Gold

Is it a good idea to invest in gold in 2018?

It goes without saying that gold continues to play a vital role in building the economies of most nations including India. Although fluctuations have always been a part of downswings in recent year, the actual value of this yellow metal always holds a good possibility for being a stable investment option. If you’re not pretty sure about whether or not you should invest in gold, here are few things that you should educate yourself on.

Gold investment – What is it?

There are various types of gold investments from which you can choose. For example, people may purchase gold futures and options apart from investing in gold ETFs or gold funds. People can also invest in gold by purchasing shares in some company which mines gold or which can directly purchase gold in the form of bullion coins. There are many who believe that purchasing gold jewelry is also a kind of gold investment but ideally it isn’t. The prices of jewelleries include the charge of making them and this cost can be around 10-20% of the entire cost. This is the reason why they don’t reflect market conditions.

Few benefits of investing in gold in 2018

There are certain factors that which play a vital role in making gold a hot favorite among most investors. Here are some of them:

• Universality of gold and high liquidity makes it one of the most favorite choices for the investors throughout the world. It is not only accepted as a mode of payment and a mode of security throughout the globe but it can also be cashed effortlessly.

• The value of gold increased when there’s inflation because it stays more stable than cash or other asset.

Gold investment is one of the best ways of diversifying the portfolio of an investor because it moves indirectly to currency and stock value.

• The global gold value stays untouched even when there is political chaos. The demand for gold can fluctuate but it never ends.

Investing in gold in 2017-2018

You have to know how prices of gold rise and fall in order to understand whether or not it is going to be a good investment option in 2017-2018. The rate of gold is decides by its demand, supply and its value as investment in the present economic situation. Investors usually rush to purchase gold whenever there’s weakness in the stock market or in the economy. The reason behind is that precious metals hold more value than any other assets.

One more way of forecasting whether or not gold investment is going to be profitable is by analysing the financial statistics of the previous few years. If you find the value of gold being sharply at the same consistent rate, you can expect it to remain the same in the next year as well. For professional help, you can seek help of financial advisors.

Hence, if you’re planning for a debt free retirement, start investing. Diverse your portfolio by including gold and stay safe even during inflation.


Old is Gold

One of the best-considered investments all over the globe is the investment in GOLD. No doubt, it is the most fruitful investment too. One always thinks of gaining just the double. However, if luck and market favor you, you sometimes get three times of what you had invested in gold, years ago. Now when it is said if market favors you, let me explain it to you in a layman manner suppose that seeing the downfall in the price of gold you bought 10 grams of 22-carat gold at a very low price say for 30k. And now after five years, there is a sudden increase in the price of gold in the market and now the same 10 grams of gold costs you about 1 lakhs 20 thousand. So you are going to get just the four times of the amount that you had spent in buying those 10 grams of gold five years back.

The Importance of Gold In the Modern Economy

While gold is no longer in the forefront of everyday transactions, it is still important in the global economy. To validate this point, one need only to look as far as the reserve balance sheets of central banks and other financial organizations, such as the International Monetary Fund. Presently, these organizations are responsible for holding approximately one-fifth of the world’s supply of above-ground gold. In addition, several central banks have focused their efforts on adding to their present gold reserves.

Gold Preserves Wealth

The reasons for gold’s importance in the modern economy centers are the fact that it has successfully preserved wealth throughout thousands of generations. The same, however, cannot be said about paper-denominated currencies.

Gold holds its value during inflation; however, the paper money reduces to a large extent.

Different Ways of Owning Gold:

One of the main differences between investing in gold several hundred years ago and investing in gold today is that there are many more options to participating in the intrinsic qualities that gold offers. Today, investors can invest in gold by buying:

• Gold Futures

These are certain reserves in order to hold and store the gold for future use, especially during the time of monetary crisis in the market.

• Gold Coins

A gold coin is a coin that is made mostly or entirely of gold. Traditionally, gold coins have been circulation coins, including coin-like bracteates and dinars.

