Own a Wild West Legend!

Share

1921-morgan-silver-dollarThe largest and heaviest silver coin minted since the Civil War, the Silver Morgan Dollar is our featured coin of the month. The Silver Morgan was minted to create a market for the silver from the Comstock Lode in Nevada, the first major discovery of silver ore and one of the most important mining discoveries in American History. Its stunning design captures the regal image of the profile of Lady Liberty on the front, and the majestic bald eagle with its wings spread on the back. Even the most modest investor can afford silver, and the Silver Morgan Dollar makes owning silver even more significant.

The driving forces behind silver demand continue to be monetary expansion and the expected correction in the stock market, which may result in money flowing into undervalued assets such as silver. As the economic conditions continue to improve worldwide, industrial demand for silver should also increase.

Silver investment demand is expected to thrive in 2014, with most analysts seeing silver prices continuing to rise. The U.S. Mint sold a record number of one-ounce silver American Eagle coins, and the Perth Mint and Canadian Royal Mints also saw heavy demand for their silver coins.

Start making your plan for the future by speaking to an expert at Capital Gold Group! Call (800) 510-9594 or visit our website at www.StartWithGold.com to view our large catalog of available precious metal coins and bars. And remember to request your copy of The Definitive Gold Guide to learn why silver is an integral part of a balanced portfolio.

Share
Posted in Capital Gold Group: Gold Watch | Leave a comment

Attack on the Petrodollar

Share

news-1396978656-8702Ever heard the term “petrodollars”? It is the reference used for the U.S. dollar’s position as the base currency for global energy trading. Interesting to note that whether the U.S. is involved in an oil transaction or not, that oil must be purchased in U.S. dollars, which gives the United States a significant advantage, unfair as it may be. U.S. dollars have been so dominant for so long in energy trading that even natural gas contracts for Europe and European-China trade have been priced in our dollars. But plans may be afoot to rout the dollar in exchange for the petroruble, and the sanctions war between Washington and Moscow has given traction to the idea.

China started the idea and obviously there is strong support from Russia for this plan. They simply need a mechanism to do so. It is safe to assume that Russia will spare no expense in abolishing the petrodollar, and has nominated the chair of the Saint-Petersburg Commodity Exchange, Igor Sechin, to spearhead the creation of this new international exchange. There have already been significant advances toward this plan, and the White House is not happy about it.

Damage to the petrodollar would be a blow to a currency that is already struggling, and a declining dollar only means one thing for gold — rising prices. Converting long-term dollars into gold has made sense for a long time just from an inflation perspective, but the U.S. sanctions against Russia might just have given us one more reason to take a serious look at gold, a tangible asset inherently designed to protect us from damage to the dollar in the long term. Call Capital Gold Group at (800) 510-9594 to learn more about the fate of the U.S. dollar and how owning precious metals protects you regardless of the dollar’s uncertain future.

In last week’s newsletter, I discussed the Foreign Account Tax Compliance Act (FATCA). Tune in here for this week’s edition of The Gold Show and gain a complete understanding of how the implementation of this legislation on July 1, 2014, may affect YOU!

Share
Posted in Capital Gold Group: Gold Watch | Leave a comment

FATCA EXPLAINED

Share

fatcaIn their latest attempt to increase tax revenues, a new federal statute known as the Foreign Account Tax Compliance Act (FATCA) will go into effect on July 1, 2014, requiring U.S. citizens living both in and outside the United States (including green card holders) to report foreign financial accounts. It also requires foreign financial institutions to report accounts held by American clients to the Internal Revenue Service, making it increasingly difficult for U.S. taxpayers to hide assets in offshore accounts and shell corporations, as well as avoiding taxes on legitimate overseas investments.

FATCA requires direct reporting by banks, stock brokers, hedge funds, pension funds, insurance companies and trusts to the IRS. Starting July 1, 2014, foreign financial institutions who fail to comply will be levied with a 30% tax on all its transactions concerning U.S. securities and proceeds from the sale of securities. This threat of a 30% withholding tax and the potential exposure of the transfer of personal data will undoubtedly result in foreigners divesting out of U.S. securities and investments, with some foreign banks already indicating their intention to do so and advising their clients to do the same.

