The price of 1 oz of gold has seen a steady rise since 1st of January 2011 to 28th of January 2011, from $1,338 to $1,411 respectively. This rise has been boosted by increase of inflation, food prices and instability in the Middle-East and North Africa.
The inflation rate in large economies like the US, Europe zone and China has increased for the month of January 2011 compared to December 2010. Each one of these economies have responded in different ways. In the US the Federal Reserve has said that Inflation was coming from countries keeping their currency undervalued rather than the US keeping their interest rates low. Both the Euro zone and China has increased their interest rates in an attempt of easing inflation increase. In Japan the inflation remained the same as the prior month.
Furthermore, rising food prices around the world has not helped in decreasing the inflation. In addition, oil prices has greatly increased, topping $100 a barrel, since the toppling of governments and mass rallies in North Africa and Middle-East started.
All the above factors have pushed the price of gold to reach $1,400 an ounce. Another factor that can be considered is continued demand for gold coming from China, 175.2 tons of gold in the 4th quarter of 2010 totaling to 579.5 tons for all 2010. This is larger considering that the US consumed 233.3 tons for all 2010.
As of March 3rd, 2011 the price was at $1,431.85. The value of Gold may continue to move up if inflation is an ongoing concern and instability in the Middle-East and North Africa continue. Some analyst have suggested that gold may reach between $1,500 to $1,600 an ounce this year.
Thursday, March 3, 2011
Friday, February 11, 2011
40th World Money Fair
The 40th World Money Fair anniversary was celebrated in Berlin, Germany, from the 28th to the 30th of January 2011. This year's guest of honor was the Mint of Poland. There was a technical forum on the 27th and lectures given on the 28th.
A week later, 5th and 6th of Feb, another exhibition was scheduled by the World Money Fair at Basel, Switzerland. Many exhibitors, including PMCEX, from Switzerland were present with a wide variety of coins. A few brought antiques, paper money and other collectible items.
The majority of the visitors are German speakers but that is not considered a barrier because when it comes to selling, buying or trading coins it is easy to communicate. You look at the coin, if you like it you ask for the price. If their is a language issue then the price is written down. Then you buy it if you like it. That simple.
During the exhibition we met various people from different countries. Some of them who were dealers but were only visiting come to the fair to buy coins and take them back to their country for the purpose of reselling them. Many of them come to the Basel fair because they are able to find a variety of coins at a good price and quality.
We at PMCEX were extremely happy to have participated in our first Basel coin fair. It is always nice to see a nice turnout and the variety of coins that the dealers have.
A week later, 5th and 6th of Feb, another exhibition was scheduled by the World Money Fair at Basel, Switzerland. Many exhibitors, including PMCEX, from Switzerland were present with a wide variety of coins. A few brought antiques, paper money and other collectible items.
The majority of the visitors are German speakers but that is not considered a barrier because when it comes to selling, buying or trading coins it is easy to communicate. You look at the coin, if you like it you ask for the price. If their is a language issue then the price is written down. Then you buy it if you like it. That simple.
During the exhibition we met various people from different countries. Some of them who were dealers but were only visiting come to the fair to buy coins and take them back to their country for the purpose of reselling them. Many of them come to the Basel fair because they are able to find a variety of coins at a good price and quality.
We at PMCEX were extremely happy to have participated in our first Basel coin fair. It is always nice to see a nice turnout and the variety of coins that the dealers have.
Monday, November 1, 2010
Zurich Coin Fair 30-31 Oct 2010
The Zurich coin fair which is held once every year has numismatists from Zurich, Basel, Geneva, St Gallen and a few smaller cities. In addition UBS has a speed auction where you have a variety of coins and lots auctioned at a fast pace.
The numismatists at the coin fair offer from ancient to modern coins. They have copper, silver and gold coins. If you have a large list of coins from different countries it is more likely that you will have to visit various numismatists. Not one numismatists has all the coins that you need because they usually bring a small stock or are specialized in a type.
The coin fair was at the Swissotel which is chain of Swiss hotels. The hotel is in front of the Oerlikon Train Station which is about two stops from the Main Train Station. The hotel is very nice and offers a variety of services which include spa, gym and swimming pool.
Staying at the hotel was a good choice because it was in the same building as the fair and one can enjoy the hotels amenities once the fair was over.
I had a small list of coins I wanted to get thus it was easy for me to look around for nice coins at a nice price. I was also able to talk to some people that I have met in the past. Usually it is good to talk to this people because they have a lot of information about coins and they will help you if they have time.