• Gold Companies

There are several companies that look upon storing gold. There are different methods by which gold mining companies are ranked. One is on their annual production. Another is by their cash cost per ounce, that is, how much money it costs them to mine the gold.

• Gold ETFs

Gold exchange-traded products are exchange-traded funds (ETFs), closed-end funds (CEFs) and exchange-traded notes (ETNs) that aim to track the price of gold. Gold exchange-traded products are traded on the major stock exchanges. As of 25 June 2010, physically backed funds held 2,062.6 tonnes of vaulted gold in total for private and institutional investors.

• Gold Bullion

Bullion is gold, silver, or other precious metals in the form of coins, ingots, or bars. Typically bullion is used for trade on a market. Bullion is gold, silver, or other precious metals in the form of coins, ingots, or bars. Typically bullion is used for trade on a market.

• Gold jewelry

Needless to state, these are one of the common ways to store and invest in gold, depending on how long you would like to invest in it.

As it said, “old is gold” the saying has got deep meanings into it, to be precise the longer you store the gold the higher it pays you. So be updated, for you never know when there may be a downfall in the price of gold. Read blogs, stay tuned with every magazine and don’t let the opportunity missed.

Image source: https://cdn.pixabay.com/photo/2017/10/25/19/48/piggy-2889050_960_720.jpg


Will Gold Outperform the Market in 2017?

Some of the biggest financial experts are of the opinion that gold has the chances of staging the biggest turnaround in the year 2017. Needless to say, their predictions are backed by solid observation and of course, their years of exposure to the world of trading.

The negative price momentum

Their first observation regarding stocks is that negative price momentum demonstrates more consistency and perseverance than the positive ones do. This fact has been proven by empirical figures, as well. A stock which has plummeted the most has the “proven” power to outperform the market. We will try and explore why they think that gold has the maximum turnaround potential for 2017.

The plummeting gold demand in the Chinese and Indian markets Both Indian and Chinese jewelry will experience a surge in demand in the coming year. The World Gold Council declared that the global demand for jewelry was down by 21% year-over- year in the 3rd quarter. The Chinese and Indian markets grappled with a shocking blow to the demand for gold. The two largest gold markets of the world faced a crunch in gold demand owing to a number of factors. In China jewelry consumption went down by 27% and in India it went down by 41%.

Why the demand for gold had gone down

The loss of Chinese consumer confidence, imposition of higher taxes on Indian gold, Curbs on Chinese gold import and demonetization in India are some of the factors that contributed to the plummeting sales in 2016. 2017 is not going to witness any such happening. As such, gold is definitely set for a major turnaround.

The Chinese and US policies are clearly borderline inflationary in nature. Experts feel that this will promote the flow of speculative funds into gold. Donald Trump is presently mulling the reduction in taxes and adding an estimated $7.2 trillion to federal debt. The debts are expected to touch $20.9 trillion by 2036. On top of that, the US is already saddled with outstanding debt worth $19 trillion today. Even in the absence of any surplus spending the federal debt is expected to rise to 86% by the year end. A tight labor market with higher fiscal spending is definitely going to witness higher inflation.

China, on the other hand, has witnessed a surge in credit creation triggered by a throbbing housing market. However, the regulators’ intervention has compelled investors to turn to commodity stocks to hedge the depreciation related to their assets governed by yuan. It has only been 3 months since the prices of zinc and copper have increased by around 20 to 25%. Gold is soon expected to witness similar hike in price as well.

Image source:

https://pixabay.com/get/e833b20a2df71c22d2524518a33219c8b66ae3d111b2144296f6c07c/gold-bullion-163553_1280.jpg


What Really Affects The Price Of Gold?

Gold is an all-time favorite investment, popular with many people from all walks of life. Part of the reason for this is that it is seen as a buffer. In times of recession or even deflation, gold remains relatively safe. While investing in something like real estate is always a bit of a gamble, gold is much safer. This makes it a common go-to choice for investors sensing financial danger. It is, in many respects, the ideal form of insured wealth. However, that doesn’t mean that it is not subject to the whims of the financial world. Like anything else, gold is affected – and affects in turn – by outside factors. If you are considering investing in gold, then it pays to know what gold is most affected by. With that in mind, let’s take a look at the major factors which affect gold prices the world over.

