Market News

  1. How to Care for Your Silver Coins and Bars

    silver coins & silver bar

    It’s a common occurrence for silver coins and bars to discolour over time. This discolouration is known as tarnish. Anyone who has invested in silver may experience this with their silver coins and bars at some point and worry if it’s a good or bad sign. In this blog, we’ll discuss the reasons behind the discolouration of your silver and how you can take preventive measures.

    What is Tarnish?

    The chemical reaction that occurs when silver is exposed to air, humidity and pollution is known as tarnish. The silver atoms encounter the oxygen and hydrogen sulfide in the air to produce silver oxide which forms a layer on top of the silver. This makes the silver appear discoloured and darker.  Tarnish, however, doesn’t affect the silver in any way other than its appearance. The process can be slower or faster depending on the quality of the finishing of the coin.

    How to Remove Tarnish from Your Silver Coins and Bars?

    There are some simple methods of cleaning tarnish off your silver coins and bars.

    • Cleaning Silver Coins 
    1. Use commercially available silver coin cleaner or silver polish to clean your silver coins. Put a few drops of the solution on a soft cloth and rub the coin with it. Clean both sides of the coin and within a few minutes of rubbing, you can get back the lost shine and lustre of your coin.

                Alternatively, you can also take a small amount of silver coin cleaning solution, swish your coin in it for a few seconds and then rinse it well with water. Wipe it dry with a clean cloth.

            2.Another method of cleaning involves a DIY solution of water and baking soda. In a small container, mix water and baking soda to make a watery paste. Dip the coin in this paste and rub both of its sides for at least            a minute with the help of your thumb and index finger. Then rinse with water and wipe it dry. You may need to repeat the process 3 or 4 times to remove the tarnish. 

    • Cleaning Silver Bars 

    You can clean your silver bars in the same way, using a commercial cleaning solution. However, there’s another low-cost effective way. Take a pan and place aluminium foil on it. Keep the shiny side up. On this foil add a cup of boiling water. The aluminium foil will float on the water. Stir in about a tablespoon of baking soda. You may add some more hot water as it works better at a higher temperature. Next, place your silver bar on the aluminium foil for a minute. Then flip the bar to clean its opposite side. The tarnish will be gone and you’ll see instant results. 

    How to Prevent Tarnish in the Future?

    Store your silver coins and bars in plastic bags as this’ll limit their exposure to the air. You can also store silver in air-tight containers, coin holders or hermetically sealed chambers. Avoid places that are too humid. Also, don’t handle your silver coins and bars with your bare hands as oil and dirt can stain them. Wear cotton or latex gloves when handling them.

    Don’t worry too much about tarnished silver coins and bars. It doesn’t affect the value of your silver. However, if you want to clean the tarnish because of aesthetic preference, do so carefully. When using silver polish or commercial silver cleaners, if you use the solution for too long, it can erode the finish of the coin along with the tarnish. Also, it’s better if you don’t attempt to clean your numismatic silver coins as it can lessen the value of the rare coin.

    If you’re not sure whether you should clean the tarnish off your silver coins or not, visit a local silver coin dealer for advice. 

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  2. Precious Metals Research July 27, 2017

    Market Commentary   Gold moved higher overnight opening the day at 1262.75/1263.75. After the open, the metal rose to a 6-week high of 1264.50/1265.50 as the euro climbed to a new 2-½-year high. Thereafter, the dollar rebounded after touching a 13-month low as palladium prices advanced to a 5-week high and Brent crude oil prices rallied to a 2-month high while gold dropped to a low of 1254.00/1255.00. Buying interest later in the day took gold to a close of 1260.00/1261.00.   Silver followed gold higher overnight, opening the session at 16.79/16.84. It touched a 4-week high of 16.80/16.85 before declining to a low of 16.53/16.58, prior to concluding the session at 16.56/16.61.     Technical Commentary   Gold closed higher today, at 1260.50. Resistance is firm at 1261.30 - the 61.8% Fibo retracement level of the June High - July Low range. Support is at 1250.50 (50% Fibo level). MACD and momentum indicators are bullish and I am biased to the upside, targeting 1274.66 (76.4% Fibo level).   Silver closed higher today, at 16.59. Resistance comes in at 16.78 - the 61.8% Fibo retracement level of the June High - July Low range, with near term resistance at 16.69 - the 50 day MA. Support is at 16.48 (50% Fibo level). MACD and momentum indicators are biased to the upside and I remain bullish on silver, now targeting the $17 level. The gold-silver ratio closed higher today, at 75.98. Resistance is at 77.92 - the recent high. Support is at 74.82 - the 23.6% Fibo retracement level of the recent 1-year rally.  
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  3. The Pros and Cons of Buying Silver Locally

