Gold Investing

Gold investing is growing in popularity every day. Why is gold such a hot investment? Why has the price of gold risen so drastically in the last few years? And what is the real reason that so many investors are buying gold in various forms right now? This article attempts to answer those questions and provide a starting point for further research on the topic of gold investing in general. First you should understand that many investors do not purchase gold with the intention of earning a profit. The traditional buy low and sell high concept holds true for many short term gold investors but this is not the real reason for gold’s popularity today as an investment. This may surprise you and may fly in the face of your understanding of gold investment.

The truth is that gold investing is a very good hedge against other investments. Gold is heavily connected to currency, particularly the dollar and provides a hedge against other investments. Traditionally, when the dollar goes down the price of gold increases. In fact when the dollar goes down it simply takes more of them to buy an ounce of gold, the value of gold hasn’t actually increased, the dollar has lost value.

The rise and fall in gold prices has less to do with supply and demand than it does with it’s value in comparison to other assets and currency.

Gold serves as a viable protection against the collapse of financial markets and the stability of paper currency. This collapse can be caused by economic problems like recessions and depression or due to government instability as well as many other factors occurring in various markets. Gold investments also provide protection against inflation. Just as outlined above, it takes more paper currency to buy products and goods during times of inflation, gold provides a buffer against that.

Possession of physical gold is the best investment in terms of providing a hedge against falling currency values, recession, inflation and economic turmoil.While a variety of other methods of gold investment exist today including futures contracts, electronic funds, investment in gold mining stocks and others, these are all essentially paper contracts that do not hold the same security and value as a hedge as physical gold possession, and in fact may be as volatile and unpredictable as currency trading is today.

The articles and information found on this blog address all aspects of gold investing including those mentioned in this article. Please browse through the site and check back often as content is updated daily.

In all times people are looking for the best variants to invest their savings with a main goal to preserve their wealth and make a profit in a safest way. Depend on current economic situation and volatility in the stock market traditional ways of investing lost some part of investors because of it instability. Investors looking for alternative financial vehicles and find many possibilities to invest in gold coins market. This market realized itself in coin shows, various range of gold brokers and dealers, local auctions and collections of private dealers, and in a most spread eBay market as a popular online service where every investor can acquire coins, add it into collection or portfolio and conduct buy-and-sell operations with gold coins.

To be successful in gold coins investment you should know about two main kinds of coins: numismatic or collectible type and bullion coins.

First type values above a price of a gold that each coin contains and this above price depend on mint mark, scarcity, age, quality of strike, sometimes on it ownership record, design important too, whether or not they have been professionally graded and a few other factors.

The second type offering by investment market are bullion coins. Values based on content of gold and purity. This type contains two main groups:

True gold bullion coins that have a purity of 9999 per cent and 24 karat gold are.
Not true bullion coins including 22 karat gold.

Both referred by collectors and dealers on the investment market. Investors should aware of first type coins because of it unstable and depended on many factors price. Numismatic value of first type can be good shown on example of 2006 Buffalo coins, minted in the United States as a first true bullion coin. It carry a bit of value above their gold content and no modern gold coin such as this carries near the value true collectible coins do. While a rare Buffalo coin as mentioned previously may only be worth a few hundred dollars above that of any other modern gold Buffalo numismatically valued coins can be worth tens or hundreds of thousands of dollars above that of their gold content.

Doesn’t matter are you an investor or a collector of valuable in every time gold coins, you should put attention on place where you planning to buy or sell gold coins. The two best things to do is research the market, collect and analyse information about prices and tendentious of it changes, and to study as much as possible about the kinds of coins, its specifications, ranges of value and it containing parts.

As one of the safest ways to gold investment operations bullioneers offers to an investor’s big range of customer services and supports. But anyway don’t forget to check dealer’s feedback to be sure that customers satisfied with services and time of delivering. Comparing prices and types of gold coins with offers of your local dealers can save you a lot of money and able to help you spot a superb deal.

All beginning investors need a professional friendly support and advice before final decision in operations of buy-to-sell gold coins. Right a list of your collecting and investing goals in this area, discuss them with your chosen for advice persons, with coin dealers in your area, communicate with other investors on forums or special websites.

