Guide to Options Trading for Beginners
By [http://ezinearticles.com/?expert=David_Rivera]David Rivera
Options are considered as derivatives as these financial transactions are based on the value of assets or underlying securities. Unlike stocks, options expire on specific dates and they have no specified fixed number when it comes to its availability. Most people may not really understand how options work but some of them have been using it in their trading business. Beginners have to understand that there are two types of options that they can work on. The first one is the call option where they can buy a stock for example at a given price before a specified date for example. This may likened to buying security deposits.
Traders pay for the option premium when they buy call options. This payment gives them the right to buy the underlying asset at a pre-determined strike price in the future. Traders may not actually buy the stock for example because they are not obliged to do so but in the process, they will have lost money in terms of the option premium if they simply wait for it to expire. The second type of option that they can transact with is called the put option. Traders can sell the underlying asset at a price agreed and at a specified date. Put options in this case may be likened to insurance policies.
Traders can exercise their put option and they can sell the asset at an insured price. In case the price of the underlying asset goes up, they do not need to exercise their put option and their only cost incurred is the premium. The call and the put options are used by traders in order to lessen the risk that they are taking. Those who buy options are given the right to exercise. Traders who would like to exercise their call option may buy the underlying security at the given strike price and those who would like to exercise their put option may sell it at the price agreed upon.
Although call and put traders are given the right to buy or to sell, they are not obliged to do so. They may decide to exercise their rights depending on their analysis of the market. There are different ways for traders to liquidate their options aside from exercising their right. They may liquidate through closing a buy or a sell or they may simply opt for abandonment. Traders may choose to abandon their options in case the premium that is left is lesser than the cost of liquidating it.
There are many ways to trade futures options. You can use different techniques that combine trading futures options together to trade with little risk. Professional traders always think about limiting their risk. Whether you trade options or not, you should always set loss limits. Learn more at http://www.deltaneutraltrading.com/optin/ezines.html
Article Source: [http://EzineArticles.com/?Guide-to-Options-Trading-for-Beginners&id=7574710] Guide to Options Trading for Beginners
Friday, April 19, 2013
Friday, April 12, 2013
Why Silver Prices Continue to Rise
Why Silver Prices Continue to Rise
By [http://ezinearticles.com/?expert=Mark_W._Medley]Mark W. Medley
By the end of 2010, the price of silver had increased by an incredible 70% in the space of four months, and global investors are bullish about the price of silver reaching new highs in 2011/2012. Why is silver becoming a much sought after precious metal?
When the bank of China announced that ordinary Chinese should invest in silver, as an option to gold. Unveiling newly minted bars and coins with a fanfare fire cracker display, on state television. Investors around the world woke up to the fact silver was on the way up.
At the same time ordinary Chinese citizens were public ally encouraged to go to their bank and trade their dollars's into mini silver bars, and coins. In India silver traders were seeing a slow switch from gold to silver by ordinary Indians in the bazaars.
Silver values on global markets jumped up to its highest in 31 years, as China, the Worlds forth highest producer of this precious metal, announced no more silver was going to be exported. Whilst experts admitted there was a global shortage of silver.
Shortages create higher prices, and the fact that nations still holding US dollar bills, fear that quantitative easing (printing money) by the US treasury is continuing to devalue the greenback. Gold, Silver and other precious metals can be bought with these extra dollars, and in turn ensure no future dollar losses in the future, as the sale of silver can be made in a local currency.
De-coupling from the greenback has been a gradual process since the 2008 market crash, and involves a continued process of buying assets with these extra dollars. This seems to be the strategy of China, and much of the developed World. But there is another reason why silver prices are rising. Silver is needed in a wide range of Industrial products, as well as for Jewellery products such as rings and bracelets. A shortage of silver is simply driving the price up.
High gold prices are also reason silver is becoming a more valuable precious metal. In many countries, people tend to buy gold as an investment, especially jewellery. Since there is less trust in the US dollar, and the Euro, consumers seeing high gold prices, are now opting for silver.
The Chinese investor, Indian housewife and global manufactures, are the three main reasons silver could be the new gold for the next few years. And this trend also helps less developed countries which suffered because of a formerly artificially low silver price.
Silver can be freely traded through most national banks, or coin shops. Online users can purchase silver coins and mini-bars through eBay, and a wide range of silver stores. Silver coins like the American Eagle or Kennedy dollar, also make great gifts, and aid local businesses who sell them.
Discover how to [http://www.amazon.com/Adjusting-Change-Economic-Crisis-Towards/dp/1456379968]Adjust to economic change.
Article Source: [http://EzineArticles.com/?Why-Silver-Prices-Continue-to-Rise&id=5614169] Why Silver Prices Continue to Rise
By [http://ezinearticles.com/?expert=Mark_W._Medley]Mark W. Medley
By the end of 2010, the price of silver had increased by an incredible 70% in the space of four months, and global investors are bullish about the price of silver reaching new highs in 2011/2012. Why is silver becoming a much sought after precious metal?
When the bank of China announced that ordinary Chinese should invest in silver, as an option to gold. Unveiling newly minted bars and coins with a fanfare fire cracker display, on state television. Investors around the world woke up to the fact silver was on the way up.
At the same time ordinary Chinese citizens were public ally encouraged to go to their bank and trade their dollars's into mini silver bars, and coins. In India silver traders were seeing a slow switch from gold to silver by ordinary Indians in the bazaars.
Silver values on global markets jumped up to its highest in 31 years, as China, the Worlds forth highest producer of this precious metal, announced no more silver was going to be exported. Whilst experts admitted there was a global shortage of silver.
Shortages create higher prices, and the fact that nations still holding US dollar bills, fear that quantitative easing (printing money) by the US treasury is continuing to devalue the greenback. Gold, Silver and other precious metals can be bought with these extra dollars, and in turn ensure no future dollar losses in the future, as the sale of silver can be made in a local currency.
De-coupling from the greenback has been a gradual process since the 2008 market crash, and involves a continued process of buying assets with these extra dollars. This seems to be the strategy of China, and much of the developed World. But there is another reason why silver prices are rising. Silver is needed in a wide range of Industrial products, as well as for Jewellery products such as rings and bracelets. A shortage of silver is simply driving the price up.
High gold prices are also reason silver is becoming a more valuable precious metal. In many countries, people tend to buy gold as an investment, especially jewellery. Since there is less trust in the US dollar, and the Euro, consumers seeing high gold prices, are now opting for silver.
The Chinese investor, Indian housewife and global manufactures, are the three main reasons silver could be the new gold for the next few years. And this trend also helps less developed countries which suffered because of a formerly artificially low silver price.
