Bullion Vault

Investing for income in your retirement…?

ONE QUESTION I received recently goes to the heart of what people – a lot people but especially older, retired people – are going through, writes Chris Weber in Daily Wealth.

“My wife and I are in our mid 70s. We have about 60% of our funds in gold, silver bullion, some gold and silver stocks, and the balance in cash. We need current cash income from US Dollar with safe dividends – am I dreaming? Can you help?”

In a world of zero interest yields and stock markets paying very low dividend yields, it is now very hard to earn money on your money.

Indeed, guaranteed high yields are almost impossible to get. A while ago, I told my readers about GOV, the real-estate investment trust that rents to government agencies. That was paying 7%. The problem with all stocks, and all REITS, is that stocks can fall by much more than 7%.

So where does that leave a retired couple in their 70s, or anyone who no longer has a job and hopes to live on interest yield as they have in the past? It leaves them in bad shape. Until and unless interest rates on savings rise again, they are going to have to make some very tough choices.

The most direct thing I can recommend is quite obvious: If you can, cut your living expenses. Use whatever advantages you can. For instance, the very fact that you are retired means that you are not tied to a place for a job. You are, theoretically, free to move to a place with a lower cost of living.

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The pride of Canadian coinage is the Maple Leaf gold bullion coin. The Royal Canadian Mint (RCM) proudly produces these strikingly beautiful, one-ounce 24-Karat gold coins, and the Ottawa-based refinery and mint was the first in the world to offer 24-Karat bullion to the world in 1979. It wasn’t until 1982 however, that these modern bullion coins were massed produced. Before Maple Leaf gold bullion arrived on the scene, 22-Karat South African Krugerrands were the only available gold bullion in the world, and they weren’t immediately globally popular largely because U.S. citizens were forbidden to own gold during the early 70’s. South African’s own inhumane practice of apartheid was another major inhibitor of the Krugerrands’ initial global acceptance, while Canada’s ongoing legacy of robust, friendly ideals helps to promote the 24-Karat, iconic coin.

Maple Leaf gold bullion coins’ obverse design is one of Canada’s most recognized symbols, as well as the coin’s namesake. The design is the work of the RCM’s master engraver, Walter Ott, and artist, Arnold Machin created the reverse design, which portrays the profiled image of Her Majesty, Queen Elizabeth II, facing to the right. These 1-ounce coins are also minted in varying, smaller denominations like ½-ounce, ¼-ounce, and 1/10-ounces, to fit a wider range of budgets. Gold investment is the current economic trend, as spot prices continue to rise, while U.S. dollar values continue to flirt with ambiguity. Investors are encouraged to evaluate their finances, and then to contact one of our friendly specialists, who offer institutional discounts to household investors like you.

Danny Burns

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Investment in gold is on the rise in Nepal as it is regarded as a hedge against inflation, according to the president of the Nepal Gold and Silver Dealers Association.
Speaking to My Republica, Ratna Shakya commented that gold imports to the country this year are expected to exceed the 5,000kg recorded in the 2008-09 fiscal year.
The news feeds on this site are independently provided by Adfero Limited © and do not represent the views or opinions of the World Gold Council.

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The World Gold Council’s latest Gold Investment Digest, which covers activity to the end of Q3, noted gold demand rising on continuing dollar weakness and signs of a strogner global economy.

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A gold expert has offered some tips to those looking to invest in the precious metal for the first time.
Speaking to US-based ABC 4 News, Bob Campbell of All About Coins said it is often best to start slowly and learn the ropes of gold investment.
The news feeds on this site are independently provided by Adfero Limited © and do not represent the views or opinions of the World Gold Council.

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There are a great many investors who deserve to feel a tremendous amount of self-satisfaction today, as independent thinking, and faith in their own judgment has rewarded them with far more than fiscal gains. Many of these investors were buying gold bullion long before our current economic trend, and all of these bold minded thinkers are to be sincerely congratulated. Now they’ve seen first hand that buying gold bullion is truly an opportunity for financial independence, and that independence builds as they diversify their bullion holdings according to their individual, financial needs and expectations. Many investors will undoubtedly capitalize on the new, record breaking high of $1044, (which was reached at around 11:00 am this morning) and sell their gold, but many more investors will use this rise in price as an opportunity to purchase even more sound, long-term investments, like Double Eagle rare coin.