FATCA will have serious negative ramifications on the entire U.S. economy, and more specifically on U.S. financial markets and financial institutions, U.S. businesses operating in global markets, American citizens residing overseas, and American citizens with legitimate investments overseas. The cost for this massive reporting bureaucracy will be in the billions of dollars for foreign and U.S. financial institutions.

Fortunately, there is still an asset that can maintain your privacy. Gold, held in your possession, offers safety, security and ultimate privacy, even in the coming age of FATCA. Gold is internationally recognized, immediately accessible, and can be quickly liquidated.

The effects of FATCA are further discussed in this week’s edition of The Gold Show, heard on radio stations nationwide. Listen here.

Share
Posted in Capital Gold Group: Gold Watch | Leave a comment

Lower Than Expected U.S. Jobs Data Boosts Gold

Share

This was a week laden with extremely significant economic reports as well as the European Central Bank (ECB) interest rate decision making meeting. As expected, most U.S. economic numbers came close to or slightly above expectations. The major report for the week was the non-farm payroll number reported on Friday at 8.30 EST. According to the report, the economy added 192,000 jobs and the unemployment rate was steady at 6.7%. The jobs number came in slightly lower than expected but in line within the expected range. The ECB left interest rates unchanged, but the press conference held by the ECB chief, Mario Draghi, hinted at frustration about the low inflation numbers out of the European Union and also masked concern about the negative effects of a strengthening Euro currency. This could lead to some additional monetary easing across the pond in the near future.

Looking at the technical aspects of the markets as mentioned in my last article, gold has pulled back quite swiftly in the last two weeks. When you look at the chart, you can see that the gold market is behaving in line with a normal Fibonacci correction, after steaming ahead from the December, 2013, low to the highs in March at $1,392. This Fibonacci correction could turn around from this point since we have hit 50% correction, or it could extend to the 61.8% level around $1,266, with the $1,250 area forming strong support. The Relative strength Index (RSI) on the daily chart is getting to a level that deems it to be oversold. Within the next few trading sessions, this market will begin to let us know first, if the sellers are getting exhausted and second, how strong the counter move higher will be in the next leg. One quick observation, it seems that on the most recent wave down the silver market got quite overstretched, so I expect it to outperform gold in the shorter term on any bounce higher.

NEWSLETTER 135-GoldRSI

Another observation that is important to pay attention to is the way the Australian dollar has been trading in the last few weeks. When you look at the chart, you can see that the Aussie has formed a beautiful inverted head and shoulders pattern and taken out the resistance of this pattern. If it continues to hold the uptrend line, the Aussie dollar looks like its heading towards the 0.95 level as the initial medium term target. That will be an explosive move for the currency, and what I have usually observed is that whenever the Aussie moves higher, you tend to see gold move higher, simply because a large part of Australia’s economy is driven by commodities, especially gold. So in my years of trading commodities, the Aussie dollar has been a good indicator of possible movements in the gold market.

NEWSLETTER 135-Aussieheadandshoulders

My colleague, Kenneth Russo, Co-Head of Commodities Research at the Apex Gold Fund, was kind enough to share a couple of his observations on the stock market which I think are very insightful.

“The major US equity indexes this week showed some impressive resiliency. The Dow Jones Industrial Average and the S&P 500 both hit all-time highs and broke out of four week consolidations. The Nasdaq 100 did not hit a new high and appears to be lagging the other two major stock indexes. This divergence needs to be watched closely, but for now the blue-chip indexes continue to show bullish action and look to head higher in the short-term. Overall, the employment data shouldn’t change any perceptions that the economy is growing at a decent but sluggish pace. More importantly, the data shouldn’t change any perceptions as to how the Fed might act with regard to the continued tapering. First quarter earnings reports will start up next week. Forecasts currently call for a small decline of about one-half of one percent for the S&P 500 in aggregate, but earnings almost always end up a couple percentage points above forecasts. Even so, the first quarter numbers should not be that impressive considering the markets are trading at such lofty levels.”

As we go into the weekend after an exhilarating week of market action, keep a close eye on the closing levels for the major markets. There could be a continuation of the trends into next week. As always, have proper money management techniques and discipline in place.

