With a volatile stock market and certificates of deposits paying their lowest interest in 5 or more years, people who are savvy about investing are looking for investment opportunities not found on the beaten path.
Financial experts are encouraging people to place their money into uncommon markets, such as the gold market.
Although investing in gold might not be your first idea when thinking about starting a new investment, current financial times just might provide the push you need to jump in and make your first gold purchase.
Gold’s values fluctuate in the market more steadily, similar to currency, rather than as the commodity it is.
Internet analyst estimates of the percentage of your portfolio to invest in gold range from 5 to 25%.
Methods to invest in gold include actually physically purchasing gold bullion in the form of coins or bars, buying gold bullion as a member of a group of individuals who invest together (a fund of sorts), and investing in gold equities, such as gold stocks and gold mining companies.
Gold bullion can actually protect you in the market should currency lose value, inflation occur or the country’s economy decline.
When you invest in gold bullion that you store yourself, you keep the gold in your own home or perhaps in your safety deposit box at your bank.
You’re responsible for keeping your gold secure from theft.
The good news is that you’ll pay no monthly or yearly fees to anyone for storing your gold investment.
The not so good news is you might want to obtain insurance on the gold so, in the event of theft, you’ll not lose your invested dollars.
Keeping the gold secure is important to eventually profiting from your investment.
Another factor to consider when storing the gold bullion at home is liquidity issues.
In the event you need cash in a flash, you’ll have to sell your gold bullion yourself.
Doing so means you have to find a buyer and make the exchange to get cash.
Of course, this process could take a few days or even longer.
Another method of investing in gold bullion is purchasing gold coins.
They’re easier to store. However, selling your coins, if you need to, might take a few days.
For those who fear the U.S. financial market is going to implode, buying gold bullion and coins might be a wise way to go.
If, however, you want quick, convenient and no muss investments, purchasing gold bullion in this way might not be the way for you to go.
This method of gold-investing is different from buying gold bullion as you don’t have to actually take physical possession of the gold you’ve purchased.
Instead, your gold is kept in a warehouse of sorts called a “gold bank,” along with the gold purchased by the other members of your fund group.
Technically, all you get is a receipt that you own “X” bullions of gold and where it’s being stored.
In the event you wish to sell your gold, let the gold bank know. They’ll sell your gold and send you the money.
If you prefer to have it in your possession, you can ask the gold bank to deliver your gold to you.
The responsibility for storing the gold will then be yours.
Investing in mining and stocks is quite convenient because you can make these investments through your stock broker.
If you have regular contact with your financial broker, just call him and tell him the nature of your desired investments.
Regardless of whether you put your money in gold mining or gold stocks, you’ll be charged a fee.
The good news is that gold ETFs can be purchased through major stock exchanges in the U.S. and other countries.
If you like, stocks in gold mining companies are also available for purchase.
These stocks are held by companies who manage several gold mining companies all over the world.
Thus, when you purchase gold mining stocks, your dollars might be spread over several gold mining companies at various locations throughout the globe.
Because of the difficulties with physically handling and exchanging gold bars and coins, gold became available through exchange traded funds, or ETFs.
Investing in these gold stocks is basically the same as investing in any other stock, except this time, your commodity of interest is gold.
Rather than receiving the gold physically, you’ll receive stock certificates.
Since this type of gold purchase is essentially a commodity, your investment will involve the companies holding the stocks.
Think of it as a stock purchase with a twist.
As with any other investment in commodities, you’ll face all the issues that trading in commodities brings:
The upside is that you have the convenience of using your broker and receiving certificates for your purchases as opposed to the inconvenience of storing the gold or worrying about the possible theft of it when you purchase gold bullion physically.
Investing in gold might be a reasonable investment choice for you to make in these times of economic uncertainty.
Whether you opt for buying gold bullion and storing it, purchasing gold through a fund group or obtaining gold mining stocks and gold ETFs through your broker, inform yourself about the various choices available for making this glittering investment: gold.
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