How To Invest In Gold Now – Buying And Selling Gold, Coins, Bars, Shares, Mining, ETFs

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You Can Improve Your Investment Portfolio With Gold Funds

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No portfolio is truly complete until the addition of gold assets. All the intelligent investors know this. If you are an investor yourself, you are probably on a constant search for profitable investments, whether in the form of equity, debt, fixed deposits, commodities or real estate. But why is it worth to capitalize on gold? The answer lies in the intrinsic value of this precious metal, which ensures major gains for those who learn how to trade it.

When it comes to gold purchase most people prefer to buy gold in the form of bars, coins that have been produced by government mints as well as jewelry. Physical gold acquisition predominates because most people opine that this form of ownership is more reliable. However, buying gold in a physical form can also be the least attractive investment options. Here is why. Physical gold has to be purchased through a dealer and the latter will ask you to pay a premium. Furthermore, physical gold cannot be traded for money very fast. The owner should wait a while and observe closely the market trends in order to get a good price.

A viable alternative to investing in physical gold is represented by the gold funds. An increasing number of people choose to buy gold stocks in mutual funds. They do this because it is very convenient. Gold bars and coins in their physical form have to be protected while the units of a gold fund are relatively easier to manage.

When you buy gold stocks in a mutual fund you basically own shares in companies that explore gold deposits. The price of gold stocks will rise whenever the value of fiat money starts to wobble. The best thing about gold stocks is that they can be traded without difficulty.

When it comes to the purchase of gold stocks you have to think twice and choose once. Most of the investors say that it is safer to place capital in gold stocks pertaining to large companies. Such companies have expertise in gold mining and their market share is significantly higher. The stocks of this companies are commonly known as senior gold stocks”.

Investment in gold funds can also be made through local groups. The latter’s activity of mining might be less extended but they display a great potential for profit on a long term basis. The capital invested here will be placed in junior stocks”, which can be traded very easily, especially when gold prices soar.

In conclusion, if you want to ensure a prosper future for yourself, it is advisable to invest in gold funds. They will help you stay away from grim financial times and, why not, expand your wealth even more.

Investors have the opportunity to seek the preservation of capital in gold, against the potential erosion of the purchasing power of fiat paper money. They can do this with the help of gold funds.

Gold Futures And Gold Options – Choose Wisely

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You want to make a gold investment, either in gold futures or options, but you can’t decide? It is a good idea to define each concept first. What exactly are gold options? They are based on gold futures and represent contracts. If you own a gold option, you have the right (but will not be forced to) to take a long or short investment position in the respective gold futures at the relevant strike price. When the option expires, you no longer have this right. Options are traded on exchanges such as the Tokyo Commodity Exchange (TOCOM) and the New York Mercantile Exchange (NYMEX). Futures are traded in series of one hundred gold ounces on NYMEX while the prices of options are quoted in dollars and cents. On the Tokyo Commodity Exchange, options are quoted in yens and traded in 1000 grams. The two kinds of options are put and call. Call options are favored by investors who think the price of gold will rise. With put options, it is the opposite – they are usually bought by investors who believe gold prices will fall.

Trade on options exchanges is not just about put and call buying. Selling and spreads is another commonly used strategy. The latter is carried out by buying and selling options at the same time.

Seemingly, there is not much of a difference between options. What is the difference, if any? Trading gold futures serves to reduce the risk of trading gold that gold owners and producers face given the unstable prices. Gold producers can ensure that their gold is sold at a certain price by using what is known as a short hedge. A short hedge is, for example, when a mining company signs an agreement to sell a certain amount of gold that will be delivered at a certain time. The price will match the price of gold on the date of delivery, which is in 4 months’ time. The company locks in the price by selling short a specific number of futures contracts on the respective exchange. If each contract covers 50 oz of gold, the company will have to short 50 futures contracts.

This method is referred to as placing a hedge around the gold, making sure that the gold will be sold as agreed. Gold options offer advantages such as extra leverage and the possibility to limit losses.

There are some factors, which determine the trading price of gold futures. These include changes in supply, including whether production quantities have been met or exceeded. The technology used to extract material is also important as it determines whether the mining company will have access to and extract metal. Another factor is changes in demand and whether some states are planning to increase their gold stock reserves. Recently, China and Russia have done so. Given that a number of factors influence the price of gold futures, the advice of an investment advisor may be of help. Gold futures are a risky investment instrument although profits may be high.

What are gold accounts and how to invest in gold? You will find all the answers in this gold exchange traded funds.

Gold Resistance In Front Of Cash

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Gold has always been considered as valuable as any national currency that could be easily used in trades on the stock market. But there is a big difference between owning an amount of money or a stock of gold in a bank and in order for people to make the right investment, this distinction must be clear. First of all, the gold held in a bank can be submitted to all kinds of transactions, according to the customer’s needs.

Everyone that owns a sum of money wants to keep it safe and, if possible, to increase it. People see banks as the facilitators of these things to happen. The client makes a cash deposit and the bank submits this money to various transactions that are expected to end in profit. This new income is divided between the bank and the owner of the deposit. For some people, all these actions are put under the question mark simply because they do not believe that a company is willing to keep your money safe and give you extra cash for the work they perform themselves.