Until next time, happy and successful trading!

Mukarram Mawjood, Head Trader
Apex Gold Fund

Share
Posted in Capital Gold Group: Gold Watch | Leave a comment

Silver: The Affordable Investment

Share

http://gold-watch.startwithgold.com/wp-content/uploads/2013/07/Silver-The-Affordable-Investment-Infographic

We speak a lot about Gold on this blog but today I want to talk about Gold’s versatile little brother, Silver.

Silver is affordable for investors who have smaller dollar amounts to work with when it comes to investing in precious metals.

Another trait that separates Silver from Gold is that it is not only a precious metal, but an industrial metal as well. Today silver is used in everything from iPhones to TVs, to batteries and solar panels. In Asian countries, they are accumulating mass amounts of Gold, but they are consuming equally, if not more Silver. That makes both metals good bets for investors, and I believe it’s safe to say the future depends on a steady supply of silver.

The global demand for Silver is about 890 million ounces a year, while global mine production is about 720 million ounces a year. Also unlike Gold, which tends to remain in a recoverable state such as coins or jewelry, most Silver ends up in trash dumps – where it is essentially lost forever.

As consumers all over the world continue to demand computers and other electronics, silver will only become more scarce and thus more valuable.

So whether you have $50 or $50,000, Silver is the affordable investment for anyone wanting to get in on precious metals.

What are your thoughts on Silver? Greater investment than Gold or always in the shadow? Comment Below.

Share
Posted in Capital Gold Group: Gold Watch | 2 Comments

Gold Soars Higher On Continuing Geopolitical Unrest

Share

The Gold Show with Jonathan Rose

Share
Posted in Capital Gold Group: Gold Watch | Leave a comment

The Best Performing Gold Coin For Your Portfolio: The MS63 or MS64 $20 Saint Gaudens

Share

20-saint-gaudens-details-lg-01Outstanding performance and striking beauty–these are just two of the characteristics to consider when it comes purchasing gold coins for your portfolio. Of all the coins ever minted in the United States, none is as consistent in its performance, as historically significant, and as beautiful as the $20 Saint Gaudens gold coin.

The $20 Saint, as it is commonly called, is not only one of the most sought after coins by investors and collectors alike, but also an essential part of any Pre-33 coin set. Grades MS61 and MS62 are now only available in very limited quantities and have become more difficult to acquire. As far as availability goes, the MS63 Saint offers the lowest premium, but the MS64 Saint has consistently been a top performer.

Based on its track-record, profitability and wealth preservation potential, the legendary $20 Saint Gaudens even outshines other popular numismatic coins such as the $20 Liberty. The $20 Saint Gaudens averaged over 19% growth in 2012 compared to the U.S. bullion coin, the gold American Eagle, which only averaged 9% growth.

Since certified rare gold coins like the investment grade $20 Saint Gaudens have not been in production since 1933, they offer a unique numismatic property in addition to the benefits that come from owning gold bullion coins like the American Eagle. Their scarcity and historic significance are what makes them a very powerful addition to any portfolio seeking long-term protection and profitability.

CNBC Mad Money host Jim Cramer called gold the must-have asset for every portfolio, and the $20 Saint Gaudens is without a doubt one of the best performing gold coins you can own!

Call Capital Gold Group at (800) 510-9594 today to speak with a gold specialist and diversify your portfolio with this stunning top performer today!

Share
Posted in Capital Gold Group: Gold Watch | Leave a comment

U.S. Dollar Getting Slammed as the World Quietly Slumbers

Share

It’s been a week full of volatile events, both in the geopolitical climate as well as the markets. Obviously, everyone is aware of the perilous situation in the Ukraine that started the week off in a very volatile fashion, and today the week is ending with the release of the all important Non-Farm Payroll Number also referred to as the Monthly Jobs Report. I am not going to dwell too much on these fundamental events, since we always have something happening in the world, and as traders, we should all be aware of the events as they unfold but not make any rash decisions that are solely based on news events. It is interesting to note that the Russia/Ukraine issue is still brewing albeit in a more controlled fashion, but it is something to keep our eye on as the weeks unfold should the situation escalate.

