Friday, November 23, 2012

The Many Ways To Invest In Gold



"The Many Ways To Invest In Gold","  Gold's value is also on the rise.
 At any time of the day or night, a current market price is being established somewhere.


The London market is one of the oldest in the world and is the largest market for physical gold.
 Today, the gold fixings take place at 10:30am and 3pm and provide published prices that are used as official pricing medium by producers, consumers and central banks.
 The New York market is particularly noted for the volume of ""paper gold transactions"" such as futures contracts that are traded on the exchange.


Investment in gold can take many forms.


 Gold Bullion Bars & Coins

Gold bars are offered in a variety of weights and sizes.
  Be sure to get gold that bears the hallmark of internationally recognized refiners so that it will be easier to sell.
 Gold bullion coins are actually the money of the issuing country and have a guaranteed gold content.
  The true value depends upon the gold content and the price for gold at the time.
 The bullion coin represents an investment in pure gold and, because it is legal tender, its authenticity is guaranteed by the country of origin.
 Prices for the most popular one ounce coins are quoted daily in most newspapers around the world.


Gold coins are traded throughout the world on a daily basis as an integral part of the international gold business, so they always have a ready market, and the spread between the buying and selling price is usually quite small.
 Coins make memorable and valuable gifts, are easy to store, easy to transport, and anonymous.
 An investment in a statement account provides safe and convenient storage and allows investors to buy gold in convenient dollar amounts.


Holding gold in an allocated account is like keeping it in a safety deposit box.


Many investors prefer to hold gold in unallocated accounts, which are similar to foreign exchange accounts.
 An advantage of unallocated accounts is that investors do not incur storage and insurance charges.


 Gold Accumulation Plans

Gold Accumulation Plans (GAPs) are similar to conventional savings plans in that they are based on the principle of putting aside a fixed sum of money every month.


A Gold Accumulation Plan is set up just like most other savings accounts.
 Once the Plan is set up, installments are withdrawn from the investor's bank account automatically.
 The advantage of this is that less gold is bought when the price is high, and more is bought when the price is low, since the daily amount of money invested is fixed.
 Of course, they can also get cash should they choose to sell their gold.
 Investors may take or make delivery of the gold underlying the contract on its maturity although, in practice, that is unusual.
 As a result an investment in a futures contract, whether from the long or the short side, tends to be highly geared to the price of bullion and consequently more volatile.
 This is only a fraction of the price of the gold underlying the contract thus enabling the investor to control a value of gold that is considerably greater than the cash outlay.


Gold options give the holder the right but not the obligation to buy (""call option"") or sell (""put"" option) a specified quantity of gold at a pre-determined price by an agreed date.


 Mutual Funds

A number of mutual funds and investment trusts specialize in investing in the shares of gold mining companies.
 To a degree, therefore, it depends on the future earnings and growth potential of the company.
 While they are subject to the same risk factors that influence the prices of most other equities there are additional risks that are specific to the mining business generally and to individual mining companies specifically.
 Mutual funds diversify their holdings among dozens of companies.


If you are planning to have gold as part of your portfolio, you will undoubtedly have it in one of these many ways.
 Regardless of the path you choose, always remember to diversify!

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