Why investing in Gold is the right place to put your money
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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.
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
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Buy Gold Now: How a Real Estate Bust, our Bulging National Debt, and the Languishing Dollar Will Push Gold to Record Highs
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Standard Catalog of World Gold Coins
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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.
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Comments
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.
Thanks for the info Ralph. smile :)
Thank you too for the information RA, at least I am now better informed about investment options.
Thanks for all the comments soyelude.
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)
Thats the same thing I was thinking, when the stock market is down, everyone looks for other places to put their money.
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.
yes it is dear as now a days the price of gold is increasing day bu day
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?
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.
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 !
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.
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!

















Iðunn says:
2 years ago
yes from every indication.