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The Gold Hunter Blog

Why should people buy gold and silver as an investment?

April 11th, 2014

Two 0.5 oz American Eagle gold coins purchased by investorWe’ve been seeing an upswing in folks wanting to buy gold or silver as an investment lately, and we thought it’d be a great idea to write a bit about why now’s a great time to make this investment, so here’s a bit of background.

The federal reserve has been buying $85 billion per month in mortgage bonds and treasury bonds. Last year the DOW was up 30% thanks to QE3 (a stimulus program designed to lower mortgage rates).

All of that money went straight to Wall Street. But now, the federal reserve is realizing that hyper inflation is around the corner and began tapering in 2013, reducing their bond-buying to $75 billion per month. In January, they reduced it another $10 billion.

So why are they doing this? The federal reserve wants to build inflation because it would allow them to pay off their debts with cheaper dollars. When they started tapering, the stock market rebelled. It’s gone down 7% since January, which takes it from a bull market to being a bear market.

Which brings us back to that question of why people should buy gold and silver as an investment:

  • Institutional investors (hedge funds, 401K money managers, IRA managers, etc.) are taking their money out of the stock market in a controlled fashion. That money is going into other investment avenues, such as gold. Because of this, gold has increased in value by about $100 per ounce since the first of the year. Gold was at $1,192 an ounce on December 23, and now it’s been rising steadily—corresponding exactly with the stock market changes—to about $1,300 an ounce. Why would you not want to catch a rising investment right now?
  • The three trillion dollars that the federal reserve has created out of nowhere (with stimulus plans designed to lower mortgage rates, such as QE1, QE2, QE3, and Operation Twist) was created, as officially stated, to create inflation. It’s doing that, but because so much money was created, the value has dropped and very large inflation is around the corner. Inflation will cause the cost of gold, silver, and platinum to rise in response, to safeguard the value of the dollar. So if you buy now, while the prices are low, you’ll have a great opportunity to sell that gold and silver back when inflation brings the prices back up again.

So what do you think? Do you think gold and silver are wise investments right now?

Check out One of the Gold Hunter’s Great Gold Coin Investments!

February 20th, 2014

Austrian Philharmonic Gold Coin

Austrian Philharmonic 2 Austrian Philharmonic

Fineness: .9999
Actual Pure Gold Content: 1.0 troy ounce
Diameter: 37mm
Face value: 2000 schillings or 100 euro (Also minted in ½, ¼, 1/10-ounce sizes)

Because we are getting a much higher demand for buying gold coins as an investment, we figured it would be fun to showcase some of our more interesting gold coins!

Shown here, the Austrian (also known as Vienna) Philharmonic is the best-selling gold coin in Europe. As proof of its international popularity as one of the “pure gold coins,” the Philharmonic led sales worldwide in 1992, 1995, and 1996, according to the World Gold Council. In 2008, at the height of the worldwide credit-financial crisis, more one-ounce Philharmonics were sold on a global basis than either U.S. Eagles or Krugerrands.

The Philharmonic is struck in pure, 24-karat gold. One side of the coin depicts the great organ in Vienna’s concert hall, home of the famed Vienna Philharmonic Orchestra. The other side shows a harmonious medley of musical instruments—a string bass, cellos, violins, a bassoon, a harp, and Viennese horn. The Philharmonic is minted in one-ounce (troy), half-ounce, quarter-ounce, and one-tenth ounce sizes with face values of 100, 50, 25, and 10 euros, respectively. Earlier mintages before the creation of the euro were denominated in schillings.

In 2004, the Austrian Mint issued a 1,000-ounce gold Philharmonic to mark the 15th anniversary of the popular bullion coin. This anniversary coin has a face value of 100,000 euros. Fifteen coins were struck, and they sold out within two weeks of offer. The relief on the coin was sculpted by computer and finished by hand. Each coin took 130 hours to mint. Not to be mistaken for pocket change, the 1,000-ounce Philharmonic is listed in the Guinness Book of World Records as the world’s largest gold coin.

The Gold Hunter Presents a New Gold- or Silver-Buying Opportunity!

January 29th, 2014

Year of the Horse IngotThe Gold Hunter is offering  something new for our clients!

Because the price of gold has dropped this year and is expected to rise again in 2014 as a result of inflation, people have been approaching us with questions about gold investment.

So we’re responding to those requests.

