Top Ten Ways to Buy Gold

Ever wonder how gold investors get their hands on the lustrous yellow commodity?  Counting down to the most frequently used, here are ten ways to buy gold. #10 Unit Investment Trust These are rare trusts set up by advisors to buy into mining shares and gold related activities.  A well-known, vehicle of this type, BlackRock …

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How to Buy Gold and Who Should Buy Gold

Not everybody is in a position to buy gold.  If you are living from paycheck to paycheck, gold is not for you.  If you have discretionary money available beyond all your goals, then you might consider buying some silver and gold to protect that extra nest egg.  If you have retired and perhaps you have …

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The Benefits of Gold Bars and Coins

New investors or seasoned investors in deciding whether to invest in gold bullion bars or bullion coins will succeed with preparation, review of research and determining investment needs.  There is no definitive right or wrong answer in choosing coins or bars.  Some of the factors to consider when deciding include how much will you invest, …

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How to Safely Buy Gold

In order to be a successful investor in gold, buyers must make difficult choices of when and where to buy gold.  With an almost endless number of places to purchase gold the choice is daunting.  To succeed do your research and due diligence from the Internet and your contacts.  It is always wise to get …

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Gold Investment: A Safe Haven

Many are still skeptical of investing in gold. They always ask the same questions. Is gold a good investment? Is it wise to even invest in gold especially after the massive recessions in the west? Is it safe to invest in the precious metal amidst an ailing economy and financial crisis? Gold is a precious …

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Top Ten Ways to Buy GoldHow to Buy Gold and Who Should Buy GoldThe Benefits of Gold Bars and CoinsHow to Safely Buy GoldGold Investment: A Safe Haven

Jan 06

How to Buy Gold and Who Should Buy Gold

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Buy Gold, Gold Investment

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Not everybody is in a position to buy gold.  If you are living from paycheck to paycheck, gold is not for you.  If you have discretionary money available beyond all your goals, then you might consider buying some silver and gold to protect that extra nest egg.  If you have retired and perhaps you have some wealth, you should buy gold to protect your retirement.  These stages and situations are common places to buy gold in our lives.  For safety reasons, there is a certain percentage to allocate toward buying gold.

PortfolioBuying Gold And Where To Buy

Generally advisors and portfolio managers have recommended investing 10% to 20% of your total net worth into precious metals.  Suppose with property and investments your net worth is $750,000.  If you had 20$ of your net worth in gold you have $150,000 of your money in gold.  That’s about 88 Troy ounces at today’s spot price of $1,660 per ounce.  With this $150,000 you could buy about 90 ounces of slightly circulated gold coins in $20 Liberties.

Many advisors and analysts are now saying gold may quickly be on the way to $5,000 to $10,000 an ounce.  With the conservative side of this, gold at $5,000 per ounce times 88 ounces equals $440,000.  In the event that our dollar fails, gold will go out of sight.  This is how gold stabilizes and grows your net worth, because gold demand spikes in times of dollar value losses.

In times of dollar value losses, you want to increase your percentage of gold holdings.  One good rule is whatever you don’t want to lose, put in gold.  Financial institution risk is usually higher than risk with gold.  Keep what you have and can’t afford to lose out of financial institutions.  Use financial institutions only for what you can afford to lose, when considering safety in economically troubling times.  Gold helps to preserve and compactly store value in your portfolio.  Silver as a lower priced commodity is easier to sell in small amounts and barter.   Typically 90% percent of your precious metal investments should be in gold, with 10% in silver.

