Gold prices have been on a roller coaster lately, and savvy investors have been following every climb and plunge. “We see the whole wave of people coming and going,” said Nick Hauser, owner of Hauser’s Coin Co. in Lakeland. “It’s been pretty active.”

Gold prices surged to a 26-year high last month at $732 an ounce as investors responded to inflationary worries expressed by the U.S. Federal Reserve, according to Bloomberg.

But in the weeks following, gold prices hit their longest slump in two years, falling about 16 percent.

“When (the spike) happened, it happened so quickly that a lot of people didn’t have the opportunity” to buy gold, Hauser said. “As the price has declined, we’re seeing more and more interest in it.”

Hauser, who deals in gold coins and bars, said he ran advertisements last month touting the elevated price of gold and saw an increase in people looking to sell. For longtime gold investors it was a good time to cash in, Hauser said, but now the prices have swung in favor of buyers betting on another rise.

Gold appeals to many investors because it is viewed as a hedge against inflation, weak currency and geopolitical instability. Concerns over inflation and rising energy prices helped to drive last month’s spike, and one analyst says those fears are likely to maintain high demand for gold.

“Everybody is increasingly aware of the extent that inflation is becoming a serious problem, so that will keep the demand for gold strong,” James Turk, founder of GoldMoney.com, told Bloomberg on Monday. “The underlying problems of growing federal budget deficits remain, as does the trade deficit.”

Gold prices also may rise as buyers snatch up the metal at its current two-month low in hopes of outperforming the sluggish stock market. Gold closed at $611.30 an ounce Monday, down $1.50.

But overall, recent shifts in prices has had a mixed impact on local businesses.

Alex Wold, manager of the Jewelery Corner in Lakeland, said the business has been paying about 20 percent more for gold items since prices went up, and has enjoyed a slight increase in customers.

“We’re always interested in buying it, it’s just that this is a good opportunity for people if they have some extra laying around and can make some money,” Wold said.

Customer traffic also has picked up at Hartman’s Rare Coin & Bullion in Winter Haven as buyers and sellers have taken notice of recent price fluctuations, owner David Hartman said.

But Sherry Oakley, co-owner of Oakley Jewelers in Lakeland, said that some customers have been reluctant to buy gold while prices are in flux – and she doesn’t blame them.

“I’m not stocking up on extra gold right now,” Oakley said. “I can buy it at a really high price but then it could fall back down.”

(via theledger.com)

I knew the name sounded familiar when I saw this headline, but I couldn’t quite place it until I read the words, “Britney Spears’ much-maligned husband.” That put it in place.

Strange, but true. Kevin Federline is fighting to save the lowly penny.

(6/22/06) - Many celebrities have their pet causes – Angelina Jolie has world refugees, George Clooney wants action on genocide in Darfur, and Cher is lobbying for safer helmets for U.S. troops.

Britney Spears’ much-maligned husband joined Americans for Common Cents and Virgin Mobile executives today in New York’s Times Square, ostensibly to “save the U.S. penny from annihilation.”

Federline emerged from a red truck wearing an Abraham Lincoln mask, driving the swarm of paparazzi around the truck into a frenzy.

“Man, I feel good about the penny!” declared Federline, who was nattily dressed in a black suit, white dress shirt, aviator sunglasses and sporting his trademark stubble.

The penny is actually not in imminent danger of being eliminated, but sentiment against the one-cent piece ebbs and flows, said Matthew Eggers, the policy director of Americans for Common Cents.

ACC is a coalition of businesses, including the zinc industry (pennies are about 97 percent zinc), charitable groups and coin-collecting organizations that advocates on behalf of the penny.

Rep. Jim Kolbe, R-Ariz., introduced a bill in 2001 that would essentially eliminate the penny by rounding cash transactions up or down. Proponents of the bill argue that pennies are merely an annoyance and getting rid of them will save consumers and retailers time and money.

Not so, says Eggers. He said that rounding up transactions is a hidden tax on consumers, especially low-income people. And he said that pennies often benefit charities.

“Charity relies on the simple, yet potent, contribution pennies make,” Eggers said.

Plus, he added, surveys show that about two-thirds of Americans want to keep the penny around.

To demonstrate the value of the penny, ACC, Virgin Mobile and Federline announced a charity penny drive – loose change collected at events across the country will be donated to The RE* Generation, an organization that connects at-risk kids with activists groups.

Perhaps less charitably, Virgin Mobile also introduced its new one-cent text messaging offer today.

But, outside of “helping the kids,” how did Federline get involved in saving the penny?

“He likes to text message,” said a Virgin representative.

Indeed, Federline made a show of text messaging from the stage as Eggers and a Virgin executive talked about the Save the Penny campaign.

When asked who he was sending a message to, Federline replied, “My wife.”

And as an added incentive, for today only, members of the public have the chance to call or text message K-Fed himself at a special number – 310-876-4210.

As this article went to press, calls to Federline’s number were being routed straight to voicemail.

(via ABC.com)

Once upon a time not so long ago in a land not so far away, the Swiss franc was the strongest currency in the world. Outside of gold, it was the premier currency in which to seek a safe haven from periodic world monetary turmoil. It still is, but with a much reduced appeal with the advent of the euro.

Germany is Switzerland’s major trading partner, and consequently maintained a narrow fluctuating trading band with the German mark, also a relatively strong paper with the Weimar experience still fresh in the minds of many Germans. With the mark being amalgamated into the euro and its sovereign monetary policy now determined by the ECB, the Swiss franc’s value is now reflective of the far more socialist monetary policies of the other members in the ECB. It’s a sorta mini-wealth transfer within Europe. If Britain has ever done anything right for its people it is to have refrained from joining the giant wealth transfer scheme inherent in the ECB. Norway and France are a couple of others getting cold feet about this whole regional government thing.