There were a lot numismatists selling gold coins since gold coins have been popular. One thing I found was that prices for coins of the same type and year varied greatly. You would be able to find a Swiss 20 Fr Gold coin for 255 with one numismatists and 275 with another. So I had to be careful not rush into buying a coin.
Although I did not participated in the UBS speed auction, I have the opportunity to sit down and watch. The auction was going fast thus the participants would have to make sure that limits were put on their bits because one could easily get got in a biting war with someone else.
I had no idea how the speed auction worked so I asked a lady working for UBS and she kindly explained to me the process and requirements to participate in a speed auction. It is actually fairly easy, you show up, give UBS your name then you are given a number. The auctioneer will start with the starting bit and from their people will raise their number if they are willing to pay the auctioneers mentioned price. If you win the auction you wait until the end of the auction to pay and pick up on the spot your winnings. One thing about the auction, you pay the biting amount plus the auctioneers fee.
I spent only one day at the coin fair but it was enough to see and pick up what I needed.
The numismatists at the coin fair offer from ancient to modern coins. They have copper, silver and gold coins. If you have a large list of coins from different countries it is more likely that you will have to visit various numismatists. Not one numismatists has all the coins that you need because they usually bring a small stock or are specialized in a type.
The coin fair was at the Swissotel which is chain of Swiss hotels. The hotel is in front of the Oerlikon Train Station which is about two stops from the Main Train Station. The hotel is very nice and offers a variety of services which include spa, gym and swimming pool.
Staying at the hotel was a good choice because it was in the same building as the fair and one can enjoy the hotels amenities once the fair was over.
I had a small list of coins I wanted to get thus it was easy for me to look around for nice coins at a nice price. I was also able to talk to some people that I have met in the past. Usually it is good to talk to this people because they have a lot of information about coins and they will help you if they have time.
There were a lot numismatists selling gold coins since gold coins have been popular. One thing I found was that prices for coins of the same type and year varied greatly. You would be able to find a Swiss 20 Fr Gold coin for 255 with one numismatists and 275 with another. So I had to be careful not rush into buying a coin.
Although I did not participated in the UBS speed auction, I have the opportunity to sit down and watch. The auction was going fast thus the participants would have to make sure that limits were put on their bits because one could easily get got in a biting war with someone else.
I had no idea how the speed auction worked so I asked a lady working for UBS and she kindly explained to me the process and requirements to participate in a speed auction. It is actually fairly easy, you show up, give UBS your name then you are given a number. The auctioneer will start with the starting bit and from their people will raise their number if they are willing to pay the auctioneers mentioned price. If you win the auction you wait until the end of the auction to pay and pick up on the spot your winnings. One thing about the auction, you pay the biting amount plus the auctioneers fee.
I spent only one day at the coin fair but it was enough to see and pick up what I needed.
Sunday, October 3, 2010
Rare Coins book
I just got done reading "The Expert's Guide to Collecting & Investing in Rare Coins" by
Q. David Bowers. It is an interesting book because it talks about the different aspects
of the rare coin market, different US rare coins and Mr. Bowers has many stories to tell.
The book starts with the explaining the dinamics of the rare coin market and gives information about investing in rare coins. Talks about coin grading and value. It explains how to buy and sell in the internet and through auctions houses. It also talks about different historical facts (market trends) about US coins. Then it goes more in detail on coin grading and then touches in detail the grading process or logic for different US coins. After it talks about the different coins it goes into paper money and tokens.
Of course, if you have read the book, then you probably have already formed an opinion on
the book and it would be great if you could share it with us. The book is very interisting because it covers many different elements of US rare coins but does not cover other countries.
In page 57 it says that "Rarity refers to the specific number of coins known to exist in
numismatic hands." It later states that "Rarity is important, but only in connection with
other factors." The factors detailed are Grade and Popularity. Knowing this, what coins
do you believe are rare and popular today?
In Switzerland, the Swiss 10 Fr Gold coin minted in 1911 (Net Weight: 3.2258g; AGW: 2.9g
or .0933oz; Grade: MS or Uncirculated; Minted: 100k Series dates: 1911-1916 & 1922) is
worth around 400 USD. The other dates are around 130 USD.
Q. David Bowers. It is an interesting book because it talks about the different aspects
of the rare coin market, different US rare coins and Mr. Bowers has many stories to tell.
