Should You Buy Gold Bullion Bar, Coin Or Jewelry?

October 8, 2010 by admin  
Filed under Guide

Gold has been increasing value the past 5 years, and achieved a phenomenal gains of 155% since 9/11 and is expected to raise 30-35% in the next 12 months. Truly, gold has been a benchmark of stability. Recognized as a global currency, gold is the only asset that is both liquid and tangible at the same time and every financial adviser will tell you to have gold as part of your portfolio. The question is, what type of gold? Should you buy gold bullion bar or gold bullion coin?

First thing you need to understand is the difference between buying actual gold and gold stocks. When buying gold stocks, you are buying stocks of mining companies, not the gold itself. As such, these stocks are driven by stock market more than the gold value itself. In fact, as gold tends to go the opposite direction of stock prices, you may find yourself losing money on gold stocks even if the price of gold increases.

The most readily available gold for buying and selling is most definitely jewelry. Still, coins and gold bars make for a better investment as jewelry often contains additional additives and is prone to damage. On top of that, the overall value also takes into account subjective elements, such as style, trends etc. In most cases, the resale value of gold jewelry will never be as high as the purchase price, making jewelry a nice gift, but not a good investment strategy.

The most readily available gold for buying and selling is most definitely jewelry. Still, coins and gold bars make for a better investment as jewelry often contains additional additives and is prone to damage.

If buying gold for collection or simply for personal enjoyment, coins are the natural way to go. Even coins that do not qualify as bullion will give you a certain collectible value, enabling you to sell the coin to one of the collectors around the world. Furthermore, the value typically increases with the time, so it is a safe investment too.

Gold investors typically try to purchase gold bars rather than coins. In many cases, gold bar provides for a better investment value than coins, however there are exceptions that you need to take into account. The most important aspect when buying gold bars is to be sure you can sell it when needed. Unlike coins, which can be sold on coin auctions, or even on eBay, selling gold bars is much greater challenge. The main reason for this is that the gold in gold bars does not carry a governmental assurance of quality and quantity, something that gold bullion have. It is also easier to tamper with the gold in the bar, which is particularly true with “hidden” (or unmarked) bars.

Still, if you know a reputable dealer network that can appraise the bar, buying gold bar is an excellent investment that is almost guaranteed to remain very stable throughout the years to come. However, for less experienced investor, or for investor who wants to benefit both from prices of gold as well as collectible value (that can in fact offset the difference in gold prices, should they fall), coins are the better option.

Don’t miss out on the opportunity of the lifetime! The value of gold just keeps going up. It is absolutely essential to buy gold bullion bar, coin or even jewelry to maximize your investment and make your portfolio safer. If you are not on the gold-investing boat yet, you must jump in while you can! Go to http://www.goldbullionoz.com to learn more about gold bullion, investing, coin collecting and much more.

Article Source: http://EzineArticles.com/?expert=Paul_S._Marshall

How good is Gold Investing?

October 7, 2010 by admin  
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Rick Munarriz, Popular Investments advisor from the Motley Fool thinks Google stocks and Gold are the two most popular investments in this age and time. Based on the above facts, a question can be posed: Between a share in Google and 1 once of Gold which is a better investment.  As at 4th January 2008, investing in gold was profitable than investing in Google stocks, with 1 once of gold selling at $ 859.19 while I share of Google selling at $657 in the U.S stock market.

Comparisons between investments in precious metals and investments in financial instruments like stock are always a subject of debate in the financial world. In this decade particularly stocks have shown impressive performances in the various stock exchange markets in the world from the FTSE to the Dow Jones. The skyrocketing prices of stocks can be attributed to stable political environment in U.S.A, U.K and other developed countries. In the last seventy years there has been no war or a major political crisis in the major players in the global economy. The legal structures and the financial infrastructure in the developed world over the last seventy years have improved dramatically facilitating the smooth flow of trade in stock exchanges across the world. With all these factors about stocks noted, it still cannot be concluded that stocks are better than gold.

The year was 2008 and the world financial system was greeted by the rudest shock it has ever had. In a span of less than 24 hours, over 5 major stock exchange markets crashed leaving investors with losses running in billions of dollars. In that instance it was very clear that financial markets are the most vulnerable of markets in the world.  It was immediately appreciated that the stability and certainty associated with investing in gold cannot be found in investments in stocks and bonds.  Stocks are primarily short term investments. The person who buys stocks with the intention of selling them within a short period of time is bound to benefit more than the person who buys stocks for long run intentions. However when it comes to gold, gold is ideal for the investor with short term motives as well as the investor with long run motives. When the market is bullish gold can be purchased and sold at a massive price when the market becomes bearish.  In the long run, the prices of gold are stable swinging in the range of $700- $1200 for 1 once of gold.