Silver can be freely traded through most national banks, or coin shops. Online users can purchase silver coins and mini-bars through eBay, and a wide range of silver stores. Silver coins like the American Eagle or Kennedy dollar, also make great gifts, and aid local businesses who sell them.
Discover how to [http://www.amazon.com/Adjusting-Change-Economic-Crisis-Towards/dp/1456379968]Adjust to economic change.
Article Source: [http://EzineArticles.com/?Why-Silver-Prices-Continue-to-Rise&id=5614169] Why Silver Prices Continue to Rise
Tips for Silver Coin Investments
Tips for Silver Coin Investments
By [http://ezinearticles.com/?expert=Kyles_Humphrey]Kyles Humphrey
Investing your money in silver coins or gold bullions always retains its value far much better than any other investment type no matter how strong the or weak the economy is. Considering this, people have again started parking their money in precious metals more beneficial and less risky than those done in other means of investments because of today's weak economy. If you are planning to invest your money in silver coins, consult the experts of the industry, follow their advice and do some research on your own. This will help you have a fair idea of latest silver prices, pros and cons of investment in silver coins and avoid risks, bad investments as well. This will eventually get you better outputs and financial returns. Here are few tips that will trigger your research for smarter investments in silver coins:
* A Wise Choice of Coins:
Silver coins come in varied types.
Each type of silver coin has different melt value. Do not jump to blocking your money in investments done in the very first type of silver coins you come across. Before investing, examine deeply and compare all types of silver coins and then choose the one that matches your criteria of qualities.
* Junk Silver in Collection:
Old coins are called as Junk silver. Do not trash them out or dismiss the old coins you already have. These ancient coins contain a countable amount of silver and other metals as well.
* Getting into the Business:
If serious business is what your mind is occupied with, always buy proof coins and not the uncirculated coins. Proof coins are generally wrapped with plastic sheets to keep them intact and scratch-free. Uncirculated coins may have some other marks or to the worst, may be damaged which reduces the value of a coin and eventually the silver price that you will be getting. Collecting old coins is another way if you do not wish to put much amount of money as business capital. If you do not wish to put money of your pocket, start collecting old coins, visit collectors shops where you'll get a chance to buy old coins at bargain prices.
Investment in silver is one of the best options especially in the time of economic havoc. As a result of rising inflation, the prices of all commodities have touched a great height in order to cover the costs of the government debt. In such inflated economy, investing in a commodity like silver is a very valuable step. Investors always look forward to purchase silver coins because these coins can offer much worth and returns.
The author is a knowledgeable journalist in silver market, mining & stocks, who frequently writes articles related to silver prices, silver spot price including tips on investment in silver. Please visit [http://silverprices.com]silverprices.com for more details.
Article Source: [http://EzineArticles.com/?Tips-for-Silver-Coin-Investments&id=6473024] Tips for Silver Coin Investments
By [http://ezinearticles.com/?expert=Kyles_Humphrey]Kyles Humphrey
Investing your money in silver coins or gold bullions always retains its value far much better than any other investment type no matter how strong the or weak the economy is. Considering this, people have again started parking their money in precious metals more beneficial and less risky than those done in other means of investments because of today's weak economy. If you are planning to invest your money in silver coins, consult the experts of the industry, follow their advice and do some research on your own. This will help you have a fair idea of latest silver prices, pros and cons of investment in silver coins and avoid risks, bad investments as well. This will eventually get you better outputs and financial returns. Here are few tips that will trigger your research for smarter investments in silver coins:
* A Wise Choice of Coins:
Silver coins come in varied types.
Each type of silver coin has different melt value. Do not jump to blocking your money in investments done in the very first type of silver coins you come across. Before investing, examine deeply and compare all types of silver coins and then choose the one that matches your criteria of qualities.
* Junk Silver in Collection:
Old coins are called as Junk silver. Do not trash them out or dismiss the old coins you already have. These ancient coins contain a countable amount of silver and other metals as well.
* Getting into the Business:
If serious business is what your mind is occupied with, always buy proof coins and not the uncirculated coins. Proof coins are generally wrapped with plastic sheets to keep them intact and scratch-free. Uncirculated coins may have some other marks or to the worst, may be damaged which reduces the value of a coin and eventually the silver price that you will be getting. Collecting old coins is another way if you do not wish to put much amount of money as business capital. If you do not wish to put money of your pocket, start collecting old coins, visit collectors shops where you'll get a chance to buy old coins at bargain prices.
Investment in silver is one of the best options especially in the time of economic havoc. As a result of rising inflation, the prices of all commodities have touched a great height in order to cover the costs of the government debt. In such inflated economy, investing in a commodity like silver is a very valuable step. Investors always look forward to purchase silver coins because these coins can offer much worth and returns.
The author is a knowledgeable journalist in silver market, mining & stocks, who frequently writes articles related to silver prices, silver spot price including tips on investment in silver. Please visit [http://silverprices.com]silverprices.com for more details.
Article Source: [http://EzineArticles.com/?Tips-for-Silver-Coin-Investments&id=6473024] Tips for Silver Coin Investments
Junk Silver Coins - A Timely Investment
Junk Silver Coins - A Timely Investment
By [http://ezinearticles.com/?expert=Steven_D_Chambers]Steven D Chambers
So what is junk silver and what makes a coin a "Junk Silver coin"? It's really very simple. Junk silver is an informal way of referring to coins with no numismatic value, a fancy way of saying that coin collectors have no special interest in these particular coins, but that have a value based on their metallic composition. Prior to 1965 in the United States the dime, quarter and half dollar (50 cent piece) were composed of 90% Silver and 10% copper. Silver, being a precious metal, gave these coins an intrinsic value equal to the value of the silver the coins contain. Because silver prices have increased significantly since the coins were minted the actual value of the coin far exceeds the coin's face value. In fact, the Coinage Act of 1965, which ended silver coinage in the United States, was passed because people were hoarding the high value silver coins, causing a shortage of coinage. From the passage of this act in 1965 US coins have consisted of copper with a silvery alloy giving the coins a similar appearance to the silver coins, but having little intrinsic value.
Junk silver coins have a place in your investment portfolio, especially in these economically uncertain times. In times of economic uncertainty people have traditionally turned to gold and silver coins to preserve their wealth. It's no different today. Gold and silver prices are surging because people are learning they can no longer trust the dollar and other fiat currencies. Since silver coins have an intrinsic value based on the actual worth of the material in the coin, not on the promises and guarantees of politicians, they tend to be worth more over time, unlike the US dollar which has lost 95% of its value over the last 100 years. If you want to preserve your wealth, it only makes sense to begin placing a portion of your wealth in precious metals, which is where junk silver coins fit in.
