Investing in Gold

By: Tommy Madison

Gold has a dual personality. It is a “store of value” and it’s an industrial commodity used mainly in jewelry but also in dentistry and electronics. The industrial use of gold declines whenever the price rises. The gold price, at least in the short run, is a barometer of world anxiety. Bad news for humanity is good news for gold and the opposite holds true. An outbreak of peace and goodwill on this planet would cause a crash in the gold price. Aside from the flow of political anxiety, the major determinant of the gold price is inflation- more specifically, the extent to which inflation prompts a flight from paper money ( and investments such as bonds).

Gold performs the best when inflationary expectations are rising but interest rates are not yet in the stratosphere. Extremely high interest rates tend to depress gold because borrowing costs then become a deterrent to speculators who buy gold futures on margin. Moreover, gold, which produces no income, becomes less attractive to some investors when the yields on money-market securities are exceptionally high.

Since the inflation rate is strongly influenced by increases in energy costs, there exists a correlation between the price of golf and the cost or a barrel of oil.

The conventional wisdom is that most investors should consider putting 5 percent of their assets into gold and 15 percent or more when inflation looks particularly threatening. In addition to being a hedge against high inflation, gold investments usually hold up or rise in price when there is a big slump in the stock market; they are, in effect, a form of “disaster insurance.

Click Here For Goodies

About the Author

(ArticlesBase SC #1054054)

Article Source: http://www.articlesbase.com/ – Investing in Gold

Popularity: 8% [?]

Enjoy Success and wealth With Gold Business Options

By: Bud Blair

After years of being relatively out of favor, gold investing is back stronger than ever. Actually, gold investing has been popular for the past several years and its popularity continues to grow. There are many reasons for this and the most obvious is the fact that gold has emerged as a safe investment recently. This has led many to speculate on gold futures which, in turn, lead to a great deal of myths about gold investing. Some of these myths trickle down to the novice investor where they expand further. So, rather than deal with further confusion, let’s look at five of the most
common gold investment myths.

Myth One – The recession makes gold investing a wise option. Whether or not gold does well or poorly has little to do with the recession. Gold has had its dramatic ups and downs during recessions in the past. While there may be some recession related factors that go into the determination of the price of gold, a recession does not automatically yield an upswing in the price of gold.

Myth Two – Selling jewelry as scrap gold would be a better return on your investment than selling the jewelry. This answer to this will depend on the particular jewelry item you are selling. In some instances, the original jewelry will draw a better price than the scrap metal version ever could.

Myth Three – Hedging with gold is always a great option when economies sour. Firstly, it is critical to avoid ever looking at any investment scenario in terms of absolutism. To assume that gold will always be a great hedge against bad financial times is illogical. If gold was ALWAYS a great hedge, then there would be more billionaires in the world you could ever imagine because no matter what they invested they would make a guaranteed return. Of course, there are guarantees in any type of investing. That is why it is best to avoid ever looking at hedging with gold as a guaranteed safe strategy.

Myth Four – There is no reason to shop around when looking to sell gold. This is a huge mistake because it assumes you will receive the same payment from any buyer of jewelry or scrap. The fact remains that you can acquire gold at many different prices depending upon the seller you work with. As such, the old maxim that you should shop around for a better price would definitely prove valuable when looking to unload old jewelry or scrap gold.

Myth Five – Gold should be traded as soon as the prices rise since it is not good for a long term investment plan. Really, only you can decide when it is a good time to sell your gold. Yes, gold can work effectively as a short term day trading venture. However, it can be effectively used in a long term investment portfolio as well.

The world of gold investing abounds with myths. Once you can recognize these myths, you can take the appropriate steps to deal with them accordingly.

About the Author

Bud Blair founded Gold Tree Online, the leading site to ” target=”_blank”>www.goldtreeonline.com/”> sell scrap gold online and exchange ” target=”_blank”>www.goldtreeonline.com/how.htm”> cash for gold . They help you ” target=”_blank”>www.goldtreeonline.com/what_we_pay.htm”> trade your old broken jewelry, rings and coins for cash in a safe and secure environment.

(ArticlesBase SC #999621)

Article Source: http://www.articlesbase.com/ – Enjoy Success and wealth With Gold Business Options

Popularity: 54% [?]