Technically speaking, we have seen a very interesting development in the U.S. dollar Index. This is the index that measures the relative value of the U.S. dollar against the major world currencies. While everyone was focused on Russia and its love of brandishing its military prowess, I was focused on watching some major technical things develop on the U.S. dollar chart.

USdollarindexweekly

First I want to point out that while everyone is working hard and earning their wages in U.S. dollars, our currency has plummeted since July, 2013. As the New Year turned, the drop in value suddenly accelerated. How much has our U.S. dollar dropped while we work hard to get paid in the nicely printed green notes? On June 30, 2013, the Index was at 84.43 and as of today, March 7, 2014, we are trading at 78.99 — a loss of a whopping 6.5% in a few months. The more perilous situation is the fact that the Index is approaching multi-year support at the 78.50 region. As you can see on the chart, this level has held off the dollar slide a couple times, so if we get a breach of this level, it may start a panic sell-off in the dollar by the major traders. Also, you see on the chart that the dollar has failed 3 times at the resistance area around 84. If you connect the two lines, you can see a wedge forming. We are very close to the bottom of that wedge, and if we break down, it could signal a deep and ugly sell-off.

One of the reasons we believe the dollar is selling off even with the Fed tapering may have to do with the fact that it is becoming increasingly difficult to get any true value from the U.S. stock markets, which are all at or near record highs. Typically, when professional traders find it difficult to make money from one market, they begin to exit and look at other markets. The European equity markets are about 20% lower from their respective highs, so traders may favor settlement in Euros rather than dollars. Hence we have seen the Euro currency increase significantly in value over the last couple months.

As always, keep your eyes wide open and mind focused while trading. Always use strong money management principles and fiercely guard your trading discipline.

Until next time happy and successful trading!

Mukarram Mawjood, Head Trader
Apex Gold Fund

 

Share
Posted in Capital Gold Group: Gold Watch | Leave a comment

The Basics of Saving For Retirement With A Precious Metals IRA

Share

Whether you’re 25 or 55, retirement should be at the forefront of your thoughts when it comes to getting your finances in order. With the days of steady pensions over and Social Security likely only to fund a portion of most people’s golden years, the burden of funding retirement is largely on the individual. Below are some basic questions about saving for retirement and information on how you can save for retirement with a Precious Metals IRA.

How much should I save?
When it comes to determining how much to save for retirement, there really is no, “one size fits all” plan that fits everyone. Generally, an individual should aim to put away at least 10 to 15 percent of income for a basic retirement. However, if the plan is to live a more lavish lifestyle, individuals should be aiming for closer to 20 percent or more. For a more specific idea of how much you should be saving for retirement, check out this Retirement Calculator from MSN.

Where should I save?
There are numerous ways to save for retirement and, again, different individuals will have different strategies. However, employer-sponsored retirement plans like 401(k)s or 403(b)s are a good place to start. If an individual doesn’t have access to these plans or the investment options are limited, a Precious Metals IRA Individual Retirement Account may be the perfect option.

Why a Precious Metals IRA?
Since they typically move independently of stocks and bonds, precious metals in an IRA can help minimize risk by increasing diversification, thereby improving performance. The forces that determine gold prices, for example, usually differ from and may even counter the forces that determine the value of many other financial assets.

Can any existing IRA account be transferred into metals?
Precious Metals IRAs are available in qualified Traditional, Roth, SEP, or SIMPLE plans, which enable account holders to contribute or transfer eligible retirement funds from existing qualified accounts, in whole or in part, into direct ownership of allowable physical metals to be held within the new Precious Metals IRA.

What other kinds of accounts are eligible?
Funds held in employer sponsored plans such as 401(k), 403(b), TSP, 457, pension, profit sharing, and other retirement accounts become eligible for rollover into a Traditional IRA in accordance with the rules that govern each plan, usually after service with that employer has ended or the account holder turns 59 ½. IRA Annuities and tax deferred annuities are also eligible.

Since direct transfers and rollovers from compatible, qualified plans are non-taxable events, protecting retirement funds in precious metals is simple and allowable under IRS code.

