Nov
6
Andy Goldman
Until recently gold prices have been on a tear. After decades of going nowhere, gold has had a year of steadily rising prices, that is until two weeks ago. It appears the hedge fund investors who bid the price up, have decided to take their profits. Gold prices plunged and many financial analysts have proclaimed that the bull market in gold is over. Is it?
Price charts are one way to look at the situation, however we need to dig deeper into the fundamentals to see what the prospects are.
As the hedge fund investors have dumped gold, there is evidence new hands are coming into the market. As some investors leave, and new ones replace them, the volatility in gold prices will remain high. What we need to ask is are these new investors speculators or is there some fundamental reason new investors are coming into the market?
Lets start by looking at the retail investors. One important component of the price of gold is the retail investors in India, China and West Asia. Traditionally these investors have bought gold in the form of jewelry. Jewelry demand in these countries does have an impact on gold prices. The significant point here is investors in these countries are now accumulating gold in forms other then jewelry. In 2005 the investment demand for gold in these countries has risen from between 20% and 34%. The strong demand continues into the first quarter of 2006. During this same period of time, demand for gold related Exchange Traded Funds has risen 23%.
India is the largest buyer of gold in the world. Indian investors will soon be able to buy gold ETFs on Indian Exchanges. There is also a strong demand for investing in gold coins in India.
China has not had a strong interest in investing in gold for anything but jewelry. That may be about to change. The government is easing regulations that may encourage more investment in gold products.
Interest in gold investments is also increasing in Thailand. Demand for gold investments in that country has been hovering around 10%-15% until 2005. In the past year investment demand in Thailand has risen to 35% for gold.
The supply of gold remains tight. The demand across Asia is increasing. It is likely we will see supplies tighten even more which will again begin to drive up prices. The next wave up will look different. After having seen prices plunge, investors are likely to take profits much quicker this time around. Prices will begin to go up again, however there will be significant pullbacks as investors take profits.
Gold investments will also continue to be fueled by Energy price increases, increased inflation in the US and world tensions. Federal Reserve Chairman Ben Bernanke said that growth in the inflation rate could be worse than expected. After that remarkstocks in US markets dropped. This could bring investors back into gold.
Several financial experts in India are looking for gold to go to $770- $800 by the end of 2006 or beginning of 2007. Currently the price is around $635 an ounce. It is not clear if we are at the bottom prices yet. Prices will rise, but this ride will not be for those with weak stomachs.
Until recently gold prices have been on a tear. After decades of going nowhere, gold has had a year of steadily rising prices, that is until two weeks ago. It appears the hedge fund investors who bid the price up, have decided to take their profits. Gold prices plunged and many financial analysts have proclaimed that the bull market in gold is over. Is it?
Price charts are one way to look at the situation, however we need to dig deeper into the fundamentals to see what the prospects are.
As the hedge fund investors have dumped gold, there is evidence new hands are coming into the market. As some investors leave, and new ones replace them, the volatility in gold prices will remain high. What we need to ask is are these new investors speculators or is there some fundamental reason new investors are coming into the market?
Lets start by looking at the retail investors. One important component of the price of gold is the retail investors in India, China and West Asia. Traditionally these investors have bought gold in the form of jewelry. Jewelry demand in these countries does have an impact on gold prices. The significant point here is investors in these countries are now accumulating gold in forms other then jewelry. In 2005 the investment demand for gold in these countries has risen from between 20% and 34%. The strong demand continues into the first quarter of 2006. During this same period of time, demand for gold related Exchange Traded Funds has risen 23%.
India is the largest buyer of gold in the world. Indian investors will soon be able to buy gold ETFs on Indian Exchanges. There is also a strong demand for investing in gold coins in India.
China has not had a strong interest in investing in gold for anything but jewelry. That may be about to change. The government is easing regulations that may encourage more investment in gold products.
Interest in gold investments is also increasing in Thailand. Demand for gold investments in that country has been hovering around 10%-15% until 2005. In the past year investment demand in Thailand has risen to 35% for gold.