Deciding to invest in precious metals is the first step. The second and more critical step is to actually do it. You can of course simply buy silver through a mutual fund or exchange traded fund on the stock market but you can never really be sure you're buying actual silver. You may simply be buying a promise of silver and not the actual metal. Because of this it's best to start your silver and gold investing with coins. When you have a coin in your possession you know you actually own the precious metal. In fact, owning some physical silver and physical gold is an essential part of your precious metal investments.
For most of us the easiest way to get started investing in precious metals is to picking up a few junk silver coins either online or at a coin shops and stashing them away. Do this on a regular basis and pretty soon you'll have a nice financial reserve built up that you can rely upon. You'll find that because junk silver coins are plentiful, relatively inexpensive and easy to find they are a great way to get started. Unlike gold coins, with have a high value to weight ratio, silver coins are relatively cheap. The current spot price for an ounce of gold is roughly $1200.00 while an ounce of silver costs less than $20. Since you can start your silver investing with a single coin you can literally get started for less than $5.00.
So the time to get started investing in junk silver coins is now, before silver prices start to increase. The best place to start looking for coins is either a local coin dealer or by looking online. Simply typing in the words, "junk silver" into an Internet search engine will provide you with plenty of coin dealers and private parties who will sell you junk silver coins. eBay is another good option to explore. My guess is that you'll find investing in junk silver coins addictive because it not only helps you build a financial nest egg that will preserve and grow your wealth, it's also a lot of fun.
Steve Chambers is a long time precious metal investor who believes everyone needs to hold a portion of their wealth in the form of silver and gold coins. His website, http://www.junksilveronline.com has resources and information on investing in silver, specifically junk silver coins. In these turbulent economic times characterized by high unemployment, uncontrollable government spending and a massive increase in the money supply everyone needs to add precious metals to their portfolio. Junk silver coins is how you get started.
Article Source: [http://EzineArticles.com/?Junk-Silver-Coins---A-Timely-Investment&id=4386179] Junk Silver Coins - A Timely Investment
By [http://ezinearticles.com/?expert=Steven_D_Chambers]Steven D Chambers
So what is junk silver and what makes a coin a "Junk Silver coin"? It's really very simple. Junk silver is an informal way of referring to coins with no numismatic value, a fancy way of saying that coin collectors have no special interest in these particular coins, but that have a value based on their metallic composition. Prior to 1965 in the United States the dime, quarter and half dollar (50 cent piece) were composed of 90% Silver and 10% copper. Silver, being a precious metal, gave these coins an intrinsic value equal to the value of the silver the coins contain. Because silver prices have increased significantly since the coins were minted the actual value of the coin far exceeds the coin's face value. In fact, the Coinage Act of 1965, which ended silver coinage in the United States, was passed because people were hoarding the high value silver coins, causing a shortage of coinage. From the passage of this act in 1965 US coins have consisted of copper with a silvery alloy giving the coins a similar appearance to the silver coins, but having little intrinsic value.
Junk silver coins have a place in your investment portfolio, especially in these economically uncertain times. In times of economic uncertainty people have traditionally turned to gold and silver coins to preserve their wealth. It's no different today. Gold and silver prices are surging because people are learning they can no longer trust the dollar and other fiat currencies. Since silver coins have an intrinsic value based on the actual worth of the material in the coin, not on the promises and guarantees of politicians, they tend to be worth more over time, unlike the US dollar which has lost 95% of its value over the last 100 years. If you want to preserve your wealth, it only makes sense to begin placing a portion of your wealth in precious metals, which is where junk silver coins fit in.
Deciding to invest in precious metals is the first step. The second and more critical step is to actually do it. You can of course simply buy silver through a mutual fund or exchange traded fund on the stock market but you can never really be sure you're buying actual silver. You may simply be buying a promise of silver and not the actual metal. Because of this it's best to start your silver and gold investing with coins. When you have a coin in your possession you know you actually own the precious metal. In fact, owning some physical silver and physical gold is an essential part of your precious metal investments.
For most of us the easiest way to get started investing in precious metals is to picking up a few junk silver coins either online or at a coin shops and stashing them away. Do this on a regular basis and pretty soon you'll have a nice financial reserve built up that you can rely upon. You'll find that because junk silver coins are plentiful, relatively inexpensive and easy to find they are a great way to get started. Unlike gold coins, with have a high value to weight ratio, silver coins are relatively cheap. The current spot price for an ounce of gold is roughly $1200.00 while an ounce of silver costs less than $20. Since you can start your silver investing with a single coin you can literally get started for less than $5.00.
So the time to get started investing in junk silver coins is now, before silver prices start to increase. The best place to start looking for coins is either a local coin dealer or by looking online. Simply typing in the words, "junk silver" into an Internet search engine will provide you with plenty of coin dealers and private parties who will sell you junk silver coins. eBay is another good option to explore. My guess is that you'll find investing in junk silver coins addictive because it not only helps you build a financial nest egg that will preserve and grow your wealth, it's also a lot of fun.
Steve Chambers is a long time precious metal investor who believes everyone needs to hold a portion of their wealth in the form of silver and gold coins. His website, http://www.junksilveronline.com has resources and information on investing in silver, specifically junk silver coins. In these turbulent economic times characterized by high unemployment, uncontrollable government spending and a massive increase in the money supply everyone needs to add precious metals to their portfolio. Junk silver coins is how you get started.
Article Source: [http://EzineArticles.com/?Junk-Silver-Coins---A-Timely-Investment&id=4386179] Junk Silver Coins - A Timely Investment
Tips on Buying Silver: The "Poor Man's Gold"
Tips on Buying Silver: The "Poor Man's Gold"
By [http://ezinearticles.com/?expert=Steve_A_McCurdy]Steve A McCurdy
A prominent silver analyst recently stated that he thinks that at its current price, silver is the most undervalued commodity in history, but here are some things prospective silver investors might not know.
Buying and Storing Physical Silver
You can buy silver bullion bars and coins from many qualified dealers both in the U. S. and abroad. By "qualified" we mean dealers who offer defined buyback programs and secured storage options along with your purchases. Two popular dealers are American Precious Metals Exchange and KITCO in Canada. Both feature great selections, competitive pricing, quick delivery (if you choose), and excellent buyback policies, along with secure storage options. Bullion silver bars and coins are.9999 pure silver and trade at modest premiums to their intrinsic (or melt) values. You can also purchase what is known as "junk" silver, which means United States silver coins minted prior to 1965 (1970 for the Kennedy Half Dollar). Junk silver coins contain 90% silver and 10% copper, and are generally sold in random denominations in different sized "bags." Premiums over melt value can vary greatly among dealers, so you should shop carefully. Some dealers also offer uncirculated US silver coins, but these coins have numismatic value and so are universally sold at higher premiums over their intrinsic value.
