Blanchard in the News
The following articles provide Blanchard and Company, Inc. experts’ opinions on issues affecting gold investors and the gold market.
“The more quantitative easing, the weaker the dollar becomes and gold will benefit from these economic policies,” said David Beahm, executive vice president at precious-metal investment firm Blanchard & Co.
New Orleans-based retail coin dealer Blanchard & Co. said huge demand from both new and existing clients boosted its April American Eagle gold coin sales up 400 percent versus March’s.
David Beahm, executive vice president at Blanchard & Co., said his precious-metals investment firm has seen “2008-like demand” for gold since Monday. “Investors are treating this price fall as an opportunity to get into the gold market at a depressed price,” he said. “The fundamentals for gold have not changed at all, there was tremendous technical trading that pushed the price lower.”
“We haven’t had two back-to-back days like this since 2008 after the collapse of Lehman Brothers,” said David Beahm, vice president at New Orleans-based coin dealer Blanchard & Co.
Beahm said that one customer bought an entire 500-ounce gold “monster box” usually delivered by the U.S. Mint to coin dealers which then sell the 1-ounce coins individually to customers.
“Looks like investors are treating the current price as a buying opportunity,” said David Beahm, executive vice president at precious-metals investment firm Blanchard & Co. But the longer-term outlook on gold as a safe haven looks good, too.
The economic data released recently, including the jobs report from last week, show continued economic weakness, which likely means that quantitative easing in the U.S. will remain on the table for the foreseeable future, said Beahm.
Pair that with efforts by Japan to devalue its currency and “we are still in the midst of a currency crisis that is nowhere close to being over. It is a race to the bottom for the yen, euro and the dollar.”
“Housing data and consumer confidence both missed expectations and this during a period of time when the Fed is printing money,” said David Beahm, executive vice president at precious-metals investment firm Blanchard & Co. “This data will be beneficial to gold in the future as the Fed has no choice but to print in order to keep the economy somewhat afloat.” …
Looking ahead, Beahm said Cyprus will likely be in play for a long time.
“A new precedent has been set,” Beahm said. “Taxing deposits just goes to show how desperate things have gotten and that nothing is safe anymore. If you don’t hold it, you don’t have it.”
“With investors pouring money into the stock market trying to chase the run up, retail investors have shied away from gold,” said David Beahm, vice president at precious-metals investment firm Blanchard & Co. “However, it seems that large buyers are still out there and gold is holding up even with all of the negative sentiment.
“Retail investors seem to have forgotten that since the previous stock market highs in 2007, the stock market has barely produced a return whereas gold is up over 100%,” he said. “The real question is which investment has further to go? A stock market at all-time highs in an economic environment that is barely holding on to growth, or gold, which will protect investor’s wealth during the uncertain times that lie ahead.”
“It appears that the daily trading of gold is almost exclusively risk on/risk off,” said David Beahm, vice president at precious-metals investment firm Blanchard & Co. …
“Today with the Dow hitting all-time highs, it is risk on,” Beahm said. But “the problem the gold market is currently having is that the short-term investors looking for any type of profit are pushing the market around.” …
“It is hard to imagine that the stock market has much further to go, especially where the economy is today versus where it was in 2007 when it hit its previous all-time high,” Beahm said. “Unfortunately, for the individual investor, they are seeing the Dow at all-time highs and are trying to chase the stock market instead of properly diversifying.”
Already, several countries are re-allocating their currency reserves into gold, said David Beahm, vice president at precious-metals investment firm Blanchard & Co.
“The central banks realize that the U.S. and Europe are intending to continue to devalue their currency and in response, they are changing up their balance sheets,” he said, adding that the market is also seeing several institutional buyers prepare for the currency wars by purchasing gold.
“Once the individual investor sees the potential gold has as a portfolio protector, gold will take off,” Beahm said.
“The vast majority of the stimulus dollars printed by the Fed has not hit the economy,” says Donald W. Doyle, chairman and CEO of Blanchard and Company. “The banks are simply sitting on a huge supply of money and not loaning it to businesses or consumers. But eventually they’ll have to, and when that happens, look for inflation to rise and the value of the dollar to plummet. That’s when people who don’t own gold will wish they did.”
“Not only do we have clients calling in, they are buying in huge quantities,” said David Beahm, vice president of Blanchard & Co., a New Orleans-based retail coin dealer.