Wise investors know that we are all still in for a long-term economic recession, and a tidy, short-term gain won’t really provide much in the way of long-term safety. The investors who need to sell their gold, also truly understand the value of gold in a personal financial crisis. We’ve all witnessed the gold investment model in operation, now it’s up to each individual to decide what to do with this working knowledge, whether it means buying gold bullion proofs, or Ultra-High proofs, or the aforementioned Double Eagle coins, which are rare, $20 Lady Liberty, and $20 Saint Gaudens, 22-Karat gold coins.
Investors are encouraged to reevaluate their financial holdings, and to contact one of our friendly specialists, who offer institutional discounts on bullion and rare coin

Danny Burns

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Investors can benefit from working knowledge of gold bullion weight, by comparing the price of a prospective bullion bar or coin investment to the current gold spot price. The spot price is the cost of one Troy ounce of pure gold, and that price fluctuates throughout each day, according to global demand for the yellow metal. The Troy ounce is the basic unit of measure in the world gold market, and it represents one-twelfth of a pound, as opposed to one-sixteenth of a pound that we’re all accustomed to using.

The most basic and affordable physical gold investment is 24-Karat, one-ounce (Troy) bars. To avoid discrepancies over gold bullion weight, wise investors purchase one-ounce, and/or ten-ounce bullion bars with reputable brand names like Engelhard, Credit Suisse, PAMP Suisse, and Johnson Matthey. Bullion bar prices are a direct reflection of their gold bullion weight, as they are typically only slightly higher than the current gold spot price. Bullion bars have been traditionally used for short-term potential profit gains, but they’re also highly recommended items for personal possession, or as possible long-term contributions to gold-backed IRAs.

Gold bullion weight varies slightly for bullion coin, which comes in 22-Karat, and 24-Karat form. All modern bullion coins contain one full Troy ounce of pure gold, but 22-Karat coins are slightly heavier, due to their alloys of silver and/or copper, which are added for greater durability. Popular bullion coins include 22-Karat, American Eagles, and 24-Karat, American Buffalos. Investors are encouraged to complete their research, and then to contact one of our friendly specialists, who offer institutional discounts on bullion bars and coins.

Danny Burns

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Investment demand for gold is continuing to increase as a result of inflationary concerns, according to one expert.
Barry Wainstein, global head of the foreign exchange and precious metals division at Scotia Capital, told the Toronto Star that many people are still worried about inflation, prompting them to seek out the safe haven properties of gold.
The news feeds on this site are independently provided by Adfero Limited © and do not represent the views or opinions of the World Gold Council.

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Ownership of hard assets like a physical gold bullion investment can benefits investors with potential short-term gains, as well as long-term financial stability. Investors also gain greater financial independence, as they control the decisions on whether to buy more gold, sell their gold, or diversify their gold bullion investment according to their specific, individual financial needs. The comparative affordability of bullion, with reference to rare coin, is an added benefit, since bullion possess no numismatic value, and prices for bullion bars and coins generally hover slightly above the current gold spot price, which is the cost of one Troy ounce of pure gold.

The most basic and affordable type of physical gold bullion investment takes the form of bullion bars, due to their greater minting simplicity in comparison to bullion coins. Household investors usually purchase one-ounce, or ten-ounce bars for easy, discrete handling and storage. The value of bullion bars lies in their purity, so investors are advised to choose reputable brand names like Credit Suisse, Engelhard, PAMP Suisse, and Johnson Matthey, for their bullion bar purchases.

All of the aforementioned brand names for bullion bars are also deemed acceptable by the U.S. government for gold-backed IRA storage, which has been a viable option for household investors since 1997. U.S. government approved bullion coins are also used for IRA storage, since rare coins aren’t permitted. The only acceptable 22-Karat bullion coins are modern American Eagles, along with the following 24-Karat bullion coins:
American Buffalos, Austrian Philharmonics, Chinese Pandas, Canadian Maple Leafs, and Australian Kangaroos, Koalas, and Lunar coins.

