buying and selling at the wrong time.    2. This investment has a lot of price fluctuations. While many world governments used to tie their currency to gold, this hasn’t been the case in the United States since 1975. Essentially, this commodity is left to rise and fall in the free market. Furthermore, there are only a few industrial uses for gold, and only ten percent of it is used by (and can therefore be influenced by) industries. The remaining ninety percent is divided between jewelry and investment. That means that there can be wild price swings in the price of gold that are not related to what is going on in the rest of the market. In fact, history shows that the price of gold reacts more to governmental conditions than it does to economic trends.
3. Many analysts believe the price of gold is about to fall. While there are a lot of economists who continue to state the price of gold will continue to rise, there are a growing number who believe that it is due for a crash or price correction. These economists cite the record high prices that gold is already selling for, the stabilization of major world economies, and the fact that many world governments are indicating that they will raise interest rates, essentially creating more stable opportunities for investors to earn a profit.

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Larry Banks is a retired weath advisor that has specialized in precious metals investing. He has helped hundreds of Americans make smart decisions by including gold & silver as part of their long-term investment strategy.

Keeping Gold Industry Standards High

Keeping Gold Industry Standards High

Gold, a beautiful precious metal adorned by many has been a symbolism of love and power throughout the ages.  Civilizations have been built because of it and wars fought over it.  As it was then and still today, gold has an impact on societies and individuals alike.

There are 100 million people worldwide relying on the industry for a living, jobs ranging from the miner to the jeweler.  The mining industry is a positive force for those people involved in it, but it has not been without concerns and problems.

There are a number of organizations, such as the World Gold Council (WGC) and the Organization for Economic Co-operation and Development (OECD) working together setting guidelines, standards, and responsible mining practices for the industry.  All the organizations work together assuring that the gold products you have, use, sell, and enjoy are not at the expense of the people and the communities involved in the industry.  


Gold has influenced societies since it was first discovered 4000 thousand years ago.  It has always been a symbol of wealth; civilizations have been built because of its perceived wealth and beauty.  Even today, the gold industry has a positive impact on communities and its people.  Communities grow; living standards improve.  Gold mines provide steady employment and high incomes. 


Gold mining affects the environment and not necessarily for the better.  Policies pertaining to hazardous materials, waste and chemicals, and water conservation have been orchestrated or are in the process to improve the residual affect of the industry by the WGC and other organizations.

Health and Education

More times than not, gold mines are in developing and impoverished countries.  The WGC and mining companies have been working to improve standards.  General education is a more common practice now and there are health care initiatives in place to help workers and their families.  This has come about because of the social responsibility programs in place.


Mines are usually located in remote areas.  Accesses to the mines come by way of poor roads.  Large-scale mining companies often put money and effort into upgrading the regions transport infrastructure benefiting the company, its workers, and the community.


Mines need constant water and power to operate.  This necessity is often lacking or is inferior.  Mining companies build or upgrade utilities in order to undertake their operation.  By doing so, everyone benefits with clean, fresh water, the workers and the surrounding areas.

Conflict-free gold

Gold, being associated with wealth and power will often bring out the worst in mankind.  The industry is aware of forced labor and extreme violence that has taken place.  In trying to improve conditions, the WGC along with other organizations and companies, have initiatives in place to free the industry from armed groups reaping financially from conflicts.

The gold mining and refining industry has a positive and economic impact on the miners, their families, and their communities.  Watchdog organizations improve and keep standards high in the industry.  Policies, standards, and initiatives are in place so you, the consumer, can buy gold with confidence that conditions for everyone involved is humane.

Karla Brown is a writer from Los Angeles, CA. If you are looking to invest in gold, consult experts to help you on your way, like from Scottsdale Bullion and Coin, which will guide you in the investing process.

Ideas For Good Investments

Ideas For Good Investments

Investing your money in the right place can be helpful to make your current cash flow through and make more money. Investing is the perfect way to grow your money and make cash out of what you currently have. Everybody can succeed in different ways, and it is important for you to understand that investing in the right place is important for success in the long run. You need to make sure that you know where to invest and how often.

Ideas For Good Investments

Buy Stocks

Buying stocks may be the most common way to invest your money, but it is profitable as long as you know what to do. Buying stocks in a market that has already grown is the best way to ensure success with your investments. Too often, people neglect buying stocks because they believe that stocks are just plain useless. Once you have invested in the right place, then success is surely going to come.

Buy Airline Stocks

If you aren’t so sure which stocks to buy, consider going into the airline industry. This is a big place and business where money can be learned. Buy airline stocks today and make big money.

Sports Betting

While betting in the sports industry is difficult, if you know how to check the rates of current teams winning, you can bet on a team the majority of others say are going to win. Winning in sports betting is all about researching and making sure to look at the team’s last success. Usually you can find out what most of the people say is going to win. Betting in sports like football can give you a better chance than in horse racing. Football gives you two teams to choose from while horse racing needs you to decide on more than 5 horses in a race.