Types of Gold

Of the two types of physical investments, gold bullion usually comes to mind first.  Most people think about bars of gold stacked in Fort Knox.  This is gold bullion.  One of the most common forms of bullion investments are the one ounce gold coins.  The Canadian Maple Leaf, Mexican gold Pesos, American Eagle,  Chinese Panda, South African Kruggerand, and the Austrian Philharmonic to name a few have been coined by their respective realm as gold bullion investments, and  have not circulated as legal tender.  Other countries offer gold coins that have been legal tender, such as the British Sovereign, the Swiss Franc, the French Franc, the German Marc, and the Finish Markkaas.  America exempts the American gold coins and silver coins as numismatic investments rightfully held as investment by citizens.  Around the world, 49 countries allow their citizens to hold the coin of the realm as numismatic gold investments.  It preserves the country’s history and offers collector’s a way to safely keep their cherished investments without fear of confiscation.

Bullion bars outside of Fort Knox, are available for investments, typically by speculators looking to buy it cheaply and when the price of gold goes up quickly sell it to make money.  Most gold buying clients are interested in long term preservation of their wealth.  Bullion has the insidious risk that it may be confiscated by the government in times of economic instability.  Currently the government has gold in its books at $50 per ounce.  If they confiscate your gold bullion how they value it with respect to this book value of $50 or market value is only guesswork shaped by the demand of economic hard times.  This is not the kind of risk most clients want to take.

A solution to invest long term is to buy lightly circulated numismatic gold coins.  The $20, $10, ad $5 Liberties, and $20 St. Gaudens are collectible coins in the U.S. and are not considered to be subject to confiscation.  Numismatic gold coins having an instrinsic value of gold and a collectible value are also non-reportable.

Rare gold coins require esoteric knowledge of coin antiquity and ability to make quality determinations.  Unless you have unique esoteric knowledge of rare numismatic gold coins, this type of gold coin is probably not an investment for you. Mint State (MS) numismatic gold coins are unique and can vary widely in price.  Depending on quality of slightly circulated coin categorized as MS65 to MS67 the price may differ by a factor of 6 to 25 times price.  The only thing rarer than a rare coin is a buyer for a rare coin.

Recommended gold coins for long term investment are the lightly circulated coins labeled as Very Fine (VF), Extra Fine (XF), and the Almost Uncirculated (AU).  These coins are valued greatly on their intrinsic value with some collectible value and premium.  The coins will appear almost perfect and with a beautiful gold shine to the untrained eye.  The trained eye expects slight wear and understands the premium is lowered compared to the high premium MS coins.  Both MS and light circulated coins are considered collectible and not subject to confiscation.  It makes sense to put your investments in lower premium collectible.

A quick final note on delivery is to ask before you purchase what is the delivery time frame, and specifically how long it will take to obtain your coins.  More than two weeks, look for another dealer.

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Dec 27

The Benefits of Gold Bars and Coins

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Gold Bar, Gold Coins

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New investors or seasoned investors in deciding whether to invest in gold bullion bars or bullion coins will succeed with preparation, review of research and determining investment needs.  There is no definitive right or wrong answer in choosing coins or bars.  Some of the factors to consider when deciding include how much will you invest, what are the premiums, where will you keep your investment and when will you plan on selling?

Gold Bars and Gold Coins

The most effective way to keep premiums and a minimum bid to buy gold bars.  Gold bars due to the larger size can be manufactured at lower cost and will therefore typically have a lower premium.  It is more cost effective to buy one 500 gram bar than to buy five 100 gram bars for the same reason.  The premium is a charge above and beyond the spot price of gold by its weight attributed to the manufacture, packaging, insurance, and delivery.  In order to remain competitive most respectable bullion dealers charge investors only a small premium.  For long term investing the largest size gold bar you can purchase saves on premiums and your overall cost.  If you expect to sell part of your gold investment, gold coins are smaller bars will provide the flexibility needed.  Determining your needs as much as possible and advance will help illuminate the decision to buy gold bars or coins.Gold Bullion and Coins

Situations may arise with need for quick cash, or there may be a need to adjust the percentage of gold holdings.  Part-selling the gold investment is an effective way of maintaining maximum return on the investment.  Having invested in five 100 gram bars, the investor is able to easily part sell, whereas one 500 gram bar would have to sell the entire bar to make the cash available.  Gold bullion coins represent a better alternative for investors who are mindful of this and expect selling part of their investment over time.  They are easy to store, ideal for trading as a hedge in times of bank strain, and ideal for part-selling.  Gold coins may be bought in sizes in range from 1 oz., ½ oz., ¼ oz., and 1/10 oz.

Bullion coins are popular with first time investors, for their flexibility and low premiums.  The well-known South African Krugerrand coins because of their purity attract lower premiums.  Investors seeking to invest large amount of money with CGT free status commonly use British bullion coins, such as the gold sovereign, half sovereign, and gold Britannia coins.  Silver coins provide an even more flexible investment as they are substantially lower in price than gold coins, and come in a 1 oz. size.  There is a complete host 1 oz. silver coins available to buy.  The silver Maples, the silver Britannia coin, and the silver Philharmonic coin provide the lowest price coin options.

Small investors and first time investors, do well to consider both gold bars and gold coins.  Starting out with a 100 gram bar costing around $5,500 or a 1 ounce gold bar costing around $1,700, bars and coins provide common entry points for first time investors. Gold British coins, particularly the gold sovereigns and half sovereigns offer a much lower price with the smaller units starting around $500 for a sovereign.  Whether it is gold or silver, get the intrinsic value when selling.  The cheaper you bought them for originally, the higher the return on the gold investment.

With large investments is important to get the best value to maximize return on investment.  The 500 gram gold bars, 1kilo gold bars and 5 kilo silver bars provide the best value.  Volume purchases will lower the premium as bullion dealer incurs lower cost.  The decision is less complicated primarily targeting the lowest premium with long term holding and minimal flexibility.  Gold coins afford wealthy investors flexibility and part selling when needed to improve the portfolio.  Due to their status as British Legal Tender Gold Britannia coins, particularly sovereigns do not accumulate capital gains taxes (CGT).  Sovereigns will command a slightly higher premium than gold bars, however, the flexibility offered and liquidity in time of need, offer wealthy individuals a much needed liquidity tool in their investment.  The best value comes from cheaper mixed year gold sovereigns as they have a small premium.

Changing premiums of bullion coins, in particular gold bullion coins have seen wide variations depending on market influences.  During the 1960 there was a 40% premium on buying gold sovereigns.  The influence of economic conditions is worth taking into consideration when buying bullion coins.  Bullion bars will provide you the intrinsic value based on precious commodity and daily market spot price.  Coins will potentially provide a better return in terms of market influence of the premiums.

Storage of gold bars will be easier and more convenient to store than ten times the number of coins.  The large one kilo gold bar is a single unit and can be confined to one storage place, a safe, deposit box or concealed part of your home.  With a large number of coins you have the ability to split the storage.  Of thirty coins, you might store ten in a deposit box, ten with a bank and ten safely hidden around your home, keeping them physically available.  With a small investment storing your gold bullion coins in creative places may be the best option.

In choosing the best gold bullion products, you will want to seek out the vest value for your money to obtain the highest intrinsic value of gold for your budget.  Given individual circumstances there are preferences and factors to be considered including premium, flexibility, and capital gains tax.  By preparing with research you can find the best value for your investment.

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Dec 04

How to Safely Buy Gold

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Buy Gold

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In order to be a successful investor in gold, buyers must make difficult choices of when and where to buy gold.  With an almost endless number of places to purchase gold the choice is daunting.  To succeed do your research and due diligence from the Internet and your contacts.  It is always wise to get your homework done so that you know what you need to do before you get in a difficult position.

Tips For Buying Gold and Staying Safe

You will want to use the Internet to research and prepare your due diligence.  If you know the facts you won’t be Buy Gold Without Worrieseasily put in a situation where you get “sold.” Find out from brokers what their individual specialty is.   As you research, find someone you trust.  Numismatic coin brokers, who focus on unique coins, will differ greatly from gold bullion dealers.  Depending on their core business their knowledge and prices can vary widely.

Before you agree to anything find out all the facts, and don’t be shy about asking questions.  There are a variety of gotcha fees.  At every step of the purchase there’s the possibility of a fee.  Some dealers require you to the Fedex and check or money order.  The can be fees to use a credit card, to wire transfer fund, account setup to name just a few.

Rare or premium coins sold by numismatic dealers can be sold for a huge premium over their spot price for the weight in gold.  It is an educated buyer’s market.  Simply because someone has a title of numismatic coin broker doesn’t mean their price is the going price.

Of course, you want to get the best price when you were buying.  Some dealers will offer low up-front-prices, and when you are selling back to the dealer, to cash out your investment, the broker will have huge fees.  The reverse is also true.  Some dealers have high up front prices with low selling prices.  As what type of spreads they charge when you sell your gold.

As an investor you will want to determine why you are buying gold.  Define your tolerance for risk and what you consider safe.  This helps understand what gold is doing in your investments.  Successful long term investors will buy gold as an asset to diversify their other investments.  In looking for quick profits, short-term investors buy gold looking for quick increase in price.  Historically gold has been a long term investment.  Increases or decreases in price in the short term don’t matter as much as the long trend increase or decrease.  Gold has historically held its value and recently show strong gains.

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Nov 27

Gold Investment: A Safe Haven

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Gold Investment, Trading Gold

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Many are still skeptical of investing in gold. They always ask the same questions. Is gold a good investment? Is it wise to even invest in gold especially after the massive recessions in the west? Is it safe to invest in the precious metal amidst an ailing economy and financial crisis?

Gold is a precious metal which has been used as primary currency for trade in ancient times. At present, even if paper-based notes are already in use, gold serves as an extremely valuable commodity and still lends its attributes in coinage, jewelry, bullion bars and other forms. Aside from the given, many corporations engage in mining this metal due to the demand for gold in many industries including microchip and device production, telecommunication, semiconductor industries, etc.Full of Gold Bars

Gold is a good investment because of many reasons. First, direct investment in gold has proved to be a very powerful tool in times of economic turmoil. Unlike stocks, company shares, mutual funds, ETFs and other forms of investments, gold pieces like bullions or coins does not expose the owner to risks of significant asset devaluation when currencies collapse. It is a safe haven in times of economic recessions. For this reason, gold trade has successfully earned its place at the top compared to other forms of investments.

In addition, gold value tends to increase over time. In spite of irregular market prices of the metal, it has been observed over the last decades that the value amplifies.

Countries increase gold reserves as a manner of establishing financial security and increasing credibility of their central banks. In some countries, government intervention in gold trade, however, limits and regulates personal ownership. This means that investors see gold as their safe haven when the economy collapses so they tend to hoard. This simply tells you how serious the value of gold is.

Purchasing and collecting gold coins is a good long and short-term investment and an interesting hobby as well. Value of gold coins is high due to the high gold content and intrinsic beauty. Gold coins, especially antique ones are really expensive nowadays. They will accrue even more value in the coming decades and centuries. This is a good way to secure your wealth today and in the future.

Thus, whatever the condition of the economy is, you may say that gold is indeed a good investment. The question does not lie in gold being a good investment or not because clearly, it is. Rather, you should be asking how you can acquire the precious metal.

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Nov 26

Ways to get benefit from investing

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Gold Bar, Gold Investment

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Below the merits and demerits of different types of investment in gold are described. Basically it covers all the basic needs which are needed in investing gold. People who keep their money on risk in order to get the profit from it learns a lot that how they must get started. It includes that from they can buy the bullions, certificates, coins, bars, shares and other types which can become their own property. This is very helpful in saving for one’s future.

Principles required when investing in gold:

Usually there are basic two principles which are needed to invest in gold:

  • To get physical gold investment by buying them
  • To get the profit electronically or by the paper

The people who own the physical gold get the paper written ownership while the gold is kept save in the bank or depository. If we see the paper or the electronic method, the physical gold is not owned by them.

