BUYING GOLD: WHAT TO LOOK FOR
Gold is a physical, tangible asset that is one of the oldest and most enduring forms of legal tender. Gold has long been considered a measure of true wealth, both currently and historically. Among the features and benefits to consider when acquiring gold are the following:
1. Divisibility
Gold products come in a variety of sizes ranging from one gram bars to one kilo bars. Many people prefer coins which are smaller than the traditional one ounce coin due to its size as well as the ease of liquidating in increments of less than one ounce.
2. Privacy
Privacy is among our clients' top concerns, especially with the rise of identity theft. Certain gold coins can be liquidated with a minimum of personal information. Unlike many financial assets, clients are not required to provide a Social Security number when they sell certain coins.* Consumers are advised to be careful about sharing their social security number with others. You should consult with your tax advisor regarding the proper reporting and taxability for all coins, precious metals, and rare currency.
3. Potential Protection from Recall
Based upon precedent, gold bullion and bullion coins can be recalled by the government in times of national emergency. When the US government last recalled gold from its citizens via Presidential decree in 1933, gold coins with "a recognized special value to collectors" were exempt from recall. Owners of these select coins were able to retain these assets throughout the entire 20th Century, even during the several decades where gold ownership by Americans was outlawed.†
Goldline recommends that you acquire a sound understanding of precious metals, coins, and their markets. Perform your due diligence, review our important risk information and let reason and common sense be your guide. Our Account Executives are available Monday - Friday, 6:00 a.m. - 6:00 p.m. PST and on Saturdays from 7:00 a.m. - 3:00 p.m. PST to answer any questions you have.
† The executive order "FORBIDDING THE HOARDING OF GOLD COIN, GOLD BULLION AND GOLD CERTIFICATES" provided a few exemptions. Exemptions were made only for gold needed for art and industrial purposes; foreign central banks; gold for reexport and "Gold coin and gold certificates in an amount not exceeding in the aggregate $100.00 belonging to any one person; and gold coins having a recognized special value to collectors or rare and unusual coins."
- S&P Capital IQ - Gold: $1,900 (in 2012) "Leo Larkin, metals and mining analyst at S&P Capital IQ, thinks that $1,900 gold might not be that much of a stretch [in 2012]. 'Gold has been ..."
- Citigroup - Gold: $2,300 - $2,400 (by end of 2012) "While we remain cautious on Gold in the near term...we continue to believe that the bull market remains intact...we believe that 2012 may be..."
- Leeb Capital Management - Gold: $2,500 - $3,000 (in 2012) "I'll give you my target for gold at the end of 2012, it's going to be trading somewhere between $2,500 and $3,000. This..."
- Global Hunter Securities - Gold: $1,800 (in 2012) "'What I am looking for is a gold price of $1,800 an ounce in 2012,' says Jeffrey Wright, senior research analyst at Global Hunter..."
- US Global Investors - Gold: $3,600 (by 2017) "'People get so caught up with the next three minutes for gold and they should really be focused on the next three years,' says Frank Holmes, ..."
- Goldman Sachs - Gold: over $1,900 (in 2012) "Wall Street investment bank Goldman Sachs predicts that gold's bull run will continue into 2012 with a low interest rate environment and..."
- CNBC - Gold: $2,400 (no period given) "Gold will top $2,400 an ounce. The long-term bull market in gold marches on. Gold won't make a straight shot to a new inflation-adjusted high. As long..."
- Nomura - Gold: $2,000 (by end of 2012) "Nomura has raised its forecast for gold prices to $2,000 an ounce by the end of 2012, from $1,800 earlier. The brokerage said the low-interest rate..."
- Morgan Stanley - Gold: $2,200 (in first half of 2012) "Gold will lead a rally in commodities in 2012 as Europe's sovereign-debt crisis continues to roil financial markets, spurring demand for ..."
- UBS - Gold: $2,050 average in 2012 "[Gold] remains one of the top commodity picks for 2012 as 'most of the factors that pushed gold higher in 2011 are not going away,' according to UBS..."
- Bank of America Merrill Lynch - Gold: $2,150 - $2,200 (average in 2012) "From a technical perspective we believe that the bull trend for gold remains intact… with gold having not yet met any of..."
- TheStreet.com - Gold: $2,500 (by May 2013) "I want to own gold here. I think gold is going to $2,500 eighteen months from now... Gold has been up for ten straight years and this going to be the..."
