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A Brief History of Gold The allure of gold is as old as civilization itself. Many forms of currency have been used over the years as a store of wealth and means of exchange, including livestock, tobacco, various precious metals, and paper currencies backed by the governments that issued them. But across the span of history, nothing has been as enduring and universally accepted as gold. An object of indisputable value is “as good as gold.” Athletes are awarded gold medals as a symbol of being the absolute best in competition. Why is it that gold has emerged as the “gold standard” of currencies? Monetary historians typically point to four reasons why gold has had such enduring popularity: beauty, indestructibility, malleability, and rarity.
Beauty Gold is a splendid color. Our sun is a golden sun. Indeed, the ancient Incas worshipped the sun as a deity and they used gold throughout their religious rites as a symbol for the sun god. The luster of gold is warm and reassuring. We have a strong, for many even mystical, attraction to gold that transcends that of other natural substances.
Indestructibility It is estimated that 150,000 –160,000 tons of gold have been produced in human history and most of it is still in existence in one form or another today. Gold does not rust, tear, fade, or decay. It is a truly remarkable substance. Without question, part of the reason it has endured as a form of currency is its physical ability to survive the ravages of time.
Malleability For all its durability, gold is a soft metal. It can be melted and molded to virtually any shape. This has made it a flexible tool for artisans throughout the ages. From vessels of religious ritual to jewelry to the plating of capitol domes, gold is an incredibly versatile metal. It has been
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used in countless ways as a physical symbol of excellence, elegance, and beauty.
Rarity Gold strikes a special balance of being rare but not too rare. It’s been rare enough to be valued by almost all cultures but it has also been present geographically throughout the world so that, from earliest days, it was perceived as valuable in virtually every corner of the world. From Africa to Asia to Europe to North and South America, gold was one form of currency that was universally valued as a store of wealth by early civilizations.
Early Gold Coin from era of King Croesus King Croesus of Lydia is credited with minting the first large-scale issue of gold coins in 561 B.C. He was the first ruler to turn gold into the official currency of his realm. In so doing, he also blended art with his currency to begin a long tradition of giving coinage value and meaning Early Gold Coin from era of above and beyond its intrinsic value King Croesus as a precious metal. King Croesus was followed by the Greeks who took particular pride in creating coins that were not merely functional but were also beautiful. Indeed, many Greek coins were works of art in and of themselves. Their value to today’s collectors is predicated far more on their rarity and beauty than on the intrinsic value of the gold from which they were made. In turn, the Romans admired the coins of their Greek predecessors and emulated their style of elegance and art when creating their own coinage. Gold has been used down through the ages as coinage. From the legendary “pieces of eight” minted by the Spanish to the beautiful St. Gaudens $20 gold piece commissioned by President Theodore Roosevelt. But gold has always been about more than just coinage. There has also always been a market for gold bullion, pure gold whose value is established independent of any government backed currency.
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From 1933 to 1975, U.S. citizens were not allowed to own gold, except in the form of jewelry or numismatic rarities (rare coins). The reasons for this go beyond the scope of this presentation. Suffice it to say, however, that there has always been a world market for gold. And for the last 40 years, many U.S. citizens have benefited from owning gold as the price has increased from approximately $40 per ounce to its current price levels near record highs. Independent of its role in coinage, gold has always maintained its own intrinsic value. Gold has been traded in its pure form through the many centuries in which alternative currencies have come and gone. Charles De Gaulle, former President of France, summed up gold’s position in the hierarchy of currencies eloquently:
“Indeed there can be no other criterion, no other standard than gold. Yes, gold which never changes, which can be shaped into ingots, bars, coins, which has no nationality and which is eternally and universally accepted as the unalterable fiduciary value par excellence.”
intrinsic value, it is literally worth the paper it is printed on! And the same is true of paper currency. The dollar bill in your wallet is backed by the full faith and credit of the United States Government. If a majority of people were to lose faith in the financial credibility of the United States Government, it would have a direct and adverse affect on the value of that dollar. Not only that, but the dollar is subject to inflation. “A dollar doesn’t go as far today as it used to” is a phrase we have heard many times. And it’s absolutely true! The value of a dollar will also vary relative to the strength of other world currencies. A U.S. dollar is not worth the same number of English Pounds, Japanese Yen, or Euros from day to day. Alan Greenspan, testifying before congress, said:
Why Buy Gold? Why buy gold? There may be as many reasons as there are people who buy it but the following represents a few of the most prominent reasons for investing in gold.