Interest Rates

There is a common belief, held for many years, that gold is negatively affected by rising interest rates. While at one point, this might have appeared to be the case, it is no longer always so. When the Federal Bank raises interest rates, in fact one of two things may happen. One possibility, the old idea, is that people sell their gold when the interest rates are raised. The theory is that this is in order to free up funds for other investments. However, the opposite is also often the case – and it is this second possibility which has happened this year. When the Federal Bank raised interest rates this year, gold prices actually decreased. The important thing to remember here is that gold prices are not a function of interest rates. There is a causal relationship between the two, but it is two-sided and complex.

 

dollar-499481_960_720Pic Source

The Dollar

The US Dollar is still very much the global benchmark currency. What it is important to bear in mind for our purposes is that the dollar is the dominant reserve currency. This means that, for many countries around the world, it is the go-to currency for trades on an international basis. How this affects the price of gold is interesting. It is, often, a strong inverse relationship that we see between the two. When the dollar is going strong, gold tends to be weaker. Of course, the opposite also applies equally.

Quantitative Easing

During times of recession, one tactic which is often employed by central banks is quantitative easing. This is a process by which the central bank of a country releases more money to the banks. This, they hope, increases the banks’ likelihood of lending out money. The goal, of course, is to get the money flowing more freely again. What happens here is that a greater supply of money makes for lower interest rates over time. Sometimes, this encourages investors to buy gold. When enough people do this all at once, it can trigger inflation. This in turn has the possible consequence of gold prices rising again.

dollar-943738_960_720Pic Source

The relationship between gold and the rest of the financial world is complex, and ever-changing. These are just three of the major factors which affect the price of gold. If you are thinking about investing in gold, it is a good idea to bear these in mind.


US Fed Rate – A Persisting Dilemma

dollar_1999092bFinancial pundits have been forecasting US Fed rate hike for quite sometime now. However, many internal and external factors have resisted the Federal Reserve from hiking it from the persisting 0.250 per cent. Though the market expected the fed rate to increase in September 2015, it didn’t because the central bank was worried about derailment of resurging U.S. growth due to instability in Chinese economy and economic slowdown. If the minutes of September 16-17 discussions by the board members of Federal Reserve are taken seriously, it might take 9 years to increase the concerned rate.

Why US Fed failed to increase Fed Rate in September 2015?

One of the reasons that restricted board of Federal Reserve from increasing Fed Rate in September 2015 is the dismal job growth data. Per official figures, in September 2015 just 142,000 jobs were added, which is 64,000 jobs lesser than analysts’ expectation. Another figure published by US Labor Department is the “zero” rise in average pay. More alarming is the fact that thousands of workers left their jobs and the participation rate of workers fell to a dismal low, last seen in 1970s. In fact, slow down in Chinese economy also held the board back from increase interest rate.

To top it, US Consumer prices fell by 0.2 per cent during September. In fact, inflation rate has been steadily falling since May 2015, signaling persistent sluggish pace of inflation. This persistent fall is exactly opposite of Fed’s stated target of 2 per cent. All these phenomenon including slowing economy of China, falling inflation (both globally as well as domestically), and market disruptions are again making it difficult for Federal Reserve to increase the interest rate, which is stuck to the current near-zero level (0.25 per cent) since 2008 (the year US economy was in deep recession).

What analysts are Predicting about Fed Rate Hike?

On the expectation of US Fed holding interest rate hike till 2015-end, gold buying is witnessing rally since mid-September. Strength of dollar is also weakening. US Dollar has fallen significantly with respect to other currencies such as Euro in the recent past. Last week, Euro was up against US Dollar by 2.3 per cent, which is a striking phenomenon as Euro fell sharply in the past touching a 12 years low earlier in 2015. These phenomenons gave overall market all the reasons to park its money in the yellow metal for hedging risk.

Colin Hamilton, head of commodities research at Macquarie, said that they conducted a poll in their base metals summit survey earlier this week and found out that most of the audience is expecting a Fed rate hike only after December 2015.

Gold_industryJessica Fung, analyst of metals and mining at BMO Capital Markets, said during a press meet that overall market is currently expecting Fed rate hike around March 2016. She went on to explain that expectation of US Dollar drive gold price and pricing of the futures market is indicating towards a steeper gold price rise in latter part of the year. The momentum of gold price hike is expected to go on along 2016. Along with this increase in price of yellow metal, interest rate increase is expected to be during March 2016.

 

Ref: http://www.global-rates.com/interest-rates/central-banks/central-bank-america/fed-interest-rate.aspx

http://www.reuters.com/article/2015/10/15/us-ecb-fed-idUSKCN0S906320151015

http://www.cbc.ca/news/business/fed-minutes-september-1.3263358

http://www.theguardian.com/business/2015/oct/02/us-economy-adds-only-142000-jobs-raising-doubts-about-interest-rate-rise

http://www.investordaily.com.au/markets/38362-fed-rate-hike-good-for-economy

http://www.cnbc.com/2015/10/15/gold-price-move-points-to-fed-rate-hike-in-2016.html

http://www.wsj.com/articles/u-s-consumer-prices-fall-0-2-in-september-1444912347

http://www.cnbc.com/2015/10/21/is-the-us-headed-for-negative-interest-rates-commentary.html

http://www.forbes.com/sites/samanthasharf/2015/10/21/ben-bernanke-fed-rate-hike-is-a-risk-management-decision/


Should You Save or Sell Your Valuable Heirlooms?

Gold_industryThis question tends to pop up at difficult times in life. It’s not uncommon to find yourself in possession of some odd goods when a friend or relative dies. And it’s at times like these that you might be ill-equipped to manage these goods, especially if you are feeling a lot of grief at the time. There are many considerations to make, and not all of them have to do with the precious metals exchange rate that applies to your situation.

This is because many of these items will have sentimental value in addition to monetary value. People might feel guilt for trading an item that reminds them of a lost loved one for cash. But this isn’t always the way to think about it. Death happens, and memories of loved ones should be afforded a certain place in your life. But it should also be compatible with how you live. If an item, such as a piece of furniture of a painting, can be loved and displayed in your home on its own merits, not just because it belonged to a loved one, it might be a good addition to your life, as well as an appropriate reminder of your loved one. But if the item doesn’t have any value to you other than it’s sentimental value, it isn’t appropriate to sell it after a certain amount of time. In most cases, the individual who passed it on to you would rather you have security and happiness than perpetual possession of the item in question.

That aside, let’s talk money. Oftentimes, people inherit items made of precious metals, like gold, jewelry, and coins. Because these items have no function in themselves, other than to serve as placeholders for wealth/value/buying power, it makes sense to sell them when they’ll command the highest price. But when is that? Do metals like gold always increase in value?

Well, not really. Gold, for instance, has something of an inverse relationship to the standard economy. If you look at charts of gold value, you’ll notice that gold tends to be in high demand when the US economy isn’t doing so good, and vice versa. This is because gold represents inherent value, while the economy is based largely on perceived value and good will. The economy works well when people spend money without much worry. When people are worried, they don’t spend money. Keeping gold is the epitome of “not spending money”, and it’s an example of people putting their trust in something they feel might have more staying power or foundation than a particular market.

So in general, I say buy gold when the market is good, sell it when it’s down. As you can see, this would’ve worked out to great effect if you bought a bunch of gold in the hot-economy days of the 90’s and kept it till the financial crunch of 2008. But because these things are impossible to predict, and because gold doesn’t have inherent factors which determine it’s value, I generally sell gold a lot more than I buy it. And that’s how I generally treat stuff if I’m ever in a position to inherit money or goods. A lot of top finance blogs agree.

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Think Gold! Why It Isn’t Wrong To Be Thinking About Investing In Gold

Though the price of gold has corrected significantly in the last two years, the correction has provided a great buying opportunity for savvy investors. The gold bull market will likely continue for many more years given that the fundamentals for owning gold are stronger than ever.

Why Investors Should Think About Gold

In 2008, due to the collapse of the real estate market in the United States and Europe, there was a significant risk of a global deflationary depression similar to that of the Thirties, requiring the coordination of central banks to recapitalize the banks and keep interest rates artificially low to avert such an outcome. The Federal Reserve then began a massive bond-buying program known as quantitative easing (QE), causing its balance sheet and the monetary base to grow multiples in size. Currently, the Fed is buying $85 billion in mortgage and sovereign bonds monthly, and, even if the Fed tapers as it has suggested, the money supply will continue its parabolic growth. Other central banks, such as the European Central Bank, the Bank of England and the Bank of Japan, have engaged in similar programs of monetary easing.

Gold, a tangible form of money that is recognized universally, moves inversely in value to paper currencies that are debased through the current policies of monetary easing. The reason for gold’s inverse correlation to paper currencies is that the supply of gold increases modestly each year, by about one percent, whereas paper currencies can be inflated until they are rendered worthless. Gold is therefore a hedge to inflation, with a value that rises as paper currencies lose value. As a portable form of money with intrinsic value, gold can be stored outside of financial institutions, protecting investors from Cyprus-style bail-ins should the financial system collapse once again.

The Gold Outlook

Though some have argued that there will be a full economic recovery and interest rates will rise, which is supposedly bad for gold, the level of indebtedness in western countries and Japan means that rising interest rates may trigger sovereign debt defaults, as occurred in Greece and Cyprus. A spike in interest rates in the United States, which has a debt to GDP ratio of over 100 percent, will mean that a significantly larger percentage of tax revenues will go to just paying the interest on that debt. With annual deficits of about $1 trillion projected into the next few years and millions of Baby Boomers about to retire, the United States simply cannot afford a spike in interest rates. The debt levels in much of Europe and Japan are even worse, particularly with the social safety net and aging populations of these nations.

With unsustainable debt levels in western nations and Japan, central banks will likely resort to the path of least political resistance, which is to print money to pay off the debts. Since a real market no longer exists to offer credit to these nations, the central banks will be forced to continue buying the bonds issued by governments, in effect acting as an extension to these governments and buying their own debt. Though such programs may provide temporary stability to an economy, in the long run investors are likely to bet against the bonds and currencies of these nations, potentially causing debt defaults and collapsing currencies. At the very minimum, these nations will experience very high inflation due to vastly weakened currencies at some point, causing the gold price to reach new highs relative to these currencies.

Though some have declared the end of the gold bull market due to gold’s correction since reaching $1900 per ounce in 2011, the gargantuan debts of many industrialized nations and the policies of monetary easing in vogue among central banks mean that the price of gold may move multiples above its current price before the bull market is over. Investors should therefore think about allocating at least a small percentage of their assets into gold to hedge themselves from the systemic risks that remain in the financial system.

Tom has a passion for precious metals and stones. Tom also loves sculpture, sourcing his metal from companies such as Dynamic Metals. Toms favourite metal to work with includes titanium and steel.


Pros & Cons Of Investing In Gold

There has been a lot of noise in the news lately about investing in gold, but very few credible sources are giving an unbiased look at the topic. Sure, the low price per troy ounce now make the precious metal extremely attractive to new investors, but like any investment, there are pros and cons to buying gold. In this article we’ll try to go over some important elements:

The Pros

1. The value of gold has never reached zero. Over the one hundred and sixty years that the price of gold has been tracked in America (it has been tracked longer in other countries), the price for the commodity has never reached zero. This means that there has always been someone willing to pay something for the metal. In other words, no one has ever lost their entire initial capital investment by buying gold.