Gold Bullion, Coins and Bars

The most popular form of investment of the physical gold owns gold bullion. This is considered to be 99.5 percent pure gold which is equivalent to 995 fines. This purity proves that one gold bar can be replaced easily by the other gold bar and it can be a source of investing for the investors. In these ways we can identify that which gold id allocated, which are ground pool and which are to be unallocated.

The gold bars weight differs from one gram to 400 troy ounces in weight. Gold bullion is also the precious metal bullion coins.

A bank, a precious metal dealer, a refiner, or even a brokerage house can sell you the gold bullion directly which then you can invest.

The physical gold must be stored and secured if it is send to the investor, this is the negative point the return of physical gold investing contain:

  • It makes easy for the bullion to be stores and protected.
  • You can sell or purchase the gold anytime you like as it has great value both internally and locally. Be the cheap form of investing gold and thus has minimal cost
  • It is considered

Gold Accounts:

The gold accounts are billed, Unallocated, and Pools

Allocated account:

In such accounts of gold the authority is given to the inventory of gold bullion. This is supposed to be the most secure method to keep there physical method save. For the insurance purpose, storage as well as for the gold, the investor is charged. The gold here is kept in a vault or depository which will be done on the demand of the person who is investing on it.

Unallocated account:

Such account contains few fees as compared to others. The investors can own the gold and they can even make this gold investment risky as compared to allocated accounts. It contains in it the quantities which are more than 1000 troy ounce. When there are fewer quantities as compared to these, so another option is suggested which the GOLD POOLS is

Gold Certificates as a source of Investments

For saving a large amount of money, the investors invent on gold certificates which is also a good source of keeping money saved. It is done without storing. On paper the agreement is made and these certificates are a good source of owning physical gold bullion. It depends upon the investor that whether he takes the gold itself or get the exact value of the gold which is rated.

From Swiss or German banks we can buy the gold certificates which keep the gold safe in storage form or also in Western Australia the certification programs are made.

It is told to the investors that when they buy the gold certificates they should look the fees charged properly including tax implications, which differ from country to country. And also they should check that whether the gold is billed or not.

Gold Accumulation Plans (GAPs)

These includes like saving plans. In this only savings are made as a result of buying gold. The money is taken from the bank of the investor and then the gold is purchased. This gold is purchased in small quantities. This gold is usually unbilled.

For over a year, gold accumulation plans are contracted from the banks, and also from the dealers who sell expensive metals. It is always easy for the investors to collect their gold or cash them whenever they like.

Investing of Numismatic Gold Coin

Those people invest in the numismatic expensive metal coins who usually invest in the physical metal. Those coins are collected by the rarity, historic value and other different qualities. It usually only indicates the cost of gold metal.

You can get the collectible gold coins including historical objects by the dealers in coin. This can be done either online or from government treasuries. The coins must be purchased only by the respected and trusted vendors only.

Is gold jewelry a good investment?

It is indeed considered to be a good investment as the rates of gold are increasing rapidly these days. Gold is a metal which is on its peak nowadays. When we talk about physical investments, the gold made up of 24K, 18K, 14K, and 12K gold. Much gold made are not of 24k which does not mean that investment cannot be done from them but the quality will not be up to the mark.

With only few exceptions, the selling price of gold always provide benefit to the investor. It provides great profit which is important for the savings of an individual.

Gold Exchange Traded Funds Investing

On a stock exchange, these gold exchange traded funds normally are gold backed. With the change in the price of gold, ETFs are also changed.

Mutual fund is very risky. But if we compare ETF with physical gold, so ETF is more risky. You can buy single share

And also you are allowed to sell the gold when the prices are down as well and then you can even buy at lower or cheaper rates.

Gold Futures Contracts and Options

These are the type of investment which is based on papers. It is considered to make commitments when you sell or buy at anytime. For instance when the investor invest on something he finds his profit in it, like in a six month contract if he buys gold in a fixed price so he will be expecting that the prices will rise and when the contract will come to an end so  he can buy them in the contracted prices.

