Category: Gold

Gold Value

GOLD AND SILVER VALUE

Gold and silver dollar prices recently declined, and yet bullion sales are breaking records, perhaps because an increasing number of Americans realize there is a difference between face (or nominal) value, and inherent or intrinsic value. Think about it. The U.S. Dollar bill has a face value of one dollar. It will never be worth more than a dollar and, adjusting for inflation, its real value is considerably less than a dollar.

PAPER MONEY

It costs little for the government printing pressesPrinting Money to keep running, day and night, conjuring $100 bills out of thin air and loading the bricks of notes onto palettes and fork-lifting them off to the vault. But with all of those billions printed, imagine the value of the dollar declining dramatically, as though it now had 70c printed on the face of each bill, instead of $1 (actually, it should have 2c, since it has lost 98% of its value since 1913). Can you imagine Americans stampeding to the banks to accumulate paper dollar bills? It would simply never happen. No, Americans would instead lose all faith in paper currency and turn to the alternatives: gold, silver and the barter system.

COST OF PRODUCTION

By contrast, a gold American Eagle one-ounce coin has a face value of $50. The last time gold sold for $50 an ounce was over forty years ago (note that the purchase price of a bullion coin includes a significant premium price, unlike the purchase of a bullion bar). The cost of mining gold from the ground is variously estimated at between $460 per ounce and $1,000 per ounce. Do you think that the gold price could fall below the price of production, or that it could do so for very long? The clear answer is no.

Gold and silver have been around for thousands of years, are highly valued everywhere in the world and therefore have an undeniably inherent or intrinsic value.

FacebookTwitterGoogle+PinterestRedditShare

Gold: What Factors Affect the Gold Price?

Here are some of the interlinked factors that affect gold prices:

THE STATE OF THE U.S. ECONOMY

financesIf our economy slows, it can negatively affect the economies of other countries, and also commodity prices including gold bullion. But if a U.S. slowdown is accompanied by a federal stimulus plan, gold prices may increase. If the economy picks up and strengthens, gold prices can decrease.

FISCAL 2013, THE DEBT-CEILING, SPENDING CUTS, GOLD PRICE

The inability and unwillingness of the Fed to address the financial crisis fully is bearish for the U.S. Dollar and has short-term implications for gold. Gold should outperform both as real money and as a safe haven.

U.S. STOCK MARKET FEAR & CONFIDENCE

Gold analyst Jim Sinclair has famously portrayed gold as the ‘barometer of fear and confidence’, and a form of insurance. Under normal conditions, as the stock market becomes increasingly risk-averse (fear), gold gets a boost. When market traders are buoyant and optimistic (confidence), gold-selling can cause the gold price to dip. Note however that there have been one or two largely unexplained exceptions to this phenomenon.

FEDERAL MONETARY POLICY AND GOLD PRICE

Quantitative Easing’, an unconventional monetary policy used by central banks, seems to correlate with the price of gold. The more QE there is, the higher the price of gold rises. There is definitely a positive relationship between the gold price and the U.S. Dollar money base.

A FEDERAL CREDIT-RATING DOWNGRADE

A further downgrade of the credit-rating, characterized in early January 2013 on Fox News by Steve Forbes of Forbes Magazine as ‘inevitable’, is likely to raise the price of gold.

MAJOR GLOBAL CURRENCIES AND GOLD PRICE

The U.S. Dollar is a benchmark for trading against other currencies. Other major world currencies include the European Euro, global currencyJapanese Yen, British Pound, Swiss Franc, Canadian Dollar, Australian Dollar, New Zealand Dollar and South African Rand. As these currencies start to appreciate against the U.S. Dollar, gold prices tend to rise and vice-versa.

CENTRAL BANK BUYING & SELLING OF GOLD

Significant purchases or sales of gold by global central banks, or by a signatory of the Central Bank European Gold Agreement, affect the gold price. More and more nation’s central banks are accumulating gold.

EUROPEAN DEBT & FINANCIAL CRISIS

Should the European debt crisis worsen, or a circumstance evolve that threatens the stability of the Eurozone, the gold price would be affected.

CHINA & INDIA GOLD IMPORTS

China and India are two of the leading gold importers. Such emerging nations are more likely to view gold holdings as financial security. Volatility with their respective currencies or economies could therefore affect the gold price.

CHINA SELLING U.S. TREASURIES

If China sells U.S. Treasuries persistently, then this will be an indication of the deterioration of the U.S. Dollar as a credible global monetary instrument.

