Record Gold Prices: Sell or Hoard?

 

The last quarter of 2010 will go down in the books as establishing a new record gold price. In fact, it established “a new record” several times.  The price is still rising.  So is it time to sell or time to hoard?

Let's look at several things.  We all know the price of gold reacts to how people feel about the stability of currency and the economy.  If the mood is confident (which would be reflected with a rosy U.S. Consumer Confidence report as well as retail and home sales) it's because Americans are feeling good about the value of their dollars and inflation holds steady as the money circulates in the economy.  They spend, put money in the stock market and sometimes “invest” in big screen tv's and iPods. 

But if lack of confidence strikes, they buy gold as a hedge against inflation.  They start to buy or hoard gold "just in case." The price shoots up, but there can be back and forth play between buying and selling.  

Should Americans rush out to sell gold?  Selling is up by those who are suffering economically and are using sales of family heirlooms to pay current expenses.  Until the economy recovers, this may continue.  For them, it's an ideal time to sell.   

What about for businesses? Yes, for a business such as a pawnshop or dental lab, the time is also right because the prices being paid at Manhattan Gold & Silver are at record highs because of the new gold peaks.  Your business may take in gold and sell it a short time later and reap a small benefit.  Holding onto gold supplies makes little sense for a small business which is every bit as likely to lose money by holding assets.  Regular scrapping of metals on a monthly or weekly basis will cost average your sales.     There is no need to stress over fluctuating gold prices.  It’s the same as steady investing; you will yield better returns and will not lose any sleep.  In fact, it's potentially dangerous because prices can fall.

Will the price improve? Possibly, but in between are wild swings, downtrends and other unpredictable moments.  Make your best deal possible and go with it, factoring in your own needs such as closing your books at the end of the year, taxes and expectations for your business in the coming months.  

The most common question to us at Manhattan Gold & Silver, what do we think gold is going to do?  If we had this answer, we would be answering these questions from the beach with a margarita in hand!

 

Gold Prices Grab The Headlines, But is Silver Still a Good Investment?

 

It’s easy to see why so many people are investing in gold. Lately, it seems as if gold prices are continuously on the rise. And as long as the economy is weak, gold investment may be a good investment for the foreseeable future.  While gold has grabbed the headlines, silver may be a good investment vehicle as well.  In fact, since January, silver has outpaced gold as an investment.  If you had purchased $100 worth of silver, it would now be worth $146.  A gold investment of the same amount would only get you to the $126 mark today.

Silver may continue to be a good investment for a few different reasons.  As the price of gold rises, silver also rises as an alternative to paper currency and as an investment option. Also, silver is used more commonly within industrial commodities.  This makes silver more expensive as a whole.  

So while much of the world has been recycling their gold at record prices, now may be a great time to invest in silver.  Those without the means to invest may have silver pieces that will fetch a higher price if brought in for recycling as compared to the past.

Manhattan Gold and Silver recycles silver, gold and other precious metals (B2B).  In many cases, you can have a transaction settled within minutes of stepping through the door. Visit our physical location or contact us for more information about our precious metal refining services.

Recycling E Waste May Become Very Profitable in the Future

 

With the increase in the amount of computers and other devices which contain precious metals, a recent study is speculating that E waste recycling could become a $21 Billion industry by 2020.  In 2009, the E waste recycling industry topped $6.9 Billion.  

E Waste consists of gold and other precious metals that can be found in computers, mobile phones, televisions and other electronic devices. Advances in technology reduce the lifecycle of these devices which increases the demand for newer, up to date models.  Old models are simply discarded because it is cheaper to do so.  China and India are slated to have the biggest booms for potential E Waste recycling, because so much of the product is produced and purchased there.  An increase in waste is common for growing economies like those of China and India.

Software producing companies and countries also contribute to the increasing E Waste problem.  The demand for high tech devices puts more strain on software manufacturers to keep up.  More complicated software requires more sophisticated machines to produce them.  So as the software changes and becomes more high tech, the software companies must purchase larger, faster and more high tech computers, servers and other devices to keep up. 

The recently published study is available for purchase from GBI Research.