“They are buying the entire 500-ounce boxes that are sealed by the U.S. Mint, that’s what people want right now,” said Beahm, referring to the standard sealed silver Eagle “monster” box containing 500 one-ounce coins the Mint sells only to its handful of authorized wholesalers.
“Gold remains one of the best long-term safe-haven investments for the risk-averse investor despite some declines in price at the end of 2012,” said David Beahm, vice president at precious-metals investment firm Blanchard & Co. “With as much uncertainty as there is today, and with quantitative easing and fiscal stimulus programs providing only a temporary fix, gold is poised to achieve new highs, somewhere north of $2,000 in the coming year.”
For this year, “volatility will be a major component of the markets” and that includes gold, “but counter-intuitive price swings to the downside should be viewed as buying opportunities as the market moves back upward over time,” he said.
“It’s hard to imagine why the dollar continues to post gains,” said David Beahm, vice president at precious-metals investment firm Blanchard & Co. “Anyone who has looked at the velocity of money in the United States will see that it is only a matter of time before inflation increases and the dollar falls.”
So “we are advising our clients to buy gold now, before investors realize how low the velocity really is,” he said. “Gold has the potential to break through $2,000 this year on that simple fact alone.”
The upbeat home-builder confidence data contributed to gold’s decline, said David Beahm, vice president at precious-metals investment firm Blanchard & Co.
Overall, “with gold up over 6% year to date and another consecutive positive year, investors are taking some profits and waiting to see what the new year will bring,” he said. “Another round of quantitative easing, fiscal cliff uncertainties and a likely increase to the debt ceiling should put a floor underneath the price of gold at around $1,680.
“Gold is on sale and should be seriously looked at below $1,700,” he added.
Beahm later told MarketWatch: Gold is “such a thinly-traded market right now, sellers have the ability to push the market around further than it actually should. Unfortunately, this may happen for the next two weeks as most investors take a break for the holiday.”
“The volatility that the price of gold has seen lately gives the illusion that it is not a safe haven, but in reality investors still view it as a place to protect their wealth,” said David Beahm, vice president at precious-metals investment firm Blanchard & Company. ... Beahm expects 2013 to be “a great year for gold” due to the uncertainty caused by the U.S. fiscal cliff and the dependence of the U.S. economy on monetary stimulus from the Federal Reserve.
“There is a huge influx of new high-net-worth individuals that are buying a lot of gold, and they are taking physical possession of it,” said David Beahm, vice president of Blanchard & Co., one of the largest U.S. retail coin and bullion dealers. ... “This quarter is shaping up to be one of the best since the last quarter of 2008,” Beahm said.
Part of Tuesday’s trading was “just a play on the euro falling against the dollar, and gold fell as well,” said David Beahm, vice president at precious-metals investment firm Blanchard & Co. ... “However, between the fiscal cliff, debt ceiling, ‘QEternity’ and the mess in Europe, gold traders are certain of gold’s continued success,” Beahm said. “It will be a huge hurdle [for the U.S. government] to overcome the fiscal cliff set for Jan. 1, 2013,” he said. “All of the scenarios which could happen with the fiscal cliff are all positive for gold.”
“Gold is reasserting itself as a strong safe haven during the current period of risk and uncertainty. The European debt crisis remains a major issue ... and other major indicators in the US and abroad continue to illustrate just how feeble the economy remains,” David Beahm, vice president, marketing and economic research, at Blanchard and Company, said. “Many investors have moved into gold to protect and grow their wealth, and we foresee global investment demand for gold to grow even further than the 900 percent increase it has seen since 2007,” Beahm added.
Bullion coins showed a bit of a slowdown in the first quarter of 2012, said David Beahm, vice president at Blanchard and Co. … Not so for collector coins, he said. They are in high demand.
“Right now it’s difficult for us to find green sticker CAC (Certified Acceptance Corporation) coins, and when we do get them in it’s hard to keep them because of high collector interest. As soon as we get them they’re out the door,” Beahm said.
Blanchard and Company said it was selling now more 500 one-ounce Silver American Eagle “Monster Boxes” than ever. Last week, one client bought 17 of the $18,500 boxes at once — a more than $300,000 purchase, said vice president David Beahm. ...