Gold is a “Hard” Asset Financial analysts classify gold as a “hard” asset, meaning that it has value in and of itself. Stocks, bonds, and even cash are categorized as “soft” assets because their value is dependent upon your faith in a third party to support the value of the asset. In the case of stocks or corporate bonds, the value of the stock or bond is tied directly to the performance of the company that issued it. There is no intrinsic value in a stock or bond certificate. From the perspective of
“I do think there is a considerable amount of information about the nature of a domestic currency from observing its price in terms of gold. It is a longerterm issue. It is an issue which I think is relevant, and if you don’t believe that, you always have to ask the question why it is that central banks hold so much gold which earns no interest and which costs them money to store. The answer is obvious: they consider it of significant value and, indeed, they consider it the ultimate means of payment, one which does not require any form of endorsement. There is something terribly important that the gold price is telling us. I think that disregarding it is to fail to recognize certain crucial aspects of the value of currencies.”
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Many financial advisors will recommend that a diversified portfolio should have some “hard” assets in addition to “soft” assets. And over thousands of years, gold has proved to be the most popular and enduring “hard” asset in the world.
Gold is a Hedge Against Inflation We have not experienced high inflation for the past 20 years and, for some, it may be a distant memory. It’s also important to note that current inflation figures produced by the U.S. government exclude oil and food. This produces a lower, more stable number that is also deceiving from a consumer standpoint. There’s no getting around the fact that when oil and gas prices go up, your dollar is buying less for you. The more it costs you to heat your house and fill your gas tank, the more money you need to meet basic needs. Nevertheless, gold tends to perform well in times of high inflation. Gold is an effective tool for preserving wealth against inflation over the long term. This was proven empirically in a 2000 study conducted by the University of Stirling (Scotland). They compared the monthly gold price to the U.S. Retail Index from 1976 – 1999 and concluded that, while short-term results might fluctuate, gold served as a hedge against inflation over the long-term.
Gold is a “Safe Haven” In times of financial turmoil, when our faith in financial institutions - including the government - is strained, the value of gold tends to go up. In another section of this report, we look at the recent history of gold. You’ll note that times of significant difficulty in the world tend to cause gold prices to increase rapidly. They are also likely to fall when relative calm is restored. Nevertheless, gold represents a portion of your port-
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folio that will increase in value at a time when your other investments are being battered and you’re in need of a safe haven.
Gold is a Speculative Investment Gold prices have risen over time. Some of those increases have occurred suddenly and rapidly. Conversely, the price of gold may also be subject to rapid declines. As a result of this relative volatility, an element of the investing public chooses gold as a speculative investment that will allow them to capitalize on dramatic short term gains, should they arise.
Ways to Invest in Gold The primary purpose of this report is to educate and inform about gold with a focus on gold bullion. There are other ways to invest in gold, however, and, while emphasizing bullion, we’ll also make note of two other common ways to invest in gold.
Gold Bullion Gold bullion is unadulterated gold and is typically bought in coin form or in small gold bars. Bullion coins should not be confused with numismatic coins, whose value depends on their rarity, design and finish more than on their fine gold content. Bullion coins are technically legal tender in their country of issue, but this would only be for their face value rather than for their gold content. The first, and most famous, gold bullion coin was the South African Krugerrand. It was the first bullion coin to be marketed as an investment product. Countries ranging from Australia to China to Singapore to the United States of America now market bullion coins. Gold bullion coins range in size from 1/20 ounce to 1000 grams, although the most common weights (in troy ounces of fine gold content) are 1/20, 1/10, 1/4, 1/2, and 1 ounce. The market value of bullion coins is determined by the value of their fine gold content, plus a mark-up that varies between coins and dealers.
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The Recent History of Gold Prices GOLD - MONTHLY AVERAGES 1968–2008 $2,000.00 Gold Prices Inflation Adjusted Gold Prices
$1,800.00
$U.S. PER OUNCE
$1,600.00 $1,400.00 $1,200.00 $1,000.00 $800.00 $600.00 $400.00 $200.00 2008
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$0.00
The history of gold prices from 1968-2008 (actual and inflation adjusted) are depicted in the chart above. It’s educational to view the rise and fall of gold prices in relation to specific world events during select periods of our recent past - some of those events are detailed on the following pages.
