For years, investors and analysts have heavily criticized the actions of Federal Reserve Chairman Ben Bernanke. Bernanke has earned himself a slew of nicknames for his money printing, with the most popular being “Helicopter Ben.” After studying the Great Depression for many years, Bernanke felt that the reason the U.S. slipped into such a rough patch was because of the lack of money supply in the economy. This is one of the main reasons that he has maintained his quantitative easing programs that have involved exorbitant money printing.
With the world still awash in various quantitative easing, money printing and stimulus measures, the long-term picture for higher gold prices is certainly rosy; however, the short term has not shined as bright. Since October, the SPDR Gold Shares ETF (GLD)–which represents gold bullion–has fallen by more than 7% and some analysts peg that it could fall even further in the upcoming months [for more gold news and analysis subscribe to our free newsletter].
If you believe the increasing amount of reality TV shows, investing in physical gold is as easy as heading to a small patch of land in Alaska, hiring a few people and digging. The truth is, it’s not that easy, and that’s why people who want to profit from precious metals take a much less, well, muddy route to owning and investing in the space. For those new to the metals space, knowing where to go to buy or sell for a fair price is difficult. That’s where APMEX, formerly known as American Precious Metals Exchange, enters the scene. APMEX has become a favorite among precious metals buyers and sellers for a few key reasons [for more gold news and analysis subscribe to our free newsletter].
It was recently announced that the German central bank was set to repatriate some of its gold reserves based on economic fears plaguing the eurozone. Though Germany has long been the diamond in the rough of this currency bloc, the fear of a widespread crisis has still managed to infect one of Europe’s strongest economies. Currently, Germany holds about 31% of its gold (3,400 tons) within domestic borders; it plans to up that figure to 50% by 2020 [for more gold news and analysis subscribe to our free newsletter].
Gold has been one of the most talked about assets in the past few years, as it has surged to heights that some never thought possible. But now that the precious metal has logged 13 consecutive years of positive returns, many are beginning to doubt its abilities to continue the historic run. We recently had the opportunity to speak with Nick Barisheff about why he feels gold is still poised to make a run higher. Mr. Barisheff is the President and CEO of Bullion Management Group Inc., a bullion investment company that provides investors with a secure, cost-effective and transparent way to purchase and store physical bullion [for more gold news and analysis subscribe to our free newsletter].
Marc Faber, author of the famed “Gloom, Boom & Doom Report,” is a respected name in the investing world. If ever there was a perma-bear, it would be Faber. He tends to focus on areas of the world that he sees problems in and allow that information to influence his investing decisions. But no matter what segment Faber has an eye on, his focus always circles back to one asset: gold. The precious metal has long been an important part of his holdings, and he has not been shy about vocalizing his love for the commodity [for more gold news and analysis subscribe to our free newsletter].
Merk Funds is one of the biggest names in the currency space, and their products have amassed a fair amount of assets as well as attention from the investing world. But the firm has also begun moving into the gold space by laying out plans for a physical gold ETF (OUNZ). With this highly anticipated fund on tap, many investors have been keeping a close eye on Merk’s outlook on the precious metal, especially in light of the fiscal cliff and its impact on gold [for more gold news and analysis subscribe to our free newsletter].
Gold’s history as a store of value goes back before the time of written records, but it’s still an asset/investment class of significant importance in today’s market. As a relatively scarce metal, gold has always been held in esteem and investors (as well as merchants and normal citizens) have long used gold as a means of safeguarding buying power or offsetting the risks of inflation and financial turbulence [for more gold news and analysis subscribe to our free newsletter].
Gold investors were dealt a muck hand last week as the Fed announced that they are eyeing an end to quantitative easing (QE) programs sometime in 2013. The precious metal has had an impressive run of 13 straight years of gains, but that may change this year. If the Fed were to abandon its QE policy and the massive money printing and dilution that goes along with that, gold prices could tank. The suggestion to end this program also points to a confidence in the economy from the Fed, another bad sign for gold as many have been using the commodity as a hedge against rocky markets [for more gold news and analysis subscribe to our free newsletter].
It really is no exaggeration to say that human beings have valued gold for as long as they’ve been able to get their hands on it. Burial sites going back to the 4th millennium BC include skillfully wrought gold artifacts, and weights of gold were used in commerce well before the Lydians started minting coins around 600 BC [for more gold news and analysis subscribe to our free newsletter].