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Why investing in Gold is the right place to put your money

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By Research Analyst


Invest in Gold to secure your Future
Invest in Gold to secure your Future

Gold ETF, Gold Prices, Bars Silver/gold, Investing Gold Bullion

Investing in Gold is what is being talked about on talk radio, magazines, websites celebrities, analysts and investment gurus are putting their money and their dollars:

Find out what Jay Bryson, has to say www.bloomberg.com Tim Middleton wrote and article about instead of buying mining stocks or bars of bullion, smart investors will put money into funds that own the metal. A weaker dollar has helped make gold a better buy these days. A weakening dollar is driving gold's price higher.

These days it's easier than ever to invest in gold. Though gold-focused mutual funds used to own mostly companies involved in mining gold, there are now funds that own bullion itself, including the popular StreetTracks Gold

http://in.rediff.com/money/2005/mar/11perfin.htm has enjoyed an 8% price advance

The exchange-traded fund, or ETF, is a safer step into gold investing than mining stocks or the mutual funds that own them. Stocks are highly leveraged against the price of gold and thus rise and fall much more than the metal itself. You can be right on the direction of gold's price and still lose with mining stocks.


Gold Bars value has increased
Gold Bars value has increased

More resources on investing in commodities.

http://cmi-gold-silver.com/buy-gold-bullion-coins.html

http://radio.goldseek.com/

http://www.goldseek.com/

http://goldprice.org/

http://www.facts-about.org.uk/science-element-gold.htm

http://www.goldgold.com/learngold.html

http://www.zealllc.com/2002/gold101.htm


Gold's fundamentals are strong. Two of the world's largest producers Newmont Mining NEM and Barrick Gold ABX reported sharp earnings gains in February, but both warned of slowing production due to increased operating costs.

"Energy costs are up. Labor costs are up. Ore grades are not

as rich as they used to be," says Douglas Groh, a senior analyst

for Tocqueville Gold Fund TGLDX.

Meanwhile, demand is surging.

Markets such as India and China, where gold ownership has largely been confined to jewelry, are easing barriers against investing in bullion. Oil-rich nations are beginning to shift reserves from U.S. dollars to the euro, which isbumping up against a record value versus the greenback. That weaker dollar is another reason gold, a traditional store of purchasing power, is gaining ground. The increase of its price has been less pronounced in other currencies.

Significant increases in the price of gold bullion are anticipated by gold shares three to six months in advance. That didn't happen this winter and early spring. The prices of shares and bullion have moved together. Groh says that is a demonstration of the raw market power that StreetTracks Gold has seized.

It has become the investment of choice among gold's fans.As noted, gold stocks are much riskier than the metal. Miners have enormous expenses and therefore often hedge production by selling future output at today's prices, foreclosing future gains.

Owning bullion directly, rather than through an ETF, isn't practical for individuals. We would have to pay to transport and store the metal, costs which for us would be significant but, on an ETF's vast scale, are trivial.

StreetTracks Gold has a competitor,

iShares Comex Gold Trust IAU but the latter fund has less than 10% of the assets of the former. Trading on correspondingly lower volume, that means iShares is more expensive to buy and sell than StreetTracks.

Comments

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Iðunn profile image

Iðunn  says:
2 years ago

yes from every indication.

Ralph Deeds profile image

Ralph Deeds  says:
2 years ago

Gold is highly speculative. Moreover, although it may continue to appreciate, it doesn't pay interest and investors pay storage costs. If you want to run for cover, money market funds or U.S. treasury bonds are the best bet.

Research Analyst profile image

Research Analyst  says:
2 years ago

Thanks for the info Ralph. smile :)

soyelude profile image

soyelude  says:
2 years ago

Thank you too for the information RA, at least I am now better informed about investment options.

Research Analyst profile image

Research Analyst  says:
2 years ago

Thanks for all the comments soyelude.

jormins profile image

jormins  says:
2 years ago

Interesting hub. I keep hearing about everyone wanting to invest in gold now, but I would think they could saturate the market and maybe be overpaying? (it kind of reminds me what people were saying about Real Estate 3-4 years back)

Research Analyst profile image

Research Analyst  says:
2 years ago

Thats the same thing I was thinking, when the stock market is down, everyone looks for other places to put their money.

jormins profile image

jormins  says:
2 years ago

I think I'm going to start stashing my spare cash under my mattress, at least for a year. When Bush is out of there I'll feel much better about the future of the economy.

sahermann  says:
2 years ago

yes it is dear as now a days the price of gold is increasing day bu day

Research Analyst profile image

Research Analyst  says:
2 years ago

Whetstone TV profile image

Whetstone TV  says:
2 years ago

I kicked myself in 1996 for investing in Fidelity gold fund. It sat unproductive for a decade but I'm glad now I held on to it. I've made a nice profit while everything else has taken a bath. The question now is when do I sell?

Ralph Deeds profile image

Ralph Deeds  says:
2 years ago

Trees don't grow to the sky. Bulls make money. Bears make money. Pigs don't make money. The truth is nobody knows the answer to your question. Also, the answer depends on what other investments you have. Perhaps a bit of re-balancing would be in order. Most advisers would caution against putting or leaving more than 10--15% of your portfolio in gold. Another factor is the tax consequences of selling your gold fund.

Research Analyst profile image

Research Analyst  says:
2 years ago

guidebaba profile image

guidebaba  says:
12 months ago

I agree. The share market is unstable and there are too many uncertainities. Investing in Gold is the Best Option at the moment. Prices of Gold is Bound to rise very soon.Merry Christmas !

Research Analyst profile image

Research Analyst  says:
12 months ago

Its true Gold prices will continue to climb especially when the stock market is so uncertain people want to know where to invest their money.

JPSO138 profile image

JPSO138  says:
8 months ago

I do agree with you on this one. A friend of mine also told me the same thing. In fact this is one of his business. Great hub!

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