Gold bars may be bought in a variety of weights and sizes, ranging from as little as one gram to 400 troy ounces (1 kilogram is equivalent to 32.1507 troy ounces) which is the size of the internationally traded London Good Delivery bar. There are approximately 50 accredited manufacturers of small gold bars, producing more than 325 standard gold bars between them. As with bullion coins, small bullion bars contain a minimum of 99.5% fine gold. Gold Stocks Some people choose to invest in gold by investing in stocks of gold mining companies. It is important to note that such stocks are a “soft” asset, however, and do not offer the same benefits as owning gold bullion. Nevertheless, gold stocks typically fluctuate in concert with the price of gold bullion. If there is an increase in the price of gold bullion, mining stocks will respond accordingly. Choosing well among mining companies can lead to superior results.
Numismatic Gold Numismatic gold are rare coins. As noted previously, numismatic gold is valued for its rarity, design, and quality of preservation more than its gold content. Nevertheless, it should be noted that, historically, numismatic gold has outperformed gold bullion as an investment. Carefully selected pieces of numismatic gold can offer many of the same benefits as gold bullion with even greater financial returns.
The Recent History of Gold Prices 1972–1976: 1972 marked the beginning of a run-up in gold prices from approximately $40 to well over $100, a mark that gold would not dip below again, even with all the market corrections that would subsequently occur. The early 70’s marked a period of economic and political turmoil. The Vietnam War was going poorly, President
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Nixon devalued the dollar and inflation was on the rise. The price of gold continued to rise as the Watergate scandal escalated and led to the eventual resignation of the President. Gold prices temporarily peaked in 1975 at almost $200 with inflation on the rise, OPEC price increases, and the assassination of King Faisal of Saudi Arabia. As the political and economic situation stabilized, gold prices retreated to the $100 level.
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THE RECENT HISTORY OF GOLD PRICES – CHARTS OF KEY PERIODS 1972–1974
1968–1980
200 700
180 160
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$U.S. per ounce
120 100 90 80 70
400
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200
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50 40
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1978–1982: This period saw a precipitous rise and a not quite equally precipitous decline in gold prices. Once again, political and economic crisis drove gold prices. Double-digit inflation, double digit lending rates, a recession, a world-wide monetary crisis, and the Iran hostage situation created a gold frenzy that drove prices to their all-time high of $875. With the election of President Reagan and an improved economic outlook, the price of gold retreated significantly but still remained well above its pre-1978 price level.
$U.S. per ounce
140
1968 – 1980: This period saw a dra-matic increase of over 540% in the price of gold to well over $800 per ounce.
1972 – 1974: The price of gold quadrupled during this three year period.
1983:
2000–2008
1983 saw another spike in the price of gold as a European monetary crisis coupled with an extremely high unemployment rate in the U.S. created economic uncertainty.
$1,000.00 $900.00 $800.00
$600.00 $500.00 $400.00 $300.00 $200.00 $100.00
1990–2000: A strong economy and a comparatively calm period in world affairs prompted gold prices to hold steady before beginning a steady retreat.
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2002
$ 0.00 2000
1986–1989: Black Monday, the stock market crash of 1987, led to a flight to gold that fueled a price increase. The Savings and Loan crisis, which precipitated a $300 billion government bailout, also prompted the price of gold to move higher still.
$U.S. per ounce
$700.00
2000–2008: Our more recent history is fresh in our minds. Economic recession, the attacks of 9/11, decreasing housing prices and the invasion of Iraq laid the foundation for a period of steady increases in the price of gold. While the price of gold is up over 300% since 2000, it is still well below its inflation adjusted high of over $2,200 per ounce.
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The Outlook for Gold Just as there are bulls and bears in the stock market, there are bulls and bears in the gold market. Over the last four years, the bulls having been largely correct about the gold market. Here are some of the factors that the bulls have cited for a continued climb in the gold market:
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“As Asian citizens and investors grow wealthier, their traditional love of gold will ultimately lead to huge amounts of capital shunted into physical gold as they diversify their investments”.
Information Free Markets Mr. Hamilton believes that the advent of Internet technology has fueled the price of gold and will continue to do so. He states that:
Supply and Demand In addition to an increased demand from investors, there are also many commercial applications for the use of gold, from dentistry to electronics. Demand has been ahead of supply for a while now and bulls foresee this trend continuing.
Inflation As noted previously, U.S. government inflation rates do not include the price of food and fuel. Gold bulls believe that current inflation rates are not merely understated, they believe they are significantly understated. As this becomes increasingly apparent, they believe more people will look to gold as a hedge against inflation, further driving up the price.