The supply of gold remains tight. The demand across Asia is increasing. It is likely we will see supplies tighten even more which will again begin to drive up prices. The next wave up will look different. After having seen prices plunge, investors are likely to take profits much quicker this time around. Prices will begin to go up again, however there will be significant pullbacks as investors take profits.
Gold investments will also continue to be fueled by Energy price increases, increased inflation in the US and world tensions. Federal Reserve Chairman Ben Bernanke said that growth in the inflation rate could be worse than expected. After that remarkstocks in US markets dropped. This could bring investors back into gold.
Several financial experts in India are looking for gold to go to $770- $800 by the end of 2006 or beginning of 2007. Currently the price is around $635 an ounce. It is not clear if we are at the bottom prices yet. Prices will rise, but this ride will not be for those with weak stomachs.
Oct
20
Information On Gold Investing
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Jay Moncliff
Gold investing is considered a great and safe long term investment. However it is not as safe as bonds and a certain degree of research has to be done before plunging into it. The reason why gold investments have a slight degree of risk involved is that the value of gold does not necessarily have to be high or stable. Gold generally is considered precious and is costly due to its rarity. If for some reason the markets are flooded with gold, it could very easily depreciate in value. However generally, its value remains stable or may even inflate with time.
You may wonder how stable exactly is gold investing. Currently, its demand far outweighs its supply. Thus gold investments seem to be the next big thing and the future seems bright for the investors. As the amount mined is barely half of its worldwide demand, the prices for gold can only rise steadily in the years ahead.
What this implies is that to avoid a severe gold shortage, the prices of gold are bound to rise. Only this will either decrease or check the tremendous demand for it, and keep it in control. However for the investor, it all adds up to being a favorable time to invest in gold.
Some other important key points you should be aware of is that you should refrain from investing all your money just in a single form of gold. You can invest in plenty of forms one being physical gold. This is the most common and includes gold in the form of ornaments, gold biscuits or slabs. This is generally how people begin and it constitutes a secure foundation to build on. However, there are other areas also that you could invest in. Gold mines in the nascent stage or better still undiscovered, potential goldmines provide a tremendous opportunity to increase your wealth.
Sometimes you may fid mines underperforming or the quantity being mined is way below its potential. But even if the mines are not producing in large amounts, due to the tremendous demand it is very possible that they could increase the quantity being mined, proving to be, a good investment.
Another advantage that mines have over physical gold is that unlike ornaments or gold slabs, mines cannot be misplaced, lost or stolen from you. Thus your investment is stable and very secure. These factors make gold investment a beneficial venture to invest your money in.
Gold investing is considered a great and safe long term investment. However it is not as safe as bonds and a certain degree of research has to be done before plunging into it. The reason why gold investments have a slight degree of risk involved is that the value of gold does not necessarily have to be high or stable. Gold generally is considered precious and is costly due to its rarity. If for some reason the markets are flooded with gold, it could very easily depreciate in value. However generally, its value remains stable or may even inflate with time.
You may wonder how stable exactly is gold investing. Currently, its demand far outweighs its supply. Thus gold investments seem to be the next big thing and the future seems bright for the investors. As the amount mined is barely half of its worldwide demand, the prices for gold can only rise steadily in the years ahead.
What this implies is that to avoid a severe gold shortage, the prices of gold are bound to rise. Only this will either decrease or check the tremendous demand for it, and keep it in control. However for the investor, it all adds up to being a favorable time to invest in gold.
Some other important key points you should be aware of is that you should refrain from investing all your money just in a single form of gold. You can invest in plenty of forms one being physical gold. This is the most common and includes gold in the form of ornaments, gold biscuits or slabs. This is generally how people begin and it constitutes a secure foundation to build on. However, there are other areas also that you could invest in. Gold mines in the nascent stage or better still undiscovered, potential goldmines provide a tremendous opportunity to increase your wealth.