Invest in Gold

Investing in gold has lately been one of the trends in most business leaders’ eyes. If ever a piece of gold doesn’t get good returns, it will always have its natural value placed high. In the future, you could sell it and it can be worth millions of dollars. Gold is never going to lose it’s value, and investing in any piece of gold could mean big finances in the future. Just make sure to choose wisely, especially since there are so many different types of gold.

Small Business

If you have a idea, why not create a business out of it. Sometimes all you need is the imagination to find out what small business is worth doing. Many people are shocked because of other people can build a business from their ideas. A small business could not only allow you to earn a net income, but also sell it in the future once it reaches its highest level. The smallest business idea that you can ever think of can make you earn big profits. Use your imagination to help you come up with a good business idea.

Invest in Domestic Energy

Being in this part of the investment energy can make you big money in the future. Domestic energy is popular among thousands of different households in the United States. Because that not everybody is going to get energy soon, you will find that people will continue to constantly get their homes into this industry. Even when 2015 comes, people will still be in need of this energy. Getting into this market can be a big money earner, so get into this business soon.

Those investing ideas are not only powerful, but they can help you to achieve the money that you need for financial freedom. Too often, people are stuck in a rut all-day long, causing for them to struggle at building a good business. Make sure that you research and know about the business that you plan getting into. If you aren’t so educated about the topic, then you will make a few mistakes. Avoid all of them by learning about the business idea.

Christian Raves is an investment junkie. He enjoys fashion shopping with his wife all around the world, so visit “kleitas” website to learn more about him.

Keeping Up With Gold Prices

Keeping Up With Gold Prices

With the increased number of people who are choosing to invest in gold, and the ever-fluctuating prices, it’s important for you to be able to keep up with the going rates. Whether you are an investor, someone looking to invest, or simply have an interest in gold, then you can find good ways to keep yourself updated on gold prices. Gold prices are constantly changing, yes, but there are many ways of tracking those changes and learning about them so you can use them to your greatest advantage.
In the past, it was up to the daily newspaper or economic journals to track gold changes. Firms dealing in gold had their own ways of tracking gold prices as well, and you would have to work with one of these to get their information. However, as times have progressed, it’s much easier to access this information and have it at your fingertips.
Modern Ways to Track Gold Prices
There must be hundreds of websites out there solely dedicated to the following of gold prices. Services that offer options for buying and selling gold usually keep track of the prices, both locally and worldwide. Many of these websites offer you the option to subscribe and receive regular updates whenever you need them. This can be useful if you want hour-by-hour or daily info on gold prices.An increasingly used way for tracking gold prices comes directly to your smartphone. There are more and more apps being created for people who want to keep up on their investments, and these can be a great option for you if you want to be able to check up on them whenever you feel like it. Apps and mobile websites are both great options for staying constantly informed.

Of course, if you are working with an investment agent, then he or she should be keeping you informed and making sure your investments are going well, but even so you can get the info you need yourself with only a few seconds of work. By using up to date sources of gold price knowledge, you can be sure that your money is where it should be.

Investing in gold is a highly recommended option, and it’s something that nearly anyone can do. If you want to make the most of your cash, and you have had it invested in gold, then be sure to stay updated and pay attention to the trends with these modern ways of getting information.

4 Indicators That Predict Rising Gold Prices

4 Indicators That Predict Rising Gold Prices

Over the last few years, gold has experienced a sudden price spike, similar to what occurred in the 1980’s. As of today (Nov 3, 2011), gold sits at $1762 an ounce, which is down $134 from an all time high of $1896 (on September 2011). Experts are mixed as to whether gold is teetering on the edge of a bubble, or if it will continue to gain value in the long term. If we look at past events which contribute to increases and decreases in the price of gold, we may be able to determine its future value by examining these “predictors”.

Predictors of Gold and Precious Metal Prices

Inflation – Stimulus programs are currently propping up the economy and have been introduced in many other countries to fight the global recession. As more money is printed, paper currencies tend to be worth less. The inflation of currency makes commodities like gold and silver, real estate worth much more valuable. In this case, commodities can be seen as a hedge against the loss of value in paper currencies. The more gold becomes seen as a safe investment, the more its price will inherently rise.

Not all experts agree with the concept that inflation rates and gold prices are linked. From the 70’s to the year 2000, gold prices and inflation rates followed each other quite closely. But, during the last 10 years, the rate of inflation and gold have diverged.

Demand – Demand is growing due to higher wages in developing countries like China and India. In 2009 East Asia, India, and The Middle East accounted for over 70% of the world’s gold demand. These countries along with China are experiencing a boom in wages and changes which will lead to increased demand. The Chinese government also encourages their citizens to invest in gold and has begun allowing the import of gold from foreign markets. The high demand for gold from China and the rest of the world market, exceeds the available supply.

Discovery – Gold is not being discovered through mining at the rate that it once was. The rate of discovery of new gold has consistently failed to hit expectations in recent years. Some experts believe in the theory of “peak gold”, which predicts that the rate of discovery will continue to fall as the worlds gold supplies are depleted. If discovery rates decline, prices will continue to rise.