Blanchard and Company, one of the top retail coin dealers based in New Orleans, said it is now selling more of those 500-coin monster boxes than ever.
“Not only do we have new silver investors coming in, we also have gold investors coming back to put more money in silver,” said Beahm.
“We predict that $2,400 is a reasonable target for this year,” says Donald Doyle, Chairman & CEO at Blanchard & Co. — the largest retail metals dealer in the U.S. “The principle factors that are pushing gold higher now have really been in place for some time.” Doyle points to global economic uncertainty, a concerted effort for currency devaluation around the world, strong supply & demand fundamentals, and growing global central bank holdings. “We think that it’s inevitable that we’re going to see significantly higher prices,” says Doyle.
An exceedingly rare 1787 gold Brasher Doubloon has been sold for $7.4 million, one of the highest prices ever paid for a gold coin.
Blanchard and Company, the New Orleans-based coin and precious metals company that brokered the deal, said the doubloon was purchased by a Wall Street investment firm. Identities of the buyer and seller were not disclosed.
Minted by Ephraim Brasher, a goldsmith and neighbor of George Washington, the coin contains 26.66 grams of gold – slightly less than an ounce. Worth about $15 when it was minted, the gold value today would be more than $1,500.
The Brasher doubloon is considered the first American-made gold coin denominated in dollars; the U.S. Mint in Philadelphia didn't begin striking coins until the 1790s.
Gold is said to be a hedge against inflation, deflation and all other nasty sorts of economic bugaboos. It looks like it may be a hedge against political incompetence too. …
“What’s driving gold right now is that investors don't know what to do. All the rumors in Europe are making people worried,” said David Beahm, vice president of economic research with Blanchard and Company, Inc., a New Orleans-based investing firm that specializes in gold and other precious metals.
“Gold may be volatile, but I can’t see a reason why it would go down much. I think a price of $2,000 by the end of the year is still possible,” Beahm added.
If you’re looking for a safer place to park your money these days, gold and silver bullion coins may be it, but don't expect to make a quick buck. …
Accumulating “normal” gold bullion coins is referred to as “stacking” by the current crop of gold aficionados, and the gold bugs who amass such bullion coins aim to buy them, regardless of price, on bets that gold itself can only go higher. …
To insure the gold, it would be cost roughly 20 cents per $100 value, according to David Beahm, vice president of precious metals investment firm Blanchard and Company, Inc., so insuring $1,000,000 of gold would cost $2,000. …
It may cost a bit more to own coins rather than bars, but to many, coins are worth it.
At Blanchard, you can buy a one-ounce gold American eagle coin for as low as 4% above spot prices and a one-ounce gold bar would be as low as 2.5% above spot, according to Beahm.
Among more traditional investors, the erratic stock market is leading the wary to seek solace in gold, said David Beahm, vice president of economic research and marketing at Blanchard and Company, a New Orleans-based coin and precious metals dealer.
“I think that since 2008 when we saw the financial crisis hit, investors are looking more and more at this,” he said.
Beahm said revenues for the privately owned company have risen 25 percent to 30 percent so far this year, although he would not disclose specific figures. While adding that gold is “just a fraction” of what Blanchard does, he said that is “certainly driving” the increase in revenues. August was the best month in the company’s history, he said.
Beahm said he’s confident the rise will continue, though one way for it to ebb would be if the Federal Reserve were to sell some of its gold stock to shore up uncertainty in the American dollar, he said.
“While we certainly don’t think people should liquidate their entire investment portfolio, we do think investors should have 10 percent to 20 percent in gold,” he said. “It’s just smart. It’s an insurance policy. It’s a hedge.”
Gold, and only gold, will be our salvation when the value of companies, banks, countries and even money itself melts away. Gold, not shifting currencies, is the foundation of wealth and security. Gold is back, for good.
This is the song of the “gold bugs” - the fervent fans of the precious metal who have clung to its investment value for three generations and now glow in the reflected luster of a record price approaching $2,000 for just one ounce. …
Long-term gold bull David Beahm, vice president of marketing and economic research at New Orleans bullion dealer Blanchard and Co., says worries over the stability of the stock markets will be a key driver of higher gold prices.
“The best investment right now is gold,” he said. “By diversifying one’s portfolio with a negatively-correlated gold, investors can protect themselves from deep plunges in the equity market.”
