Money: Gold Exchange And Trading

Gold Exchange Traded Funds – Hedge Against Uncertainty

There are many people who advise using gold investments as a way to hedge against uncertainty in the stock market. And there are many good points behind that argument, but there are also some downsides of owning big, heavy bars of gold. For these reasons it may be easier to just buy gold exchange traded funds.

Gold exchange funds or ETF or GETF are bought and sold online just like you would buy shares from any other type of company. You will keep these shares in a brokerage account. Though you aren’t actually buying the gold bullion, you are only buying shares of companies that invest in gold, this is a great way to buy gold without worrying about the downsides of owning gold.

Owning the physical gold coins or bullion can also be a risky proposition if you’ve got loose lips. If you tell too many people that you’ve got that gold stored in your home safe, you may just find that the wrong person will overhear and before you know it your home is robbed… or worse.

Since it can be difficult to own physical gold, for one thing if you want to sell it many buyers will want to personally inspect the gold, using EFT’s is another option.

While owning EFT’s can help you avoid many of the negatives associated with owning gold, it is not without it’s own downsides. For one thing, while physical gold can be a great long term investment, EFT’s are not. They are only short term investments, you want to buy low and sell high.

If you already have a brokerage account it’s relatively easy to get involved with buying and selling EFT’s. Just make sure that you realize that it’s just like any other stock trading and there is a real risk of losing your money.

Remember that with EFT’s you are only buying stock in a company, that means that if the company should fail your stock is worth less than the paper it was printed on, just like with any other types of stocks you may buy. You don’t actually have possession of the gold so there is still a fairly big risk.

Using EFT’s is best when you are using it as a short term investment vehicle. These aren’t the same as actually buying gold coins or gold bullion which can be an excellent recession proof long term investment strategy. When you purchase stocks in a company you have little control over the decisions that company makes and you are at the mercy of the management and board of directors which doesn’t provide you with much security…just look around to what has happened over the last couple of years.

If you’re interested in playing the market and benefitting from short term price hikes than gold exchange traded funds may be a good option for you and your investment portfolio. If you are looking for something that can provide you with long term stability you should most likely stick to investing in actual gold, either coins or bullion, since these have value in their own right and you’re not depending on the value of a company.


Gold Elf – Gold Exchange Traded Funds – Savy Investment

Investing in gold elf, or gold exchange traded funds, is beginning to look like a good idea to the savvy investor. Gold has been a valued resource since th dawn of time and since it’s not readily available and the amount of gold is finite, it will only continue to go up in value.

Buying gold has long been the strategy of investors to hedge against inflation and the debasing of the U.S. dollar. Since gold prices (and those of other commodities) go up in direct correlation to the value of the dollar going down, now might be a great time to jump right in.

When buying gold you actually have a few options. You can buy gold coins. Many times these coins will actually be worth more, sometimes much more, than their face value. The total value will depend on how much gold these coins consist of. Since gold is a soft metal gold coins will have other metals added in, usually copper and silver.

The amount of other metals will mean that the gold coin you have doesn’t have as much gold in it so it won’t be worth as much. American Gold Eagles are one of the most sought after gold coins available.

You can also buy gold bullion. These bars can be purchased in various sizes. You can take possession of them or find a company that will keep them for you. If you go that route make sure that you have assurances that you really do own the bullion and that it is insured so you won’t be out your initial investment should something happen.

Another way to own gold is to invest in gold mining companies. This can be lucrative but remember, you ultimately don’t really ‘own’ anything. The shares you have in the company are only as valuable as the company itself. If the company goes under, you’re out of luck.

Electronically traded funds are also stocks that you can buy in companies. In this case you are buying stocks in companies that own gold. Not necessarily in the mines themselves but in actual gold reserves. Again, you don’t actually own the gold and your investment is only as good as the company you’ve purchased the stocks in.

If you do choose to go with the physical gold, whether in the form of gold coins or bullion, just remember that you’ll need a secure place to store it. Bullion is heavy and if word gets out that you have a basement full, you’ll have to worry about a lot more than just lifting it. You might well be robbed and possibly killed. Keep quiet.

Of course, you can also have your bullion or coins stored for you in a safety deposit box at your local bank. That should provide you with a lot more security. Still, it’s a good idea to keep your assets to yourself.