What metals are eligible for a Precious Metals IRA?
elligibleIRAMetals

 

 

 

 

 

Let a Precious Metals IRA Specialist answer all of your questions with no obligation. We are passionate about safeguarding the funds that you have earmarked for your retirement. We know you recognize the importance of diversifying your investments to mitigate risk, and physical gold and silver are essential to that goal.

Call Capital Gold Group today and remember to ask about our $500 Cash Back offer with qualifying Precious Metals IRA purchases.

Share
Posted in Capital Gold Group: Gold Watch | Leave a comment

A storm of fundamental issues brewing in the market as the G-20 meets this weekend

Share

Let’s look at some of the fundamental developments in the world that unfolded and will be unfolding as the week comes to an end.

On Wednesday, the International Monetary Fund released a report saying that it is seriously worried about emerging markets and the currency turmoil that has developed as the Federal Reserve continues its tapering process. The Fund warned about inflation and major currency related risks in the emerging markets, as well as deflation threats to the global economy in the European Union. What does this really mean? It means that as the Federal Reserve continues with its taper plans, financial institutions around the world will put pressure on emerging market currencies by selling assets in the local currency and finding way to escape the turmoil. In order to prevent that from happening, the local governments in those countries will try to increase interest rates to make their assets more attractive, but in turn the increase in interest rates will lead to a slow down of economic growth in those nations. This vicious cycle will repeat itself, and will affect us here in the U.S. How does something going on in Brazil or Turkey affect us? Very simple, the plethora of mutual funds and other fancily named funds your financial advisor has placed you in will be exposed to debt instruments in these countries where the currency turmoil is creating havoc. The most recent example of U.S. investors paying for horrible decision making on the part of their fund managers is with the Rochester Muni Funds with Oppenheimer, where a very large portion of the fund is exposed to bonds in Puerto Rico that are now considered almost junk. By the way in the financial world, “almost junk” is very bad news to your money.

Now let’s look at some key technical developments in the markets. I mentioned in the previous article that after the big selloff in January, the Dow would have a relief rally. As analyzed, the Dow bounced from its lows hit in the first week of February. The bounce occurred in a very technical fashion. If you look at the chart of the Dow, I have clearly shown you that when a market bounces from a big move down, it will do it within the Fibonacci retracement levels. The Fibonacci numbers is a very powerful tool that can show you how far a market will bounce or come down after extreme moves in either direction. If you and/or your financial advisor do not follow Fibonacci analysis in your trading and portfolio management, then I must say that you are sailing in very perilous waters. You can see very clearly that the stock market is losing steam and turning around right at the 61.8% Fibonacci level. Pay close attention to the Dow between 15,900 and 16,200. If it has trouble forming a base in that region, then expect another major wave down with lower lows than the previous drop.

DowJonesdailyFibochart
Now looking at the gold market, as I said in our first Technical Trading in Focus, we saw gold breakout of a downtrend line on a daily chart and that observation has yielded a 12.5% increase in the price of gold in a mere 7 business weeks. This time I have included a monthly (long term) chart of gold. This month’s strong performance has broken a downtrend line in the monthly. Keep in mind that it takes a lot of energy and time for a trend-line to be broken on a long term chart. If we can close this month above this trend line and consolidate above it in the next month, you may be witnessing a significant change in trend for the precious metals. This is further amplified on the silver market, since that market has formed a strong base and broken out to the upside this month. Since technical analysis is not a perfect science, as always, we would like price and market action to continue to confirm what we are seeing on the charts. For gold near term, I would expect it to get good support at the 200 day moving average around $1,304-$1,305, and then try to test the October 2013 highs at $1,361. Break of that will lead to a test of the pivot point on the daily chart around $1,420. As always, if the market gets a little ahead of itself you will see corrections within an up channel.

Goldmonthlytrendline
Going into this weekend, there is the G-20 meeting in Sydney Australia, and the big topic of discussion has to be centered on the emerging markets and their turmoil, so keep your eyes open and mind focused while you’re trading.

Until next time, happy and successful trading!

Mukarram Mawjood, Head Trader
Apex Gold Fund

Share
Posted in Capital Gold Group: Gold Watch | Leave a comment