2. Unlike other investments, it is possible to hold gold forever. Throughout history, gold has been used as a common currency between nations. It is relatively easy to determine it’s quality, and it is next to impossible to completely destroy. Essentially, this means that the gold an investor purchases today has the potential to last for centuries. This makes it different from stocks and bonds that are tied to a company that could go bankrupt, government bonds that require a government to recognize their worth, or even other commodities that have the potential to spoil and become useless. Gold is an investment that can be passed to future generations without the worry that they will inherit something that is worthless.

3. Many analysts believe the price of gold will continue to rise. Many economists such as Peter Schiff have published and publicly stated that they believe the market conditions are in place for gold to continue to increase in value. While exact opinions vary, many of these economists cite the instability in many world governments as driving up demand, as well as the falling value of many currencies and a general trend away from investing in stocks and low-yielding CDs.   4. For those interested in investing for their future, it is now possible to buy gold as part of one’s retirement investment strategy. Opening a Gold IRA has become a good strategy to balance & diversify one’s overall IRA investment portfolio.

The Cons

1. Gold can lose value. While it has never actually reached zero as we mentioned before, there have been several times where it has come close. In 1999, for example, it hit a low point of $252.90 an ounce. When compared to the nearly $1600 an ounce that gold recently was valued at, it’s possible to see how an investor could lose a lot of money simply by buying and selling at the wrong time.    2. This investment has a lot of price fluctuations. While many world governments used to tie their currency to gold, this hasn’t been the case in the United States since 1975. Essentially, this commodity is left to rise and fall in the free market. Furthermore, there are only a few industrial uses for gold, and only ten percent of it is used by (and can therefore be influenced by) industries. The remaining ninety percent is divided between jewelry and investment. That means that there can be wild price swings in the price of gold that are not related to what is going on in the rest of the market. In fact, history shows that the price of gold reacts more to governmental conditions than it does to economic trends.
3. Many analysts believe the price of gold is about to fall. While there are a lot of economists who continue to state the price of gold will continue to rise, there are a growing number who believe that it is due for a crash or price correction. These economists cite the record high prices that gold is already selling for, the stabilization of major world economies, and the fact that many world governments are indicating that they will raise interest rates, essentially creating more stable opportunities for investors to earn a profit.

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Larry Banks is a retired weath advisor that has specialized in precious metals investing. He has helped hundreds of Americans make smart decisions by including gold & silver as part of their long-term investment strategy.


Keeping Gold Industry Standards High

Keeping Gold Industry Standards High

Gold, a beautiful precious metal adorned by many has been a symbolism of love and power throughout the ages.  Civilizations have been built because of it and wars fought over it.  As it was then and still today, gold has an impact on societies and individuals alike.

There are 100 million people worldwide relying on the industry for a living, jobs ranging from the miner to the jeweler.  The mining industry is a positive force for those people involved in it, but it has not been without concerns and problems.

There are a number of organizations, such as the World Gold Council (WGC) and the Organization for Economic Co-operation and Development (OECD) working together setting guidelines, standards, and responsible mining practices for the industry.  All the organizations work together assuring that the gold products you have, use, sell, and enjoy are not at the expense of the people and the communities involved in the industry.  

Society

Gold has influenced societies since it was first discovered 4000 thousand years ago.  It has always been a symbol of wealth; civilizations have been built because of its perceived wealth and beauty.  Even today, the gold industry has a positive impact on communities and its people.  Communities grow; living standards improve.  Gold mines provide steady employment and high incomes. 

Environment

Gold mining affects the environment and not necessarily for the better.  Policies pertaining to hazardous materials, waste and chemicals, and water conservation have been orchestrated or are in the process to improve the residual affect of the industry by the WGC and other organizations.

Health and Education

More times than not, gold mines are in developing and impoverished countries.  The WGC and mining companies have been working to improve standards.  General education is a more common practice now and there are health care initiatives in place to help workers and their families.  This has come about because of the social responsibility programs in place.

Roads

Mines are usually located in remote areas.  Accesses to the mines come by way of poor roads.  Large-scale mining companies often put money and effort into upgrading the regions transport infrastructure benefiting the company, its workers, and the community.

Utilities

Mines need constant water and power to operate.  This necessity is often lacking or is inferior.  Mining companies build or upgrade utilities in order to undertake their operation.  By doing so, everyone benefits with clean, fresh water, the workers and the surrounding areas.

Conflict-free gold

Gold, being associated with wealth and power will often bring out the worst in mankind.  The industry is aware of forced labor and extreme violence that has taken place.  In trying to improve conditions, the WGC along with other organizations and companies, have initiatives in place to free the industry from armed groups reaping financially from conflicts.

The gold mining and refining industry has a positive and economic impact on the miners, their families, and their communities.  Watchdog organizations improve and keep standards high in the industry.  Policies, standards, and initiatives are in place so you, the consumer, can buy gold with confidence that conditions for everyone involved is humane.

Karla Brown is a writer from Los Angeles, CA. If you are looking to invest in gold, consult experts to help you on your way, like from Scottsdale Bullion and Coin, which will guide you in the investing process.


Gold Investment for Beginners

Gold Investment for Beginners

Throughout history, gold has remained a smart option for stable investment. In recent years, uncertainty about the future value of paper money has led to increased interest in gold, and the soft, precious metal is now popular with investors at all levels. Here’s a look at the key facts regarding smart gold investment for beginners.

Calculate Investment Size

All smart investors have limits on how much they spend on individual parts of their investment portfolio, including gold. If you’re just getting started, you’ll probably want to devote about three to five percent of your portfolio to gold and other precious metals. If you later decide you want to invest more heavily in precious metals, it will be easy to do so.

Gold Investment Options

When you add gold to your investment portfolio, you have plenty of options in front of you. Depending on the size of your investment and the percentage devoted to gold, you’ll want to invest your money carefully. Here are the three basic forms of gold investment.

Keep Gold In A Brokerage or Mutual Account

With a gold exchange traded fund, or ETF, or a gold mutual fund you can easily trade gold into and out of your investment portfolio. With these types of accounts, you can trade gold quickly and there’s no risk of theft, unlike with investment in gold coins or bullion. In addition, there are no issues with state taxes concerned with these types of gold assets. However, this type of investment prevents direct access to coinage or bullion if they are needed during a financial emergency.

Keep Gold Bullion or Coins

This option involves the purchase of physical gold and keeping it in either a home safe or safe deposit box. Investors can purchase these items from coin dealers, bullion companies or the U.S. Mint. By having these forms of gold on hand, an internationally recognized form of currency is available for emergency use. At the same time, however, this form of investment involves storage expenses and exposure to the possibility of theft.

Purchase Gold Industry Stock

Investors can also buy gold mining or processing company stock in their brokerage accounts. Company shares often follow current gold prices, and this method of investment is considerably safer than keeping physical gold. Investors who go this route often enjoy greater capital appreciation associated with increased share values that follow higher bullion prices and discoveries of gold stock. Unfortunately, investors in gold stocks may also suffer loss of investment capital in cases of mining company mismanagement or bankruptcy.

Specific Portfolio Strategies

Although the above investment strategies can be used on their own, combinations involving additional funds, bullion, gold ETFs or mining company shares may offer more stable growth over the long term with wise investment. For direct physical gold investment, investors should shop around to locate the best prices from dealers.

Transportation and storage of precious metals, including gold, invariably involves the risk of theft. For this reason, special arrangements should always be made to ensure safe delivery of gold bullion and coinage.

No matter which investment option is chosen, gold is a reliable addition to any investment portfolio. As the world’s economy changes over time, gold’s value is likely to remain high and stable.

Michele Golden is usually an outspoken and driven blogger along with photographer heralding from Vermont. Shes is presently studying to become a personal financial consultant that can help those using financial troubles.


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