Eric Sepanek Talks to 3TV About Investing in Gold
Eric Sepanek, founder of Scottsdale Bullion & Coin, was the guest on a recent episode of 3TV’s “Your Life A–Z.” This program is known for bringing insightful, practical and useful tips to the community and 3TV viewers. During the interview, host Gina Salazar asked Eric about how gold can fit into a personal financial plan instead of just serving as attractive jewelry.
Where to Begin: Gold Bars vs. Coins
Eric explains that investment gold is available as both bars and coins, depending on one’s objectives. He also points out the three-point foundational approach that Scottsdale Bullion & Coin teaches its clients to help in their buying decisions: Buy gold for privacy, profit and protection. Which method you choose, or your combination of strategies, depends on your own investment strategies.
Both bullion bars and bullion-based coins are readily salable based on their intrinsic value and the current market price for gold. Numismatic coins, as shown by Eric, include those that have a greater, extrinsic, value based on their rarity and collectability.
Numismatic coins have a value greater than that of their gold content. Supply and demand drives all gold prices; the demand for some of the rarest gold coins can drive prices up to many times that of gold bullion. For example, the present demand for gold coins from the U.S. mint continues to grow, in spite of a recent softness in gold prices, surging a striking 306 percent year-to-year in August.
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National Currency and Global Reserves
While precious metals such as gold and silver served as a form of money for centuries, they rarely serve as legal tender today. However, all major governments keep significant reserves of gold to serve as part of their treasury and to provide stability for their currency.
In the United States, the 1934 Gold Reserve Law outlawed the private possession of most gold. Today, the laws once again not only permit the holding of gold, but you can also buy and own gold in a precious metals IRA. This growing demand often comes from the view that gold is a proven hedge against inflation. When prices rise, the purchasing power of an investment portfolio declines. Because of this, Eric also points out many Scottsdale residents today seek to keep gold in their portfolios as a hedge against the anticipated increase in the rate of inflation.
Additionally, the demand for gold continues to increase each year for industry, technology, medical and even space applications. In fact, some analysts even think the new Apple watch could soon consume as much as one-third of the world’s gold production each year. This increasing demand is outstripping supply, and mining of gold continues to be more and more expensive.
Gold and Silver Prices: Up or Down?
These factors all indicate a continued and growing strong demand for gold in the future. When questioned about the pricing of gold, Eric notes that the current price for gold is lower than was anticipated when records were set three years ago. However, that price is pretty much driven by a paper, or speculative market, set by trading in ETFs and on stock-like exchanges—not physical gold.
However, long-term investors and traders who buy gold understand the intrinsic value of gold continues to increase over time due to growing demand, especially rare coins in a limited quantity. While all markets for all investments move up and down, the importance of precious metals means they will continue to show excellent returns over the intermediate to long term.
How to Begin Investing in Gold
When asked by 3TV’s host about how Scottsdale investors interested in buying gold can learn more, Eric made an offer to all viewers. By simply calling Scottsdale Bullion & Coin (480-459-5597), those interested in opening a precious metals IRA or learning more about investing in gold & silver metals can request three free financial reports with no obligation.
This is a great opportunity to gain valuable insights about investing in precious metals at no cost, no risk, and no obligation by simply calling today.