The Andrew Cochineas Guide to Gold Investment: For Dummies

So, you’ve been watching a lot of the Discovery Channel, and you’re thinking to yourself, “Ugh, I wish I was digging for gold and selling it for a profit like the people on the hit Discovery channel TV show, Gold Rush”. Well, that may be a bit of a stretch, but there is a place to start with your Discovery Channel fantasy. Andrew Cochineas is a gold industry expert, and he has some ideas on how you can get into the gold business. But first, Andrew Cochineas has a few reasons on why you should break into the gold industry.  

The first reason to get into the gold industry is that gold is limited. As a natural thing coming from our planet, there’s not an endless supply of gold. Andrew Cochineas likes to point out that more mining equals more gold, but that also takes a lot of time. The good part about the slow increase in gold, and Mr. Cochineas means reeeaaalllyy slow increase, is that gold is going to be pretty much completely shielded from inflation. Where the value of the dollar falls, the value of gold will increase. Not only that, but the gold your great grandpappy bought a million years ago can still get you the same amount of whatever today. Gold doesn’t have to be the tiny little nuggets you see on TV either, even buying gold coins is worth it. Buying and investing in gold is doable for the average Joe, but you may just need to think about and take the time to do what you need to do and do it right.  

“But Andrew! I know why I should invest in gold, but I don’t know how!”, don’t worry about it, because that’s what’s coming next! Jeez…be patient. Andrew Cochineas says that there are tons of ways to get into gold investment, but the most common ways are gold ETFs, mining stocks, and physical gold (coins!). Gold ETFs are good for the investor that would definitely lose whatever gold they had. Gold ETFs are digital and are sold through discount brokers and on the stock exchange. Mining stocks are kind of roundabout ways to invest in gold because they go through the mining companies. You can buy stocks in mining companies that mine other metals too, such as silver and platinum. Physical gold is what you probably think of when you think of gold investment. Going online and buying gold coins can amp up your gold investment game quickly, because it’s a bit nicer to have gold coins than “real gold” such as gold bars. These physical gold pieces can be invested and held onto, where they will just grow in value over time.  

The Process Involved in Creating the Ring on Your Finger

It finally happened: your significant other proposed!  As you stare down at the beautiful gold ring on your finger in the coming weeks, taking photo after photo to share on social media, you may sit and wonder how something so beautiful arrived from the Earth to your finger.  The process for a gold ring to be created is not something simple, just like the love you have for your significant other.  You may have grown up watching television programs and movies featuring characters searching for gold,and wondered if you would ever stumble upon some.  In reality, the extraction and refining processes are much more complex than television portrays.

Many gold mines exist underwater and are brought up by hoses.  Some miners use amalgamation, which utilizes mercury to extract the gold, but because of the risks of mercury poisoning, most extracting is completed by cyanidation.  No matter what method is used for extraction, following the process, the gold is still joined with other metals, such as iron.  In order to purify the gold, a refinery, such as that led by Andrew Cochineas, focuses on removing impurities.  One refining technique causes the impurities to separate on top of the gold, making it easier to remove, while another uses electrolytes to separate the metals.

Companies such as the Pallion Group, of which Andrew Cochineas is CEO, also perform assaying.  This process allows refineries to understand the levels of various metals in a batch.  This is where the designation of number of karats comes from.  While learning about your new engagement ring, you may wonder what the karatage means.  The more karats in a piece of gold, the more pure gold that is in the piece.

Andrew Cochineas’ group also fabricates gold, turning it into coins or bars for use.  Creating jewelry involves melting the gold so it is able to be moulded into the desired shape.  Many jewelry is handmade, but other pieces are produced through casting.  A 3D printer creates a wax figure of the designed jewelry, and the wax piece is used to create a mould.  You may sometimes see samples of the wax jewelry in jewelry shops that display the process.  The melted gold is poured into the mold, creating the piece of jewelry.

Many steps and details go into the creation of the work of art that is placed on your ring finger.  You appreciate and value it sentimentally, but upon understanding the effort that goes into the production of your ring, you may love it even more.

Global Recession’s Impact of Less Concern to Gold Investors, says Andrew Cochineas

Time may heal all wounds, but a decade might only be enough to cloud the memory. Ten years ago in the US, the ‘Great Recession’ was reaching record-setting depths and dragging the global economy down with it. The mortgage crisis at the centre of the economic downturn was affecting international banks that had been bundling these mortgage payments with other funds and selling them off. It worked, too – at least for a while. Those who were negatively impacted by the Great Recession won’t forget 2008 any time soon. Unemployment hit record highs, retirement savings were wiped out and investment in stocks was anathema to personal financial progress. For those concerned about the latter point who also want to safeguard themselves against being stung by the vagaries of the market, some research is in order.