Understanding how the values of paper money play a role in world trade is essential to understanding our very own dilemma with China and their yuan, renminbi, or whatever we’re referring to their two-tier system. Understanding these relationships conceptually is not difficult; wrapping your mind around the concept is only complicated by the rhetoric and political demagoguery emanating from governments, and their media allies.

Potentially, full convertibility of the yuan is what could be in store for the world. To get there the Chinese Communist regime must have an internal tax and individual wealth confiscatory infrastructure like we have. In short, for the yuan to compete with the other more “developed” countries’ monies, their bearer debt notes must also, like the United States, be backed by the “full faith and credit” of their people. That phrase is a euphemism for “everything I have is yours, and I must accept paper money no matter its value”. For right now the theft of their citizens’ wealth outright is just not an efficient system that is measurable. China needs to show the world that they, too, have a wealth taxing scheme like the US installed to support the demands of the holders of their debt money.

For China to keep their currency pegged to the US$ within that eight yuan channel is costing the Chinese dearly, as more and more US$’s pour into their central bank coffers. Commodity increases in dollars means that the Chinese, too, must pay more. The higher the dollar mound “reserves” gets, the more the more the Chinese can goose their own issuance of their domestic currency. Our own Fed is exporting monetary inflation which could precipitate severe social unrest within China.

Last weekend I theorized that we stood a likelihood of a monetary crisis unfolding this week. The US$ had been breaking down for a couple of weeks vis other currencies, notably the Japanese yen. China could be re-adjusting their reserves to be more representative of their other Asian and European trading partners - like the Swiss/German experience I explained above. If so, other central banks may, with little fanfare do the same.

I’m somewhat reticent to buying into the hoopla about central banks buying gold. True, there’s a lot of noise, public pronouncements, gold pundits, and “experts” telling me it’s so. If they are buying, it hasn’t been enough to make much of a difference, unless it’s been off the books. Remember, gold is like a garland of garlic to a central banker. Before a worldwide central bank flight to gold occurs, I tend to think we’ll see more commodity-for-gold contractual agreements play out. Or, oil-for-gold. Iran and South Africa came close to putting something together like that back in the 1970s.

In summary, if you were told by your government what you must sell your silver coins for even though you believed them to be worth more, what would you do? Even if you agreed, is there any assurance you’d be able to find a source and buy them back?

Those are the questions the oil industry is asking themselves right now. And, the whole world is watching.

As far as your silver coins, let’s hope the oil industry doesn’t select the same choice you would which would be to - - sell your coins overseas.

(Originally found at goldseek.com.

This news article shows the importance of filing complaints with the local authorities and online if you deal with a dishonest individual. Without those complaints piling up, this guy would still be cheating people out of their hard-earned money.

MIAMI—A former attorney who was also the owner and operator of a Miami rare coins business has pleaded guilty to more than $400,000 in mail and wire fraud.

Martin Eugene Haber, 58, owned and operated South Dixie Rare Coins and sold collectibles and rare coins through eBay, an Internet auction site.

At sentencing, Haber faces a statutory maximum of 20 years for each of the six counts of wire fraud and one count of mail fraud, fines of up to $250,000, and can be ordered to make full restitution to the victims. Sentencing is scheduled for Aug. 22 before U.S. District Court Judge Donald L. Graham.

The investigation began after the Internet Fraud Complaint Center received more than 50 complaints from buyers who did not receive the merchandise they purchased on eBay from Haber. An additional 50 complaints were reported by unsatisfied buyers with the Consumer Sentinel and local police departments. Over all, more than 188 complaints were made for merchandise purchased between May, 2001, to January, 2005, representing a loss of more than $400,000. Despite two arrests by local law enforcement for these same activities, Haber continued to sell items on the Internet using a variety of names, including those of his family and friends.

The FBI investigation revealed that Haber used eBay accounts belonging to friends, family members, and business associates to sell coins on the Internet. Haber often assumed the identity of an actual eBay account holder to hide his true identity from the potential buyers. Many of the eBay accounts Haber used were suspended due to buyer complaints. Haber continued to sell coins on the Internet until search warrants were executed at his home and place of business.

(via northcountrygazette.org)

WASHINGTON - The golden buffalo, the legendary symbol of the American West, will soon roam again — this time as the nation’s first pure gold coin.

Collectors can buy the proof coins directly from the U.S. Mint starting Thursday by going to the Web site — www.usmint.gov — or by calling 800-USA-Mint. The site will also have a listing of local dealers.

The coin will contain 1 ounce of gold and will be designated a $50 gold piece. The actual price will depend on the market price of an ounce of gold, plus markups.

The design is a replica of the popular buffalo nickel, minted from 1913 to 1938. The golden buffalo has a buffalo standing on a grassy mound on one side and a stern-looking Indian chief on the other, duplicating images created by artist James Earle Fraser for the 1913 nickel.

The U.S. already produces a 22-karat American Eagle gold coin. This is the first time the Mint has produced a 24-karat coin, a designation that means the coin contains 99.99 percent gold as opposed to 91.67 percent gold in the 22-karat coins.

Analysts said the Mint is introducing the coin at a good time. After languishing for two decades, gold prices have been soaring, hitting a 26-year high of $732 per ounce in early May.

Gold was trading at $578 per ounce Friday in New York, down from the recent highs but above Thursday’s level of $566.50 per ounce.

(via chron.com)