Economic Uncertainty – Currently, the United Sates and many other countries are struggling to recover from a double dip recession. The global economy has been hit hard and the EURO is teetering on the verge of collapse. This confusion and uncertainty about the economy means investors will look to gold as a safe place to store their money. If this uncertainty remains, prices will remain high.

Crisis And Precious Metal Prices

In addition to financial difficulties, conflict continues to rage across the globe. The “Arab Spring” has changed the political landscape in the Middle East. The world is still waiting to see if the outcome will be positive or lead to more conflict. An increase in the price of oil has contributed to higher gold prices in the past. A new political order in this region will affect prices.

As the price of gold sits at $1762 an ounce, it mirrors a situation in the 1980’s where gold prices hit the equivalent of what would be $2000 an ounce today. A similar spike occured due to dramatic oil price increases, a gas shortage, unrest in the middle east, and a change of leadership in the oil producing country of Iran.


The rate at which gold prices increase or decrease, depends on a variety of factors including: the state of the world economy, the wages in countries that have the highest demand for gold, volatility and conflict in the world, and the rate of discovery of new gold. Currently the price of this precious metal has experienced a spike which does not seem sustainable. But, in the long term, all the ingredients that are necessary for increasing gold prices to exist. After a correction in the over-valuation of gold takes place, it will be seen as a safe place for investors to store their money. Due to this fact, i believe that gold will continue to maintain its value even if the economy becomes more prosperous.

The Who What When Where and Why of Getting Cash for Gold

Since the devastating recession of the American economy in the winter of ’07-’08, the battle cry of the average, hard-hit American has been “Cash for Gold!” This catchphrase is heard and seen everywhere, and has become deeply ingrained in our subconscious. What advertisers tend to do, however, is to robotically repeat the same lines about gold being at record high prices without clearly explaining the reasons for this phenomenon and the future of this field. Stop right here if you trust the advice of money- hungry gold buyers who inform you about the precious metals field on a need-to-know basis. Continue reading only if you really would like to understand what you’re doing before you finally sell gold in an effort to bring extra cash flow into your finances.

Firstly, it’s vitally important to understand the relationship between the value of the dollar and precious metals like gold, platinum, and silver. Before we happily kept bespectacled Benjamins in our wallet and passed solemn Washingtons to the guy behind the counter in Starbucks, currency itself was actually valuable. Coins were made out precious metals like gold and silver. The money itself actually had value. Today, our currency is made out of worthless paper. The money itself has no value; it rises and falls with the country’s economy. A scary reminder of the worthlessness of actual money is the Post-WWI depression in Germany. Money was hyper-inflated, and there are pictures of children building towers out of bills, a housewife burning money in a fireplace because it was cheaper than coal, and a man using bills as wallpaper. It is now easier to understand why during a down economy, people flock to items of tangible value, and why the price of gold and other precious metals, the symbol of wealth, rises sharply.

This phenomenon can clearly be seen when studying yearly graphs charting the fluctuation of gold prices from before the recession to the present. With the difference of the numbers, the same trend applies to platinum and silver prices. Since 2000, the price of gold had been slowly rising at an average of 50 to 100 dollars per ounce a year. In the beginning of 2007, the average price of an ounce of gold was $650. When the recession hit in the winter of that year, the price jumped 200 dollars to $850 an ounce in just a few months! During the dismal economy of 2008, the price of gold wildly fluctuated between $700 and $1000. While the value of the dollar stayed low in the years 2009 and 2010, the price of gold climbed steadily 200 dollars a year, ending at $1400 an ounce in 2010! Thankfully, since we’ve entered the year 2011, the economy has begun stabilizing. Correlating to the stabilizing value of the dollar, the price of gold has begun stabilizing; it has declined from $1400 to $1320, and then risen to $1440. Following this trend, when the economy continues to stabilize and the value of the dollar rises….if you’ve been following, you understand that just as the price jumped when the dollar plunged, as the economy and the dollar rise the price of gold is about to plunge.

So how does this apply to the average small business owner? Gold, silver, and platinum really are at record high prices, and as history repeats itself, the next step is down. This is a great opportunity to make some serious fast cash. Old jewelry and heirlooms which have been collecting dust are worth a lot of money in the market right now. You can make big bucks from selling platinum, gold and silver. Before selling, however, it’s important to ensure that you get the most cash for gold and that you’re dealing with honest precious metal buyers. is a resourceful website that has current selling prices and a host of information about the precious metals market. It’s also advisable to deal directly with online buyers rather than jewelry stores, since they can offer more cash for gold as they cut out the middlemen and melt down the metal themselves.

In conclusion, selling gold is a great way for anyone to obtain some extra cash. However, the time to act is now, before prices plunge and the boom of the precious metals market becomes a bust.

Bio: Mark Rich is a jeweler and gold expert who urges consumers to get cash for gold now, while the going is good. He recommends Captain Cash for Gold, a metal refiner that is dedicated to a policy of integrity and reliability.

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