According to Andrew Cochineas, gold expert with an independent Australia-based precious metals refinery, acquiring gold or silver in any form is a hedge against stock market fluctuations. It’s also a way to hold time-honoured value in your hand – or in your financial portfolio if you choose the gold exchange-traded funds route. Even 10 years on from the depths of the recession, the impact is still felt and it’s still crucial to find alternative sources of value. As a September 2018 article from Forbes magazine stated, one lesson that should have been learned is to not devote all funds into a single strategy. Before the recession, big banks built “huge portfolios of mortgage-related securities that relied on historical data, suggesting that housing markets were localized” by geography in the US. They were not localised, and a rolling cascade of defaulting mortgages washed over the global economy. An unpaid mortgage will not directly affect the value of a piece of gold. While the gold sector itself will predictably rise and fall throughout any given year, the long-term trend is always toward stability.

A rising tide lifts all ships, but the opposite goes for a low tide – but gold can be the lifeboat during times of tribulation. This previous metal has regularly been a safe haven during times of crisis and, since it’s impossible to predict the financial future, the best time to buy is before problems start cropping up. As for what to buy, Andrew Cochineas, expert on all things gold from the mine to the mint, says jewellery, bars and coins are all great examples of value you can hold in your hand.

Owning Gold Bars, Coins or Jewellery Gives Investors a Safe Haven, says Andrew Cochineas

Investing in gold can mean procuring physical gold objects and those made from other precious metals. Investors who choose this route generally do so because they believe gold is a safe haven in times of crisis. This commonly held – and accurate – belief is one of the reasons that people buy items like gold bars and gold jewellery. This investment option exists and continues to flourish today because inflation can devalue paper currency. While market shifts affecting currency will rise and fall, Andrew Cochineas says that gold has always weathered such storms. Cochineas, who is with ABC Refinery and is a gold expert, says that physical gold products are tangible assets worth their weight in… well, gold. For those considering this route, precious metals can offer investors new opportunities, as we’ll explore further below.

According to Forbes magazine, prospective gold investors can take two routes: physical products or gold exchange-traded funds (ETFs). Cochineas knows plenty about ETFs, with ABC Refinery recently receiving accreditation from the Shanghai Gold Exchange. This method comes with an important – but by no means deal-breaking – caveat. We’ll let Forbes explain it: “You have no claim on the gold within the fund. This means that you cannot take delivery of the metal if the need arises.” We’ll save the benefits of this approach for another article.

The acquisition of physical gold offers ownership and an asset “that can be stored outside the financial system, which reduces counterparty risk.” Cochineas’ company makes cast bars, minted coins, minted tablets and granules. Granules, which originate in Australia, are often used by jewellers or industrial operations. For those who want to own a valuable and aesthetically pleasing item, custom-designed coins and bars from ABC Refinery may be the best route. The final product is unique and offers all the benefits of gold as a hedge against inflation.

As you learn more about the subject, the topic of silver may come up. While certainly valuable, Forbes points out that gold takes the top spot. “Gold has a much larger liquid market that is driven mostly by investment and jewelry demand. The price of gold is less volatile than that of silver, too,” the magazine points out.

Procuring physical gold that’s stored in a lockbox at home or placed elsewhere for safe and secure keeping gives investors a physical item of undisputed value as well as a diversified portfolio.

Summer Months May Prove Pivotal For Gold Investment, Says Industry Expert Andrew Cochineas

Even casual investors should understand the importance of diversifying financial investments. It’s impossible to tell for certain which sector is going to climb while another experiences temporary struggles. So, never placing all your eggs – even the golden ones – in one basket is a wise financial move.

According to a June 2018 Forbes magazine article, gold’s value can climb and fall in a time frame as short as a single summer season. The article states that June was too early to buy gold, but the yellow metal would be “moving into a more favorable seasonal period over the summer.” Gold industry expert Andrew Cochineas agrees that this type of a movement over a very short period of time shows just how resilient gold is – and that it continues to be a sound long-term investment.

Gold prices are known to rally from August through February during “bear” market months. The gold price data provided by Forbes confirms that the metal has a tendency to rally during summer months – based on data since 1968. According to the magazine, “In July, gold has risen 54 percent of the time for an average 0.385 percent gain” while “September was the strongest month, rising 60 percent of the time for an average 1.880 percent increase.” On a weekly basis, the value still ebbs and flows, but the data shows that short-lived rallies during summer months offer small windows to purchase gold bullion and increase your portfolio’s value.

What should these trends tell those looking to buy gold? For starters, Cochineas asserts that gold has time and again proven itself to be a safe haven during times of economic crisis. While purchasing stock in a company that’s currently experiencing record profits can pay off in the short term, you’ll never be able to predict if this same company’s value could be in the tank come the next month. But gold has been a cherished commodity for centuries, and companies that hold a vertically integrated mine-to-market process can often provide consumers with solutions that best fit their personal investment needs.

Compared to fixed assets, getting into the gold market gives consumers a chance to shore up their net worth with a time-honored investment, says Cochineas. And, for those currently researching gold investment, these remaining summer months may prove pivotal.