“Today investors around the world can easily learn about monetary history, stock-market history, gold, the immoral stealth tax of inflation, and countless other crucial core topics essential to long-term wealth building.” He contends that this increase in knowledge on the part of investors will lead to increased investing in gold. In the long-term, however, we believe the issue isn’t really about bulls or bears; it’s about having an appropriately diversified portfolio that is balanced to serve your financial objectives. Most financial advisors believe there is a role for gold in almost anyone’s portfolio. It’s a question of how much gold you should hold.
Economic & Political Uncertainty The primary source of uncertainty in today’s landscape is a sluggish economic recovery and a volatile political environment in the Middle East. Bulls do not foresee good news any time soon on these fronts. In addition to these points made by virtually all analysts who are bullish on gold, Adam Hamilton cited two additional factors in his February 2005 article entitled Contending Gold Perspectives:
The Rise of Asia Like many people, Mr. Hamilton notes that China is a looming economic giant. He believes that China, India, and other Asian cultures have historically placed a higher value on gold as a means of wealth and currency than other cultures. He states that:
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How to Choose a Gold Firm... A Checklist for Investors Over the years, we’ve developed a great deal of experience in acquiring gold for investors’ portfolios. We’ve worked with highly experienced gold investors and people who are making their very first gold purchase. We’ve worked with many people on an exclusive basis as well as some who work with multiple firms. Given our wide range of clients, we’ve developed some strong opinions on how a firm involved in the sale of gold and rare coins should conduct themselves. Certainly, we hope you choose Superior Precious Metals to make any gold purchases on your behalf. But no matter who you work with, it’s been our experience that you should work with a firm that meets a certain set of criteria:
It’s critical that you work only with firms that have been around a long time.
Five years at a minimum…ideally ten years or more. As gold begins to rise, new firms will come “out of the woodwork.” Some will be solid, but many will not. Firms ten years old or more have been around through thick and thin. They are dedicated to the gold market and are usually owned by and employ professionals who truly believe in the gold market. These are the best firms with which to establish a long-term relationship.
Check for credentials and professional affiliations.
What are the professional organizations to which the firm belongs? Make sure they are members of PNG (the Professional Numismaists Guild). Request written information about the firm. Do not buy until you have reviewed it and checked out the firm. Most of the better firms have literature you can request which will contain much of the information you need to conduct your due diligence.
Understand exactly how transactions are going to take place.
When is the price set? You should expect to take delivery of the gold (some less reputable firms will ask that they hold on to the gold – this is a big red flag). How long should you expect for delivery? Bullion and bullion coins should come to you within ten business days. Semi-numismatic (semi-rare coin or pre-1933 U.S. gold coin) and numismatic (rare coin) transactions may take longer. Make sure delivery times are within these industry standards. If they are not, it is yet another red flag.
Understand exactly how you might liquidate your investment.
Firms may have many “great investments,” but what about when the time comes to capture any gains you make on the purchase? You should understand what means are available to liquidate any inventory you amass. Sometimes firms will make a secondary market through sales to other collectors, auctions, etc. This can be very helpful.
Understand price margins and – critically – buy/sell spreads.
Many disreputable dealers make their money by “gouging” buyers with overtly high spreads. Ask questions about the buy/sell spread when you’re interviewing potential firms and check the answers by comparing their claims with what other firms tell you.
Beware of sales pitches.
If the firm calls you repeatedly with one “unbelievable deal” after another, be careful – it may well be unbelievable. If they persist in trying to sell you something in which you have no interest, this is another red flag. Resist and seek more information and other opinions. Do not make a decision until you have received sufficient information. Remember…gold is a great investment. It virtually “sells itself,” so any firm that has to resort to aggressive selling tactics should be viewed with suspicion.
Check and compare pricing.
Cheaper is not always better. In fact, below market pricing should be a major concern. If a deal sounds too good to be true, it probably is.
Trust referrals.
As with most things, sometimes the best firm to deal with is the one you are referred to by a trusted friend or family member who has experience with that firm.
If you receive information from a good firm, and you like what you see and hear, go with them.
If you have the slightest doubt, especially if the firm does not sufficiently meet the criteria above, then go back to square one and start over. Naturally it’s always better to be safe than sorry.