When thinking about investing in gold elf, just remember that if you don’t actually have the physical gold in your possession than your investment is only as sound as the company you’ve bought stock in. Choose carefully.


Gold Mining Stocks – Simple Steps To Stay Ahead

Just like back in the old west days, gold mining companies invest time and resources to discover, mine and process gold. To be able to finance this expensive operation many companies will offer public shares which, as you probably know, allows the average person to own a small piece of the company. When the prices for gold goes up, so does the profit margin and that’s when the investor can see a profit from owning gold mining stocks.

To increase your chances of making money, and not losing money, there are some simple steps you can take. Remember though, all types of investing carry some risk, though you may be able to mitigate a lot of the risk by gaining knowledge, you can’t guarantee you’ll make money so never invest more than you can afford to lose.

One thing you should do first is to figure out how much money you can allocate to buy mining shares. The general rule is to have about 10% of your portfolio made up with precious metals, but since mining has it’s own unique dangers not all of your precious metals allocation should come from mining company shares.

Pick your companies. Some people prefer to go with just one large cap company for their mining shares allocation. Other’s prefer to have several mining companies as part of their portfolio, so if one company fails they aren’t completely out in the cold.

Still others enjoy the thrill of investing in younger companies that don’t have much of a track record. This can give them huge paydays if the company does well. Of course, the risk is much greater too.

When choosing your stocks consider the debt, cash flow and mineral reserves of a chosen company.

It’s also a good idea to familiarize yourself with the countries that the mining company does business in as this can provide clues to various threats to their bottom line. We all know there are some very unstable regions around the world, if the company you are looking at does business in these areas they may face issues that will force them to slow down, or shut down, production.

Remember, that mines need to pay for the equipment and workers to run their mines. Keep this in mind as well when researching companies. Depending on their location they may or may not have access to sufficient labor pools and other resources.

You can also buy shares in a company that owns the gold, not just the mine. These are called EFT’s. They are bought and sold like stocks, they are stocks. You don’t actually own any stock in the mining companies themselves most of the time, and you don’t actually own any gold. Keep these factors in mind before you decide whether or not EFT’s are the right way for you to go.

For many investors looking for a hedge against falling dollar values, investing in gold mining stocks just makes a lot of sense. If you think it makes sense for you too, there are many places you can go to purchase them. Do your homework first though so you can end up with the pot of gold instead of just the shaft.


Spot Gold – Short Or Long – Your Choice

Many people believe in the tangible value of certain precious metals, such as gold and silver. If you’re interested in buying gold you need to know what the spot gold price is so you can get the best deal possible.

Spot gold is an over the counter market and the prices are based on supply and demand, so the prices can fluctuate greatly . Spot price refers to the price that was quoted for the silver or gold that will be paid two days from the initial transaction date. Spot prices are determined in London and are fixed twice a day for gold (they are fixed only once a day for silver).

Sales of gold and silver are done in much the same way as currency pairs. Deals are made against the U.S. dollar. For instance traders can take a long or short position, just like with currency trades, while they take an opposite position with the dollar. You can also trade gold and silver against currencies from other countries too.

Also, similar to the currency trading market, the trades are conducted round the clock from Sunday at 6 p.m. EST to Friday at 5 p.m. EST. There are three major centers for trading gold and silver: New York, London and Zurich. There isn’t a central market for gold and silver trading.

When the markets in Europe and the New York market are both open, that is when the prices tend to be the highest. That means for traders in the United States there is a time frame of about four hours where the liquidity is at it’s highest. Liquidity tends to drop off later in the day closer to the time the markets close.

Due to the round the clock, and round the world, nature of trading gold and silver, huge trades can be conducted virtually instantly which makes for a real rough and tumble trading environment where supply and demand are the only real rules.

If you would like to get involved in this exciting, and volatile, market you can do so. Precious metals can be traded with Forex brokers online. Each broker will have their own fees and restrictions so you should be willing to spend some time shopping around so you find the best fit for you and your needs.

There are many similarities between precious metals trading and Forex trading, one of those similarities is the high risk nature of the market. This is not the place for an amateur to be. You have to take some time to learn how this market works and even then there aren’t any guarantee’s.

There are many places online where you can learn the skills, and even set up free practice accounts. This step is vital if you don’t want to lose your shirt. Ignorance is the number one way to lose a lot of money when it comes to trading precious metals.