Knowledge in investment operations of gold coins will help you understand what are you looking for, which prices and type of coins are best and how much profit you can make in this area of investment.

E-cigarette kits are one of the most useful inventions for smokers, making the process of quitting an easier and more accessible one. This is because the body of the user only receives vapors of nicotine containing no toxic and carcinogenic substances resulting from burning regular cigarettes. In addition to this, the tactile, visual and sensorial illusion is unique and if you are looking to buy electronic cigarettes you will never feel the need of regular cigarettes any more after a very short time.

After a few days, with the return of the taste and smell, which were weakened beforehand, the smoker will not withstand the toxic smoke of regular cigarettes anymore. What is more, if you buy electronic cigarettes you will smell better, food will start to have a better taste and the fade color of your skin will return to normal after just a few days.

With the use of the flavored cartridges included in most e-cigarette kits, the smoking experience will be much more enjoyable than before. The concentration of nicotine can be reduced gradually, until the body of the user does not require nicotine anymore. If the smoker wants to quit smoking completely, e-cigarette kits are undoubtedly the right starting point.

As with any electronic device, the lifetime of e-cigarette kits can vary greatly. If you buy electronic cigarettes and ensure proper conditions they can last for several years. In addition to this, another important advantage is that you will be provided with a warranty when you shop with specialized stores.  On the other hand, if the e-cigarette kits are used in improper environments (extreme temperature differences, moisture, acidity and major mechanical shocks) they may be seriously damaged. It is therefore recommended to opt for a special spray whenever you buy electronic cigarettes. This kind of item can be ordered separately as well.

In most e-cigarette kits you will find a spare battery, which will be very useful for ensuring the durability of your cigarette, as well as nicotine cartridges reserves. Normally, five reserves should be just enough for a few days. If you are already a smoker, you should know that all the ingredients that your body requires are present in online cigarettes, particularly nicotine vapors and tobacco flavor. As a consequence, the harmful effects of regular cigarettes are completely eliminated when you buy electronic cigarettes.

Finally, you should be aware of the fact that there are still some situations when you should not use the electronic cigarette. E-cigarette kits are not recommended for young people (under 18), people allergic to nicotine, as well as those suffering from a heart disease, without consulting the doctor beforehand. Other contraindications include people with angina, asthma, or other severe respiratory diseases, diabetic patients and pregnant women.

The collecting of coins, gold, silver and other precious metals can be fun and financially rewarding. These tangible items are often referred to as “hard assets” because they are heavier than most other commodities or collectibles. Someone once quipped, “if you drop an asset on your toes, and it hurts, then it’s probably a hard asset and valuable”. Try that with 50 ozs. of silver or a brick of gold – ouch!

The renewed interest in precious metals has been built upon their price rise during the past few years. In fact, there’s been a bull market in gold and silver for 5-6 years. Coincident with the lows of the last bear market for stocks in 2002, gold rose from under 0 to just over ,000 per ounce. That run bested the gains seen by most of the traditional classes of financial assets – stocks, bonds, money markets. Silver, being the main industrial metal, rose almost four-fold, per ounce, equating to a larger percent gain than gold over the past 5 years.

Basically, there are a just a few ways to go about collecting or investing in this arena.

You can buy the physical metal and store it hoping it will go up in value, or you can collect numismatic (fancy word for coin collecting) pieces that have either collector value and some gold or silver content value or both. I prefer coins since that is the way I got myself started as a teenager. Of course, back then wages were low for a teenager (as they are today), so I was limited to a few silver coins and some one ounce silver ingots; gold was out of my price range. My father signed up as a silver dealer with a mining company that was riding the wave of investor speculation as silver shot to over per ounce in 1980, so that helped pique my interest also. When I learned to appreciate the smallish cache of coins I collected with my money, my parents later gifted me a bag of silver dollars. During the 1940′s and ’50′s, Las Vegas slot machines accepted them when you gambled. My Grandpa was prescient, he had kept them all those years in his Ohio home and passed them on to my Father. It was fun to sort them and look catalog their value. They dated from the 1870′s to the 1920′s. I considered it a hobby and rarely sold or traded many coins. I understood the United States’ common series of cents, nickels, dimes and dollars, so that’s what I collected.