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Gold Terms Defined The following terms and definitions related to the gold market are from materials provided by the World Gold Council:
Account – allocated: An account in which the client's metal is physically identified as his; he becomes a secured creditor of the holding bank. Account – unallocated: An account in which the client's bars are not specifically ring-fenced, and which is cheaper than an allocated account in that storage charges are obviated. The client carries higher counter-party risk, however, as he is an unsecured creditor. Assay: To test a metal for purity. Backwardation: The difference between a forward price and a nearby price when the latter exceeds the former. Bar: Typical gold product, either for trading or for accumulation. Bars come in a variety of shapes weights and fineness and different bars are favoured in different parts of the world; see the weights conversion table in the Discover domain. Bear: Someone expecting prices to fall. Bid/ask: Bid or buy is the price a dealer is prepared to pay for gold bullion. Ask or sell is the price offered by the seller. (See also, the definition of “Spread”.) Bull: Someone expecting prices to rise. Bullion: Originally meaning melting place, from the French bouillon, boiling, derived from the Latin bullio. Bullion coin: A legal tender coin whose market price depends on its gold content, rather than its rarity or face value. Certificates: Gold certificates are a method of holding gold without taking delivery. Issued by individual banks they confirm an individual's ownership while the bank holds the metal on the client's behalf. The client thus saves on storage and personal security issues, and gains liquidity in terms of being able to sell portions of the holdings (if need be) by simply telephoning the custodian. CFTC: Commodity Futures Trading Commission, the regulatory body in the US covering futures markets. COMEX: The New York Commodity Exchange, now a division of NYMEX, the New York Mercantile Exchange. The contracts in the COMEX gold market consist of 100 ounces each, and the actively traded contracts are the even months of the year. Consignment stocks: A bullion dealer may hold gold on consignment at a client's premises. It is the dealer's property until the client withdraws it and pays the prevailing price. Alternatively, it may be held by the dealer at local banks until the clients come forward to purchase and take delivery. Contango: The difference between a forward price and a nearby price when the former exceeds the latter. This is the usual situation in gold and if there is no constraint anywhere along the supply pipeline then the contango will reflect prevailing interest rates and storage charges.
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Deferred settlement: A situation in which the settlement of a bullion market contract is deferred daily. Delivery: The transfer of the asset from seller to buyer. This does not necessarily involve physical shipment but can be done on paper with the bullion remaining in the vaults of a specified bank. Dor: A gold-silver alloy, an intermediate product from certain gold mine Face Value: The nominal value given to legal tender coin or currency (for example a 1-oz. Gold American Eagle coin has a face value of $50). Fineness: Gold purity, usually expressed in parts per thousand; thus 995 or two nines five is 995/1000 or 99.5% pure. 995 was the highest purity to which gold could be manufactured when good delivery (q.v.) was determined, but for very high technology applications now it is possible to produce metal of up to 99.9999% purity. Fix: The London gold fixing (see: www.goldfixing.com) takes place twice daily over the telephone. The current four members of the fix meet at 10:30 and 3:00 London time and commence the fix with a trying price. Once Rothschild’s seat has been sold, there will once again be five fixing members. The fixing members’ representatives relay the price down to their dealing rooms, who are in contact with as many bullion dealers as are interested (or who have interested clients) and these market members then declare how much metal, on a net basis, that they require to buy or sell at that level. The dealers are themselves in contact with their clients, who may change their order, or add or cancel an order, at any time. The position declared by the dealers is the net position outstanding between all their clients (i.e. if one bank has clients wanting to buy a total of two tonnes, and other clients wanting to sell a total of one tonne, then he declares himself as a buyer of one tonne). Each fixing member then nets off the position and declares himself, as the representative of all those interested parties, as a net buyer or seller (and of how much), or to be in balance. If the market is out of balance with more gold required than offered, then the price will be adjusted upwards (and vice versa) until balance is achieved (because some clients will pull out if the price does not suit them). At this point the price is fixed. On very rare occasions the price will be fixed when there is an imbalance, at the discretion of the chairman of the fix. The fix is thus entirely open and any market user may participate through his bank. Futures contracts: An agreement to buy or sell a specific amount of a commodity or financial instrument at a particular price on a stipulated future date; the contract can be sold before the settlement date. Futures contracts are standardized and are traded on margin on futures exchanges, such as TOCOM or the COMEX division of NYMEX. GOFO: The Gold Offered Forward Rate, which is the rate at which dealers will lend gold against US dollars. Gold Forward Offered Rate (GOFO): See above Gold Loan: A financing mechanism whereby gold is borrowed from a bullion bank (which has usually borrowed it from a central bank or banks), and sold into the market to raise cash, usually to finance a gold mining operation. The metal is then repaid over an agreed period of time. The interest on the loan is usually paid either in dollars or in gold subject to the agreement between the counter-parties. Gold Standard: A monetary system based on convertibility into gold; paper money backed and interchangeable with gold. Good delivery bars: Also referred to as large bars, the ingots that conform to London Good Delivery standard. Good delivery standard: The specification to which a gold bar must conform in order to be acceptable on a certain market or exchange. Good delivery for the London Bullion Market is the internationally accredited good delivery standard. A good delivery bar for London should weigh between 350 and 430 ounces (gold content), of minimum purity 99.5% (two nines five). Further specifications can be obtained from the LBMA. Grain: One of the earliest weight units used for measuring gold. One grain is equivalent to 0.0648 grams. Hallmark: Mark, or marks, which indicate the producer of a gold bar and its number, fineness, etc.