Starting in January of this year, The Gold Hunter is now maintaining a supply of gold and silver ingots and bullion for sale. To help our clients, we are keeping our premiums reasonable. We have an ample supply of this year’s Year of the Horse 10 oz silver ingot, as well as silver bullion 1 oz rounds. These beautiful ingots and bullion rounds should increase in value as the year progresses, making now a great time to purchase.  We also have a nice supply of hard to come by gold  fractional 1/10th ounce American Eagles & Austrian Philharmonics in stock  with low premiums!

Every time gold prices go down, it’s a great time to buy! Then you can sell  when the spot price rises and make a profit.  From day to day in 2013, gold dropped and rose in price. Last year presented some real bargains, and this year looks to be a great one for investment. The price of gold is anticipated to rise up to $1,450 per ounce. If you buy now, you could make quite a sizable profit by selling when the price is higher.

Now is the time to buy!

Holiday Special: 15% Bonus on Gold, Silver, or Platinum Jewelry

December 12th, 2013

selling-gold-denverWe all know that Christmas time & the holidays can be joyous but also costly. Let The Gold Hunter help you out by giving you a 15% bonus every time you sell us your gold, silver, or platinum jewelry through December 31, 2013. Just mention that you saw this Christmas offer on our website, and we will be happy to help you earn as much money as possible on your sale of gold, silver, or platinum jewelry.

Have a Merry Christmas and a joyous holiday season from your friends at The Gold Hunter!!

Why Do I Buy Gold and Silver?

November 7th, 2013

Gold ScaleI am frequently asked why it is that I do what I do. As a business, The Gold Hunter makes a point of paying the highest dollar amount for our clients’ gold and silver jewelry. We’re obviously not in it to make a quick buck. So what it is it that drives us? Honestly, I’m blessed to thoroughly enjoy what I do…helping people raise cash when they sell their precious metals.

Between 2008 and 2011, I helped many clients who were enduring tragic and heartbreaking financial circumstances because of the economic meltdown. Many of my clients had lost their jobs through no fault of their own and were suddenly facing potential financial ruin for themselves and their families. I could not sit down with these good people and take advantage of them as so many of my competitors chose to do. I had the opportunity to help.

My clients would tell me how poorly they’d been treated by weekend hotel gold buyers (now extinct), pawn shops, and even some gold-buying jewelers. But when they came to The Gold Hunter, they left satisfied, often with tears of gratitude in their eyes.

Sometimes our clients had their children waiting in the car for them to return with enough cash from the sale of their gold jewelry to buy food or gas…perhaps even enough money to make one more mortgage payment. Senior citizens would sell their gold to me to buy much-needed prescription medicines or to help their grandchildren buy school supplies. It touched me to be able to make a difference in their lives.

My heart broke as I witnessed firsthand the widespread suffering I encountered every day from 2008 through 2011. I vowed that I would never add to my clients’ misfortune by being anything other than as fair and as generous as possible while still staying in business.

Operating my business by the creed “Do Unto Others As You Would Want Them To Do Unto You” has been the most rewarding decision that I have ever made. I have not made as much money as I might have, but I am rich in the knowledge that I have truly helped my local community and have done my part to enrich the wonderful folks who are my clients.

More than half of my business is the result of referrals from satisfied clients and repeat business, so my decision to treat every client fairly and generously has paid off. The Gold Hunter is still thriving after six years in business, while many of my competitors have closed their doors.

In fact, as word of my generous payouts reached my competitors’ ears, they were forced to pay more in response. Being generous had an unforeseen spillover effect in the Denver gold market that benefitted the public.

So why do I do what I do? Because I truly love the feeling that I am helping people achieve what they truly want and need, whether that means paying the bills or taking a much-needed vacation. We value and respect each and every one of our clients and are excited to be able to help them when they need it. Valuing every client has resulted in The Gold Hunter earning an “A” rating with the BBB with zero complaints since 2008, perhaps my greatest accomplishment and source of pride!

Where Are All the Gold Buyers Going?

October 4th, 2013

Big buy from a repeat clientIf you’ve visited or driven past any storefront gold buyers lately, you may have noticed a few more closed signs on windows, a few less sign twirlers, or a few more “call to make an appointment” signs that lead you to unanswered telephone numbers. What’s going on?

Since January 2012, the Denver metro area has been inundated with no less than 50 gold buying storefronts from four different out-of-state chains. These chains aren’t members of the Better Business Bureau, nor do they bother to join any local Chambers of Commerce. They are “get rich quick” operations that are not invested in the local community and do not donate to any local worthy charities.

These out-of-state chains were doomed to fail from their inception. 2012 saw the supply of scrap gold from individuals rapidly start to dwindle, compared with the supplies of 2008–2011, which were record breaking and robust. These high scrap gold levels are what prompted the “get rich quick” gold buying storefronts to leap into the Denver market, so when they started going down, it was bound to have an impact.

