Monday, May 01, 2006

Gold Investing

Why Buy Gold?
For millennia gold has been used as money, a store of value and in jewelry. Modern industrial uses include dentistry and electronics. Gold forms the basis for a monetary standard used by the International Monetary Fund (IMF) and the Bank for International Settlements (BIS).

So why all the recent excitement about Gold?

To quote from the World Gold Council Website
Adding gold to an investment portfolio introduces an entirely different class of asset. Gold is unusual because it is both a commodity and a monetary asset. It is an 'effective diversifier' because its performance tends to move independently of other investments and key economic indicators.

"As a global currency, an investment and simply a thing of beauty, gold has held an allure for thousands of years. For the investor, that allure is largely to do with gold’s proven ability to preserve value over time and be a good diversifier within a portfolio."

Gold prices have been climbing and there are good indications that it will continue it's upward price trend.

Gold for June delivery climbed to a high of $663.80 an ounce on the New York Mercantile Exchange before closing up $5.70 at $660.20 an ounce, to mark the highest front-month futures level in more than 25 years, as steep declines in the U.S. dollar and concern about Iran's nuclear-research program fueled safe-haven buying and fed a broad-based metals rally. - MarketWatch, May 01, 2006 17:27

“The trend is up. I have a 50 percent probability that we will get to $800 next year and a 25-30 percent probability to take that up to $850,” Martin Murenbeeld told Reuters on the sidelines of the European Gold Forum, which ended on Thursday. - Daily Times Tuesday, May 02, 2006

A GOLD rush helped push the stock market higher yesterday, with the market winning back all the ground it lost in Friday's sell-off.

Aequs Securities institutional dealer Ric Klusman said the big mining companies made strong gains and gold stocks were the flavour of the day after the yellow metal shot to fresh 25-year highs.

"It's been a strong, strong day," he said. "The gold price in Asia is up and everybody has just been piling into the gold stocks." - Alex Wilson Herald Sun May 02, 2006

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