Sometimes you may fid mines underperforming or the quantity being mined is way below its potential. But even if the mines are not producing in large amounts, due to the tremendous demand it is very possible that they could increase the quantity being mined, proving to be, a good investment.
Another advantage that mines have over physical gold is that unlike ornaments or gold slabs, mines cannot be misplaced, lost or stolen from you. Thus your investment is stable and very secure. These factors make gold investment a beneficial venture to invest your money in.
Oct
18
Gold Investing – Retire Without Fear
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Brooke Hayles
This is the time! The day you have been longing for, but perhaps not so sure about. The desk may be cleared and everyone is admiring the presentation gold watch in its smart box. You may even have your retirement lump sum-could be the largest sum of money you have seen in your life. It is a good feeling but can also be an intimidating one. Now more than any time you need good investment advice. Even in being careful, you face financial risks at retirement time.
The Main Risks Are Longevity: the risk of outliving your assets is very real. Inflation: the inexorable price-rise in goods and services will eat away at the purchasing power of your hard-earned savings. Asset allocation: if you haven’t chosen the right mix of investments, your portfolio could fail to grow. Health care expense: you need a reliable source of income to cover rising health-care costs. Withdrawal rate: if you withdraw too much too soon, you are in trouble.
To be Secure In Your Retirement Investing:
Diversify Safety First Build Continued Growth.
With this in mind have you considered gold investing?
1) DIVERSIFICATION
Whether your investment approach is conservative or aggressive, gold investing can play a vital role in the diversification of your portfolio. Most experts recommend a gold holding of 5%-10%.
2) SAFETY
As we painfully learned from the NASDAQ bust, any stock, no matter how seductive it may seem, always has the potential to plunge to zero. This will never happen with gold. Life is full of unpredictables-hurricanes, tornadoes, terrorist attacks. Gold investing is the perfect way to protect the foundations of your portfolio from an unpredictable future.
3) GROWTH
Recently, a long-term subscriber to an investment newsletter wrote: “I have been following your gold suggestions since December of 2001 and have made a barrel of money. The ten gold stocks you recommend now, if held since then, are up about 500% on average. Not too shabby while gold bullion is up about 70%, a 7-1 ratio.”
Currently, world gold demand exceeds global gold supply by 60%-100% annually; as the mines cannot extract gold fast enough to meet this demand. A shortage leads to higher prices. Nobody can guarantee that anything will last forever, but in the short term the gold price will rise.
So what shape could your gold investments be in?
Just as you can diversify your overall portfolio, you can also diversify the gold part of it. Gold investing takes three main forms:
1. Owning physical gold-the safest, “insurance” part of it. And the most exciting part? When you hold gold in your hands for the first time, you understand why it has generated such a passion through time!
2. Gold stock-investment in quality gold mines. This is for the “growth” part of your portfolio.
3. Gold derivatives-only for those who are not averse to risks!
Some people may give you a strange look if you are talking of gold investing! There are great ideas floating around:
Gold provides no return. But it doesn’t need to-it keeps going up in value! Central banks will sell their gold. They have in the past and have recently realized it is not a wise policy. The government could confiscate gold. It is true that this happened in 1933. But things have changed so much since that time; the chances of this now are virtually nil.
If others are uneasy about gold investing, all the more reason for you to do it and do it well! So that you can enjoy your golden years!
Summary:
The main factors of gold investment are… To be mindful of your retirement with diversification, safety and growth. With these in mind, you will do wonderfully well to consider gold.
This is the time! The day you have been longing for, but perhaps not so sure about. The desk may be cleared and everyone is admiring the presentation gold watch in its smart box. You may even have your retirement lump sum-could be the largest sum of money you have seen in your life. It is a good feeling but can also be an intimidating one. Now more than any time you need good investment advice. Even in being careful, you face financial risks at retirement time.
