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After a decade of soaring gold costs, eBay thinks now is a good time for the rest of America to delve into the marketplace.
They’ve actually partnered with precious metals dealership APMEX to construct an online gold emporium customers can browse from house.
From a huge e-tailer’s standpoint, it makes sense. Individuals are asking for something, so why not provide them what they want?
‘In today’s unpredictable economic climate, people are aiming to gold and silver as more trusted means to invest, however some don’t have rely on those who sell gold and silver,’ the company states in a declaration. ‘Many don’t even understand where to get. The APMEX Bullion Center on eBay provides everyone a convenient method to purchase gold and silver from a source they already know and trust, and people are taking notice.’
From an investing standpoint, however, this kind of mainstream treatment should be a very big red flag.
‘The attraction of gold … reminds me of market darlings of yesteryear,’ states licensed monetary coordinator Adam Bold. ‘Bear in mind when everyone stacked into dot-com stocks and drove them into bubble region in the late 1990s? Most of those speculative Net stocks crashed a couple of years later. Right after that, people were delving into realty and house prices went through the roof. We all know how that turned out.’
And while eBay markets its new store as a doorway into the ‘Brand-new American Gold Rush,’ a recent report shows that it may be a years too late.
A commodity expert at Goldman Sachs all however called the end of the booming market for gold in December, chocking up its shooting up worth to rising interest rates and a rocky economy that’s now returning on its feet.
‘The gold outlook is caught between the opposing forces of even more Fed alleviating and a gradual increase in United States real rates on much better United States economic development,’ the companies says. ‘Our expanded modeling suggests that the enhancing United States development outlook will exceed additional Fed balance slab development and that the cycle in gold prices will likely turn in 2013.’
The bottom line: While gold could be a brilliant means for investors to diversify their possessions, we ‘d be a little cautious before purchasing into a sales pitch that leads with the ‘New American Gold Rush.’
We have been there, done that.
Here are a couple of slides from the presentation eBay utilized to make its case for its brand-new gold emporium: