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Investing in Gold
Written by: Rob BourneArticle Overview: There are many ways that an investor can invest in gold. The popular method is buying gold bullion where you can have a direct and measurable exposure. This will come at a premium, but you have a commodity which can be traded globally.
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Investing in Gold
History can show us that in bad economic times investors turn to gold for protection against inflation and falling currency prices. Gold is a commodity with a measurable unit of value, keenly sought after because of its unique characteristics.
The primary reason why we now see the price of gold at over $1,050US per ounce is because the US dollar is falling in value. When you print more money, it lowers the value of the existing currency already circulating. The US has been doing a lot of money printing lately; to get out of the hole they dug for themselves with credit mismanagement.
While the price of gold has been increasing in US dollar terms, it has remained steady or fallen in those countries where the currency has appreciated against the US dollar. Take the last 12 months for example (Nov 08 - Oct 09). The price of gold in US dollars has risen from approximately $750 to $1050. That's an increase of 40%. In Australian dollars the price in November 2008 was approximately $1150, which is where it is currently trading at today. This is a clear example of the US dollar losing value against the Australian dollar.
Inflation is the other main reason why gold increases in value.
Investing in gold has always been a popular and preferred method to use as a hedge against inflation. The global financial crisis has effectively stopped inflation in its tracks, but along with any recovery comes growth, and with growth comes inflation. Raising interest rates is an effective way that governments use to control inflation and we have seen the first signs of a global recovery when Australia lifted its official interest rate recently.
There are many ways that an investor can invest in gold. The popular method is buying gold bullion where you can have a direct and measurable exposure. This will come at a premium, but you have a commodity which can be traded globally.
Investing in companies which produce gold is also a popular way to gain exposure. Gold exploration and production is actively being carried out across the globe and there are many choices when it comes to buying shares on the stock market. From solid reliable companies with proven resources and consistent production, down to speculative exploration companies hoping to make the next big discovery.
My preferred method is to find it yourself. All you need is a reliable metal detector, and then head to some proven gold fields. It's a lot of fun and a whole lot cheaper than buying it.
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Article Tags: buying gold bullion, investing in gold, investor
Referred by: http://jaykubassek.com
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About the Author: Rob Bourne RSS for Rob's articles - Visit Rob's website  Rob Bourne has been involved in the financial services industry for over 35 years. As a practising financial adviser he focuses on the need for practical and down to earth financial education. The aim is to educate people through financial education so they can take control of their own financial future. Visit Rob's website here for more information on business opportunities, investing and financial education. Click here to visit Rob's website   How to Succeed in any Home Based MLM Business Opportunity How Many Buckets Do You Need for Retirement How to Find the Best Home Based MLM Business Opportunity Take Control through Financial Education Knowing When To Buy and Sell Stocks |
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Re: Invest in Real Estate or Stocks?
- I want to reiterate what Barb said, be prepared for the long run.
Investing in stocks and real estate myself, I highly recommend learning as much as you can about both. Find a great mentor in both areas as well if you can.
But always, always, remember that you buy both and WAIT. There's no flipping around or you can lose alot!
Jude
Congratulations
- Hi Shri,
Congratulations to your win. Next time you will go for the 'Gold Medal'.
This does not happen everyday. All the hard work is paying you off.
We wish you well for future projects you have in mind. Be encouraged!
Kindest Regards
Beat
"Unlock People's Potentials!"
Starting New Business Venture would like some tips
- Hello
I am new to this website and just want to say its awesome!!
currently I am involved in a new business venture, I am new to the business world and I would like some extra help on this subject.
Our company specializes in Custom Gold Foil Printed Ribbon, and Personalized Products (Napkins, Buttons Etc).
so if anyone has any ideas of where to go, who to contact, or even if your looking for these types of products yourself, let me know and any tips to help me out it would be greatly appreciated.
Re: HOW DO I STAND OUT FROM THE REST?
- [quote="kellyandandrew":i8cu0zo4]With so many diferent onilne businesses to invest in, how do i stand out from the rest to attract people. I know there are some fantastic business minds out there and would appreciate a bit of advice![/quote:i8cu0zo4]
Investing in any business is not an easy task in today's competitive market. I suggest before investing in any online business you should consider a lot of things in your mind. The things you should consider are like competitor's sale, online sale of your firm, how much visitors to site daily, what are profit rates and many more.
Re: Customer protection or sales loss?
- Hi Beat,
I prefer to buy online to save money or obtain discontinued/rare items. For instance, I recently bought a demo Prince Speedport Gold tennis racquet for $157.51 USD (including shipping to my friend's condo) on eBay, while another seller had previously turned me down because he/she insisted that the PayPal account's address match the shipping address. That same racquet retails in Canada for $305.04 CAD after taxes.
A lot of my friends don't have PayPal accounts and don't like giving their credit card number to "smaller" online vendors, so I'm often limited as to where I can shop.
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