Gold investments are costly enough without having to pay added retail premiums, and investors can avoid paying these outrageous premiums by contacting one of our friendly specialists, who offer institutional discounts on bullion bars and coins.

Danny Burns

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A
report suggests that the Chinese government is pushing the general
public into buying gold and silver bullion, which could have a dramatic
effect on the markets.

Author: Lawrence Williams
Posted: 
Thursday
,
03 Sep 2009

LONDON - 

We
are indebted again to Paul Mylchreest’s  Thunder Road Report  for news
that will bring big smiles to gold and silver investors everywhere. 
Apparently China is pushing the idea of buying gold and silver for
investment purposes to the general population in the way that Western
television sells soap powder.  If 1.3 billion Chinese citizens start
buying gold and silver, even in tiny quantities, imagine what that will
do to the market!

The report notes that China’s Central Television, the main
state-owned television company, has run a news programme letting the
public know how easy it is to buy precious metals as an investment.  On
silver investment the announcer is quoted as saying ” China has
introduced its first ever investment opportunity for silver bullion.
The bars are available in 500g, 1kg, 2kg and 5kg with a purity of
99.9%. Figures show that gold was fifty times more expensive than
silver in 2007, but now that figure has reached over seventy times.
Analysts say that silver has been undervalued in recent years. They add
that the metal is the right investment for individual investors and
could be a good way to cash in.”

What appears to have happened in China is a total relaxation of
strictures on holding precious metals by the individual with the
government pushing gold and silver as an investment option, seemingly
at every opportunity.  This is a far cry from the situation only a few
years ago where the distribution of gold and silver was strictly
controlled.  Now, the Thunder Road Report notes that every bank will
sell gold and silver bullion bars in four different sizes to
individuals and gold related investments are said to be soaring in
popularity.

Around a year ago, Leyshon Resources managing director, Paul
Atherley, in an investor presentation in London – and no doubt
delivered elsewhere in the world too – commented that some employees at
the company’s gold mining project in northern China would, on pay day,
go to the local bank and buy a small gold bar as an investment and
wealth protector.  To an extent we put this down at the time to mining
company hype – but this seems to be exactly the same phenomenon noted
by Thunder Road.  The Chinese are being converted from being the lowest
per capita gold consumers in the world to a nation of small precious
metals investors.  Now, by next year, Chinese consumption of gold is
likely to exceed that of India, which has been for years the world’s
biggest gold market.  And one suspects that the potential for gold
purchasing by individuals is only in its earliest stages.  As more and
more Chinese move into the cities and individual wealth grows, this
trend is only likely to accelerate.

Paul ends the piece on Chinese gold and silver potential with the
following comment: “Simply put, the Chinese government is trying to
trigger a national gold craze…and it’s working. The Chinese public
now has gold trading platforms on steroids…. …Also, for the first
time in history, Chinese investors can even trade gold abroad (in
London) with the swipe of a ‘Lucky Gold’ card. I can’t even get Bank of
America to open a foreign currency account.”

This may be an overstatement of the case from a precious metals bull
- or it may not!  Certainly if China is indeed pushing the public to
buy gold then there may well be a hidden agenda here.  It’s unlikely
they are doing it and will suddenly pull the rug out from under
millions of investors.  A cynic (or a raging gold bull) would suggest
that this will precede a move to switch a good proportion of the
country’s reserves into gold which would have a huge effect on the
global gold price and could prove disastrous for the dollar.  Maybe
it’s not in China’s interests to drive the dollar down too much until
it has managed to divest itself of the huge dollar overhang (see the
article on Chinese Sovereign Wealth Funds we published yesterday – Chinese sovereign wealth fund dumping dollars for strategic investments like gold  ).  The country may well already be, of course, surreptitiously building its gold reserves without reporting the build-up. 

If the Chinese are indeed beginning to buy gold and silver as the
quoted report suggests then this has to be a strong signal that prices
are going to rise, and perhaps rise dramatically, in the relatively
near future.  We await comment from other China watchers for
confirmation of the gold and silver buying spree, but with global gold
production at best flat and probably in decline, even a small increase
in Chinese buying could have a substantial impact on gold and silver
prices.

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