“There is no news in the market today or over the coming few months that is likely to stop the current gold bull market, as the fundamentals are firmly in place for gold to continue its rise,” he says.
With all the ups and downs on Wall Street, demand remains strong for safer investments, especially gold. But is it the right investment for everyone? …
“We’re seeing investors flock to it for a safe haven and right now, investors feel like it’s prudent to have 15 to 20 percent of their portfolio in gold,” explained David Beahm, vice president of economic research with precious metals dealer Blanchard & Company.
Paul R. La Monica talked to Blanchard and Company executive David Beahm for his CNNMoney column, “The Buzz”:
“The biggest factor driving gold is the debt ceiling news – or lack thereof. Nobody wants risk right now,” said David Beahm, vice president of economic research with Blanchard & Company Inc., a New Orleans-based investing firm that specializes in tangible assets like gold and other precious metals.
Beahm said that if (or more hopefully when) there is an agreement to raise the debt limit, gold prices should pull back a bit because the dreaded cloud of “uncertainty” will finally be lifted.
But even if a deal is reached soon, gold could continue to climb higher once the euphoria about avoiding Default-ageddon subsides. …
Gold isn’t just rallying because of the problems in the U.S. either. Beahm still thinks gold could go higher because it’s not as if Europe’s debt problems are completely solved. …
Beahm … said he thinks gold may have room to run until it gets close to the all-time inflation-adjusted highs for the metal from the early 1980s. And that’s between $2,200 and $2,300 an ounce.
Even though that may sound high -- it’s another 40% higher from current levels -- Beahm notes that people who have been doubting gold and calling it a bubble have been wrong for a while now.
“Sure, a lot of people have been saying they don’t want to buy gold at what they think are the highs,” he said. “But many have been saying that since gold was at $800 an ounce.”
Gold vaulted past $1,600 an ounce Monday, driven by worries about the federal debt limit and ongoing problems in Europe. …
At Blanchard & Co., a New Orleans precious metals dealer, business was brisk. “Looking at the numbers coming in, I’d suspect that this will be the best July ever” for gold sales, says David Beahm, vice president of economic research.
One-ounce gold U.S. Eagles are the hottest seller, Beahm says, but smaller coins in 1/10th of an ounce are popular, too, partly because they’re more affordable. “People want any kind of gold they can get their hands on,” Beahm says.
April 15 – Investors can still make a lot of money in the gold market – or prevent losing it, if they do their homework before they wade through a sea of investment choices. …
David Beahm, a vice president at precious-metals retailer Blanchard and Company, says gold and silver bullion coins are “sold for only a small margin above the spot price.”
Some dealers, however, advertise new bullion products as numismatic investments – in other words, they have special value to collectors – and so charge a much higher premium than is typically charged for a bullion product, he said.
“The reality is that these new mint products should have a value that correlates close to their precious metal content.”
NEW YORK, Jan 19 (Reuters) – Sales of the U.S. Mint’s American Eagle silver coins have already hit a monthly record in January as prices have declined enough to attract buyers seeking exposure in precious metals and those who expect industrial demand for silver to grow.
Sales of the popular one-ounce silver American Eagles rose to 4.6 million coins so far in January, the Mint’s website showed on Wednesday. That makes for an all-time monthly high since the coin's introduction in 1986, with more than 10 days left in the month.
The previous record was 4.3 million in November.
David Beahm, vice president of U.S. retail gold coins dealer Blanchard & Co, said sales of silver products are close to the level they hit in the fourth quarter of 2008 during the worst financial crisis since the Great Depression.
But he said that while demand in 2008 was prompted by the search for a safe haven from collapsing financial markets, now demand is being fed by hopes for a strong recovery.
“People are generally thinking that the economy is improving. Since silver has such a higher use than gold from an industrial standpoint, if you are going to be exposed to precious metals right now, silver is the way to go,” Beahm said...
NEW YORK (CNNMoney) -- Gold, oil and other commodities enjoyed a
stellar run in 2010. The party may not be over just yet ... but
investors have to be wary.
Several experts say that the main forces behind the bull run in
commodities last year, namely strong economies in emerging markets
coupled with worries about the health of the U.S. and Europe, are likely
to remain in place this year. ...
NEW YORK (CNNMoney.com) -- Gold finally traded above $1,300 an
ounce Friday morning. So is that the peak or can the precious metal
actually head even higher?