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Hedging: The use of derivative instruments to protect against price risk. Karat: Unit of fineness, scaled from one to 24. 24 karat gold (or pure gold) has at least 999 parts pure gold per thousand; 18-karat has 750 parts pure gold and 250 parts alloy, etc. Kilo bar: A bar weighing one kilogram -approximately 32.1507 troy ounces. Lakh: A trading term meaning 100,000, deriving from the Indian word of the same meaning. LBMA: The London Bullion Market Association acts as the coordinator for activities conducted on behalf of its members and other participants in the London Bullion Market, and it is the principal point of contact between the market and its regulators. Legal tender: The coin or currency which the national monetary authority declares to be universally acceptable as a medium of exchange; acceptable for instance in the discharge of debts. Liquidity: The quality possessed by a financial instrument of being readily convertible into cash without significant loss of value. Loco: The place at which gold is held and to which a delivery price applies. London is the common denominator worldwide and represents the basis for international trading and settlement in gold and silver. Lot Alternative term for a futures contract. Margin: A deposit required to be put up before opening a futures, forward or option contract. Margin (initial): The amount of money deposited per contract at the start of the trade. Margin (maintenance): A sum that must be maintained on deposit throughout the life of the trade. Margin call: Money that is called for from the client, during the life of the transaction, to cover exposure resulting from an adverse price movement (or an endemic increase in margins by the exchange). Market Maker: A dealer who makes a market, i.e. quotes bid and offer prices to counter-parties and is prepared to deal at those prices. Numismatic: Coins that are valued for their rarity, condition and beauty beyond the intrinsic value of their gold content. Generally, premiums for numismatic coins are higher than for bullion coins. Pennyweight: An American unit of weight for gold. Twenty pennyweights equal one ounce. Restrike: A modern replica of previously issued coins. Governments and their mints can choose to restrike a previous issue rather than introduce new coinage. Spot price: The price for spot delivery which in the gold market is two days from the trade date. Spread: The difference between Bid (the price a buyer is prepared to pay for gold) and Ask (the price a seller offers) prices.
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Conclusion No method of storing or exchanging wealth has survived so long or so well as gold. Financial advisors are nearly unanimous in their assertion that a portion of any well-diversified portfolio must be dedicated to gold. Whether gold prices will rise or fall in the short-term is impossible to predict with certainty. Based upon historical evidence, however, one can safely predict that gold will serve as a secure store of wealth, a safe haven in times of turmoil, and a superior hedge against inflation.
About Superior Precious Metals Superior Precious Metals and its parent company Superior Galleries trace their history to 1930 and have been faithfully serving clients for over 75 years in the rare coin and precious metals markets. As one of the largest and most highly regarded companies in our field we specialize in matching both sophisticated numismatists and brand new investors with the high quality rare coins and precious metals that meet their portfolio’s needs. In 2007, Superior Galleries was acquired by DGSE Companies, Inc. (AMEX: DGC). This event marks the continuing expansion of services of the DGSE family of companies. Superior’s acquisition by DGSE demonstrates a long-term commitment to the bullion and rare coin industry, believing that hard assets should be a key component in the diversified portfolios of our high net worth clients. Both Superior’s and DGSE’s continued involvement with numismatics and precious metals is strong evidence of the stability and value represented by timely, strategic investments in bullion and rare coins. Since our founding, Superior has grown into one of America’s premier rare coin and precious metal dealers by never wavering in our attention to the interests of our clients. Combining a unique blend of industry expertise, longevity, and financial strength, we are able to offer a complete range of services to any investor. The next time you are ready to buy, sell, or trade precious metals or rare coins, Superior Precious Metals will be happy to put over 75 years worth of experience to work for you.
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