Advantages/Disadvantages of Silver over Gold
Many anticipate a collapse of the dollar as the U.S. unit of currency at some future point. Fiat currencies (those based only upon faith) have never stood the test of time, and history is replete with almost 4,000 examples of failed fiat currencies. If and when the dollar ultimately fails there will almost certainly be a period during which silver and gold coins will be used as currency. Silver coins will have more utility than gold as a replacement currency, but gold can be more easily stored. It is not possible to predict the relative future values of gold and silver, but holding some of both metals is probably a wise policy.
Alleged Silver Price Manipulation
Many traders believe silver prices have been artificially suppressed by major money center banks acting in collusion with the Federal Reserve since 2008. The Commodity Futures Trading Commission (CFTC) began investigating charges made by traders against JPMorgan Chase in 2008 after the bank acquired large silver short positions as part of its acquisition of Bear Stearns, and separate federal lawsuits were filed against JPMorgan Chase and HSBC (a large foreign bank) in October, 2010, charging silver market manipulation. The suits alleged that the banks illegally manipulated silver prices by periodically "flooding the market" with sell orders to suppress market rallies. The suits were dismissed in 2011 on grounds that unless and until the CFTC completed its investigation the Courts had no basis for any findings against the Banks. The CFTC investigation remains unresolved today, five years after it began, and as of this date JPMorgan Chase still holds short positions representing over 20% of the entire Comex silver market. Veteran traders believe price suppression continues, but remain confident that demand will ultimately overwhelm the Banks' short positions, and that silver prices will then dramatically spike to their true market values.
Summary
There are many alternatives for buying silver, and decisions to enter the silver market deserve careful thought, planning, and preparation. We hope you will find this information useful if you are contemplating an investment in silver.
Steve McCurdy specializes in investing in precious metals and is a survivalist. You can check his latest website at [http://www.goldsilverandsurvival.com]Gold Silver and Survival, and also read his article [http://www.goldsilverandsurvival.com/?p=137/]Buying Silver.
Article Source: [http://EzineArticles.com/?Tips-on-Buying-Silver:-The-Poor-Mans-Gold&id=7581028] Tips on Buying Silver: The "Poor Man's Gold"
By [http://ezinearticles.com/?expert=Steve_A_McCurdy]Steve A McCurdy
A prominent silver analyst recently stated that he thinks that at its current price, silver is the most undervalued commodity in history, but here are some things prospective silver investors might not know.
Buying and Storing Physical Silver
You can buy silver bullion bars and coins from many qualified dealers both in the U. S. and abroad. By "qualified" we mean dealers who offer defined buyback programs and secured storage options along with your purchases. Two popular dealers are American Precious Metals Exchange and KITCO in Canada. Both feature great selections, competitive pricing, quick delivery (if you choose), and excellent buyback policies, along with secure storage options. Bullion silver bars and coins are.9999 pure silver and trade at modest premiums to their intrinsic (or melt) values. You can also purchase what is known as "junk" silver, which means United States silver coins minted prior to 1965 (1970 for the Kennedy Half Dollar). Junk silver coins contain 90% silver and 10% copper, and are generally sold in random denominations in different sized "bags." Premiums over melt value can vary greatly among dealers, so you should shop carefully. Some dealers also offer uncirculated US silver coins, but these coins have numismatic value and so are universally sold at higher premiums over their intrinsic value.
Advantages/Disadvantages of Silver over Gold
Many anticipate a collapse of the dollar as the U.S. unit of currency at some future point. Fiat currencies (those based only upon faith) have never stood the test of time, and history is replete with almost 4,000 examples of failed fiat currencies. If and when the dollar ultimately fails there will almost certainly be a period during which silver and gold coins will be used as currency. Silver coins will have more utility than gold as a replacement currency, but gold can be more easily stored. It is not possible to predict the relative future values of gold and silver, but holding some of both metals is probably a wise policy.
Alleged Silver Price Manipulation
Many traders believe silver prices have been artificially suppressed by major money center banks acting in collusion with the Federal Reserve since 2008. The Commodity Futures Trading Commission (CFTC) began investigating charges made by traders against JPMorgan Chase in 2008 after the bank acquired large silver short positions as part of its acquisition of Bear Stearns, and separate federal lawsuits were filed against JPMorgan Chase and HSBC (a large foreign bank) in October, 2010, charging silver market manipulation. The suits alleged that the banks illegally manipulated silver prices by periodically "flooding the market" with sell orders to suppress market rallies. The suits were dismissed in 2011 on grounds that unless and until the CFTC completed its investigation the Courts had no basis for any findings against the Banks. The CFTC investigation remains unresolved today, five years after it began, and as of this date JPMorgan Chase still holds short positions representing over 20% of the entire Comex silver market. Veteran traders believe price suppression continues, but remain confident that demand will ultimately overwhelm the Banks' short positions, and that silver prices will then dramatically spike to their true market values.
Summary
There are many alternatives for buying silver, and decisions to enter the silver market deserve careful thought, planning, and preparation. We hope you will find this information useful if you are contemplating an investment in silver.
Steve McCurdy specializes in investing in precious metals and is a survivalist. You can check his latest website at [http://www.goldsilverandsurvival.com]Gold Silver and Survival, and also read his article [http://www.goldsilverandsurvival.com/?p=137/]Buying Silver.
Article Source: [http://EzineArticles.com/?Tips-on-Buying-Silver:-The-Poor-Mans-Gold&id=7581028] Tips on Buying Silver: The "Poor Man's Gold"
Saturday, April 6, 2013
Gold Exchange Traded Fund Schemes
Gold Exchange Traded Fund Schemes
By [http://ezinearticles.com/?expert=Radha_Reddy]Radha Reddy
Gold exchange traded fund schemes are popularly known as Gold ETF. It is a convenient way of buying gold just like you purchase shares from any stock broker. You need to have a demat account and trading account with any stock broker in India to invest or trade in gold exchange traded fund schemes. Minimum buying quantity of purchase or sale will be in multiples of 1 unit. One Unit of Gold ETF is equal to the price of 1 gram of gold in Indian market. The objective of Gold ETF is provide returns on investments similar to domestic gold prices. You can accumulate gold by buying in multiples of just 1 gram.
Important advantages of investing in gold exchange traded fund schemes:
* All purchased units of gold exchange traded fund schemes are credited to demat account directly. So there is no problem of theft, impurity. Also no need of paying locker charges to safeguard investments in gold exchange traded fund schemes. (You many need to pay Annual Maintenance Charges of Demat Account)
* Ease of buying and selling on stock exchange just like shares. Transparency in pricing as they are traded on stock markets. Large investors who wish to buy at least the size of a unit creation size (usually 1Kg) can directly transact with a concerned mutual fund house.