Investors always find to get benefit from the investment he makes. It helps him to keep things on the safer sides. A good suggestion would be that do not buy the gold if the prices are not changed.

TOCOM, COMEX, through a broker, dealer or bank are like ETF’S which provide securities as well.

Gold extract supply Shares

The people who deal in equities, for them to place their money in the gold stock can be beneficial. Those usually purchase gold mines which are in progress or production.

By mines, it is very risky for the investor because either he will loss everything or either he will get everything. It depends upon the country in which the mine is situated and the person have to face the problems which occurs in mining. As compared to the mines of today, it is obviolus that future mines will be of more risk as of today’s.

A breakable account is used if you need to buy gold mining stock

Gold Mutual Funds

These are the funds which has a wide range of collection of gold rates which are usually of the mining stocks. By the region or across companies these funds diversify the holdings amongst different companies. In this way the stock of any company can be reduced. For an instance, several gold mines can be mixed in South Africa and even in Australia.

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Nov 15

Do you get benefit from gold?

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Gold Investment

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The gold prices which are observed today are noticed that they rise rapidly with the increase in its amount. So if you want to keep your money saved for long duration just invest your money in buying gold. If you purchase gold in lower price so after few years its prices will reach more high to sale that gold metal. This will benefit you when the stock market rates will reach high and the rises in prices will go up. The stock market came down from 2008 till 2011 but after that it grew up so fast that still the rates are too high and touched the record of $1,900 per ounce. In the hard time this metal is considered as the best for saving money for future.

Specialty of gold:

It has been noticed that men always shown great resemblance for gold. It has also been noticed that men are usually more attracted towards the yellow color of the gold metal which is the sign of wealth. In India, gold stuff is used for decorating their statues and temples. It was also considered very beneficial and used widely. Why the gold is so important for all? Were the prices of gold in past high or low? Why the prices of gold increasing rapidly?

The main reason for the rapid increasing of the prices of gold usually depends upon 4 factors. These 4 factors are found in all kinds of gold metal.

  • It is very less available
  • Utility
  • The beauty and pureness of gold
  • Low reaction with air and water.

Try to read ALL ABOUT INVESTING IN GOLD whose writer was investment gurus and founders of learning markets John Jagerson and S. Wade Hansen before taking any conclusion for anything. This book will guide you about the ins and outs of gold profit; it provides with real examples which happened in the world and how you can get benefit from these investments.

Dealing with gold should be preferred:

Is investment in gold considered as the part of the strategy of money management? The risk of investments is fewer when it is compared with other investments which include stock exchange market. Gold can rapidly increase. Gold usually goes on high rates which the other metals or stock market never reach. Most of the financial policies do not control the prices of gold.

Coins, jewels, gold exchange Traded Funds, bullion, gold bars, world Gold Council coins and many more are different ways to buy and get benefit from it. You get profit from the gold you buy and the proper investment made is the best way to keep the money saves for the right time.

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When you talk about the profit required from gold, the best option is gold bullion coins. Normally coins are easy to carry and can be kept anywhere at any time. The price varies as when you purchase the gold coins you get them at less rate when they are compared when selling it on high rates. Gold bars are mostly available at higher premiums when compared to coins. You can easily get the coins and bars from the commercial banks, or even from the store where jewelry are sold.

99% pure gold is used for the preparation of bullion coins and bars. Stamps are used on the coins to get them weight. Gold bullion and coins are very easy to handle so its not easily to preserve them. By the account, person can simple keep his record with him of his sales, purchases and all the values of the jewelry.

Regular statements will be sending by the bankers so that you can keep tract on the transactions made. You can simply keep your eye on the purchase and sell which you made. For each account holder there is no such individual places but still banks provide them with all the details. Your savings can be kept in banks with other holdings. By keeping your expensive jewelry in banks you can neglect any damage to them and long term saving can be easily made.

