SEOUL, Aug 2 (Reuters) – South Korea’s central bank bought 25 tonnes of gold over the past two months in its first purchase in more than a decade, saying the time was ripe to boost its gold holding, but markets barely moved on the news.
A brittle global economic recovery and precarious debt situations in the United States and Europe have boosted the safe-haven appeal of gold, lifting bullion to a series of record highs in July, as investors and central banks chased prices higher.
The central bank of Asia’s fourth-largest economy said that, with prices hovering near historic highs, gold looked less lucrative as an investment but it was the right time to buy gold because its foreign reserves had risen above $300 billion.
Here’s a great question I received recently:
“Hi, I read an article somewhere that the author said to stock up on nickels because they would be valuable for the nickel metal content in a few years. And that the govt is changing them away from being made of nickel to another metal alloy. Have you heard of any of this? Like when the Hunt Brothers hoarded up all the silver.”
Thanks for asking! I have to remind readers that, due to legal restrictions on allowing GVC to give financial advice, we cannot advise you on the practice of saving nickels or other metals as an investment. But I will be happy to give my personal opinion and offer a few facts to help you with your choice!
It is a fact that it does cost our government 2 cents for every 1 cent made, and costs them 10 cents for every nickel made. Are they going to start using other alloys to make these…your guess is as good as ours. Gold has always been used to preserve wealth. Silver has been used as well, since the demand for Silver has always been greater than the demand for gold. This higher demand is because silver is used as an industrial metal.
All the gold that has ever been mined is still in existence today, because it’s either been made into gold jewelry or gold coins, or it’s been melted down and then formed again into jewelry or gold coins. I hope that helps you make your decision. Thanks for the question!”
From the Houston Chronicle: Read the article in its original location here.
Ron Paul schedules House hearing to push gold standard
Rep. Ron Paul is bringing his fiscal policy darling-the gold standard-to the spotlight in an upcoming congressional hearing. (AP Photo)
Texas congressman and GOP presidential nomination hopeful Ron Paul is:
(a) chairman of the House Financial Services Subcommittee on Domestic Monetary Policy and Technology, and
(b) an outspoken proponent of the gold standard.
Put those two interests together, and you have a subcommittee hearing scheduled for Tuesday on H.R. 1098, the Free Competition in Currency Act of 2011, a bill that would allow for gold and silver to be used as currency.
In a statement, Paul said that America’s current “pure fiat currency system” is part of what’s caused the current economic crisis—which explains the need for a bill like H.R. 1098.
The bill would remove taxes from gold and silver and repeal federal legal tender laws to free up the metals for circulation, a move which, Paul said, would allow “the American people … to have a choice of currencies to protect themselves and their families from the poor decisions of government.”