Last month, gold made headlines as its price took a turn for the worse. At the beginning of April, gold sold at $1583 per ounce, but it caved to $1380 before finishing out the month at $1469. The forced sale of Cyprus’ gold reserves in the wake of the nation’s bankrputcy seems to have caused triggered the selloff.
However, this temporary price volatility doesn’t reflect any real change in gold’s fundamentals. Cyprus’s gold stores are relatively small, and will be directly transferred to creditors instead of hitting the market at large. Even more importantly, it remains the case that developed nations hold gold but little capital, and still-developing nations are owed much debt that they will eventually call in. Then, gold will move from the West to the East, with fiat dollars being printed and debased all the while. The need for a real store of wealth will be greater than ever, and gold is of course a prime candidate for filling this role.
We know that Gold Scams readers will accurately see gold’s lowered price not as a threat, but as an opportunity. You’ve probably heard that physical bullion purchases around the world are booming, with mints running out of coins and premiums going through the roof. All of these physical buyers know that gold’s underlying value endures through these temporary market panics. Investors with less foresight and understanding may become nervous and sell at inappropriate times, but their loss is our gain.
However, with many new and less-experienced buyers on the market, learning to spot Gold Scams becomes more important than ever! Our goal here at Gold Scams continues to be helping as many buyers as possible to steer clear of shady deals and go right for the safe, smart choices in precious metals.
So we’re kicking off a series of posts designed to bring potential and current precious metals investors up to speed on gold-buying best practices. Some gold scams crop up over and over again, while new ones pop up all the time. Check back here each week for important tips on how to buy precious metals without getting ripped off.
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Buying gold should be a safe and pleasant experience – not a high-risk and high-pressure one – and we’re here to help. If you’d like to read more right now, please click here to download a complimentary Gold Scams report. We look forward to helping you become a savvier gold and silver buyer.