    When it comes to investing in silver, most buyers want to know what the best place to buy silver bullion coins and bars are. There are essentially two options available – buy online or buy from local dealers. Both options have their individual benefits and drawbacks. In this blog, we’ll outline the pros and cons of buying silver from local dealers.

    Pros

    1. You can Examine Your Silver Before Buying

    When you go to buy silver online, you have to select the silver coins and bars by relying on the quality of the photographs and the reputation of the online dealer. You can’t examine and judge the quality yourself before buying. Sometimes, what you receive isn’t what was advertised.

    Buying silver locally doesn’t involve these risks as you physically visit the store, select the silver items you want, hold them in your hands, inspect and then invest. You also have the opportunity to meet the seller you’re dealing with and know whom to contact if something goes wrong.

    2. You Walk Home with Your Silver

    Another big advantage of buying silver from local stores is that you physical possess what you buy almost immediately. But when you buy online, the delivery of your purchased silver takes a few days or even weeks, depending on the shipping policies of the online dealer. You also need to pay shipping and insurance charges.

    3. You can Pay in Cash

    Online transactions with your credit card may have security risks. Unsecured websites could be targeted by hackers, who then might attempt to steal your credit card information and identity. With local stores, you can deal exclusively in cash, bypassing these risks all together. 

    Cons

    1. You Pay More

    Online dealers often offer lower, more competitive prices for the same silver coins and bars that you find at a local store. That’s because they have fewer expenses to cover. Local stores, on the other hand, must cover storefront expenses such as rent, utilities, overhead costs, etc. 

    2. You get a Limited Selection of Products

    Local shops offer a limited selection of silver coins and bars. This is because they have a smaller customer base, and more limited onsite inventory due to space restrictions. As a result, the selection they offer is usually based on popularity of the item. You’ll never find the diverse selection of coins as offered by online silver dealers.

    3. You have to Pay Sales Tax

    It’s one of the major drawbacks of buying silver from local dealers. The charges vary from state to state, or province to province depending on their taxation laws. Buying silver online doesn’t require you to pay any sales tax.

    4. You have No Privacy

    Online dealers are committed to protecting the personal safety of the customers as they can place an order in the privacy of their own home. There’s generally no issue of sharing your purchase and transaction history with third parties. However, when you go to buy silver from a local shop, you can’t remain anonymous. When you visit the store, you may get noticed and become a potential target of burglary, theft or assault.

    Now that you know the pros and cons, you’ll be able to make more informed decisions when purchasing your first silver. 

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  4. A BUYING GUIDE FOR FIRST TIME GOLD COIN BUYERS – PART II

    In the previous blog post, we discussed the various reasons for investing in gold coins, which coins are the best buys for you and popular gold coin options. In this post, we’ll continue to guide you through the other essential factors to consider when buying gold coins for the first time.

    Where to Buy Gold Coins from

    There are several dealers, brokerage houses and banks from where you can make your first purchase. You can also buy gold coinsonline as there are numerous resources available. Make sure to choose a company that’s reputable and reliable. Don’t hesitate to ask questions you may have before you settle on a dealer. Inquire how long they’ve been in business, which investment activities they specialize in, their customer policies, how they address customer queries, their license statuses, etc.