There is one more way to keep the money save for future which is to buy certificates of gold. These are specifically designed for gold. Commercial banks give these certificates to the people which are same as to buy gold bars etc. the criteria is same that when the rates are too high you can sell the certificates to the bank authorities in good rate which will be very helpful for you.

To invest on gold there are number of ways. It now depends upon you that which method you will apply and get benefit from. But apart from everything, to get benefit from the yellow colored metal is the best way to earn money and keep for the right time. For long period of time, to buy and invest on gold is the best option for today.

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Nov 07

Ways to Grow Wealth through Gold

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Gold Investment

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Some people have completely the wrong idea about gold. It’s not worthless, it’s not pointless and it’s not a scam. Gold represents real wealth because it has real-world potential. Others think that once you have gold, your wealth remains static because it doesn’t appreciate in the same way that real estate or art does. Again, nothing could be further from the truth. You can grow wealth through gold, and here’s how.

Economic DownturnsGrow Your Wealth Using Gold Investing

Believe it or not, you can get wealthier during financial catastrophes. All you have to do is keep gold in your portfolio throughout the inflationary period, stock market crash or whatever type of monetary crisis it is. In tough economic times, the value of gold soars because people lose faith in the value of money and turn to gold instead. The reason why gold becomes such a popular asset class during such times is because many people perceive it to be a safe haven throughout the storm of financial woes. Everyone knows that gold is always valuable, no matter what’s going on with global economies. Whereas money and standard business assets can lose value at an alarming rate and to a shocking extent in times of monetary trouble, gold will never be worth nothing. Therefore, with gold in your hands, you’re always in a strong position to grow your wealth, even if everyone around you is getting less wealthy.

Gold Stocks

One option is to buy gold stocks rather than actual gold. Contrary to popular belief, it is possible to grow your wealth through gold stocks. It’s a matter of time and patience. The fact of the matter is, when gold soars in price, so do gold stocks—even if it’s not for months afterwards. This is because of the relationship between gold prices, demand for gold and supply of gold. When gold rockets in price, it’s usually because there’s been a peak in demand for it. Countries demand to buy gold in order to mint coins or make jewelry or for industrial purposes. Once a lot of gold has been used up in this way, the world expects more gold to be supplied, which is when gold mining suddenly leaps in value, hence the hike in gold stock prices.

Exchange Traded Funds

Ideally, you wouldn’t buy gold stocks in just one gold mining company but in several. However, it’s very expensive to do this and many investors simply can’t afford to buy into more than one mining company. This is why exchange traded funds (ETFs) are so useful. ETFs track a large number of gold mining company stocks, thus providing investors with the chance to diversify within that sector. This diversification, in turn, gives the investors more of a chance to grow their wealth through gold stocks. To invest in a gold ETF, spend plenty of time researching different ETF vehicles to choose which one you want to go for, carefully read your chosen ETF’s prospectus and then  make your investment either through an investment professional or an online trading account.

Gold Coins

If you do decide to buy physical gold instead of gold stocks, it’s best to buy gold coins rather than gold bars. This is because gold coins have a better liquidity than bars. Although American Gold Eagle and South African Krugerrand are the most common bullion coins to buy, numismatic coins are so rare and collectible that they can sell at an extremely high premium, sometimes more than the gold value alone. Although they therefore represent a great way to grow wealthy through gold, it’s important to do your research before buying any, in order to learn as much as possible about grading and evaluating rare coins. Once you’re ready to buy some coins, shop around for the best deal. To stop storage costs eating into your profits from selling the coins, consider reselling the coins as quickly as possible for a fast profit.

It’s true that gold is not the same as oil or copper when it comes to industrial value, but it has an intrinsic value that will never be zero, simply because it is so rare, yet everyone wants a piece. By owning some gold, you’re getting a secure foothold on the ladder to wealth.

