We hope you are almost ready for Christmas and are enjoying, or are about to enjoy, a short break from work. The title of this week's blog is designed to get all our attention because in truth Gold and Silver prices are "on sale" and have been for some months. I have been following the Gold and Silver market since 2009 and am now entering my fifth year working and writing for Bleyer. Two things have surprised me during that time; first, that our C.E.O. Caroline Peers has the time to bake such delicious cakes and second, that the price of Gold and Silver has been "held down" for so long.
I explore many of the reasons for the second point in our blogs. For a holiday read on a range of subjects do click on our Blog Archive. But we wanted to keep this blog lighter at this time of year for our customers new and old. Suffice to say, the suppressed prices of paper certificates in Gold and Silver affect the price of the real physical metal. So we say, "Let's take advantage of that for as long as possible and buy Physical - not when the price rises dramatically and it's all over the news headlines but - when the price is quiet and suppressed. Please be reassured that the physical demand is still going up, even while the paper price falls. This is explained here if you are interested.
But let's face it, we all love something of value when it's in a "sale" and especially at this time of year. If you're all done on the Christmas presents, settle in and have a wonderful few days with friends and family. But we encourage all our readers to browse our Products pages over a mince pie during the sales on Boxing Day through to New Year's Day. It's a savy time to quietly buy up some Physical Gold and Silver coins and bars.
Now, we always have some products on Special Offer. But we are also encouraging our readers to look over our entire range of Products, because if the demand for Physical coins and bars is rising, particularly in China, Russia, India and the U.S., but the paper price is not yet following, that's a worldwide "sale" and it can't last forever!
Our customers: We are delighted to say that our customers come from all walks of life, so don't write yourself out of the box, because when it comes to those who are awake to the collaspe of paper currency, there is no box. We have been particularly pleased to see the younger generation wake up and become a formidable section of our clientele. We expect the older generation to remember the worth and value of Gold and Silver bars and coins, because many of their parents and grandparents inherently understood this. But the younger generation has been raised in the "credit generation." We believe strongly in Gold and Silver education so it is particularly rewarding to see younger buyers now purchasing smaller items at regular intervals.
During the past year our most popular coin continues to be the Gold and Silver Britannias. This comes as no surprise. These beautiful coins are the U.K.'s Coin of the Realm, offering, in the Gold, both a VAT and Capital Gains Tax exempt investment. In the Silver, it is still Capital Gains Tax exempt. So, a very classic and strategic investment.
The timeless design is quite stunning. The legendary figure of Britannia has symbolised Britain’s strength and integrity on coinage since Roman times. Little wonder then that the Britannia with such a depth of history behind it, has been a popular choice with bullion investors ever since its introduction in 1987. This new specification combined with its tradition and integrity gives new life for today’s investment customer. Gold continues to be desired, as it has been for centuries, for both its beauty and value. We are delighted to offer you an affordable way to appreciate its precious qualities by purchasing the 2016 Gold Britannia Bullion Coin. Issued as UK legal tender, each coin is meticulously struck by The Royal Mint from 999.9 fine gold. Coins are designed for mass storage and safe transit, providing exceptional convenience for all gold bullion coin buyers.
The Britannia is shortly followed in popularity by the ever popular timeless Gold Sovereign. This stunning little coin, about the size of a pound coin, is discreet to transport and store. Containing 0.235 of a troy ounce of gold it is financially more accessible. The Sovereign offers a sense of luxury, history and symbolism that no other coin can match. With its bold St George and the Dragon design, it has become an internationally recognised symbol of unrivalled accuracy, integrity and strength. To this day, it remains trusted, traded, respected and admired the world over. The Sovereign has always been produced by The Royal Mint, an institution with more than 1,000 years of heritage and experience, and we continue to preserve the quality and accuracy of the coin to this day - the standard by which other coins are measured.
The American Eagles and the Chinese Panda's also rank high on the popularity of the Gold coins Bleyer sell, showing that our clients are thinking internationally as well as locally. All these coins have a long and solid history of in-demand Gold Bullion coins recognised the world over as pure investment gold. The vast majority of these stunning coins are available in not only 1oz denominations but also in half and quarter ounce sizes, making almost all the classic coins available to investors with a range of budgets. So, just pick the coin that appeals to you the most and check out the prices for the size that suits you.
In the Silver Coin market, both the Canadian Bird of Prey sets and the UK Lunar series have proven choice investments for our clients. Some of the Australian coins, produced by the Perth Mint, are amongst the most beautiful and popular choices with a selection of 1Kg silver coins available too. Also having their own Lunar series, the Australian coins mainly come in protective coin capsules, even the 1Kg. The 1Kg coins, when compared with 1Kg silver bars are quite competitively priced too, helping to bridge the gap between silver investors and coin collectors.
Our Silver bars are also popular for those looking for a less fussy alternative, as the price of silver is so attractive at this time. We offer Silver bars in 100g, 250g, 500g, 1kg, 100oz, 5kg and 15Kg increments.
What if an event had just happened that was:
1) likely to lower the paper price of Gold and Silver to give even more of a "sale" (thereby affecting the price of the Physical for now)
2) increase the chances of global economic turmoil, at the same time?
What if that event had just happened and was a warning sign to those who could see that 2016 is going to be a bumpy economic ride? Well, this week that event happened. The Federal Reserve raised interest rates - for the first time in nearly 10 years - and that immediately affected the paper price of Gold
. I believe that for a short period of time, the price of Gold will fall, as the world thinks that an interest rate rise might mark the start of an economic recovery. Instead, I believe it will then become apparent at some time in the near future that not only will that not be the case but that the dependence of the rising dollar interest rate for emerging and Eastern economies will increase the chances of an attack on the U.S. dollar as the World Reserve currency. Currency wars are often acted out in real wars.