    Whether you buy from a local dealer or online company, it’s important to check out the company profile, its rating, and the reviews/complaints. If there’s a consistent record of complaints, then that’s a bad sign, especially if there’s no effort from the company to address it. Also, if there’s a very high rating of the company but a lot of complaints lodged against it, then this could be a warning sign that shouldn’t be ignored.

    To keep your first purchase safe, select a local dealer or online company that has a great track record of at least 10 years or more.

    Dealers on TV and eBay are another option. With dealers/companies who advertise on TV, their products are usually much more expensive with expensive payment plans that charge interest. On eBay, although shipping is free, more risk is incurred as you’d be buying from private parties. Both of these options aren’t a good fit for first time buyers.

    Local Dealer Vs Online Sellers of Gold Coins

    With online sellers, you’ll get better pricing (even after including credit card/wire fees, shipping, and insurance) and more choices than local stores and firms. However, you’re likely to face a common risk of paying upfront and trusting your online dealer to deliver the same gold coin that you purchased.

    On the other hand, buying from a local dealer offers greater privacy, immediate possession of your gold and no shipping and insurance charges. But there are also some disadvantages involved such as limited choices and higher premium rates.

    Compare the company profiles, prices, other expenses, taxation, various policies and modes of payment. Finalize your choice of dealer on the grounds of your needs and convenience.

    Dos and Don’ts of Buying Gold Coins

    Dos:

    1. Research as much as possible to find the current market news and trends. Read financial publications, analysts’ reports, industry news, reputed blogs based on gold investment.
    2. Buy gold coins according to your objectives.
    3. Determine your budget and the weight of the coins.
    4. Choose your gold source wisely. Buy from a reputed dealer with a guaranteed buyback policy.
    5. Determine where you’ll store your coins. You can either store it in a vault in your home or in some other location, if you have home security issues. 

    Don’ts:

    1. Don’t buy from just any dealer without verifying its authenticity and reputation before purchasing.
    2. Don’t end up purchasing rare coins or being tempted to invest in other gold options if they don’t serve your purpose.
    3. Don’t trust dealers that offer free storage.

    This guide will help you start planning for your first gold ownership safely and securely. A lot of first time buyers are concerned about the best time for purchasing gold coins. Instead of waiting for more favourable prices (never a certainty), you should invest in gold coins whenever you think you want to own it. Happy investing!

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  5. A Buying Guide for First Time Gold Coin Buyers – Part I

    If it’s your first time investing in gold coins, then there’s a good chance you have a lot of questions and doubts. We’ve come up with this useful guide to help you make your first gold coin purchase successful.

    In this guide, we’ll discuss the advantages of owning gold coins, the best coins to buy, how to find the right dealer and prices, where to buy, and the dos and don’ts of purchasing gold coins. Let’s get started.

    Why Should You Buy Gold Coins?

    Buying gold is ultimately a long-term investment as profit is made in the future. Although gold prices fluctuate, its value is timeless which makes it an ideal asset. You can also pass it on to your heirs.

    Gold coins are ideal for hedging against inflation and capitalizing on price movement. The tangibility, strong liquidity, value density, store of value quality, low maintenance and transportation costs of gold coins make it a quintessential investment. Gold coins are also free of counterparty risks so you don’t need to have any paper contract.

    Which Gold Coins are the Best Buys for You?

    There are several gold coins in the market and they can be categorized into two types –

    1. Bullion Coins

    2. Rare or Numismatic Coins

    Bullion gold coins are standard coins made of highly refined gold. Since gold is a soft metal, some bullion coins may also contain alloy to make them more durable. Many government mints produce bullion coins every year. Manufactured and guaranteed by governments, bullion coins are also known as sovereign coins. Their value is based on the content of the precious metal.

    Rare or numismatic coins are “collectibles”. They’re bought/sold by collectors and their value is based on rarity and their condition rather than gold content like bullion coins. These coins are highly priced coins and their premiums can soar up to millions. However, unless you want to become a collector, numismatic coins won’t be a profitable choice.

