Tuesday, August 30, 2016
Fifteen one-kilo gold coins have been minted to mark the 2016 Formula One season.
The weighty collectors’ items are part of a series of F1 coins made for collectors, investors and fans of motor racing by Swiss mint, PAMP.
A number of the huge one kilo coins have already been sold. Each features a portrait of the Queen by Ian Rank-Broadley and the coin’s legal tender.
For investors with less than F1 budgets, there are also quarter troy ounce gold coins and a two and a half troy ounce version. The coins feature the circuits in the 2016 season and are officially endorsed by the Formula One World Championship. There are limited edition silver F1 coins to collect too.
Marin Aleksov of Rosland Capital said: “Gold has been a trusted store of wealth since the earliest days of civilisation and it’s still a desirable asset around the world today, when many people are interested in diversifying their assets beyond a reliance on a paper-based asset portfolio.
“With this project we bring together the allure of gold and the global popularity of Formula One - it’s the perfect combination.”
The limited edition collection of coins each features its number in the series and a hallmark from the mint. They come in tamper-proof packaging.
The collection, which has been approved by F1 boss Bernie Ecclestone, has been on show at a number of F1 events around the world. It’ll be heading to the season-ending Abu Dhabi Grand Prix in November.
Collecting gold coins is a fantastic way to start investing in the precious metal. By choosing rare and exclusive coins, you will also be building value into your investment for the future due to the collectible nature of the coins as well as the intrinsic value of the gold they contain.
Interested in investing in gold coins? View gold coins for sale here.
Monday, August 22, 2016
According to analysts, if you haven’t yet invested in gold, you haven’t missed the boat. There are many signs that the value of the precious metal will continue to rise for the rest of the year.
One of the key aspects is that the conditions that have sent investors rushing to gold for its safe haven properties, show no sign of disappearing in the immediate future. The UK’s Brexit vote and political and economic instability have helped attract gold investors, and this is set to continue with the uncertainty surrounding the US Presidential elections later in the year.
Prateek Pant of Sanctum Wealth Management told Gold-Eagle: “Negative interest rates and surplus liquidity conditions will continue to prevail in the developed world for some time. Given these conditions, gold is a good asset class to stay invested in.
“We have run numbers which suggest that investors should have a 10-15 per cent allocation to gold at all times. This level of allocation has the potential to reduce portfolio risk considerably without affecting returns.”
First half figures for gold investment from the World Gold Council show that demand stood at 1,064.9 tonnes, which was 16 per cent higher than in the first six months of 2009 after the global economic crisis began to take effect.
The figures give weight to those commentators who are bullish about gold’s future prospects.
Gold-Eagle analyst Joshua Rodriguez said: “At the moment, safe-haven demand for the precious metal remains incredibly high. Given current global economic conditions and how central banks are choosing to deal with the issue, I'm expecting that investors will continue to increase the demand for the precious metal for the foreseeable future.”
Monday, August 15, 2016
The high demand for gold in the first half of this year has marked the precious metal’s best six-month performance for 36 years.
Gold’s high prices achieved back in 1980 were due to economic uncertainties, much as we’re seeing at the moment following the UK's Brexit vote at the end of June and the forthcoming US presidential election.
However, according to the World Gold Council, this is not the only driver for gold’s 27 per cent rise in the first half of 2016.
The Council’s director of investment research, Juan Carlos Artigas, said that there have been numerous reasons for the strong demand, including moves by investors who had reduced their gold holdings in recent years and have now returned to the precious metal, Investment News reported.
Mr Artigas added: “There is still the issue of macroeconomic uncertainty, but we are also dealing with a US dollar that is less strong than it has been recently.”
Analysts also pointed to the actions of central banks around the world as helping to boost investors’ interest in gold.
Mohamed El-Erian, chief economic adviser at Allianz SE, said: “While some may see gold as a hedge for the possibility of high inflation, the main driver of investor appetite at this stage is concern about the overvaluation of other financial assets, particularly stocks and bonds whose prices have been artificially lifted by central bank actions.”
Gold is traditionally considered a safe have investment in unsettled economic times and as a hedge against inflation. Many investment advisors see holdings in gold as a crucial part of an investment strategy, alongside stocks and shares to provide a diversified portfolio where risk is spread.
Scot Hanson, from EFS Advisors, for example, advises his clients to have between five per cent and 10 per cent of their total investments in precious metals.
Monday, August 8, 2016
The price of gold has soared in 2016, propped up by China and Russia’s continued purchases of bullion to reduce their dependence on the US dollar, according to analysts.
The World Gold Council calculates that China has around 1,823.3 tonnes of gold, the sixth largest international holding, while Russia has the seventh biggest with 1,498.7 tonnes.
Marketwatch analyst David Marsh said: “China and Russia, the world's No1 and No3 producers, are catching up to the big industrial countries in stocks of bullion in their official reserves.”
China is understood to be upping its gold holdings as part of its efforts to make its currency, the renminbi, a global reserve currency. Russia, meanwhile, is keen to reduce its reliance on the US dollar so that it lessens the effects of any financial sanctions imposed by the US.
Alor Broker commodities specialist, Pavel Khoroshilov, said: “Large scale demand from China and Russia has provided solid support for gold since the beginning of the year.
“From January to April, China bought 11 tonnes per month and Russia bought 14 tonnes per month.”
Gold purchases by Russia and China are building on the two nations’ efforts to boost their bullion supplies in 2015. Last year, the total amount of gold held by governments around the world jumped by 702.5 tonnes. That compares to the relatively small international increase of 176.6 tonnes recorded in 2014.
The Chinese and Russian effects on the gold price are just one element in what has so far been an extraordinary year for the precious metal.
Political and economic uncertainty on a global basis, with events such as Britain’s vote to leave the European Union, have sent investors scurrying to gold for its safe haven properties. It’s possible that the US presidential election at the end of the year will have similar effects on investors and result in the gold price climbing even higher.
Monday, August 1, 2016
The value of gold was down slightly this morning (Monday August 1) after hitting its highest level in almost three weeks before the weekend.
Gold was buoyed up at the end of last week by poor economic figures from the US. Data showed that the US economy grew by just 1.2 per cent in the second quarter of the year, a much slower pace than analysts had been expecting.
Gold ended last week at £1,023.25 per troy ounce at 20:45 on Friday (July 29) and this morning, it stood at £1,017.94 at 06:45. The fluctuations show that the gold price is worth watching closely if you are looking to invest to determine the best points to buy and sell as there will be ups and downs. Although it's worth noting that the trajectory for the year as a whole has been on the up.
Jiang Shu, chief analyst at Shandong Gold Group, told Reuters that investors are likely to waiting for further official economic figures due to be published in the US at the end of the week.
He said: "The (gold) markets will be more prudent ahead of the non-farm payrolls data due on Friday.
"If it is going to be weak, then people will change their expectations about the US economic prospects drastically. If they are relatively good, bad GDP data could be counterbalanced by a good jobs data."
Expectations for the US economy – and therefore whether more investors will head to gold as a safe haven for their money – were mixed at the start of the week. Much of that is due to the different signals coming from the US Federal Reserve policymakers about whether interest rates will rise again before the end of the year.
Dallas Fed President Robert Kaplan was cautious about further hikes in the cost of borrowing but his San Francisco counterpart John Williams has indicated that he expects two rises before 2017.