Gold and silver have not shown us a great track record to profits over longer periods of time, however. The price rises in recent years came after a long period of suffering – gold was 0 in 1980 when the Dow Jones stock index was under 1,000. So overall, you have lost big just holding physical gold or silver the past 25 years because inflation has stripped away your profits if you had any to tally. The metals seems to trade in fits and spurts, and often rise in time of investor panic in other areas of finance (recent mortgage and banking mess). Owning collectible coins, in my opinion, has yielded better and more predictable returns over long periods of time, even coins not containing gold or silver, such as early coppers cents.

This study following that I embarked upon should show you that coins can be fun and profitable if you have some patience. I took a list of a few USA coins that I now own or wish I owned, and computed their rate of return over the past 8-9 years. Surprisingly, a collector can assemble a complete set of most American coins going back almost 100 years in cents, nickels, dimes and quarters because most dates are very common in all but the better uncirculated grades. Few exceptions exist, so I will key on those few semi-precious key dates which are still somewhat affordable today that most collectors need to finish their collection. These are coins with low mintage’s that are the key dates in its collection. I used the pricing at Coinvaluesonline.com, a good and fair reference source. Shown are the date and mint of the coin, the price rise over 8-9 years, and lastly, the compounded price per year average gain, so you can measure the gains apples to apples. Coin grades used hovered around fine to extra fine condition.

1909-S Indian 1 cent, 5 to 0 in 9 years = +9%
1909-S VDB Lincoln 1 cent, 0 to ,600 in 9 years = +10%
1914-D Lincoln 1 cent, 5 to ,100 in 9 years = +11%
1921-S Liberty 5 cent, 5 to ,000 in 9 years = +4.5%
1916-D Liberty 10 cent, ,250 to ,000 in 9 yrs. = +10%
1932-D Washington 25 cent, 5 to 0 in 8 years = +12.5%
1884-CC Morgan , to 5 in 9 yrs. = +17%
1889-CC Morgan , 0 to ,000 in 9 yrs. = +18%

As you can see, the average price appreciation has registered around 10% or better for most of the selections. The past few years, there’s been a renewed interest in the Lincoln penny, and older Morgan Silver Dollars. Since mintages are fixed and known, once demand picks up, prices rise sometimes fast. The higher grades command king’s ransom’s of ,000-,000. A rare 1804 silver dollar sold at auction this month for million. Its pedigree dates back to 1950 when it traded for ,250. That’s +11.5% per year gain, also in line with the results above. My study is not entirely scientific, so I’m sure you could punch some holes in it using other coins and time frames. Coin prices move around with demand and investor interest. Also, remember, collectibles should usually not represent a large portion of your retirement assets unless you are an expert in that area. It’s difficult to hold coins and precious metals inside IRA’s for example unless they are US Mint authorized. Coins and precious metals don’t pay any dividends or interest like stocks or bonds. Lastly, as collectibles, coins, gold and even gold funds are taxed at a higher 28% capital gains rate vs. the 15% rate most stock investors enjoy. With all that aside, once you catch the collector bug, you’ll surely enjoy the process of collecting, and hopefully the financial rewards also. It’s a great hobby to pass along to your children someday, or to cash in and retire on.

~Barry Unterbrink, Chartered Retirement Planning Counselor

Gold sovereigns are often chosen to celebrate a special event or occasion and are considered to be a uniquely patriotic purchase. It is an important symbol of the British Empire. The gold sovereign coin represents the wealth and prosperity of the British Empire. The coins are timeless in their desirability as a gold investment. Consistency of product quality is the same over years; it is the finest in the world.

A billion gold sovereigns have been minted over years, according to the royal mint. But only one percent of all the gold coins minted are still in the “Collectible” condition. Any gold sovereigns sent to the USA were first melted into gold bars due to the Federal Law.

You can buy gold sovereigns in the following variety: QE2 2010, QE2 Decimal, and QE2 Pre-decimal gold sovereign coins. The gold content in a gold coin is 7.3224 grams and fineness is 22 carat. 22 carat is 91.67 percent purity. The gold sovereigns come in 7.9881 grams and thickness of this coin is 1.52 mm.