* Highly tax efficient as no need to pay Securities Transaction Tax (STT), Sales Tax, Wealth Tax or VAT on investments in gold exchange traded fund schemes (Gold ETF)
* Uniform price for buying or selling anywhere as these are traded on stock exchanges.
* No premium while buying and discount while selling which is followed by most of the physical gold sellers. Banks and most of the jewelers just sell gold coins or bars but do not buy back them at same price.
* Benefits on long term capital gains.
* Can track the value of investments in real time as the price of Gold ETF is available on stock exchange websites / stock brokers offices in real time.
Points to consider before investing in gold exchange traded fund schemes:
Although investments in gold exchange traded fund schemes is a good option to invest in gold as a proxy investment, some points need to be considered.
- While many mutual funds offer Gold ETF for investment, some are not very liquid and selling or buying in them have high impact cost.
- You must purchase gold in multiples of 1 gram and may not be feasible for small investors who wish to invest small amounts in gold.
- You can only redeem physical gold in multiples of 1Kg from mutual fund house. Any units below 1Kg (1000 Units) need to be sold on stock exchange.
- For Small investors, Annual Maintenance Charges on Demat account might be high. Although no premium need not paid on gold value, still brokerage charges and other applicable taxes need to be paid by the investor.
- Returns on investments in gold exchange traded fund schemes may not exactly match with returns in domestic gold prices as mutual funds do not invest up to 5% of assets for liquidity needs.
Are you an investor who wish to invest a fixed amount every month to accumulate gold for long term needs? Do you find investment in gold exchange traded fund schemes is not a feasible solution?
You can consider investing in Gold Mutual funds through Systematic Investment Plan (SIP). You can start investing with as low as 100 rupees (For most funds it is 500 or 1000). You may like to use rel=nofollow Gold SIP Calculator to find out how much SIP you need to do every month to accumulate required amount of Gold or to calculate how much Gold you accumulate with a fixed monthly SIP
You can see http://teluguinvestor.com/gold-sip-calculator.html to know more about how much sip you may need to accumulate required gold in grams or how much gold you will accumulate with a fixed sip every month.
Article Source: [http://EzineArticles.com/?Gold-Exchange-Traded-Fund-Schemes&id=7520941] Gold Exchange Traded Fund Schemes
By [http://ezinearticles.com/?expert=Radha_Reddy]Radha Reddy
Gold exchange traded fund schemes are popularly known as Gold ETF. It is a convenient way of buying gold just like you purchase shares from any stock broker. You need to have a demat account and trading account with any stock broker in India to invest or trade in gold exchange traded fund schemes. Minimum buying quantity of purchase or sale will be in multiples of 1 unit. One Unit of Gold ETF is equal to the price of 1 gram of gold in Indian market. The objective of Gold ETF is provide returns on investments similar to domestic gold prices. You can accumulate gold by buying in multiples of just 1 gram.
Important advantages of investing in gold exchange traded fund schemes:
* All purchased units of gold exchange traded fund schemes are credited to demat account directly. So there is no problem of theft, impurity. Also no need of paying locker charges to safeguard investments in gold exchange traded fund schemes. (You many need to pay Annual Maintenance Charges of Demat Account)
* Ease of buying and selling on stock exchange just like shares. Transparency in pricing as they are traded on stock markets. Large investors who wish to buy at least the size of a unit creation size (usually 1Kg) can directly transact with a concerned mutual fund house.
* Highly tax efficient as no need to pay Securities Transaction Tax (STT), Sales Tax, Wealth Tax or VAT on investments in gold exchange traded fund schemes (Gold ETF)
* Uniform price for buying or selling anywhere as these are traded on stock exchanges.
* No premium while buying and discount while selling which is followed by most of the physical gold sellers. Banks and most of the jewelers just sell gold coins or bars but do not buy back them at same price.
* Benefits on long term capital gains.
* Can track the value of investments in real time as the price of Gold ETF is available on stock exchange websites / stock brokers offices in real time.
Points to consider before investing in gold exchange traded fund schemes:
Although investments in gold exchange traded fund schemes is a good option to invest in gold as a proxy investment, some points need to be considered.
- While many mutual funds offer Gold ETF for investment, some are not very liquid and selling or buying in them have high impact cost.
- You must purchase gold in multiples of 1 gram and may not be feasible for small investors who wish to invest small amounts in gold.
- You can only redeem physical gold in multiples of 1Kg from mutual fund house. Any units below 1Kg (1000 Units) need to be sold on stock exchange.
- For Small investors, Annual Maintenance Charges on Demat account might be high. Although no premium need not paid on gold value, still brokerage charges and other applicable taxes need to be paid by the investor.
- Returns on investments in gold exchange traded fund schemes may not exactly match with returns in domestic gold prices as mutual funds do not invest up to 5% of assets for liquidity needs.
Are you an investor who wish to invest a fixed amount every month to accumulate gold for long term needs? Do you find investment in gold exchange traded fund schemes is not a feasible solution?
You can consider investing in Gold Mutual funds through Systematic Investment Plan (SIP). You can start investing with as low as 100 rupees (For most funds it is 500 or 1000). You may like to use rel=nofollow Gold SIP Calculator to find out how much SIP you need to do every month to accumulate required amount of Gold or to calculate how much Gold you accumulate with a fixed monthly SIP
You can see http://teluguinvestor.com/gold-sip-calculator.html to know more about how much sip you may need to accumulate required gold in grams or how much gold you will accumulate with a fixed sip every month.
Article Source: [http://EzineArticles.com/?Gold-Exchange-Traded-Fund-Schemes&id=7520941] Gold Exchange Traded Fund Schemes
How Investing In Gold Protects Your Money
How Investing In Gold Protects Your Money
By [http://ezinearticles.com/?expert=Joe_Robichaud]Joe Robichaud
Investing in gold is a great way to protect your money and build wealth. Investors are flocking to gold like never before and putting their trust in this monetary metal. Gold is unique in that it is one of the rare precious metals whose value is recognized worldwide. Gold is viewed as money in any area of the world. Gold has maintained its long term value as an in demand commodity and remains a smart long term investment. There are many benefits that investing in gold provides to savvy investors.
One of the many reasons that gold is so popular is because it acts as a hedge against inflation. The price of gold is determined primarily by inflation and the fluctuation of the U.S. dollar. This means that as inflation goes up, so does the price of gold go up in response. It is worth noting that due to fluctuations in inflation, the price of gold can be volatile in the short term. Some investors might not see the returns they want if they are only seeking high and quick returns. Gold does not provide dividends or interest like most traditional investments. However, gold has impressively retained its purchasing power and value over longer periods of time.
Gold is a valuable asset at any time that offers virtually inflation proof returns. Gold investors also benefit because gold also acts as a hedge against a declining U.S. dollar. Current economic conditions have mandated a decline in the value of the dollar. Still, gold that is bought and sold in U.S. dollars continues to rise in price while the value of the dollar goes down.
Gold has the additional benefit of performing as a safe haven investment during times of economic crisis. Historically, gold has consistently outperformed other investments during unpredictable periods of fiscal unrest. Even during times of economic failures, the unique value of gold cause it to continue to be a sound investment.
The world's current gold supply has been stable for quite some time. Low levels of gold are added to the world supply each year through worldwide mining efforts. A stable gold supply is good because it also protects against inflation. Gold is also an excellent way to diversify an investor's investment portfolio. Diversification often improves overall portfolio performance and is a great way to protect your wealth. Gold is negatively correlated to most stocks which is key to an effective and diverse portfolio.
No matter how you look at it, gold is an effective and stable investment. It will help you balance your portfolio and protect your wealth now and for the future.
Did you know that some of the world's savviest billionaires hold a significant amount of their net worth in [http://www.goldirainvestinghq.com/start-gold-ira/]gold? Find out what they know that others don't by going to [http://www.goldirainvestinghq.com]Gold IRA Investing HQ.
Article Source: [http://EzineArticles.com/?How-Investing-In-Gold-Protects-Your-Money&id=7539251] How Investing In Gold Protects Your Money
By [http://ezinearticles.com/?expert=Joe_Robichaud]Joe Robichaud
Investing in gold is a great way to protect your money and build wealth. Investors are flocking to gold like never before and putting their trust in this monetary metal. Gold is unique in that it is one of the rare precious metals whose value is recognized worldwide. Gold is viewed as money in any area of the world. Gold has maintained its long term value as an in demand commodity and remains a smart long term investment. There are many benefits that investing in gold provides to savvy investors.
One of the many reasons that gold is so popular is because it acts as a hedge against inflation. The price of gold is determined primarily by inflation and the fluctuation of the U.S. dollar. This means that as inflation goes up, so does the price of gold go up in response. It is worth noting that due to fluctuations in inflation, the price of gold can be volatile in the short term. Some investors might not see the returns they want if they are only seeking high and quick returns. Gold does not provide dividends or interest like most traditional investments. However, gold has impressively retained its purchasing power and value over longer periods of time.
Gold is a valuable asset at any time that offers virtually inflation proof returns. Gold investors also benefit because gold also acts as a hedge against a declining U.S. dollar. Current economic conditions have mandated a decline in the value of the dollar. Still, gold that is bought and sold in U.S. dollars continues to rise in price while the value of the dollar goes down.
Gold has the additional benefit of performing as a safe haven investment during times of economic crisis. Historically, gold has consistently outperformed other investments during unpredictable periods of fiscal unrest. Even during times of economic failures, the unique value of gold cause it to continue to be a sound investment.
The world's current gold supply has been stable for quite some time. Low levels of gold are added to the world supply each year through worldwide mining efforts. A stable gold supply is good because it also protects against inflation. Gold is also an excellent way to diversify an investor's investment portfolio. Diversification often improves overall portfolio performance and is a great way to protect your wealth. Gold is negatively correlated to most stocks which is key to an effective and diverse portfolio.
No matter how you look at it, gold is an effective and stable investment. It will help you balance your portfolio and protect your wealth now and for the future.
Did you know that some of the world's savviest billionaires hold a significant amount of their net worth in [http://www.goldirainvestinghq.com/start-gold-ira/]gold? Find out what they know that others don't by going to [http://www.goldirainvestinghq.com]Gold IRA Investing HQ.
Article Source: [http://EzineArticles.com/?How-Investing-In-Gold-Protects-Your-Money&id=7539251] How Investing In Gold Protects Your Money
Most Popular Ways To Invest In Gold
Most Popular Ways To Invest In Gold
By [http://ezinearticles.com/?expert=Anthony_Bertucci]Anthony Bertucci
There are currently 9 known precious metals but only Gold, silver, platinum, and palladium are considered investment commodities. Of the 4 gold is definitely the most popular among investors and for good reason. Gold is known world wide since its really the original currency, in fact paper currency was originally simply a promise to pay the bearer in gold. These days investing in gold is a popular way of protecting ones assets against recessions and even national and international crises. Lets face it if the world started over tomorrow after a major catastrophe and there was only 1 society gold would be the common currency as it was up until the 1800s. Below is a list and brief description of the most popular ways to add gold investments to your portfolio.
Buying gold coins is currently the most popular way of investing in gold. Gold bullion coins are generally priced based on their weight HOWEVER a premium is always added to the current price of gold. Gold coins may be bought or sold over the counter in most Swiss banks, also by special order is many other banks. You can also buy over the internet or from local coin dealers.
Buying gold bullion bars is the most traditional way of investing in gold and as with Gold coins they can be purchased or sold over the counter in most Swiss banks, also by special order is many other banks worldwide. You can also buy over the internet or from local dealers in most cases. Gold bars are becoming less popular option for investors because of difficulties such as the verification process, transportation, and storage associated with owning gold bars. They still are my personal favorite and tend to have less of a premium then gold coins.
With a gold account, gold can be bought or sold in a very similar way that foreign currencies are traded. A gold account is backed either through NON fungible (allocated) gold storage or pooled (unallocated) storage. You may even able to get leverage when buying gold however this can be risky but like anything else gold does go up and down, if you take to much leverage you may end up having to pay more money on a margin call or risk having your gold sold at a loss to you. If you use leverage you should treat the entire amount as the investment not only what you put up just in case gold happens to go through a corrective stage and temporarily dips.
Another popular choice among investors is to invest in a gold certificate rather than buy physical gold bullion which then has to be stored and/or insured to protect against theft and other such incidents. A gold certificate allows the investor to buy and sell the commodity and eliminate the difficulties associated with owning actual gold. The downside is that you never really have the access to the physical gold.
Gold exchange traded funds (knows and referred to as GETFs) are open ended funds that present a cost efficient and secure way to invest in gold without the necessity of taking physical delivery of gold bullion. Trading GETFs is similar to trading shares in any of the worlds stock exchanges such as the Dow Jones Industrial in New York. Trading in GETFs involves payment of commission and storage fees which are charged on an annual basis. The expenses incurred in relation to the handling of the fund are charged through the selling of a certain amount of the gold as represented by the certificate. Over time, the amount of gold in the certificate decreases to cover these costs with the hope of course the price of gold itself has increased therefore making the certificate worth more then the original investment.