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Oct 10

Gold scammers strike again with guaranteed returns

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Gold Scam

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It seems that interviews about a person’s financial success have been a regular segment in the papers. Question and answer about their success and downfall in the investment world would always be catchy to our eyes. Of course, the answer to success would always be the interviewees’ business, but today it is not because an unknown business success has surfaced. We are talking about a guaranteed return of at least US$100 a day from a capital of US$7,000. How true is that? Now, we wonder how possible it is to earn this much. Where would we invest our money with a daily return? I would really like to do a bit of investigation myself to prove some important points.Newspaper and Calculator

I started entering a few keywords that would link me to my puzzling thoughts. It was a bit tricky because some search engines do not match my keywords. I finally found it through yahoo. There was so much unprofessional evidence in the website. They filled their site with photos of gold being mined and some precious metals being processed. The company clearly wants to show potential gold sellers that they are legitimate through information about mining in Africa. Unfortunately, with all of these details for show, no information on return of investment was there.

How about the CEO? This came up next in my mini investigation. What alarmed me was that there were no matches with the company stated by the CEO and the company he was supposed to be working for. The CEO’s information and important details were not on the web as well.

Public social networks were not exempted on the list. Some illegitimate companies post their fraudulent business advertisements here as well. One is in a foreign language I don’t understand but there were photos of supposed to be “investment portfolio”. The dividend shown per day is at almost 2%. Now who wouldn’t want to have that? But is there really a sure investment such as this?

The media has always been filled with reports like these- success stories of businessmen putting quite a huge amount of money in unknown investments. Even gold for cash traders are added to this roll. Like many, interested investors still opt to gamble without listening to advices and warnings, thus being victims to gold for cash scams.

Sometimes because of the daily news, more people would fall on the hands of the scammers. Advertising articles that talk about successful investments only add up to the many victims that have lost a great amount of fortune. In a few countries, one still has to wait for more scammed targets before being able to take action. Unfortunately, it is not always a fact that an investor has that amount of money to pay for legal services.

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Sep 27

Buy and Sell Gold: Every Penny Counts

Categories:

Gold Prices, Trading Gold

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Gold has been in demand over the years.  It has been bought and sold for many reasons, and it has been proven to be a good investment.  Gold is the best metal preferred in making jewelries and it is also used for industrial reasons due to its special properties of conduction.

When buying or selling gold, we should be knowledgeable to avoid being cheated.  We should carefully choose where and who to buy from. We can only do this if we know how they check gold and determine its price value. The price usually depends upon the purity of the jewelry/gold.

There are three usual ways on how they check the price value of a gold jewelry.Cash and Coins

1) The first one is the most accurate but the most expensive. It is through the use of X-ray fluorescent testing.  It is a device that scans all metals and shows its content through percentage.  When it is used in scanning gold’s purity, it shows the most accuracy compared with the other testing devices. This is seldom used by average businesses because it is very costly.

2) Electronic testing is the most popular type.  It is very user friendly, affordable and like the x-ray fluorescent testing, it shows the results quickly. It makes use of a solution that reacts to the gold. This testing device is quite easy to use. First, a clip with a rod like handle is attached to the jewelry. Then it is pinned against the platform of the device. A few drops of the solution are then added to the gold and a reading of its purity appears in the form of karats.

3) The scratch testing is the oldest method and is mostly used by pawnshops or jewelers. This is also handy when certain misreading occurs. If for some reasons, the engraved karat of gold doesn’t match the electronic reading, scratch testing is done. This is, basically, like a manual verification of the gold’s karat. This method is done by scratching the gold with an acid treated needle. These scratches are then compared with their test chart that corresponds to a certain karat.

As a rule of thumb, the more accurate a reading is, the pricier the gold can be bought.  This knowledge is important, especially for the sellers, because it will help them chose where to sell their gold to. Usually, small scale businesses use low level methods, and most large companies use high end devices.  This could mean a difference in the amount one can get if a person sells gold in a company who uses accurate testing devices. Nowadays, where hardships and economic crisis exists, every penny saved counts. So be smart and choose wisely.

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