Gold traders are expecting those Buying Gold to witness the best start of the year in 2012. They primarily assume this due to the pledge taken by the Federal Reserve to maintain low interest rates until end of 2014. On January 25, 2012, gold trading companies saw the price of gold ETFs jump by $3.9 billion. Bloomberg surveyed 15 gold traders and nine of them expected the prices to rise further in the first week of February 2012.
Such a rapid increase is credited to lower interest rates, since many believe that low rates raise the appeal of owning bullion, as investors get their returns when prices rise.
Bullion saw an increase of 2.7%, which is considered to be the best in the past three months. Ben S. Bernanke, the Federal Reserve’s Chairman, was quoted as saying that in order to boost growth, he was considering the purchase of additional bonds. The Federal Reserve bought $2.3 trillion in debt from December 2008 to June 2011, during which time the price of gold appreciated by 70%.
However, in order to benefit from such a situation, investors mostly turn to gold trading companies for help. Investing in gold may involve a large amount of your savings and it is safer to take the help of professionals who know the ropes as well as the best areas to make an investment in.
Purchasing Gold with Help from a Gold Trading Company
If you want to make a successful purchase in gold, it is advisable that you contact a reputed gold trading company to help you. This will prove beneficial as such companies will help you in predicting how your purchase will turn out in the long run. So, consider utilizing the services of an experienced professional for all your precious metal purchase needs.
Some common suggestions by a gold trading company for a beneficial purchase are:
1. Numismatic Coins: Many experts recommend investing in gold coins of good quality. The most popular coins for purchasing as suggested by professionals are the American Double Eagle Liberty and St. Gaudens. However, there are fake coins that circulate in the market and if you enlist the help of an experienced gold trading company, you will save yourself from being conned into buying such pieces.
2. Bullion: If you wish to invest in bullion, you have a choice of either investing in bullion coins or bullion bars (ingots). Both coins and bars are good options for preserving wealth by experienced buyers. You will need to make a choice depending on your preference and reason for purchase.
3. Portfolio Diversification: Most gold trading companies these days suggest purchasing for a diverse portfolio. This helps to spread your resources in a calculated way.
A gold trading company might be able to read the market situation better and predict what lies in store in the near future. This expertise can prove beneficial to you if you wish to purchase gold. However, make sure that you do a background check on the firm you wish to hire in order to get the best services. Apart from a market survey, consider hiring only those professionals who have experience of working in this domain for a minimum of 10 years. This will help you have a good experience in buying gold.