Gold continued its bullish run last week as it traded at the $1340 an ounce level late on Friday, reaching its highest level in nearly four months. The rise in gold demand was fueled by increased violence in the Gaza Strip as Israel increased rocket attacks and made plans for ground troop movements, both of which increased safe haven demand for the yellow metal. U.S. equities, conversely, fell during the week in what was nearly the largest one week drop for U.S. stock prices since April of this year. Concerns linger over the combined threat of rising interest rates from the Federal Reserve and growing international geopolitical tensions that could finally burst the equities bubble, and that will cause even more reason for optimism for precious metals investors.
Safe haven demand for gold was furthered last week by other factors as well, including growing concern over the true health of the Chinese economy and the combined economies of Europe, with Portugal leading the new wave of concerns over European economic strength. Bond yields are still over 12% in the troubled Portuguese bond market, and continued deficit spending from the government of Portugal has mirrored the debt, default and financial chaos patterns of Greece and more recently Argentina. The specter of even more global debt and paper assets going bust once again has done nothing buy enhance the lure of buying gold and silver as investors flock in even greater numbers to hard money assets.
With silver firmly in a bull run as it crossed through $21.50 an ounce last week, gold will look to continue its march to the $1400 level this week. The next resistance level for gold appears to be the $1375 an ounce level, and once that level is breached, we should see a quick run through the technically and psychologically important $1400 level.
How to invest in gold and silver
With the prices working toward a continued gain, now is the time to invest in gold and silver. There are several ways to accomplish this, depending on your investment strategies. You can hold gold and silver as hard assets to protect your savings better than any savings account could. You can also create a precious metals IRA that will allow you to benefit from the many tax benefits that IRAs provide. Another profitable option for investing in gold and silver is through the acquisition and holding of rare coins. Rare coins are a very popular treasure asset that both protects your wealth and allows you to display your wealth in a beautiful and interesting way.
To help you better understand your options in investing in precious metals like gold and silver, we are offering a free Investors Guide to Rare Coins and Precious Metals. Inside, you will find more in depth information including: The Difference Between Bullion and Numismatic Coins, Advantages of Investing in Numismatic Coins, Advantages of Investing in Bullion Coins, Information on Precious Metals IRAs, a List of Coins that Qualify for IRAs and an extensive FAQ.
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