The Main Risks Are Longevity: the risk of outliving your assets is very real. Inflation: the inexorable price-rise in goods and services will eat away at the purchasing power of your hard-earned savings. Asset allocation: if you haven’t chosen the right mix of investments, your portfolio could fail to grow. Health care expense: you need a reliable source of income to cover rising health-care costs. Withdrawal rate: if you withdraw too much too soon, you are in trouble.
To be Secure In Your Retirement Investing:
Diversify Safety First Build Continued Growth.
With this in mind have you considered gold investing?
1) DIVERSIFICATION
Whether your investment approach is conservative or aggressive, gold investing can play a vital role in the diversification of your portfolio. Most experts recommend a gold holding of 5%-10%.
2) SAFETY
As we painfully learned from the NASDAQ bust, any stock, no matter how seductive it may seem, always has the potential to plunge to zero. This will never happen with gold. Life is full of unpredictables-hurricanes, tornadoes, terrorist attacks. Gold investing is the perfect way to protect the foundations of your portfolio from an unpredictable future.
3) GROWTH
Recently, a long-term subscriber to an investment newsletter wrote: “I have been following your gold suggestions since December of 2001 and have made a barrel of money. The ten gold stocks you recommend now, if held since then, are up about 500% on average. Not too shabby while gold bullion is up about 70%, a 7-1 ratio.”
Currently, world gold demand exceeds global gold supply by 60%-100% annually; as the mines cannot extract gold fast enough to meet this demand. A shortage leads to higher prices. Nobody can guarantee that anything will last forever, but in the short term the gold price will rise.
So what shape could your gold investments be in?
Just as you can diversify your overall portfolio, you can also diversify the gold part of it. Gold investing takes three main forms:
1. Owning physical gold-the safest, “insurance” part of it. And the most exciting part? When you hold gold in your hands for the first time, you understand why it has generated such a passion through time!
2. Gold stock-investment in quality gold mines. This is for the “growth” part of your portfolio.
3. Gold derivatives-only for those who are not averse to risks!
Some people may give you a strange look if you are talking of gold investing! There are great ideas floating around:
Gold provides no return. But it doesn’t need to-it keeps going up in value! Central banks will sell their gold. They have in the past and have recently realized it is not a wise policy. The government could confiscate gold. It is true that this happened in 1933. But things have changed so much since that time; the chances of this now are virtually nil.
If others are uneasy about gold investing, all the more reason for you to do it and do it well! So that you can enjoy your golden years!
Summary:
The main factors of gold investment are… To be mindful of your retirement with diversification, safety and growth. With these in mind, you will do wonderfully well to consider gold.
Oct
15
Gold Investing – “Times Are Changing”
Filed Under Non Fiction | Leave a Comment
Brooke Hayles
Do you remember your history lessons in school? Were you paying attention? You may recall lessons that discussed the weight of gold or the history of gold in the world. Gold has been used for purchasing, bartering and collecting throughout history. Gold has even been a hedge against inflation and helps to preserve and protect future earnings of Americans.
Today, we can purchase, trade or make a gold investment in a variety of ways. Gold comes generally in two forms, also called bullion, these forms are coins or bars made of gold. With trading, most investors trade in gold futures on the market. Gold Investments are often made in refining or mining companies.
If you take a look at history, you will begin to notice that gold was very helpful all through the changing times. It provided a safe avenue during times when the world’s economy was unstable. For major gold investors, gold can improve a portfolio and decrease the amount of risk.
There is a variety of avenues when it comes to gold investing. The options for invest are; gold coins, bars, statement accounts, accumulative plans, mine shares and mutual funds.
Possibly the most popular avenue of gold investment is in coins and bars. There are different sizes and weights available to invest in. Some of the weights include 1 gram, 1 kilobar and the international bar. But that’s not all.
An investment in gold bars is one way to produce cost efficient methods of investing in gold. This is because broker commissions are minimal for selling and purchasing gold bars. Gold coins are as popular among small and medium investors. The reason for this is that in the issuing country, gold coins are considered legal tender and guaranteed for their face value even through economic changes.
