This article contains useful information about why and how to buy gold investments. It was first published 2005-12-05 By Jamie Clark
Throughout history, gold has been a highly valued substance.
It's unique properties and relative scarcity caused almost every world culture to use it as a form of money, as well as a way to "store" value. Although it has lost much of its importance as a form of currency, gold investments still provide a great way to protect your money and diversify a portfolio.
Over the past few years, gold prices have been steadily rising. There is a very good chance this trend will continue over the long-term, making it a good idea to put some money into gold investments now. Also, buying gold is a great way to hedge against other investments. Due to uncertainty in the stock market and the value of the US dollar, it's a good idea to put 10-20% of your money into a hedge fund in order to protect yourself. Gold and silver have always been considered to be among the best forms of hedge investments because they have relatively stable values (due to very small changes in supply).
How to Invest in Gold
Before you buy gold, it's a good idea to get the help of an investment consultant. This is especially true if you've never invested in gold before. He or she can help you determine the best moves to make based on your own personal financial goals and risk tolerance. If you already have a personal financial adviser, tell him or her that you'd like to use gold to hedge your portfolio. If he or she doesn't have much experience dealing in gold investments you may want to find someone who does.
If you're interested in profiting from the price movements of gold, buying gold bullion coins are an excellent option. The best choices are the American Eagle, the Canadian Maple Leaf, the Britannia, and the Australian Nugget coins. You can buy gold bullion coins from precious metal and coin dealers, both offline and online.
Before making a gold bullion purchase, always shop around for the best prices, as the markup on coins will vary from dealer to dealer. Also, do everything possible to make sure the dealer you're buying from has been in business for awhile and has a good reputation. If possible preserve your gold coins in the original mint packaging and protect them from scratches to maximize resale value.
Gold bars are another gold investment option you may want to look into. Smaller bars are usually more expensive (per ounce) than large bars but are often easier to sell. In general, bars carry a higher price premium than coins. As with gold bullion coins, only buy and trade with reputable dealers.
About the Author
Jamie Clark is a writer and researcher for Gold-Bullion-Guide.com. For useful, up-to-date news and information about gold bullion investments be sure to visit the site.
Article Source
Tuesday, May 02, 2006
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
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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