Buy Gold Bullion – Why Gold Bullion is the Best Way to Invest in Gold

By: Michiel Van Kets

If you’ve paid much attention to the news lately, you’ll have noticed that gold is a hot topic, maybe the hottest. Its spectacular rise in price has taken many by surprise, but for those in the know, it’s perfectly natural. So why are so many investors flocking to buy gold bullion?

The fact is that gold is the ultimate safe haven for investors. When people lose faith in paper money and conventional investments such as stocks and bonds, it’s to gold they flock. If you factor in gold’s limited supply and the demand from industry and jewellery makers to buy gold bullion, you’ll understand why pundits say the only way for gold is up. So how can you take advantage of the amazing gold market?

The fact is you have a wide range of choices when it comes to taking advantage of gold. Here’s a look at your options. We can separate them into type main types – the first is where you own your wealth on paper and the second is where you actually take possession of the yellow metal.

One popular way to take advantage of the demand for gold is to buy stocks in mining companies. Obviously if they’re mining more gold, their earnings are up and so are your dividends as well as the price of the stock. The problem is knowing which companies to invest in.

Another option is through the use of exchange traded funds (ETF). These represent physical gold bullion held in trust in bank vaults. These can only be traded during stock market hours and there’s a storage charge for the gold.

Then there’s digital gold currency or e-gold which is becoming increasingly popular. The problem is that there are no specific financial regulations for this product. And as the dealers are not banks, they don’t have to comply with banking regulations.

Next, you can invest in gold bullion via Self-Invested Personal Pensions (SIPPs). These are a new type of personal pension plan that hold investments until you retire and allow you to manage their own fund by investing in asset classes of their choice. One benefit is that you can claim up to 40% income tax back depending on your income tax band. You’re allowed to hold investment grade gold in a SIPP in the form of a bar, or of a wafer, of a weight accepted by the bullion markets. It must be stored with a secure third party and you can’t take possession.

Finally there are gold options and gold futures. To deal in these, you have to handle a complex, fast-moving market. You need to be a hands-on investor and it’s not for those who can’t handle risk and uncertainty. Better leave this one to the professionals.

Now we’ll look at personally-owned gold investments. Essentially you have the choice of jewellery, coins and gold bars.

Jewellery makes for wonderful keeps sakes and souvenirs but the cost of craftsmanship and design makes it a poor investment vehicle. In addition, pure gold is too soft for most jewellery so some alloy is used. This means when you come to sell your gold jewellery, it will have to be assayed which adds to transaction costs.

Another popular way to invest in gold is through coins like Krugerrands, the American gold eagle or the Canadian coins. While these make fine keepsakes and have a definite value, they’re not efficient investment vehicles owing partly to the costs of workmanship.

Finally, you can buy gold bullion bars. Here you’re acquiring investment grade gold at the spot price. This is the most cost effective way to invest in gold. In the UK, you can order online for next day postal delivery. And when it comes to sell, the market is extremely liquid. What’s more, buying investment grade gold bullion for investment is stamp duty free and tax free (VAT exempt) in the UK and EU due to the EU Gold Directive of 2000.

Buying gold bullion was long a difficult business and it was hard to get clear information. The internet has changed all that, brought transparency to the proceedings, and reduced transaction costs and hidden fees.

Buying gold and silver bullion online for UK home delivery is now a straightforward procedure. Just visit the website of a reputable online bullion dealer, peruse the offerings and place your order. Your bullion will arrive in a day or two by insured Royal Mail.

About the Author

Michiel Van Kets writes articles for Bullion by Post which is part of Jewellery Quarter Bullion Limited, the company offers private UK investors the opportunity to buy gold bullion bars at trade prices. All fine silver and www.bullionbypost.co.uk/gold-bars/ ” title=”gold bars”>gold bars are brand new and manufactured by London Bullion Market Association approved refiners. The company provides the lowest margins in the UK, www.bullionbypost.co.uk/info/how-to-buy/ ” title=”buy gold bullion”>buy gold bullion bars at real time spot based pricing and real-time stock availability.