    As an investor, you should buy coins that are easy to sell and not tricky to sell. When you go to sell rare coins, the major concerns are less number of buyers, delays in deals (as the authenticity is to be checked) and possibilities of getting lesser premium than the original value. With bullion coins, these risks are absent as you can sell them anywhere, get plenty of buyers and get paid according to the price of gold.

    What are the Most Popular Gold Coins?

    Here are some of the most popular bullion coins. As a first time gold coin buyer, you should begin by collecting some of these sovereign coins before buying others:

    • Canadian Maple Leaf Gold Coins
    • American Gold Buffalo Gold Coins
    • American Gold Eagle Gold Coins
    • Australian Kangaroo Gold Coins
    • Austrian Philharmonic Gold Coins
    • Chinese Panda Gold Coins
    • South African Krugerrand Gold Coins
    • British Sovereign Gold Coins

    They’re available in various denominations. One-ounce denominations are more profitable because fractional coins come in higher premiums. However, if you can’t afford one-ounce coins, you can always go for other affordable options.

    In the next blog, we’ll discuss the rest of the factors and provide some more additional tips to help you buy your first gold coins.

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  6. NEW CANADIAN TARIFF: RAISING THE GOLD BAR

    Lumber has long been a staple in the Canadian and American export industries. Agriculture and lumber were given priority historically, keeping gold mining at the lower end of the market. However, an article published on ResourceInvestor.com by Michael Ballanger , shows that the recent tariff by the new United States Administration, could be a positive indicator for gold investors. The 24% tariff said to be placed on all Lumber exports, may give Canadian companies who specialize in gold production an increased chance of profit for themselves and their investors.

    “The lower the Canadian loonie will go and the happier I will be as a shareholder of gold-producing Canadian companies,” states Ballanger. Consumer Affairs also supports this idea with claims that gold is glittering again as the value of the Canadian dollar decreases. In early April, we presented information that outlined the benefits of investing in gold, as the recent prices from January have increased. This translates into profits for investors of gold stocks.

    Stocks Climb

    If you own gold stocks or are interested in investing your dollar, the current rise in gold prices may be an indication that good times are on the horizon. Consumer reporter, Mark Huffman explains that a rise in gold stocks often accompanies an increase in gold bullion prices. What does this mean for stock owners? Many excited investors seeking to obtain your gold assets. According to market platform TradingSim, gold mining stocks have an influence of 1:3 on the spot price. While this ratio seems promising, the value on a stock and its price is unfortunately not always fixed. Understanding how it can change is important.

    Price Fix

    The price of gold is connected to supply and demand, which shifts based on the cost of mining associated with gold production. If it costs more to find gold, then the price for that gold bar will also increase. Inflation has never been a fixed concept, except for when it relates to our up and down economy. Last year for instance, the demand for gold increased by 46.3% compared to 2015, a figure presented by the World Gold Council. Inconsistencies with the price of gold is based on various political and economic factors. A new tariff on exports for instance, could have different effects on various markets. As there are inconsistencies with inflation, the price of gold and price of stock don’t always correlate.

    Take away

    The new tariff set into motion by the U.S Administration may be a 24% slap on Canada’s Lumber export industry, however, this doesn’t secure gold stocks in the long-term. If you’re interested in learning about the market change and how your current or future investments in gold, silver, or other precious metals will translate into profit, then we highly recommend that you have an experienced dealer help you with investment options and advice.

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  7. Which Is Better - Investing in Gold Mining Stock or in Physical Gold?

    Gold is one of the safest investment options to protect against inflation and market crashes. With gold prices climbing after January, investors are again taking interest. Investments in physical gold and gold mining stocks are two popular ways of owning gold. There some similarities between the two, as well as differences. The question is which option is better?

    Similarities 

    Gold has a baseline value few other commodities have. Its practical value in technology, manufacturing and economics provides the precious metal a level of value stability. This means that both physical gold and gold mining stocks have the potential to recover from any economic loss incurred through inflation or hardship.

