Eldora Gold Resources Gold Heading for Another Bull Run

The price of gold is appearing as if it is set up for another bull run. Is this from any sophisticated technical chart analysis? No, it is merely from examining the chart of the gold price (using the GLD ETF as a proxy) and observing the similarity of patterns that seems to be matching the gold price's rise from the consolidations of last summer. Here and now, we have just witnessed gold's price gyrate up and down ... gold just feels like it is headed for new highs.

Note that the price is just now making a fourth attempt in as many months to penetrate the new high price set in as many months. Last summer saw a similar situation, where the price made about five attempts before finally setting a new high on or about September 1. This consolidation also lasted about four months. Then, when the price set a new high at September's start, the "Gold Bull Run" was off and running for the fall.

Are there any other factors that may help the investor allay his fears of a pending crash in the price of gold, rather than starting a new bull run? Here are three significant factors underpinning gold's price:

1. Inflation of Paper Currencies

The markets interpret the FOMC's previous pronouncements as inflationary for paper currencies, and this effect is expected to continue until there are some indications of inflation being reined in. This currency inflation is a fundamental driver for the precious metals.

2. Rise of the World's Middle Class Supporting Gold Prices

There is a rising middle class as the world's emerging markets continue to grow and gain parity with the world's developed markets. The size of the world's middle class growth is largest in the Asian economies and of a scale that the world has never before seen. Asians have a particular affinity for the precious metals due to their history and culture of precious metals being a store of wealth. This buying by emerging middle classes provides a strong base of support for precious metals prices.

3. Peak Gold Is Coming Due to Higher Costs and Lower Grades

Barrick Gold's (ABX) chief executive Aaron Regent already declared a state of "peak gold" in 2009. The thesis is that gold mining is difficult, and the challenges of increasing costs, lower gold grades, and difficult operating environments all coalesce to decrease gold production supply. This "peak gold" dynamic is ensuring that the new production supply of precious metals will be constrained in the future.

Summary

Therefore, the chart above merely reflects the market's reaction to the fundamental drivers affecting gold prices. Currency inflation is the prime driver. Buying from Asia supports the price during corrections. Future gold supply is constrained by peak gold. With these factors affecting gold prices, is it any wonder that a significant rise is in store?

Disclosure: The author is long junior miners, including precious metals miners.

Gold Heading for Another Bull Run article by Marco G.

GoldBullionPro.com is all about investment in precious metals such as gold, silver, platinum, palladium and rhodium. Our experts will provide you with a useful information about gold and other precious metals investment strategy every day. Stay tuned!

Eldora Gold Should I Invest in Gold Using SPDR Gold Trust?

Avoid gold coin investing scams online and fraud that are prevalent now that the price of gold is over a thousand dollars an ounce. Buy gold carefully, avoid boiler room scams and remember that a guarantee is only as good as the dealer. Gold is easily sold on the market today, so beware of bargains in the gold market. Bargains in gold are often gold coin investing scams.

SPDR gold trust (GLD) is one of the fastest growing gold investment companies that was originally introduced to the NYSE list of stocks in 2004. Now SPDR gold trust stocks are being actively traded at Tokyo, Singapore and Hong Kong Stock Exchanges. SPDR gold trust makes owning gold commodity easy and more accessible for investors who were previously fearful of making physical gold bullion investment due to safety and storage concerns. SPDR gold trust is the first American ETF backed up by physical gold assets.

SPDR gold trust is facing both praise and criticism as to its gold investment performance and overall company’s financial approach. When making a decision whether to invest in the SPDR gold trust, it’s wise to consider multiple opinions expressed by various financial analysts.

It’s important to realize that SPDR gold trust stocks are traded similarly to most stocks at major stocks exchanges and are prone to price fluctuations. The investment value of these stocks is directly correlated to the current market price of gold minus gold trust management fees. Buying into SPDR gold shares can not guarantee any financial gains just like with any stocks. You will be investing into gold shares at your own risk, thus it’s essential to set aside no more than 10% of the entire investment portfolio for gold shares in order to allocate major risks should the price of gold plummet.

Make sure to read all SPDR gold trust financial documents filed with SEC that could be located at their website to fully understand all financial risk disclosure statements.

GoldBullionPro.com is all about investment in precious metals such as gold, silver, platinum, palladium and rhodium. Our experts will provide you with a useful information about gold and other precious metals investment strategy every day. Stay tuned!

Gold Bullion Pro: Eldora Gold Spanish Coins Value Retention – Escudos Vs. Doubloons

Eldora Gold resources latest article info on gold investment - Spanish gold coins pieces present some of the most fascinating examples of coin minting industry of the Old World that had existed centuries before the US started minting its coins. Spanish gold coins were often depicted in multiple movies and novels in association with pirates, lost treasure and sunken ships. The Spanish gold coins fascination continues up to this day not only due to their pure gold content, mintage and amazing history behind.

Eldora Gold Resources tips on Spanish gold coins value retention. It is important to research and evaluate each of the gold investment companies under consideration. There are many gold investment scams, fraud, boiler rooms that you should watch for, this will serve as a good warning before investing and only use gold options and companies that are verified, and have a good business reputation. This will minimize the risk of falling prey to any boiler rooms, scams or frauds.

Initially, Spanish gold coins named Doubloons were made by hand using primitive methods and manually sized to a specific weight by actually cutting pieces off already made coins. This method gives them characteristic odd rough shape that is especially prized among old gold coins collectors. The smallest fraction of Spanish gold doubloon is one Spanish escudo, the escudo denomination doubles creating two, four and eight escudo coins respectively.

Doubloons Spanish gold coins were mostly in possession by Spanish noblemen and otherwise richer layers of population and are not as heavily worn in comparison to Escudos. Therefore, the actual Doubloons value by far exceeds the value of Escudos. In the modern world of coin trading, the terms escudos and doubloons are sometimes used as synonyms to describe any Spanish old gold coins. The average price for the oldest Doubloons eBay gold coins can very often be in the thousands of dollars depending on their grade and year of mintage.

If you decided to add Spanish old gold coins to your numismatic collection, take care to only purchase coins from respectable and well-recognized coin dealers that can provide certified old gold coins or shipwreck salvaged coins with proper documentation. Increased popularity of old Spanish and French gold coins along with any other historical rare coins attracts a lot of dishonest coin dealers who mislead coin collectors into buying coins for more than they are actually worth. If you are not a numismatic expert, the general rule is to stay away from historical gold coins and choose certified gold bullion coins to ensure their authenticity and decrease investment risk.