(ArticlesBase SC #1647478)

Article Source: http://www.articlesbase.com/ – Buy Gold Bullion – Why Gold Bullion is the Best Way to Invest in Gold

Popularity: unranked [?]

Invest In Gold Today – Five Great Reasons to Buy Gold Bullion Bars

By: Michiel Van Kets

If you’re wondering where to put your money in these uncertain times, the answer’s easy – buy gold bullion bars. Investing in gold is one of the smartest ways to prosper in today’s economy and acquiring bullion bars is the best way to acquire the yellow metal.

Historically gold has always been a winner in the wealth stakes. It’s the oldest form of financial exchange and has long stood the test of time. Whole civilizations have been built on gold and today it is more important than ever. If you’re thinking about acquiring gold for your portfolio or just as security for the future, here are five great reasons why gold is such a fine investment.

Firstly, gold is the ultimate inflation buster. It’s no surprise that the price of gold soars when investors fear inflation. With the world’s central banks inflating the economy by pumping money in, savvy economists are predicting inflation coming soon. And if that happens, the value of your cash holdings will slump so you clearly need to do something.

Including gold in your investment portfolio will go a long way towards hedging against inflation. And having those yellow bars at home will help you feel more secure in difficult times.

The next great advantage of gold is its liquidity. You’ll never have a problem either buying or selling your gold. The gold market is global with 24-hour trading and a vast range of buyers ranging from the jewellery sector to financial institutions to industrial manufacturers. This means you’re always assured of a market for your gold wherever you are.

Demand for gold is rising while at the same time, world gold production is flat or falling meaning a limited supply. Add to this the perennial demand from investors and jewelry makers and you have a commodity that will never lose its value.

However to ensure this liquidity, you need to acquire gold of certified quality and quantity such as gold bullion bars. If you obtain gold in the form of jewellery, the actual value of the gold will be far less than you paid as a certain sum is factored in for design and craftsmanship. Buy gold bullion bars and get all the security of a property investment coupled with perfect liquidity.

Allied to this liquidity is the fact that the gold market is a transparent one with clear prices always available. The gold price is fixed twice a day at 10.30 a.m. and 3.00 p.m. at the London offices of N M Rothschild by the five main Bullion Houses – NM Rothschild, HSBC, Deutsche Bank, ScotiaMocatta and Societe Generale. This means you can always find out the current price of gold online or in the newspaper.

In addition, buying gold bullion bars is suitable for investors of all types. Invest grade bullion bars come in .999 fine gold come in sizes ranging from 2.5 grams up to one kilo. Sizes are available for all budgets and can be incorporated into all types of portfolios. Another great incentive is that there is no longer any VAT on investment gold coins or gold bullion bars bought in the UK and the EU.

Finally, gold is universally accepted as a medium of exchange. Wherever you go in the world, gold is accepted as a medium of value. Whether in the souks of Bahrain or the boulevards of Paris, you can find someone who will accept your gold at its true value.

You can invest in gold in a variety of ways such as mining shares, gold futures, exchange-traded funds and various other derivative forms. Gold coins are another option but they tend to incur higher premiums. This means that when you come to sell them, you get less back.

But by acquiring the real yellow metal in the form of gold bullion bars, you’ll have total liquidity as well as the aesthetic pleasure of owning an object of classic beauty.

If you want to buy gold bullion bars in the UK, nothing could be easier. You can simply order online or over the telephone and the bullion bars will be delivered to your home and you’ll be a proud investor in gold.

About the Author

Michiel Van Kets writes articles for Bullion by Post which is part of Jewellery Quarter Bullion Limited, the company offers private UK investors the opportunity to buy gold and silver bullion bars at trade prices. All fine ” target=”_blank”>www.bullionbypost.co.uk/gold-bars/”>bullion bars are brand new and manufactured by London Bullion Market Association approved refiners. The company provides the lowest margins in the UK, ” target=”_blank”>www.bullionbypost.co.uk/info/how-to-buy/”>buy gold bullion bars at real time spot based pricing and real-time stock availability.

(ArticlesBase SC #1576583)

Article Source: http://www.articlesbase.com/ – Invest In Gold Today – Five Great Reasons to Buy Gold Bullion Bars

Popularity: unranked [?]