Because these storefront gold buyers have such high business overhead, they pay very low prices for both scrap gold jewelry and gold coins, often offering $160- $240 BELOW SPOT PRICES for one ounce gold coins and ingots! No wonder they don’t want to join the BBB! But they really don’t have a choice. Because these businesses are so expensive to run, if they don’t pay unreasonably low prices for gold, silver, and platinum they can’t make enough money to stay in business.

The market has responded by staying away from these operations, and storefront gold buyers are now closing numerous locations as they experience enormous financial losses.  Expect further closings between now and January 2014 as the latest incarnation of gold buyers continue to suffer heavy losses.

Contrast them to The Gold Hunter. We have an A rating on the Better Business Bureau and participate in our local community through our membership with and frequent gold and silver jewelry donations to the Metro North Chamber of Commerce.  The Gold Hunter also donates to local schools, churches, and youth sporting leagues. We love to be involved in our local community and contribute whenever we have the opportunity.

The best news is that The Gold Hunter is still thriving after six years in the gold buying business. We keep our overhead low, so we can continue paying generously for our clients’ scrap gold, silver, and platinum, as well as top dollar for coins and bullion.

Please call us and experience The Gold Hunter difference for yourself!

Volatility in Gold Prices

August 1st, 2013

Many people are puzzled by the recent ups and downs in the price of gold and wonder where gold is going from here.

gold volatility

Right now gold is linked to our current “bull” stock market. A bull stock market basically means that the stock market is generally rising in price. As long as stocks look attractive as an investment, large investors are pouring their money into equities and ignoring gold as an investment. This is why gold prices have gone down lately; gold isn’t quite as desirable when the stock market’s looking good.

But the fundamentals for gold are still bullish—the Federal Reserve is still buying $85 billion in treasuries every month in an attempt to “reinflate” the economy. This essentially means that the federal government is trying to ignite inflation to avoid the deadly deflation that occurred in the last Great Depression of the 1930’s. This will definitely have an impact on the price of gold!

Here’s another way to think about it: the price of gold rose from $725/oz in 2009 to $1,950/oz in 2011, all without ANY appreciable inflation. Since it is the goal of the Federal Reserve to create inflation, where will gold head up to price-wise when this inflation certainly occurs? Remember, gold is historically viewed as a “safe haven” investment to protect against instability in economies.

The price of gold has steadied now around $1,300/oz and is a bargain at this price level as the strong physical demand market is proving. Gold is becoming difficult to find and is trading with $80-$100/oz premiums over the spot price as a result.

Certainly gold will rise in a bullish manner as inflation, world-wide economic weakness, and continuing regional wars rear their disruptive heads. In the meantime, look for price volatility in gold until a major bullish factor for gold occurs; it’s inevitable!

Top Three Considerations for Consumers When Selecting a Gold Buyer

May 21st, 2013

Gold coins - Gold buyer DenverAs a consumer you have a lot of choices when it comes time to sell some or all of your gold or silver jewelry;  however very few of those choices will result in you receiving top dollar for your jewelry items. So what should you look for in a gold buyer?

1. If the business employs sign twirlers, run the other way!   These buyers are predominately out-of-town, get-rich-quick schemers who have no ties to the local community and hence no loyalty to their prospective clients.

As a locally owned and operated business, The Gold Hunter’s community roots go deep. We have been a member of the Metro North Chamber of Commerce since 2008 and a generous donor to the Chamber and other worthy community charities. A company that prioritizes its local community maintains a high level of integrity and honesty to uphold its reputation. That integrity and honesty means you will always get the highest return when you sell your gold or silver jewelry.

As out-of-towners, a non-local business will likely be more concerned with making money than making sure you get the most money possible for your gold sale. In other words, whether buying or selling—go local, and support hardworking, ethical, local businesses whenever possible.

2. Look for BBB accreditation.   The BBB holds its members to strict, consumer-protective standards of conduct and business practices. Most gold buyers aren’t members of the BBB because they don’t want to be held to any standards.

The Gold Hunter has been a member of the BBB since its incorporation and has received no complaints with the BBB since 2009 (a testimony to our commitment to being generous and ethical in all interactions with our clients). In fact, The Gold Hunter received the coveted Gold Star Award for 2012 as a result of having received zero complaints for the past three years! Zero complaints means many, many satisfied, repeat clients. How many of our competitors can boast of such an accomplishment? You can trust The Gold Hunter!