As tempting as it is to say that gold is an absurdly overvalued
yellow bubble, several pretty savvy people say there are compelling
reasons for gold to keep climbing.
Some investors are worried that the Federal Reserve's commitment
to buying more Treasurys could mean higher inflation down the road.
So far, inflation has not been a near-term problem. And the chart at
the top of this page clearly shows that gold can go up without
inflation pressures. ...
NEW YORK, May 7 (Reuters) -- U.S. gold coin sales surged this
week as the anxiety over a euro-zone debt crisis spilled over into
the United States and as Thursday's sudden Wall Street collapse
The U.S. Mint sold gold coins this week at twice its normal
pace, and a leading retailer said Thursday was a record day.
Physical gold products such as coins and bars are traditionally
a safe haven for anxious investors in times of economic and
geopolitical crises. On Friday, U.S. stocks turned negative for the
year on fears of another credit crisis. ...
Sales of gold coins by the U.S. Mint have risen to their highest
levels since December 2008, with coin dealers reporting that business
is booming thanks to demand from investors unnerved by Europe's sovereign-debt
problems and a sharp decline in stock markets.
So far in May, the U.S. Mint has sold 158,000 one-ounce 2010 American
Eagle bullion coins, according to the agency's website. This is already
more than double the full-month total of 65,000 for May 2009.
Gold, trading at about $1,200 an ounce, has hit record highs in
recent weeks, even as other commodities have fallen sharply, as investors
seek assets that are thought to retain their value during volatile
times. The increased demand for gold coins, which tend to be purchased
by private investors who want to hold physical metal, indicates that
the concerns about the deepening financial problems in Europe are
weighing on an increasingly wide swath of investors.
"We've seen a tremendous uptick in investors looking toward
gold for their portfolio," said David Beahm, vice president
for marketing and economic research with New Orleans-based coin dealer
Blanchard and Co. "It's been like that for a couple of years
now. But just over the last two or three weeks, it has exploded."
Yes, the epic Goldman Sachs hearing in the U.S. Senate dominated much of the financial news this week, but the real top story should not be Goldman – but gold.
Gold bullion just hit a new high for 2010 – about $1,180 an ounce – after gaining 6 percent in April as it gets closer and closer to the all-time intraday high of about $1,227 in December 2009.
What’s driving the rally? Clearly, the sovereign-debt crisis raging in Greece and threatening to infect other European Union nations. The flight from the euro to traditional safe-haven assets has fueled gold’s latest price surge.
“What’s happening in Europe is making investors incredibly nervous and that’s driving gold higher,” said David Beahm, vice president of economic research Blanchard & Company
Inc, a New Orleans-based investing firm that specializes in tangible assets
“Greece may be solved this weekend but now Spain is a big concern and Spain is a much larger economy than Greece. The IMF and Germany can’t bail out everyone in Europe,” Beahm said, adding that he expects the dollar to keep rising and that it’s
only a matter of time before gold is back above $1,200.
You hear many people pushing gold these days, citing our nation’s $12.4 trillion debt. Gold is the classic hedge against inflation. If the U.S. resorts to printing money to repay our debts, the value of paper dollars will fall, and gold prices will skyrocket.
Coins also don’t have to be tested for weight and gold content, as gold bars sometimes do. “With a 100-ounce bar, there’s a greater chance someone has shaved a few ounces off it,” says David Beahm of Blanchard & Co., a New Orleans gold dealer.
So will this trend continue? David Beahm, vice president of economic research with Blanchard & Co., a New Orleans-based investing firm that specializes in gold and other precious metals, said one reason gold and oil prices are falling now is simply because there was too much enthusiasm at the end of 2009.
The price of gold for example, shot up from about $1,050 an ounce to its peak of more than $1,215 an ounce in only two months.
“This is a healthy pullback from the highs. Some investors thought gold went up too much and too many people were getting in the market,” Beahm said.
The fact that several European economies are such a fiscal mess right now may also keep gold, oil and other commodities–such as silver and copper–in check for a bit. That’s because the dollar has once again regained its status as being one of the world’s safer investments.
“People are going to wait and figure out what’s going to happen with Europe’s financial disarray. Right now, it appears investors think the smartest and safest play is the dollar,” Beahm said.