MARKET INTERVENTION BY CHICAGO MERCANTILE EXCHANGE (CME)

If the CME lowers margins on silver and gold contracts, gold prices can rise. If it raises margins, gold prices can decrease.

INDIA’S DIWALI WEEK

gold barThe five-day Diwali Festival in mid-November is traditionally the time when Indians en masse buy gold jewelry, coins and bullion, with as much as 6,500 kilos sold in one day. This is an annual ritual that is considered by many Indians to bring good luck.

OIL PRICE AND GOLD PRICE

Although the price of oil is a measure of uncertainty and stability, fluctuations in the price of oil do not always affect the gold price in a direct way. If there is civil unrest in a Middle Eastern oil-producing nation and this affects oil production, global oil markets and global financial markets will be affected and there will be upward pressure on gold prices.

INTERNATIONAL CALAMITIES, NATURAL DISASTERS, TERRORIST ATTACKS, ETC

In general, such events do not affect the price of gold until ramifications from them seep into global financial markets. Some people thing that gold prices move on ‘emotion’ alone, but in reality, that is seldom the case.

GOLD ENDURES

There is one certainty in an uncertain world. If you own an ounce of gold at the start of global turmoil and market disruption, you will still own an ounce of gold once the dust settles. Value is in the mind of the beholder and physical pure gold has never been anything but valuable.

Anthem Vault: Invest in Gold and Silver

ANTHEM VAULT

Anthem Vault provides U.S. residents with an efficient and liquid way to buy, own and sell physical 100% fine gold and silver bullion. GoldAll metals are securely stored with an independent world-class vaulting facility (est. 1859) in Salt Lake City, Utah and are fully insured by Lloyd’s of London (est. 1774) against loss, damage, or destruction caused from theft or natural disaster.

PUTTING YOU FIRST

At Anthem Vault, we understand that you expect the best in security, efficiency and service – all at a reasonable price. These core principles are integrated into every aspect of Anthem Vault, and we pledge to give you the best possible overall experience in the precious metals industry.

ANTHEM VAULT’S UNIQUE GUARANTEE

If you open a free account, buy metal and are dissatisfied with our service for any reason, you will receive a no-questions-asked full refund (refund limited to first metal purchase, up to $10,000 within 60 days of purchase date).

KNOWLEDGEABLE, APPROACHABLE U.S.-BASED ANTHEM VAULT CUSTOMER SUPPORT TEAM

Our U.S.-based support team is here to help answer your questions, and is fully trained to guide you through any issues or problems you might experience while using our service. Alternatively, see our FAQ page for quick answers to common questions. You can contact us by e-mail 24/7 or by phone during normal business hours of 6:30 a.m. to 1:00 p.m. Pacific Time (9:30 a.m. to 4:00 p.m. Eastern Time). Our full contact information can be found on our Contact Us page.

MINIMUM $25 ORDER TO OPEN YOUR ANTHEM VAULT ACCOUNT

You can buy parts of a bar or full bars, with a minimum purchase amount of $25 up to a maximum purchase amount of $5 million per order. All gold is held in the form of 1-kilogram (32.15 oz) bars .9999 fine. All silver is held in the form of COMEX approved 1,000 ounce bars .9990 fine or higher. All gold and silver bars are produced by globally recognized LBMA-approved refiners.

ANTHEM VAULT IS A U.S. BASED CORPORATION

Anthem Vault’s offices and experienced operations team are based in Las Vegas, Nevada. The company is incorporated as a Nevada corporation under the name of Anthem Vault, Inc. and it is regulated as a precious metals dealer by the USA Patriot Act.

Vault DoorTRUST, INTEGRITY & SECURITY

The Blanchard name stands for trust, integrity and security in the precious metals business, and it has done so since 1971, starting with the father of Anthem Vault Founder & CEO Anthem Hayek Blanchard. James U. Blanchard III bravely fought for Americans’ right to legally own gold and spent the next three decades championing the inherent value of precious metals, simultaneously growing a core group of successful bullion, coin and investment conference companies.

A respected precious metals industry expert for many years in his own right, Anthem Hayek Blanchard and Anthem Vault continue this fine tradition today, putting to good use the accumulated knowledge and expertise in precious metals and investment strategies, while our cornerstone Anthem Vault Standard secures, protects and insures your gold and silver assets. A safeguarded and encrypted account with Anthem Vault offers an easy, safe and secure way to buy, sell and store fully insured gold and silver, enabling you to accumulate and preserve real wealth in these troubled times.