The Telegraph's Business Editor Ben Wright sounds even more sanguine in this 1 minute video
What better way to hold on to your hats and prepare for some rough weather by investing in the time honoured safe haven of Physical Gold and Silver? As well as our extensive range of Gold and Silver coins, take a look at our Gold bars here and our Silver bars here. Check up daily over the Holiday Season on our Special Offers page and don't forget we sell a range of Home Safes to help you feel secure with your future investments.
If you are new to the Gold and Silver bullion markets and do not yet own some of your own, please enjoy a holiday introductory read of the historical and economical benefits of holding these precious metals in coins and bars. Then browse our products page and determine to start your collection of Physical Gold and Silver. A New Year's Resolution with a difference!
Is this a good time to buy Gold? Hasn't the price fallen this last year, and if so, has the price reached its bottom? First of all, no one can say for sure. But we have researched some interesting expert voices recently, notably John Hathaway from his Gold Report interview. It is a wide ranging subject that requires a wide reaching knowledge of both the markets and the geopolitical factors that should be affecting price. We encourage our readers to do your own research on these topics also. Here are a few of the recommended "signs" that is it an opportunistic time to buy Physical Gold
1) Do people in general (and by that we mean the main stream media) "scoff at gold"? This is often a sign that the bottom of a consolidating market is close to being reached. Are we there yet? Is there blanket scoffing so to speak? We're not sure but we are certainly in the part of the gold cycle where many commentators and I.F.A.'s scoff at holding more than 5% of one's portfolio inPhysical Gold
. And we would say from experience, even less in Physical Silver
. Now this view goes against all the fundamentals of high demand and low supply etc. But mainstream views very often are not backed up by fact and research, otherwise no one would ever get caught out in the financial's market would they? Everyone would be holding Physical Gold
BEFORE every currency collapse. And history shows us that that is not the case.
2) Is a fundamental change of the World Reserve Currency on the horizon and how does this affect the price of Gold and Silver? "God forbid the dollar ever loses its monopoly on reserve currency status. It would change the world. People would have less of an interest in owning U.S. Treasury bonds, for one thing. It may mean that inflation numbers could turn less favourable. The impact on gold
is due to a loss of trust in the dollar-reliant system." Jim Grant, publisher of the Interest Rate Observer
, says it very well: "The price of gold in the inverse of confidence in central banking". As we wrote in on December 2nd article, "Reshuffling the World's Reserve Currencies" the dollar has never been more under threat from China than it is now.
3) How is the Euro holding up? "What is going in Europe is very unsettling to those with savings and capital in that part of the world. If Greece pulls out of the euro or if the Eurozone continues to make huge concessions to Greece, then it would become increasingly difficult to view the euro as a serious currency." (The Gold Report, John Hathaway)
So we at Bleyer believe we are in interesting times. I think, if we are awake to the news, we instinctively know that there is a great deal of turmoil on the horizon. Nations have simply kicked the financial can down the road for far too long for the house of cards not to collapse at some point in the near future. We've heard of recession, inflation and now even deflation. Thankfully, Physical Gold has a history of performing well in all these financial scenarios.
For more than four thousand years, silver has been regarded as a form of money and store of value. It is only since the end of the silver standard in 1935 that silver lost its role as legal tender in many developed countries. This, after centuries of being one of two precious metals that guarded our monetary system against inflation, deflation and currency fraud, the other of course being gold. By 2009, 40% of silver was used for industrial applications. Silver provides a unique combination of properties - conductivity and anti-bacterial being the most well known - that make it ideal for applications in industries ranging from health, medicine, electronics, communications, solar power, batteries, superconductors, computers, as well as jewellery and silverware. As industry continues its wide-ranging use of silver, investors are also increasingly acquiring silver bullion
, seeking the safety of the precious metal as a store of value.
So, is Physical Silver a current investment opportunity? Many in the market think so and their actions prove it, for example some very large investors. "Since early 2012, JP Morgan’s stockpile has grown from less than 5 million ounces of physical silver to more than 55 million ounces of physical silver. Clearly, someone over at JP Morgan is convinced that physical silver is a great investment. But in recent times, the price of silver has actually fallen quite a bit. As I write this, it is sitting at the ridiculously low price of $15.66 an ounce. So up to this point, JP Morgan’s investment in silver has definitely not paid off. But it will pay off in a big way if we will soon be entering a time of great financial turmoil." (Michael T. Synder, Global Research
) One of the other markers that silver is building up for a strong upward correction in its value is the difference between the physical and paper market. In 2011 the ratio was 100:1. The current ratio of Physical silver available for investment versus paper certificates is around 250:1. That means if today everyone who holds SLV in their ETF funds wanted to take delivery of the Physical Silver their certificate represented, only 1 in every 250 people would receive their Physical silver. The paper with which they would be left would be worth only the price of the paper on which it was written. In conclusion, all the above facts would seem to suggest that this is buying opportunity for Physical Silver (and Gold). Bleyer believe that physical precious metals are a traditional form of wealth protection to "hold long." Please browse our catalogue of Silver Bars
and Silver Coins.
If you enjoy our information on Silver, you may like to browse further articles on Silver, covering subjects such as demand, availability and historical price ratios to Gold etc. Here are two from our Blog Page:
"Silver is the New Black."
"All that glitters is not Gold - it's Silver."
We close for business from 24th December to 3rd Jan inclusive. However, we will be taking orders online during that time and of course, our email [email protected] will be monitored and replied to by one of the team should you like to make a purchase. For now, we wish you all a very Merry Christmas, a Happy New Year and look forward to hearing from you over the coming weeks and months.
For the Bleyer Bullion Team