Gold futures finished higher but were volatile in electronic trading Wednesday, briefly relinquishing some of the regular session’s 1.2% advance after the Federal Reserve reiterated a commitment to low rates but nailed down the end dates of its special liquidity programs.
“The dollar rallied after the announcement due to the Fed’s accompanying statement,” said David Beahm, vice president of economic research at Blanchard and Co. in New Orleans, in emailed comments. “While the Fed continues to support interests near zero percent for some time, it may be ending the additional quantitative easing that the Fed has needed to support the economy.”
However, Beahm believes that with the economy still weak, the Fed will keep interest rates near zero for a long time, ensuring ample liquidity and lifting inflation expectations. In this context, Blanchard maintains a price target of $1,500 for gold in 2010.
The price of gold is flirting with $1,100 an ounce. Many other precious metals continue to surge. How much higher can gold go – and what’s it all mean?
“Gold producers are going to need to close their hedge books because for every dollar that the price of gold goes up, they lose a lot of money,” said David Beahm, vice president of economic research with Blanchard & Company Inc., a New Orleans-based investing firm that specializes in gold and other precious metals.
This demand, coupled with more worries about inflation, is likely to lead gold significantly higher, Beahm said. He thinks gold could hit $1,150 by the end of this year and $1,500 by the end of 2010.
“There is no doubt that there will be inflation. It’s not a matter of if but a matter of when. And when that happens gold will spike again,” he said.
Gold futures surged to record highs above $1,090 an ounce Wednesday as the dollar sold off and buyers piled onto the precious metal’s recent rise amid bets the Federal Reserve would maintain its ultraloose monetary policy.
“The Fed reiterated the fact that they’ll keep interest rates low to stimulate growth, which will ultimately lead to a weaker dollar and higher inflation,” said David Beahm, vice president in economic research at Blanchard & Co. in New Orleans.
Combined with demand from central banks, the continued drop in the U.S. dollar “is a great recipe for gold,” he said.
“To see a central bank buy at this kind of level shows there are going to be a lot of other buyers out there,” said David Beahm, vice president of economic research at Blanchard & Co., a precious metals investment firm.
“It signals that there are people out there that think the price is going to continue to go up,” he said. Beahm sees gold rising to as high as $1,150 an ounce by the end of this year.
Forex TV - The dow stays above 10,000 and S&P heads towards 1100. Investors still think the market is over priced. Apple beats expectations. Blanchard & Company, Inc.’s Beahm comments.
Analysts say there is little standing in the way of more advances for gold.
“The only way this doesn’t continue would be a stronger dollar,” said David Beahm, vice president of economic research at Blanchard & Co., a precious metals investment firm. “I can’t find anybody out there that is saying that is going to happen.”
Forex TV – Stocks lost after a 2-day rally as analysts said they expected a pullback on the start of earnings. Blanchard & Company, Inc.’s Beahm comments on commodities.
Gold is poised for a “big breakout” by the end of September, Donald W. Doyle, the chief executive officer of Blanchard & Co., a retail coin and bullion dealer in New Orleans, said today in a statement. He said the price may top the record $1,033.90 for New York futures reached in March 2008.
DAVID BEAHM, VICE PRESIDENT, ECONOMIC RESEARCH, BLANCHARD &
CO "We believe very strongly that the dollar is going to fall,
and we will have inflation. The real question is when is that
going to happen. Once the banks begin to feel comfortable with
lending money, certainly we are going to see some high
inflation. As the economy continues to get better – although it
will be relatively slow–commodities prices will be one of the
few assets that will perform very well, not just this year, but
over a period of time."
Ex-Pittman 1843 Proofs sell for $937,765
A three-piece gold 1843 Proof set once part of a complete 10-coin Proof set owned by John J. Pittman was sold for $937,765 on May 21 to an investor, in a private transaction conducted by Blanchard and Company Inc.
Kind of. Oil at $60 is good news if the rise is fueled by stronger
demand, not a weak dollar and speculation. But at some point oil
prices may become too high.
“People are seeing inflation on the horizon and lining up their portfolios
accordingly,” said David Beahm, vice president of economic research with Blanchard & Company
Inc, a New Orleans-based investing firm that specializes in commodities.