Spot gold price is just one of many of the terms and concepts you’ll need to learn before you can expect to have any success trading precious metals. If you’re serious about learning this type of trading you can really make a lot of money. Just remember that the amount of success you’ll have will be in direct proportion to the knowledge that you have.


E Gold Investment – Real Value

Now more than ever we are becoming aware of the limitations of a currency system that is not based on any real asset. Using a credit card to make a purchase is just a ‘paper’ transaction. It isn’t backed up by tangible goods. If the person who initiated the purchase doesn’t pay, the vendor is out of luck in most cases. Using e gold investment is different since all transactions are backed by the equivalent value in gold.

Think of it like this, when you make a purchase with a credit card the person you buy the product or service from doesn’t actually have anything of value backing up that purchase. They are essentially allowing you to back it up with a ‘promise to pay’.

If you don’t pay your bill, they simply won’t get paid. If that happens in a wide spread manner, such as it is in the economy right now, that means a lot of companies don’t have any money coming in.

With E gold, on the other hand. You are buying goods or services and it’s like you’re handing over the exact amount of gold to cover the purchase price.

It’s a lot like how things used to be in the past. Think of the old west where someone would go into the general store and pay for their goods with a certain number of ounces of gold. That had real, tangible value and that is the concept behind e gold.

Today’s paper currency is only as good as the government behind it. It isn’t directly tied to an actual gold reserve like it used to be. In the past when the government printed up a billion dollars in currency they had a billion dollars of gold stored away in a vault. They didn’t print more money than what they had in actual gold reserves.

It doesn’t work that way anymore, at least not in the U.S. Our current system of currency is based off of a debt mentality. The treasury can print more money when and if they think it’s necessary and they don’t have to worry about tying it to any actual gold standard.

Many people believe that it’s inevitable to move back to the gold standard method for determining the amount of currency in circulation. Part of the current economic meltdown is due to the fact that there is nothing ‘propping’ up our currency.

Investing with gold backed currency is a growing trend since virtually every country in the world recognizes the value of gold. Again, when you are investing worldwide and with the currencies of different countries being worth different amounts, it can be a challenge.

But when you are using egold to invest you are relying on a set value since there is actual gold bullion backing up that investment.

To learn more about e gold investment just go online. There you will be able to find all the information you need to explain the concept as well as explain the advantages of making investments which are backed up with actual gold reserves.


Gold Nugget Invest – Tips For Keeping It Simple

Today’s investor has more options than ever if they want to invest in gold. They can buy gold coins, gold jewelry, stocks in companies that mine gold or hold gold reserves and even gold nugget invest. It’s really up to you as to what type of investment makes the most sense for you and your financial goals.

Of course, buying raw gold, in nugget form, is much different than the other forms you can buy gold in. It’s important that you educate yourself before you go out and try to find yourself a prospector.

The first thing you want to do is to find several mines that are close to you and that you can trust. Of course, depending on where you live, you may not have one close by, but if possible find several that are located together so you can visit them all at the same time.

Once you’ve identified several mines that you are interested in, see if they have a phone number or website. If so, it will be an easy matter to find out if they sell gold directly to individuals.

Next, you will need to decide which nugget you want. Since each nugget is unique there is no uniformity in pricing. In most cases the bigger the nugget the higher the price. Since it’s not common to have a large, intact nugget you will have to pay more…no volume discounts here.

Nuggets may not be all gold, they can be made up of other rocks and dirt. In order for you to determine how much actual gold is in the nugget, you’ll need to perform a gravity test. This is a simple test to make sure that you don’t get taken by unscrupulous people.

I won’t get into the exact method for figuring out the specific gravity in this article, but it’s fairly simple and you can find resources online that will show you how to do it. All you will need is a simple mathematical calculation, and a glass of water and string.

Once you know the actual amount of gold in the nugget you can judge whether or not the seller is asking a reasonable price.

In order to find out how reputable a certain mine is, you can often go online to various forums that cater to those who invest in gold nuggets and ask around. If someone has had a bad experience they are usually very willing to tell everyone about it.

Sometimes it’s not quite so easy to hear about the good experiences tough, so keep that in mind. If you want to hear about the good places you may have to dig a little deeper and ask more questions.

One of the neatest ways to invest in gold is to find
a gold nugget invest mine that you can buy from directly. This is just a fun way to go about it. Even your kids may enjoy getting into the process. Of course, you still have to use your head and make sure you know what you’re doing so you don’t get taken, but it is a fun way to invest.