All these transactions present themselves as a business. And as we all know, each dealings has their own risk to be taken. In case the bank decides to invest your capital wrongfully, you may not receive your money back. Nevertheless, these circumstances are very unlikely to happen. The best way to hold gold in banks is to sign a policy that allows the owner to withdraw it whenever he pleases. Also, having this type of gold deposit, the bank will not be able to lend it further to anyone.

Gold surely surpasses cash due to the fact that everyone knows its value, no matter of the part of the world they find themselves. In what money is concerned, there were situations when the seller did not accept it because it didn’t conform. Not to mention the fact that gold is scarce compared to money and this fact makes it more valuable. While money is printed everywhere and at any time, gold takes up to 30 years to be extracted and manufactured.

Due to the fact that gold is scarce, it subclasses money, which can be printed in huge amounts. Also, if we are to refer to the rare properties that gold has, we can mention its durability in time, its resistance to destruction and also the fact that it can be stored without any effort.

If you read gold news, you will know what are the best investments of the time.

Invest In Gold During Recession

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Recession represents a period of crisis that usually embraces the entire world and that has as a consequence the increase in value for gold. Once the inflation increases and the exchange rates record depreciation, gold is perceived as a more reliable and secure investment. The national currencies decrease in worth whenever the economy suffers negative changes or becomes unstable. Even the stock market is submitted to a downfall because of the loss in profit of certain companies. This way, gold seems to take over the situation and to guarantee certain stability.

A while ago, the best choice for those who owned some money and also wanted to gain some profit out of it was to deposit their cash in banks. The further transactions that the bank made were the source for refunding this money to the owner offering him a certain interest. But as people realized they can no longer count on the dealings that the financial institutions were making, these deposits were no longer an option. Gold has become trustworthy for them, especially for those who live in countries with great national debts.

Recessions have always made the value of gold greater. People give up keeping their savings in a certain currency and chose gold as a substitute for their money. No one can contradict the fact that gold was the only asset that survived the rough times of the Great Depression and the Second World War. There are no historical precedents that can point the fact that gold lost its value during a certain period. Thus, trusting a certain national currency becomes a lottery whenever we decide to get a loan from the bank or to make cash deposits in one. We may face a decrease in value for our money deposit or we may not be able to pay back the loans we have made.

Realizing that an investment in a certain national currency isn’t such a great option, people turn to gold. They can keep it in the coziness of their own houses or they can choose to put it in a bank. This way, they can also insure it so that they receive its equivalent in money if something happens.

Gold will always be regarded as a great investment due to its properties. The fact that it suffers no deterioration in time makes it a very durable precious metal. Also, it takes no trouble to be stored and if we want to present the guarantee of its purity, we can make such an inscription on it without the fear of losing the value it already has.

A gold fund is the best way to keep your investment safe.

What Is The Global Demand For Gold?

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Most nations are interested in the yellow metal, but some countries seem to invest more money in these goods than others. The studies that have been recently made show that various socio-economic and cultural factors lie at the core of these gold demand differences. In addition, depending on the demographic evolution, some countries may acquire bigger quantities of precious metal than others.

East Asia, India and the Middle East are the countries that currently register the biggest percentage of gold demand in the entire world. Each year, 70% of world’s gold consumption is headed to these nations, whereas half of the world’s demand is sent to Greater China (China and Hong Kong), U.S., Turkey and Saudi Arabia. Asian cultures and religions put a lot of stress on gold possessions; many of their rites are performed with the use of gold jewellery and other objects made out of precious metal which is why the gold demand is bigger in these areas.

It is not only gold demand that differs from one country to another, but also the type of products that nations usually purchase. According to analysts’ observations, some cultures are more interested in purchasing bullions and coins, whereas the jewellery consumption is bigger in other areas of the world. In 2009, the United States was declared the biggest consumer of gold jewellery as 55 billion dollars were spent on such goods. India, on the other hand, is more interested in acquiring large volumes of precious metal.

The current economic instability that most countries have to face has led to various behavioral changes in relation to gold consumption. Apparently, countries that used to invest in gold jewelry have become more interested in buying gold bars and coins. When asked about it, analysts explained that investors rely on durable goods in times of crisis because they are not affected by market fluctuations. Gold is the best investment for those who want to win big profits without making any efforts.

Thanks to the development of the e-commerce, anybody can buy gold from manufacturers all over the world. Physical gold is not the only type of investment that you can make; you may also purchase bonds and EFTs in countries like Zurich, Mumbai, London, Paris and New York. If you want to double or triple your profit, you can invest in different forms of precious metal.

The economic recession is an opportunity to get rich if you decide to follow these investors’ example and purchase gold. You can keep the precious metal commodities in your safe for as long as you want because they don’t require any special maintenance.

There is nothing safer than small bars and coins when it comes to investing in precious metal, so buy gold under these forms.

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Credits: Work From Home | Matteo Turchetto | Andreas Viklund