    Differences

    Investing in gold mining stock means you’re betting on the success of a particular company instead of gold in general. By putting your money in physical gold, you’re buying gold bullions and coins that is directly related to the health of the gold market itself. Moreover, commodity investments do not generate income.

    Advantages of Gold Mining Stock over Physical Gold

    The biggest advantage of gold mining stock is that it goes up with the rise in gold prices. Stock value depends on a company’s management and individual performance. This means that if you invest in the right mining stocks, they can elevate your investment portfolio much faster than physical gold prices. On the other hand, the value of physical gold depends on market sentiment following economic downturn. The appreciation in this case is constant. So, if you hold onto your physical gold for a long time and the value plummets, there isn’t the possibility of getting a quick return.

    Disadvantages of Gold Mining Stocks

    Choosing the right mining company to invest in is difficult. There are a lot of factors that you need to account for, making the endeavor risky.  Gold prices play a smaller role in this market than with physical gold. Physical gold prices tend to stay consistent from country to country, meaning you’ll generally always know the value of your stock.

    Which investment strategy is the better option will depend on several factors; namely, your financial situation. Investing in physical gold stocks is a great option if you can play the long game and are generally more conservative with your investments. You won’t see huge returns, but you will see your investments grow if you’re patient. The opposite is true if you decide to go the gold mining stock route. Prices will be more volatile, allowing for bigger losses and gains. When it comes down to it, your investment choices will depend on your investment objectives.

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  8. Market Commentary

    Technical Commentary

     

    Gold closed higher today, at 1249.50. Resistance comes in at 1264.20 (Feb high). Support is at 1229.50 - the 50% Fibo retracement level of the Feb High - March Low range, with near term support at 1237.70 (61.8% Fibo level). MACD and momentum indicators are bullish as gold appears poised to target the previous month’s high.

     

    Silver ended basically unchanged today, at 17.57. Resistance is at 17.66 - the 50% Fibo retracement level of the Feb - March decline. Support is unchanged at 17.22 (23.6% Fibo level). I am bullish silver and only a close back below 17.46 (38.2% Fibo level) will change that view.

     

    The gold-silver ratio closed higher today, at 71.12. Resistance is at 71.58 (Jan high) and support at 67.82 (recent low). I am bullish the ratio.

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  9. Market Commentary

    Technical Commentary

     

    Gold finished lower today, at 1247.50. Resistance is unchanged at 1264.20 (Feb high), with near term resistance at 1247.80, which is the 76.4% Fibo retracement level of the Feb High - March Low range. Support is at 1237.70 (61.8% Fibo level). MACD and momentum indicators are bullish and gold appears poised to target the previous month’s high.

     

    Silver finished slightly higher today, at 17.59. Resistance is at 17.66, which is the 50% Fibo retracement level of the Feb - March decline. Support is unchanged at 17.22 (23.6% Fibo level). I am bullish silver and only a close back below 17.46 (38.2% Fibo level) will change that view.

     

    The gold-silver ratio closed lower today, at 70.92. Resistance is at 71.58 (Jan high) and support at 67.82 (recent low). I am bullish the ratio.

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  10. Market Commentary

    Technical Commentary

     

    Gold finished on a higher note today, at 1234.25. Resistance comes in at 1237.70, which is the 61.8% Fibo retracement level of the Feb High - March Low range. Support appears at 1221.40 (38.2% Fibo level). MACD is marginally bearish and momentum has improved. I am neutral as long as gold closes within the aforementioned resistance and support levels.

     

    Silver ended pretty much unchanged, at 17.43. Resistance comes in at 17.46, which is the 38.2% Fibo retracement level of the Feb - March decline. Support is at 17.21 (23.6% Fibo level). MACD and momentum indicators are bearish and risk remains to the downside as long as silver closes below 17.46.

     

    The gold-silver ratio closed higher today, at 70.82. Resistance is at 71.58 (Jan high) and support at 67.82 (recent low). I am bullish the ratio.

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