Some larger financial service firms can provide what is known as Contract for Difference (CFD). In this type of gold investment, two parties (a "buyer" and a "seller") enter into a contract, in which the seller agrees to pay the buyer the difference between the current value of gold and its value at contract time. In case the difference is negative, the seller receives payment instead from the buyer. A CFD, therefore, allows an investor to take advantage of long or short positions, allowing the investor to speculate on the market.
Remember to Go into EVERY investment with your eyes open, you should HONESTLY way the pros and cons of all investments you make based on your personal circumstances and willingness to commit weather your investment be buying gold or starting a brick and mortar business. http://www.007aj.com provides our users expert information about wealth building, successful investing and common investing mistakes (IN HINDSIGHT). We release at least 3-4 new articles per week on a variety of topics related to wealth building, successful investing techniques and investing mistakes.
Article Source: [http://EzineArticles.com/?Most-Popular-Ways-To-Invest-In-Gold&id=7564747] Most Popular Ways To Invest In Gold
By [http://ezinearticles.com/?expert=Anthony_Bertucci]Anthony Bertucci
There are currently 9 known precious metals but only Gold, silver, platinum, and palladium are considered investment commodities. Of the 4 gold is definitely the most popular among investors and for good reason. Gold is known world wide since its really the original currency, in fact paper currency was originally simply a promise to pay the bearer in gold. These days investing in gold is a popular way of protecting ones assets against recessions and even national and international crises. Lets face it if the world started over tomorrow after a major catastrophe and there was only 1 society gold would be the common currency as it was up until the 1800s. Below is a list and brief description of the most popular ways to add gold investments to your portfolio.
Buying gold coins is currently the most popular way of investing in gold. Gold bullion coins are generally priced based on their weight HOWEVER a premium is always added to the current price of gold. Gold coins may be bought or sold over the counter in most Swiss banks, also by special order is many other banks. You can also buy over the internet or from local coin dealers.
Buying gold bullion bars is the most traditional way of investing in gold and as with Gold coins they can be purchased or sold over the counter in most Swiss banks, also by special order is many other banks worldwide. You can also buy over the internet or from local dealers in most cases. Gold bars are becoming less popular option for investors because of difficulties such as the verification process, transportation, and storage associated with owning gold bars. They still are my personal favorite and tend to have less of a premium then gold coins.
With a gold account, gold can be bought or sold in a very similar way that foreign currencies are traded. A gold account is backed either through NON fungible (allocated) gold storage or pooled (unallocated) storage. You may even able to get leverage when buying gold however this can be risky but like anything else gold does go up and down, if you take to much leverage you may end up having to pay more money on a margin call or risk having your gold sold at a loss to you. If you use leverage you should treat the entire amount as the investment not only what you put up just in case gold happens to go through a corrective stage and temporarily dips.
Another popular choice among investors is to invest in a gold certificate rather than buy physical gold bullion which then has to be stored and/or insured to protect against theft and other such incidents. A gold certificate allows the investor to buy and sell the commodity and eliminate the difficulties associated with owning actual gold. The downside is that you never really have the access to the physical gold.
Gold exchange traded funds (knows and referred to as GETFs) are open ended funds that present a cost efficient and secure way to invest in gold without the necessity of taking physical delivery of gold bullion. Trading GETFs is similar to trading shares in any of the worlds stock exchanges such as the Dow Jones Industrial in New York. Trading in GETFs involves payment of commission and storage fees which are charged on an annual basis. The expenses incurred in relation to the handling of the fund are charged through the selling of a certain amount of the gold as represented by the certificate. Over time, the amount of gold in the certificate decreases to cover these costs with the hope of course the price of gold itself has increased therefore making the certificate worth more then the original investment.
Some larger financial service firms can provide what is known as Contract for Difference (CFD). In this type of gold investment, two parties (a "buyer" and a "seller") enter into a contract, in which the seller agrees to pay the buyer the difference between the current value of gold and its value at contract time. In case the difference is negative, the seller receives payment instead from the buyer. A CFD, therefore, allows an investor to take advantage of long or short positions, allowing the investor to speculate on the market.
Remember to Go into EVERY investment with your eyes open, you should HONESTLY way the pros and cons of all investments you make based on your personal circumstances and willingness to commit weather your investment be buying gold or starting a brick and mortar business. http://www.007aj.com provides our users expert information about wealth building, successful investing and common investing mistakes (IN HINDSIGHT). We release at least 3-4 new articles per week on a variety of topics related to wealth building, successful investing techniques and investing mistakes.
Article Source: [http://EzineArticles.com/?Most-Popular-Ways-To-Invest-In-Gold&id=7564747] Most Popular Ways To Invest In Gold
Why You Should Invest in Gold Coins?
Why You Should Invest in Gold Coins?
By [http://ezinearticles.com/?expert=Ray_Fristenson]Ray Fristenson
If you have looked at the news recently you know how difficult things have gotten for Europe, Cyprus is just about default and collapse unless they receive a bailout of $10 billion dollars. The situation is very critic and Cyprus citizens are very angry because the government wants to confiscate 10% of their life savings so they can pay and receive the bailout.
This is a very dangerous precedent, here we are talking that the Government can take your money from the bank and use it on their best interest to save the nation. This means that your money is no longer safe in the Bank, but storing it all in cash is also a bad option, because with rampant inflation you will always loose purchasing power.
The best alternative is Gold coins, gold has always been money and a store of value, as long as you have your money in precious metals no one will be able to still your wealth. The price of gold can go up or down depending on several economic factors and the timing, however gold will always be worth.
If hyperinflation hits tomorrow and you have all your money in cash you will be in serious problem, your money will be worth nothing in a blink of an eye. However if you have a good amount of your money in gold, you don't have to worry because even if there is an hyperinflation or deflation you have secured your wealth in gold, you can use it to exchange it for other value, to buy land, buy food or anything.
Gold bullion coins are the easiest way to invest in gold because they are easy to carry, they can be exchanged, they are a store of value and they are accepted anywhere in the world. There are different types of gold coins, the 3 most popular ones are:
The American Gold Eagles
Canadian Gold Maple Leafs
Krugerrand Gold Coins
But keep in in mind that if you are going to invest in gold you should own the actual gold and store it your self, there is no point in buying a precious metal if the bank will keep it for you. Certificates and Paper ETFs are not safe, you don't know if the bank has the actual gold you are buying and you don't know if they are going to give it to you when you request it.
The are many more gold certificates than there is gold to back it up, them moment that you try to get your gold out, the bank will tell you that they don't have it and that they will pay you in cash, which is worth nothing. [http://investygold.com]Click Here to Request your Free Gold Investment Kit. You can also learn more about how to invest in [http://investygold.com/gold-coins]invest in gold coins and insure your wealth before the coming economic crash.