3. Avoid Gimmicks.   Ultimately, as a consumer you want to receive the most money for the gold and silver jewelry you sell. Many gold jewelry buyers in Denver rely on “we pay more” gimmicks and quick-rich schemes that appear to help gold sellers, but instead primarily line the pockets of the gold buyers.

Because The Gold Hunter isn’t tied down to a high-overhead storefront, we pass along those significant savings to our clients in the form of higher payouts for your jewelry items on a consistent basis. No gimmicks, no phony “we pay more” schemes designed to take advantage of the consumer. Just honest, transparent transactions that will leave you glad that you dealt with The Gold Hunter!

How will the “sequester” affect the price of gold and silver?

March 15th, 2013

So you’ve likely heard it all over the news…Sequestering just became a reality. But what does it mean? And how will it affect you? Will it affect the price of your gold and silver jewelry?

The so-called “sequester” was the result of the can being kicked down the road (once again) by the U.S. Congress and President Obama during the deliberations to resolve the debt ceiling “crisis” of the summer of 2011. Part of the crisis resolution involved creating across-the-board budget cuts to military and domestic programs.

The hope was that these potential cuts would serve as incentives for both parties and their leaders to reach agreement by March 2013. In fact, the sequester itself was invented by the Obama White House and agreed to by both Harry Reid (D) Head of the Senate and John Boehner (R) Speaker of the House.

Since then no progress has been made to craft a sensible budget that reduces the deficit as well as the nation’s crippling debt level ($16.5 trillion & climbing). But the sequester “solution” is not ideal. The big problem is that these huge, poorly planned budget cuts will likely result in an already very weak economy getting even worse.

Which, by the way, would lead to the very definition of a recession (two quarters in a row of negative national growth). Not only that, but if the sequester isn’t lifted almost immediately, the loss of jobs from the military-industrial complex alone would result in a projected increase in unemployment rate from 7.8% to 9.8%.

Not only would this be devastating to the economy, but it would lead to massive private sector unemployment and provide even more incentive for the credit rating agencies to downgrade the U.S. credit score.

So what does that mean?

The credit rating agencies have been watching the U.S. debt and plans for the economic future. They’re just waiting to downgrade us. They’ve also been waiting to see how the sequester discussion gets resolved. If it looks like our government is actually dysfunctional and can’t come to any compromises, the credit rating agencies are ready to downgrade the U.S., which would devalue the US dollar even more than it already is.

But how does that affect the price of gold and silver?

With a weaker dollar, both gold and silver prices would rise dramatically, just as they did in August 2011 when our debt was downgraded by S&P.

How will the Debt Ceiling Debate Affect Gold and Silver Prices?

January 29th, 2013

the debt ceiling and Gold and Silver pricesEvery credit rating agency, especially FITCH, has warned that they will downgrade the U.S.’s credit rating if the government doesn’t effectively handle raising the debt ceiling and cut $4 trillion from our current $16.4 trillion deficit. If our credit rating is downgraded, our unsustainable debt will be subject to an interest rate increase to try and entice investors to buy our (less valuable) debt securities.

The Republicans are going to use this opportunity to try to force President Obama to cut spending across the board (including entitlement reform, the largest driver of U.S. national deficits) to satisfy the requirements of FITCH & the other rating agencies. But the Democrats don’t want to make significant enough cuts in spending as evidenced by the Fiscal Cliff fiasco last month that actually raises our debt by $4 trillion over ten years.

We still don’t have a national plan to reduce our debt and spending, which means the upcoming debt ceiling battle is inevitable.

Several unreasonable solutions have been given to avoid this much-needed national debate over our debt level—such as the minting of a $1 trillion platinum coin or invoking the 14th Amendment to allow President Obama to unilaterally increase the debt ceiling. Unfortunately, this solution would strip Congress of their largest responsibility—the funding of the U.S. government—and would promptly wind up in the U.S. Supreme Court for constitutional clarification.

Neither the status quo or the proposed “solutions” would satisfy the rating agencies requirements, so it is possible—even likely—that our country’s debt will be downgraded yet again.

So how will this affect you?

It’s not just the countries interest rate that will increase. Mortgage rates, credit card rates, personal or business loans…any spending that carries an interest rate will increase. Most likely, this will directly impact your budget.

A downgraded credit rating will also lower the value of the dollar and cause gold and silver prices to spike upwards, just as they did in August 2011, when the price of gold skyrocketed to more than $1,950 per ounce. We can expect to see very similar price increases in the precious metals complex this time.  Already gold and silver are rising in value in anticipation of this coming debacle.

How high will gold and silver rise? No one knows, but a 10–15% increase is not unreasonable to expect, with a similar decrease in the value of the U.S. dollar.