Gold Price – Dare To Ride The Bubble – Maybe

One great way to gauge the economic state we’re currently in is to keep an eye on the gold price chart. Savvy investors know that as the value of the dollar falls, along with other distressing economic signs, such as high unemployment, is usually a sign that the price of gold is going to go up.

Not just gold either, but other commodities as well. A lot of investors will try to keep the value of their investments safe by switching many of their holdings to gold and other precious metals.

Lately it’s been easy to tell what many investors think about the state of the economy since gold prices continue to rise. The price of gold, as with other commodities, is tied to supply and demand. The ever increasing prices of gold is an indication that demand is high. That is in direct correlation to the fact that the value of the dollar is falling.

Many investors are still buying gold even though the prices are at an all time high, which goes against the wisdom of buying low and selling high. Many believe that gold will continue to rise for the foreseeable future.

Others, think that the gold ‘bubble’ will burst, similar to what happened with the housing market, and those that waited too long to jump in and paid a lot for their gold, will either be stuck with it for a long time (until prices rise again) or could take a bath and lose a lot of their initial investment.

Obviously, it remains to be seen which camp is right and which one is all wet.

Of course, the price of gold can fluctuate several times throughout the day. The price you pay per ounce will also be determined by the way you buy your gold. If you buy jewelry you can expect to pay more per ounce than the flat rate price simply because the piece of jewelry has a lot of labor and fabrication put into it so you will have to pay for that.

If you buy a gold coin you may also pay more than just the straight price per ounce if the coin is an antique or exceptionally rare. In those cases you will be paying more than just the price of the gold that makes up the coin, you’ll also be paying for the added value to the coin due to it’s age or uniqueness.

The reason that the current price of gold is at an all time high is simple, there is currently a very high demand. The more people want to have the gold that is available, the higher the prices for that gold.

With the instability of many economies around the world, people are seeking safety for their assets and are buying more gold and other precious metals. The more they buy, the higher the price. Simple supply and demand.

With the gold price so high right now, only you can decide if it makes sense for you to jump right in. Everyone has their own opinion, but only you can decide what is right for you. Even if you do decide to take the plunge don’t invest everything. You never want to have all your eggs in one basket.


Gold Investment Coins – Do You Know Your Stuff

To hedge against the falling dollar many smart investors are turning to a more tangible asset, gold. There are many ways you can invest in gold, you can actually purchase stocks in gold mines, gold bullion, and of course you can buy gold investment coins.

Before you pull out your wallet you want to know a little more about the process of buying gold as an investment. For the purpose of this article we’re going to talk strictly about buying gold coins as an investment.

No matter what you invest in, there is always a direct correlation between the amount of knowledge you have and the amount of success you see with your investments. For that reason, it’s very important you do your homework.

The price of gold has been going up for some time now and is at an all time high. Many coin collectors have begun to sell of their collections and they are being melted down just for the value of the gold. If this practice continues gold coins might become even more valuable since there won’t be as big of a supply of them.

When you are ready to buy your first gold coin(s), make sure that you only purchase government made coins. These tend to have a higher value since their quality is well known amongst investors. Stay away from a privately minted coins.

Make sure that you will take possession of your coin as soon as you buy it. This may sound dumb, but it’s not uncommon for people to let the investment company or the coin company to hold the coin for them. It may seem more secure but if the company is dishonest or goes out of business your investment will likely be gone too.

When you do bring home your new investment, make sure you have a safe place to keep them. It’s best to either invest in a good quality, bolted to the floor safe at home, or get a safe deposit box at your local bank. It’s probably also a good idea to not talk about all the expensive gold you have in your home… unless you want to be robbed.

Go online to find out what the current price of gold is before you make your purchase. Again, knowledge will help you make a smarter investing decision.

You’ve probably heard the investment advice: buy low, sell high. Collecting gold coins is no different. The lower you can buy a quality coin for, the higher potential for a big pay out down the road. I hate to sound like a broken record, but do your research.

One last point: no matter how much education and knowledge you gain, there is always some risk involved in investing (you can greatly reduce your risk if you are knowledgeable but it won’t go away entirely). For that reason never invest more than you can afford to lose. Don’t put yourself in the hole financially by investing more than you should.