Article Source: [http://EzineArticles.com/?Why-You-Should-Invest-in-Gold-Coins?&id=7578026] Why You Should Invest in Gold Coins?
By [http://ezinearticles.com/?expert=Ray_Fristenson]Ray Fristenson
If you have looked at the news recently you know how difficult things have gotten for Europe, Cyprus is just about default and collapse unless they receive a bailout of $10 billion dollars. The situation is very critic and Cyprus citizens are very angry because the government wants to confiscate 10% of their life savings so they can pay and receive the bailout.
This is a very dangerous precedent, here we are talking that the Government can take your money from the bank and use it on their best interest to save the nation. This means that your money is no longer safe in the Bank, but storing it all in cash is also a bad option, because with rampant inflation you will always loose purchasing power.
The best alternative is Gold coins, gold has always been money and a store of value, as long as you have your money in precious metals no one will be able to still your wealth. The price of gold can go up or down depending on several economic factors and the timing, however gold will always be worth.
If hyperinflation hits tomorrow and you have all your money in cash you will be in serious problem, your money will be worth nothing in a blink of an eye. However if you have a good amount of your money in gold, you don't have to worry because even if there is an hyperinflation or deflation you have secured your wealth in gold, you can use it to exchange it for other value, to buy land, buy food or anything.
Gold bullion coins are the easiest way to invest in gold because they are easy to carry, they can be exchanged, they are a store of value and they are accepted anywhere in the world. There are different types of gold coins, the 3 most popular ones are:
The American Gold Eagles
Canadian Gold Maple Leafs
Krugerrand Gold Coins
But keep in in mind that if you are going to invest in gold you should own the actual gold and store it your self, there is no point in buying a precious metal if the bank will keep it for you. Certificates and Paper ETFs are not safe, you don't know if the bank has the actual gold you are buying and you don't know if they are going to give it to you when you request it.
The are many more gold certificates than there is gold to back it up, them moment that you try to get your gold out, the bank will tell you that they don't have it and that they will pay you in cash, which is worth nothing. [http://investygold.com]Click Here to Request your Free Gold Investment Kit. You can also learn more about how to invest in [http://investygold.com/gold-coins]invest in gold coins and insure your wealth before the coming economic crash.
Article Source: [http://EzineArticles.com/?Why-You-Should-Invest-in-Gold-Coins?&id=7578026] Why You Should Invest in Gold Coins?
Top 3 Reasons Why Investing in Gold Now Is a Great Choice
Top 3 Reasons Why Investing in Gold Now Is a Great Choice
By [http://ezinearticles.com/?expert=Ray_Fristenson]Ray Fristenson
You may have heard people in the news say that you should consider investing in gold to diversify your portfolio and because gold may increase its value, but is it really a good option for you, who should buy gold?
Precious metals have always been a form of money and they have a lot of real value, but let me tell you the top reasons why you should consider investing in precious metals:
1) For centuries Gold has been a form of money that can be exchanged, carried and is accepted all over the world.
2) With the current financial turmoil around the world there is a lot of concern on what will happen next?, when is the next crisis going to hit? is there going to be an hyperinflation or a deflation? all those questions are making people doubt about the sustainability of our current financial system, therefore many investors are buying gold to secure their wealth.
3) Discoveries of Supergiant gold deposits have been declined, in the long term this might increase the value of gold because its a limited resource.
You may have also heard about the recent bailout problem with Cyprus where the country confiscated money from their savers so they can pay for the bailout. This situation can happen in any country that has serious debt problems, once the financial system of a country is going to collapse, the government will do anything in order to save the country. So you are better having your money invested in gold that in a bank account.
If you have decided to buy gold to diversify your portfolio or to secure your wealth, the next step is to look for a dealer that you want to buy from. However be careful not to buy just gold certificates or paper ETFs, you need to buy physical gold and store it yourself. As long as you don't have the gold in your hands you don't own it, a bank can issue a thousand gold certificates and only have enough gold to support a hundred certificates.
You should look at your options either gold or silver are great investments, gold coins are the easiest form of precious metal to invest in because they are easy to carry and to store. Do your research don't buy from a company that is new, always look for dealers that have years in the industry. [http://investygold.com]Click Here to Request your Free Gold Investment Kit. You can also learn more about how to invest in [http://investygold.com/gold-coins]gold coins and insure your wealth before the coming economic crash.
Article Source: [http://EzineArticles.com/?Top-3-Reasons-Why-Investing-in-Gold-Now-Is-a-Great-Choice&id=7580300] Top 3 Reasons Why Investing in Gold Now Is a Great Choice
XZ3SD29JU5FS
By [http://ezinearticles.com/?expert=Ray_Fristenson]Ray Fristenson
You may have heard people in the news say that you should consider investing in gold to diversify your portfolio and because gold may increase its value, but is it really a good option for you, who should buy gold?
Precious metals have always been a form of money and they have a lot of real value, but let me tell you the top reasons why you should consider investing in precious metals:
1) For centuries Gold has been a form of money that can be exchanged, carried and is accepted all over the world.
2) With the current financial turmoil around the world there is a lot of concern on what will happen next?, when is the next crisis going to hit? is there going to be an hyperinflation or a deflation? all those questions are making people doubt about the sustainability of our current financial system, therefore many investors are buying gold to secure their wealth.
3) Discoveries of Supergiant gold deposits have been declined, in the long term this might increase the value of gold because its a limited resource.
You may have also heard about the recent bailout problem with Cyprus where the country confiscated money from their savers so they can pay for the bailout. This situation can happen in any country that has serious debt problems, once the financial system of a country is going to collapse, the government will do anything in order to save the country. So you are better having your money invested in gold that in a bank account.
If you have decided to buy gold to diversify your portfolio or to secure your wealth, the next step is to look for a dealer that you want to buy from. However be careful not to buy just gold certificates or paper ETFs, you need to buy physical gold and store it yourself. As long as you don't have the gold in your hands you don't own it, a bank can issue a thousand gold certificates and only have enough gold to support a hundred certificates.
You should look at your options either gold or silver are great investments, gold coins are the easiest form of precious metal to invest in because they are easy to carry and to store. Do your research don't buy from a company that is new, always look for dealers that have years in the industry. [http://investygold.com]Click Here to Request your Free Gold Investment Kit. You can also learn more about how to invest in [http://investygold.com/gold-coins]gold coins and insure your wealth before the coming economic crash.
Article Source: [http://EzineArticles.com/?Top-3-Reasons-Why-Investing-in-Gold-Now-Is-a-Great-Choice&id=7580300] Top 3 Reasons Why Investing in Gold Now Is a Great Choice
XZ3SD29JU5FS
Subscribe to:
Posts (Atom)