Why Buy Gold

In financially unstable times, buying gold is a wise decision. Stocks and other investments are subject to more risk, while gold bullion is known to retain as well as increase in value over time. It is a better way to safeguard and grow your wealth.

Gold has always been considered as a safe investment and a useful thing in crisis. People buy gold as an investment against political, social, economical, and personal crises. Potential disasters are always there but no one likes to think about it. Yet, we insure ourselves, that too at a high premium. Buying gold provides a tangible source of income in times of crisis, as selling it is easy and fast.

The price of gold is increasing and the rate of increase is staggering. Thus, it is not only a form of insurance, it is a good investment. For example, if you had invested ,000 in gold bullion in 1999, your investment will have grown to over , 000 by 2010. This is a huge 300 percent increase; much more than any stocks you might have with you.

How to Buy Gold

You can buy the gold sovereigns online on certified websites. Delivery is done in UK and Ireland at the following prices: up to 250 gms- 7.50; 250 to 500 gms- 9.50; 500 to 750 gms: 12.50; 750 to 1000 – 18.00. They store and insure your gold for free, the first year. The online stores have made gold buying very simple. You simply have to go to the website and click on ‘Buy Gold’.

You must know that gold can be bought in different forms. Apart from physical gold like gold bars and gold sovereign coins, one can buy them in form of paper gold, in form of ETFs, certificates, and gold stocks. Gold is a universal currency and can be bought and sold anywhere. Thus, it is considered to be the most stable and robust investment. Many people like to buy gold sovereigns in the form of coins because the coins hold collectible value and are a solid form of investment. They have a high resale value and collectors love to get them in their personal collection.

Jim Interview on Business Insider – 9th of May 2012 Blog Post: etf-investment-ideas.blogspot.com
Video Rating: 5 / 5

Hike in gold price dwindle jewellery business in Kashmir

Waheed Yaseen

Agence India Press

December 6, 2010

Srinagar: With international market experiencing surge in gold prices for quite a while now, it is had an impact on jewellery business in Kashmir as well.

The business in the valley has dwindled significantly as trend of fluctuating prices has failed to attract customers.

The yellow metal touched all time high last week as prices continue to fluctuate between Rs 20,000-b 21,000 per 10 gram.

“Hike in price hike has definitely affected on the business. Customers are conscious about the rates. They wait for prices to come down so that they can buy the jewellery, but prices have shown surge almost throughout a year now,” a gold businessman in Srinagar said.

Five months of turmoil in the valley hasn’t helped either.

He said that the gold business in the valley was dented big time as major part of the wedding season-marked with a highest sale of gold-was lost to the five months of unrest.

“Shops were closed due to curfew and shutdown for major part of last five months, it has had a big impact on our business as sales were virtually zero during the period.” He added.

Kashmir has witnessed one of its high voltage summers marked with 112 civilian killings allegedly in the police and paramilitary action, curfews, shutdowns and valley wide protests against the ‘Indian occupation’.

Sikander Rasool Zargar, who runs a jewellery shop in South Kashmir’s Tral town, told Agence India Press that combination of price hike and unrest has resulted in gold business going down significantly.

“It is combination of both the unrest and price hike in the international market.

Unrest and price hike coincided with the wedding season that normally is the most significant time in terms of gold business. Unfortunately we have been hit hard by the developments,” Zargar said.

Due to skyrocketing prices, Zargar said, the customers have turned out to be sellers.

“Some of our customers now sell their gold as high prices have encouraged them to do so. This trend is picking up as prices continue to show surge in the market,” he said.

With situation in Kashmir limping back to normalcy, people concerned with gold business would be hoping for some stability in the international market so that they are back to their profit making ways. (AIP)

Copyright © 2010 AIPTV. All rights reserved.http://agenceindiapress.com

Blog: http:// aipworld.wordpress.com

Smart investors have held gold as an inflation hedge over the years, and as a way to add counterbalance to their total investment portfolio. Speculators jump in and out of gold commodities contracts to make a quick buck. Some folks buy and hold this precious metal as a stand-alone investment hoping to profit in the long term as the price rises.

