This week in gold, we discussed a couple of news items that highlighted the lasting importance of gold to central banks and consumers. We also answered a commonly asked question about the price of gold that you may have been curious about. Read below for more information on these stories.
Swiss voters reject gold initiative
Remember the Swiss gold referendum that would require the Swiss National Bank to hold 20% of its assets in gold? The Swiss people ended up voting against it on November 30, but many analysts and gold bugs are focusing on the bigger picture. The most common conclusion reached was that the initiative is a sign of increased mindfulness among the public about gold and its role in monetary policy. Read more on this in Monday’s blog.
CNN: How central banks and consumers still rely on gold
A recent CNN article titled “Good old-fashioned gold: how consumers and banks still rely on it” discussed the strong attraction to gold as a safe-haven asset that has been present for thousands of years. Gold “has provided a tradable commodity which investors have turned to in uncertain times. It’s a safe haven, the asset of last resort,” the authors wrote. The article also touched on gold mining and how growing global demand has driven some mining companies to extreme lengths to find quality deposits. For instance, one Canadian company built Europe’s largest gold mine in the northern Finland town of Kittila, located 78 miles into the Arctic circle where winter temperatures drop to -23 degrees Fahrenheit. See more in Wednesday’s blog.
Can I buy physical precious metals at spot price?
When you look up the price of gold, the figure you are most likely to come across on TV or the internet is the spot price. When you go to a coin shop or a precious metals broker to buy physical gold coins or bars, you will soon realize that they charge more than the spot price. Why is this? What goes into the additional cost? We explain this in Friday’s blog.
Want to hear more about what’s going on in the gold market and how adding gold to your retirement account can help protect your wealth? Call American Bullion today at 1-800-326-9598 to speak with one of our knowledgeable precious metals specialists.