For the small scale investor, investing in gold entails purchasing gold coins or gold bars. The small scale investor can also own gold bank accounts or purchase gold exchange traded funds. Gold exchange traded funds are usually sold and traded in the major stock exchanges in the world.  Large scale investors like commercial banks and central banks also keep more than 20% of their reserves in gold.

Investing in gold is the only way to store wealth over the long run without depreciation in the value of the wealth.  Gold is also a profitable tool of investment in the short run.

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Best Gold Investment Advice

October 7, 2010 by admin  
Filed under Guide

Finding the best gold investment advice from knowledgeable experts is an excellent way to prepare a successful diversification with gold, and there are a few important pieces of advice that you could use to your advantage in order to maximize your profit and wealth preservation potential. First things first, before actually beginning a gold investment, it’s important that you thoroughly analyze your investing goals in order to determine whether a precious metal diversification could be right for you. If you seek a powerful safe-haven asset for either short-term profit or long-term wealth preservation, then your next steps are to explore the market by analyzing the spot price and its daily fluctuation, the different types of bars and coins as well as the many dealers that are available to supply these products.

Exploring the market is some of the best gold investment advice you can obtain because many investors simply jump into a diversification without conducting solid research This negligence commonly results in unsuccessful investments. The gold market revolves around supply and demand for the metal, and the most important variable to keep your eyes on is the daily spot price. This spot price is basically the price of one-ounce of gold on commodities exchanges worldwide before additional premiums are factored in. Note that you cannot purchase bars or coins at spot price, this is simply a variable that actual product prices are based on. You can track this spot price on reputable precious metal websites.

As far as the actual bars and coins are concerned, there are many options available to you. Modern-day bullion bars like the Johnson Matthey products and bullion coins like the American Eagles are commonly purchased by short-term profit seekers because of their small premiums. Pre-1933 certified rare coins like the $20 Lady Liberties and $20 Saint Gaudens are commonly purchased by long-term wealth preservation seekers because of their preservative numismatic value.

When seeking the best gold investment advice, you want to ensure that you are working directly with a reputable precious metal firm that is knowledgeable in all different areas of investing. Companies like the Certified Gold Exchange hold a flawless track record of guiding investors to excellence since 1992, thus making them industry leaders in this competitive market. If you seek success with your investment, request your free “Insider’s Guide To Gold Investing” by visiting https://www.certifiedgoldexchange.com/goldrequest/article/Gold-Investment-Advice

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Why A Gold Investment?

October 7, 2010 by admin  
Filed under Guide

2007 marked the beginning of what has been commonly referred to as “the worst financial crisis since the Great Depression,” and this weakened economy has caused mayhem with mainstream investments like stocks, bonds and real estate. Newspapers, magazines and articles from various sectors have reported trillions of dollars lost with paperbacked assets as a result of major economic contractions. Between 2001 and 2008, the majority of mainstream investing markets spiraled downward, and during this same period the gold spot price increased more than 300%. Masses of wise American investors have begun looking for the ultimate safe-haven tool that could help them protect wealth and even profit, and what better protection than a gold investment?

For decades, investors who have owned a gold investment have been able to store their wealth while profiting from upward fluctuation with history’s most cherished precious metal. The reason that investors turn to a gold investment during troubling economic times is because the metal is considered to be an asset that holds true value, as opposed to paperbacked assets like stocks that are dependent on company strength as well as the overall strength of the United States Dollar. With inflation and deflation continuously threatening paperbacked assets and the United States Dollar, doesn’t it make sense to own gold as a backup plan in the event that the economy collapses? Just like with backup generators in the offices of major corporations, a gold investment backup could help you keep your lights on in the event that the economy gets much darker.

Skyrocketing gold investment demand has driven gold’s spot price to record highs, and increasing demand continues pushing the metal’s value even higher. Many market analysts, financial planners and institutional investors believe that gold may continue climbing similar to movement that was seen in the late 1970’s when the spot price increased more than 800% in two years. If this were to happen, wouldn’t you like to know that your hard-earned wealth could be safe from major losses, while at the same time profiting if spot prices reach projected levels?

When beginning a gold investment, it’s very important that you fully understand how the market works in order to maximize profit and wealth preservation potential. A proven method for diversification success is working with experts that can guide you in the right direction. Explore your options with a gold investment today by researching the award-winning online tutorial at www.Gold-Investment.info. When you are ready, contact one of our experts at www.CertifiedGoldExchange.com and let us guide you on the road to peace of mind with the security of gold in your hands.

Read more: http://www.articlesbase.com/investing-articles/why-a-gold-investment-1429932.html#ixzz11dYKrbLX
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