From Kiplinger's Personal
I'm interested in investing in gold. It seems to be one of the few things that has been doing well during the bear market. What is the best way for an individual to invest in gold?–Cindy Reed, Rockford, Ill.
Although some advisers dismiss gold for its association with perpetual doomsayers, there are perfectly respectable reasons to add some to your portfolio. Gold can provide a hedge against inflation and a falling dollar. Neither of those has been a problem of late, but both are likely to cause headaches long term. And gold prices tend to move in separate cycles from stocks. In 2008, U.S. stocks lost 37% while bullion gained 5.5%.
If you want to buy gold in a more tangible form, you can buy bullion online–just be sure to go through a reputable site, such as Blanchard's (blanchardonline.com)...
Days after famed Lehman Bros. bank announced its bankruptcy in September, Blanchard and Co. Inc., the largest precious metals retailer in the country, was breaking company sales records. Blanchard sold more gold in 60 days after the Lehman collapse than it had in the preceding three years combined, an executive for the firm said.
“I think what was happening was that people were motivated by fear at that point,” said David Beahm, vice president of economic research for the New Orleans company. “They wanted to have an asset they could hold in their hand and that wouldn’t go to zero overnight.”
Blanchard customers, it seems, were not alone. Demand for gold and silver have been increasing nationwide. The U.S. Mint sold four times as many American Gold Eagle coins in January 2009 as it did in the same month a year ago.
“Investors are scared,” says David Beahm, vice president for economic research at Blanchard & Co., a large New Orleans–based coin dealer. “They’re looking for something that won’t go to zero overnight.”
David Beahm, vice president of gold bullion dealer Blanchard and Co. in New Orleans, said his company sold more gold coins and bars during the final three months of last year than it did in the previous three years combined.
“Investors have been trained to buy and hold stocks for years, and that strategy has worked,” Mr. Beahm said. “But more people are realizing that it’s not working now, and they need another way to protect and hold wealth.
“Investors are looking for something safe and stable, and gold is something that provides that stability,” he said.
“These days, with everything going on with the [Bernard] Madoff scandal and now the [Allen] Stanford scandal, you have to know exactly who you're dealing with,” says David Beahm, vice-president at Blanchard & Co., a leading retail dealer of gold coins and other precious-metals products based in New Orleans.
“January was the best month we’ve ever had, and February is shaping up to be the same,” says David Beahm, vice president of economic research at Blanchard & Co., a New Orleans bullion dealer.
“January was the best month we've ever had, and February is shaping up to be the same,” says David Beahm, vice president of economic research at Blanchard & Co., a New Orleans bullion dealer. “We sold more gold in January than in all of 2007.”
The price of oil has sunk even as gold edges higher. That shows fear about the economy…so an eventual boost in crude prices might signal a return to health.
“Gold is moving on fear and fear alone. People are not comfortable with their money anywhere else,” said David Beahm, vice president of economic research with Blanchard & Company Inc, a New Orleans-based investing firm that specializes in tangible assets like gold and other precious metals.
“Global demand for oil is down and that’s usually a signal for gold prices to follow suit. But people want an asset they can hold and know it’s still going to be there,” Beahm added.
The Fed seems to think inflation is no longer a problem. But inflation may just be in hibernation and low rates for a long period of time could awaken the beast.
“Fundamentals will re-establish themselves as the driver of the gold market, and we believe we’ll see $1,250 gold during this period,” said Donald Doyle, chairman and CEO of New Orleans-based precious metals dealer Blanchard and Co.
Prices drop below $700 an ounce on Nymex for the first time in three weeks
“We received additional news about the global recession, as Germany declared the country is in a recession,” said David Beahm, a vice president at precious metals retailer Blanchard & Co. said in emailed comments. “As the economic crisis sweeps the globe, the only option that central banks will have to save their economies will be to dump liquidity into the markets.”
And “as inflation rises across the world, investors will be looking for portfolio protection,” he said. “Gold will be the asset that protects and builds wealth during this period of what could be hyper-inflation.”
"Fundamentals will re-establish themselves as the driver of the gold market, and we believe we'll see $1,250 gold during this period," said Donald Doyle, chairman and CEO of New Orleans-based precious metals dealer Blanchard and Co.
Blanchard and Company, Inc. specializes in buying and selling gold and precious metals to meet each customer’s individual investment goals. You can contact Blanchard by calling