Is buying and holding the physical stuff a good investment for average folks? Let’s take a brief look at the past and see how those who owned it over the years made out.

Those who bought an ounce (troy ounce) of gold at its low in 1976 got in at 4. With perfect timing they could have sold at its high of 0 four years later in 1980. That was a good investment, if you sold at 0.

It took many years to see 0 again, as the price fluctuated and this precious metal traded at a few hundred bucks an ounce for years.

As a long-term investment, it was a poor performer. It did top 00 not long ago, but sat at less than 0 in the early summer of 2009. Had you owned or bought an ounce in 1980 for 0, 29 years later you had about 0.

Gold pays no dividends. But stocks as an asset class do. Let’s compare stocks to the world’s most popular precious metal over the same time period of about 29 years, 1980-2009.

The Dow Jones Industrial Average (DJIA) is the most popular stock market indicator or index, and sold at a high of 1000 in 1980. In the early summer of 2009 it stood at 8500. Stock investors who simply held onto stocks could easily have made more than 8 times their money vs. very little gain for those investing in gold.

Plus, stock investors who held the Dow stocks averaged about 2% a year in dividends.

Historically, investing in gold has not resulted in growth. As a long term investment it has a lousy record. I suggest if you are considering buying it now, that you view this as a speculation, not as a long term hold.

Better yet, I suggest allocating maybe 5% of your investment portfolio to this precious metal in the form of gold stocks or mutual funds … to add balance to your investment portfolio.

The price of gold could soar at any time as a result of international political tensions, severe economic stress or other catastrophe. It makes sense to allocate a small portion of your assets here, but I would never invest in gold heavily for long term growth … unless I was truly a pessimist.

Over the long term, pessimists have had lousy track records in the investment arena. And so have the folks who invest in gold.

Today Gold prices in Mumbai rose to a new high it’s over RS. 24, 000 per 10 gram. The gold price in Mumbai can be anywhere from one-half to one and one-half percent lower relatively to other main cities in India. Though it is good news for investors in the yellow metal but it is bad news for those who setting up their budget to buy the gold jewelry. Indians gives gold a very special attention without gold their occasion remains incomplete especially the wedding ceremony, Diwali fest and other special occasion.  Many of the people thought that the buying gold is the best investment option.

Numerous of Indian families have stored their wealth in the form of Gold jewelry. It is long-term investment assets. Why people prefer to invest in gold? The returns are usually high and above all gold is a very famous ornament. In the past, gold was only the thing limited for by jewelry segment, now people are greatly investing in gold but by keeping different aspects in the mind like investment and speculation demand.

Investment in gold is not as simple as it seems. One needs to be very cautious while investing in gold because unlike stock or other markets you don’t have the choice of investing a small amount. Do lots of research is must and should have the enough knowledge about the current market scenario. The gold prices will never stay stable it constantly fluctuate without giving any alert.

Gold is a precious and prestigious asset people even hoard it and the demand and the gold price could increase drastically during inflation. The people are eagerly to buy gold even the gold prices will reach to the peak due to the some traditional sentiments they are ready to pay any price for it. But to buy the gold now it is not possible for every common man. If you are planning for buying the gold from the investment point of view then avoid to buying the designer jewelry or diamond sets and try to buy the gold biscuits and bars because it will give you more profit at the time of selling.  

For getting daily updations of gold price in Mumbai you can visit to the online Free Classifieds and instantly get the actual gold price in Mumbai. Through online Free Classifieds one can also compare the gold price according to the country and city wise.
 

Part 1 – a MUST LISTEN interview with Ranting Andy Hoffman. Andy answers YOUR tough questions about silver & gold. Visit SGTreport.com for the latest news & information. The content in my videos and on the SGTbull07 channel are provided for informational purposes only. Use the information found in my videos as a starting point for conducting your own research and conduct your own due diligence (DD) BEFORE making any significant investing decisions. SGTbull07 assumes all information to be truthful and reliable; however, I cannot and do not warrant or guarantee the accuracy of this information. Thank you.
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gatewaycontrol.com Gold and Silver Bullion: Market Watch Indicators for Buying or Selling Precious Metals.
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