Some of the leading gold coins include:
*The American eagle- It is available in weights of 1/10, ¼, ½ and 1 troy ounce *Canadian Maple Leaf- It is available in weights of 1/10, ¼, ½ and 1 troy ounce *South African Kruggerand- It is available in weights of 1/10, ¼, ½, and 1 troy ounce *English Britannia- It is available in weights of 1/10, ¼, ½ and 1 troy ounce *Australian Kangaroo- It is available in weights of 1/20, 1/10, ¼, ½ and 1 troy ounce *Chinese Panda- It is available in weights of 1/20, 1/10, ¼, ½ and 1 troy ounce *Austrian Philharmonic- It is available in weights of 1/10, ¼ and 1 troy ounce *Mexican Centenario Family- It is available in the following; 2, 2.5, 5, 10, 20 and 50 pesos. *Mexican Onza- It is available in weights of, ¼, ½ and 1 troy ounce
As you see above, gold coins are a popular form of gold investing and good planning for the future. Gold will be a good investment through changing times because it will keep its value.
Summary:
Gold Investing has been the best form of investment throughout history. Today, gold can be purchased in two types of bullion. You can also invest in “gold statement accounts”, “accumulation plans”, “mining shares”, “options” and “mutual funds”.
Gold investing assures that your future is secure.
Do you remember your history lessons in school? Were you paying attention? You may recall lessons that discussed the weight of gold or the history of gold in the world. Gold has been used for purchasing, bartering and collecting throughout history. Gold has even been a hedge against inflation and helps to preserve and protect future earnings of Americans.
Today, we can purchase, trade or make a gold investment in a variety of ways. Gold comes generally in two forms, also called bullion, these forms are coins or bars made of gold. With trading, most investors trade in gold futures on the market. Gold Investments are often made in refining or mining companies.
If you take a look at history, you will begin to notice that gold was very helpful all through the changing times. It provided a safe avenue during times when the world’s economy was unstable. For major gold investors, gold can improve a portfolio and decrease the amount of risk.
There is a variety of avenues when it comes to gold investing. The options for invest are; gold coins, bars, statement accounts, accumulative plans, mine shares and mutual funds.
Possibly the most popular avenue of gold investment is in coins and bars. There are different sizes and weights available to invest in. Some of the weights include 1 gram, 1 kilobar and the international bar. But that’s not all.
An investment in gold bars is one way to produce cost efficient methods of investing in gold. This is because broker commissions are minimal for selling and purchasing gold bars. Gold coins are as popular among small and medium investors. The reason for this is that in the issuing country, gold coins are considered legal tender and guaranteed for their face value even through economic changes.
Some of the leading gold coins include:
*The American eagle- It is available in weights of 1/10, ¼, ½ and 1 troy ounce *Canadian Maple Leaf- It is available in weights of 1/10, ¼, ½ and 1 troy ounce *South African Kruggerand- It is available in weights of 1/10, ¼, ½, and 1 troy ounce *English Britannia- It is available in weights of 1/10, ¼, ½ and 1 troy ounce *Australian Kangaroo- It is available in weights of 1/20, 1/10, ¼, ½ and 1 troy ounce *Chinese Panda- It is available in weights of 1/20, 1/10, ¼, ½ and 1 troy ounce *Austrian Philharmonic- It is available in weights of 1/10, ¼ and 1 troy ounce *Mexican Centenario Family- It is available in the following; 2, 2.5, 5, 10, 20 and 50 pesos. *Mexican Onza- It is available in weights of, ¼, ½ and 1 troy ounce
As you see above, gold coins are a popular form of gold investing and good planning for the future. Gold will be a good investment through changing times because it will keep its value.
Summary:
Gold Investing has been the best form of investment throughout history. Today, gold can be purchased in two types of bullion. You can also invest in “gold statement accounts”, “accumulation plans”, “mining shares”, “options” and “mutual funds”.
Gold investing assures that your future is secure.