The book starts with the explaining the dinamics of the rare coin market and gives information about investing in rare coins. Talks about coin grading and value. It explains how to buy and sell in the internet and through auctions houses. It also talks about different historical facts (market trends) about US coins. Then it goes more in detail on coin grading and then touches in detail the grading process or logic for different US coins. After it talks about the different coins it goes into paper money and tokens.
Of course, if you have read the book, then you probably have already formed an opinion on
the book and it would be great if you could share it with us. The book is very interisting because it covers many different elements of US rare coins but does not cover other countries.
In page 57 it says that "Rarity refers to the specific number of coins known to exist in
numismatic hands." It later states that "Rarity is important, but only in connection with
other factors." The factors detailed are Grade and Popularity. Knowing this, what coins
do you believe are rare and popular today?
In Switzerland, the Swiss 10 Fr Gold coin minted in 1911 (Net Weight: 3.2258g; AGW: 2.9g
or .0933oz; Grade: MS or Uncirculated; Minted: 100k Series dates: 1911-1916 & 1922) is
worth around 400 USD. The other dates are around 130 USD.
Tuesday, September 14, 2010
Gold passes the 1,270 USD/oz mark
Today was the first day that Gold prices were over 1,270 USD/oz. This without a doubt had to be an exciting day for those that have gold bars and gold coins. Of course, only in the US because while the oz of Gold in the US was going up, in other parts of the world it was going down. This is natural since the USD has been losing value against major currencies. The oz of Gold closed at 1,271.70 USD, I am curious to know what is going to happen tomorrow. Will the oz of gold quoted in USD continue to go up tomorrow or will it scale back down?
Sunday, September 12, 2010
Swiss 20 Fr Gold Coin (Vreneli)
Authorized by the law on January 6, 1896, the Swiss 20 Fr gold coin known as Vreneli was the legal tender in Switzerland. Vreneli is a variant of the Latin name "Verena" which means "True." This coin is also known as Helvetiakopf in German, Helvetia Head in English and Tête d'Helvetia in French.
Fritz Landry from Neuchatel, Switzerland, was the designer of this Swiss gold coin and his signature "F. Landry" appears in the obverse of the coin.
This coin was minted between 1897-1936, and later in 1947 and 1949. All the Swiss 20 Fr gold coins have the mint mark B for Bern, except for re-strikes of 1935 which have LB for Lingot-Bern. The Swiss 20 Fr gold coin weighs 6.45 grams from which 90% of the coin is gold.
The Swiss 20 Fr gold coin minted in 1926 is a key date having the lowest mintage, 50,000 coins and the 1935 LB has the highest mintage, 20,008,813.
Fritz Landry from Neuchatel, Switzerland, was the designer of this Swiss gold coin and his signature "F. Landry" appears in the obverse of the coin.
This coin was minted between 1897-1936, and later in 1947 and 1949. All the Swiss 20 Fr gold coins have the mint mark B for Bern, except for re-strikes of 1935 which have LB for Lingot-Bern. The Swiss 20 Fr gold coin weighs 6.45 grams from which 90% of the coin is gold.
The Swiss 20 Fr gold coin minted in 1926 is a key date having the lowest mintage, 50,000 coins and the 1935 LB has the highest mintage, 20,008,813.
Wednesday, September 1, 2010
Gold passes the 1,250 USD mark
The end of June was the last time that Gold was over 1,250 USD. Today is the first day that it has surpassed the 1,250 USD mark. For the past 4 weeks the price for 1 oz of gold has been in an uptrend. Just a few days ago the prices were flat but after taking a break the uptrend continues. Are we heading for the 1,300 USD mark? If so, when? Can we speculate and say that seeing how things are turning out around the world that golf prices will be above 1,300 USD before year-end?
If so, then it is a good time to buy gold. Although the price of gold in the US has been increasing other parts like in Switzerland it has been going down. Why? Well the USD dollar has been weak against the CHF and other currencies which will have an impact in Gold prices in other countries.One could take advantage of this if they had a way to buy gold in other countries. Imagine this, you are in one country and you have a way to buy gold and save it in another country. Of course you would have to have different currencies and you would have to be careful with the exchange rate.
If so, then it is a good time to buy gold. Although the price of gold in the US has been increasing other parts like in Switzerland it has been going down. Why? Well the USD dollar has been weak against the CHF and other currencies which will have an impact in Gold prices in other countries.One could take advantage of this if they had a way to buy gold in other countries. Imagine this, you are in one country and you have a way to buy gold and save it in another country. Of course you would have to have different currencies and you would have to be careful with the exchange rate.
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