Silver Dollar Values Prices Skyrocketing, Gold Is Having A Summer Blast

NEW YORK - Sept. 2, 2013 - PRLog -- Gold is getting a summertime revival. The price of gold touched $1,420 an ounce this week, a three-and-a-half month high, as escalating tensions in the Middle East, volatile currency markets and renewed demand for jewelry in China and India pushed prices greater. Gold has rebounded 15 % to $1,396 an ounce since sinking to $1,212, its lowest level in nearly 3 years, on June 27. A gain of 20 % or more would place the metal back in a bull marketplace.

Gold’s resurgence follows a rough ride this year. Gold slumped 4.8 % in the first 3 months of 2013 because the outlook for the economy enhanced while inflation remained subdued. How high will Silver Dollar Values go? http://www.priceofgoldperounce.us/price-of-gold-per-ounce/silver-dollar-values-prices/

For many years before that, big investors, like hedge funds, purchased the metal as a method to shield their investments against increasing prices along with a slumping dollar. They feared that the Federal Reserve’s stimulus plan could trigger prices to rise. But inflation remained subdued and that decreased the need to purchase gold. Also, indicators in January that the dollar was strengthening diminished the appeal of owning gold.

Then in April, the bottom fell out. A proposal that Cyprus sell a few of its gold reserves to support its banks rattled traders, prompting concern that Spain, Italy as well as other weak European economies may also sell and flood the marketplace. Gold plunged by $140 an ounce, or nine %, on April 15 as investors unloaded their holdings. That was the greatest one-day decline in more than 30 years. While the price of gold continues to be down 17 % this year, the metal is around the rise.

Listed here are the elements driving its comeback:
One of the factors individuals purchase gold is the fact that it offers an option to more conventional monetary assets, says Mike McGlone, director of study at ETF Securities, a provider of commodity-based exchange-traded funds. When monetary markets get jittery, investors frequently purchase gold because it's regarded as one of the safest assets that may effortlessly be converted to money. Because the stock marketplace soared this year, increasing as a lot as 20 %, investors had less need to hold gold. Learn more about GOLD >>> http://www.priceofgoldperounce.us

Which has changed the last 4 weeks. The Standard & Poor’s 500 index has lost 4 % since reaching an all-time high of 1,709.67 on August 2. Traders are concerned about when and by how a lot the Fed will pare back on its stimulus, a major driver behind the market’s rally. Strife in Egypt and Syria has also reminded investors that it’s a dangerous world out there: wars can spread and oil prices can spike, hurting economies and stock markets. Investors want to add back a little insurance to their portfolios these days.

“If we lived in a perfect world, we would not need gold,” says McGlone. “But since we don’t, we do need something that is the ultimate store of value.” Investors don’t need to purchase gold bars or coins to invest in the metal. Exchange-traded funds are investments that are similar to mutual funds. Both can be purchased and sold on exchanges. A few of these funds, such as ETF’s Physical Swiss Gold Shares and SPDR’s Gold Shares, allow investors to purchase into trusts that invest directly in gold.

The Fed appears close to reducing its $85 billion in monthly bond purchases, and which has stirred up currency prices worldwide, particularly in emerging markets. Investors had previously borrowed in dollars at low rates and then invested in faster growing economies in Asia and Latin America. Now, that trend is reversing. U.S. interest rates have started to climb in anticipation of the Fed’s decreased stimulus. Investors are selling their emerging-market holdings and converting the proceeds back into dollars.

The value of the Indian rupee against the dollar has plunged by more than 11 % in August on concerns that surging oil prices are pushing the country toward an economic crisis. The Indonesian rupiah has also slumped. When currency markets become volatile, investors worldwide look to invest in safe assets that will hold their value, says Dan Heckman, a national investment consultant who specializes in commodities at US Bank Wealth Management. “Gold does fit that role,” he says.

Speculators like hedge funds were behind the surge in gold over the last decade. That sent gold to a peak of $1,900 an ounce in September 2011. It also priced out a big part of the marketplace - jewelry buyers in countries like India and China. In those countries, individuals have traditionally purchased jewelry as a method to invest in gold. When prices slumped this spring, though, those buyers jumped back in because individuals in those countries purchased more gold.

The World Gold Council, a trade group for gold mining companies, says in a report on Aug. 15 that consumer demand for gold surged 87 % in China in the second quarter, compared with the same period a year earlier. Demand in India climbed by 71 %. Gold nonetheless remains far below its inflation-adjusted peak. It rose as high as $873 an ounce on Jan. 21, 1980. Adjusted for price increases that would be worth $2,475 in 2013. Experts recommend now because the time to purchase gold and purchase silver. How high will Silver Dollar Values go? http://priceofgoldperounce.us/price-of-gold-per-ounce/sil...