Starting an investing career is always a good idea. It won’t happen overnight and you shouldn’t be pulling out your credit card anytime soon, but buying gold investment coins can help protect you against a falling dollar. These coins are not only a good investment they are beautiful and fun to collect too.


Gold Investment Advice – Do Your Homework

Recently there has been a resurgence in investing in gold and other precious medals. Since no one can predict whether or not your investments will go up or down, getting reliable and sound gold investment advice should be step number 1.

Of course, in order to make money on your gold investment you need to buy right. When buying gold you can either buy gold bars or gold coins.

Of course, when it comes to investing your ultimate goal is to make money when you sell, more money than you paid for the gold when you bought it.

To get the most out of your sale you have to consider when and to whom you will sell when the time comes. Will you sell all your gold in one batch or will you sell it off a little here and a little there? The reason you want to consider these issues now is that it can help you figure out what types of gold you should buy.

If you want to sell off your gold over time, you’re probably better off buying coins since you can sell one or all of your coins but if you had only gold bars you can’t just sell a portion of the gold bar.

Make sure that you consider your exit strategy when buying your gold. The types of coins you buy will have a lot to do with how easy they are to sell as well. All of this will need to be thought about before you start your investing career.

If possible, you should try to find a reputable local dealer. More than likely you will be spending a lot of time investing in gold. It’s always a good idea to have someone close to home who you can ask questions of and learn from.

If you either don’t have anyone close to home, or you simply don’t trust the people you find locally, you can always turn to the internet to find dealers. While it’s always important to ensure that the dealers you work with are reputable, it’s probably even more important when finding online dealers.

It can be hard to gauge the trustworthiness of someone you can’t actually talk to in person. Do a search on Google and look for testimonials.

Don’t ever be afraid to ask for help and ask questions. The best thing you can do for yourself is to take a lot of time to educate yourself. Don’t every just turn your money over to a dealer and let them make all the decisions about what type of gold is best for you to invest in. Always be an active partner in your investing.

Investing in gold can be a great way to hedge against certain economic conditions. As with all investing, the amount of success you have will be in direct proportion to the amount of knowledge you have. Take the time to get solid gold investment advice and never be afraid to ask questions.


Buying Gold As An Investment And Trading Gold

With the economic state we are currently in: even more unpredictable stock market returns, evaporating retirement nest eggs and the weakening of the dollar, it’s more difficult than ever to find a good long term investment. A lot of people only think of gold in terms of a piece of jewelry, but buying gold as an investment can be a very smart move.

As with all types of investments, your overall success will be closely tied to how much time you’re willing to put in. To make the most out of your investment you must be willing to do your homework. If not, you may not realize the outcome you were hoping for.

Take some time to learn all you can about buying and selling gold. Find out the history of trading gold as well as what the potential is for you as an investor. Ask questions and don’t just follow along blindly with what some ‘guru’ says to do. Knowledge is power, knowledge can also be profit.

You’ll also want to decide what type of gold to buy. For the smaller investor buying gold coins can be a good options. These coins can be bought in smaller numbers and since they are literally quite small they are easy to buy, move, store and you may even be able to sell them for more than just the price of the gold if the coin is older and more rare. Instead of just selling the gold you can get more money from the sale and value of the coin itself.

Next you will need to locate a dealer. Make sure that it is a good reliable and honest dealer. Many times you will have better and more options online, but it’s very important to only deal with someone you know and trust and sometimes having someone local can be a great idea. That way you can easily contact them if you have any questions or concerns.

If you don’t have a local dealer, it doesn’t mean you have to give up on your dream of investing in gold. You can easily find a dealer online. It’s even more important for you to carefully check out any dealer before you do business with them. There are many reliable and reputable dealers online, unfortunately there are also many scammers on the internet.

Make sure you do searches and only deal with the most reputable dealers around.

Don’t go overboard. Only invest what you can afford. Since you can buy gold in small sizes, as small as 1/20th of an ounce, you don’t have to pay big to get your foot in the door and become an investor. Since you can buy such a small size, you can start investing with only a small amount of money.

The small size of these coins does make it easy for them to be stolen. Make sure that you keep them in a safe place (and don’t blab about all the gold you have). Get either a safe or use a safe deposit box at your bank.

Buying gold as an investment can be a great hedge when stocks are not doing as well. Gold will almost always go up in value, just be willing to wait and don’t expect to make a killing overnight.

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