Precious Metals Market Alert

Independent Living Bullion employs knowledgeable investors in gold and silver bullion. The firm provides investors with coins, bars, and rounds with low mark-up above melt value.

A trusted resource for buying and selling precious metals, Independent Living Bullion helps its readers and customers stay abreast of U.S. and global economic news.

After Congress reached a short-term agreement to increase the federal debt ceiling and reopened the government after a two-week shutdown in October 2013, retail investors stepped up their purchases of precious metals. However, with banks sitting on excess cash reserves in the trillions of dollars, some investors in precious metals feel frustrated that metals prices have not risen as expected.

Even though the Federal Reserve uses banks to push money into the economy, banks have ceased much of their lending activities. But analysts believe that banks cannot maintain their current hold on cash reserves. As banks put their cash hoards to work in the economy, investors expect to see metals prices rise dramatically as part of a new leg up in the current bull market for precious metals.

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Gold Prices Begin to Rise Again

Last winter, as gold prices fell and pundits warned against the dangers of investing in an “uncertain” commodities market such as precious metals, many in the gold community began to worry that the decades-long run of gold was indeed at an end.

Then, this summer, the NASDAQ stock exchange experienced another of its now-notorious glitches, halting trading for an entire afternoon, and sending waves of doubt throughout global financial markets.

In a world of rickety financial markets, high leverage, and overwhelming debt burdens, the time for tangible assets, chiefly gold, has come — which is good news for national gold dealers such as Independent Living Bullion.

As the speculative nature and inherent instability of the stock market has shown, precious metals like gold are a great long-term investment because of their endless utility. In 2011, gold futures hit a record high price of $1,910 an ounce on the COMEX, and many experts are predicting gold will rise above $3,000 per ounce in the not-too-distant future.

Gold is also an effective hedge against inflation, to which investments in asset classes like bonds and stocks are deeply vulnerable.

To find out more about how gold can enhance your investment portfolio, contact Independent Living Bullion, a premier online retailer of gold coins. For a free consultation today, call (800) 800-1865.

Investing in Gold: Myths Debunked, with Independent Living Bullion

Independent Living Bullion sells bullion bars, rounds, and coins in gold, silver, platinum, and palladium. Here, Independent Living Bullion helps answer questions and debunk myths about investing in gold.

– Is buying gold jewelry considered an investment?
Buying gold jewelry isn’t traditionally considered a form of investment — the markup over the melt value of the metal is very high, and that extra cost will generally not be recovered. Instead, gold investors sell and trade in coins and bullion bars. It’s generally better to buy physical metal rather than shares of gold exchange-traded funds (ETFs). Gold ETFs are similar to mutual funds and invest solely in gold bullion.

– Why is gold identified as a hedge against inflation and market volatility?
Gold maintains its investment strength when compared with volatile shares, and gold bullion can prove significant when the market is performing poorly. Independent Living Bullion also says that investments in gold can be used to gain capital appreciation in real terms/

– Is gold a high-risk investment?
Gold is not a high-risk investment because it cannot go to zero like stocks and bonds can. Gold has been recognized as money for thousands of years — it can be considered a better form of cash than currencies created by governments that are not backed by anything with tangible value. Gold has preserved its value in periods inflation or deflation. Even as markets fluctuate, gold’s purchasing power remains relatively constant.