Friday, 15 April 2016

Gold Mining Stocks- Gold Exchange Traded Funds – Savy Investment

Gold exchange traded funds or etf’s are beginning to look like a smart investment for the discerning investor, gold has been a preferred precious commodity since the dawn of civilization and as the interest in gold continues to increase, its value seems to be headed in only one direction and that’s up! Investors have long used gold as well as other precious metals such as silver as a kind of hedge against the falling value of the U.S. Dollars. As time have shown, the price of gold usually goes up when the value of the dollar is on the decline.

When it comes to investing in gold they are quite a few options from which to choose from and here is a list of eight gold trading and investing opportunities. One of the options when it comes to investing in gold includes buying gold coins as well as taking a long or short position on spot gold prices. Some gold coins are actually worth much more than their face value will indicate and the value of these coins will usually depend on the purity of the coins, most gold coins will probably also contain some amount of other metals such and the most common ones are copper and silver. You may resort to buying penny stock as a strategy.

Another option can be to buy or invest in gold bullion, when buying gold bullion you have option of either taking physical possession of the gold coins or you can arrange for a storage company that will help you handle and store your gold bullion, when dealing with storage companies it is important that you have strong legal proof that the gold actually belong to you you should also make sure that your gold is insured so you don’t end up losing your gold should something adverse occur, ultimately learning how to buy gold bullion will help you get started.

Yet another way of investing in gold is through investing in mining stocks,these stocks are the best US Stocks to Buy this method offers very lucrative short term returns on your investments especially when the company has several claims, but the drawback with this option is that you don’t get to own any gold as all you have are shares of the mining company and if the company should fail your investments will be lost.

Gold etf or gold exchange traded funds provide you with the opportunity of investing in companies who own gold reserves, this is different from mining stocks because these companies actually have the gold in their reserves, but again in this type of investment you only own your shares and not the gold, so your profits come when the company is doing very well.

When choosing any form of gold investment do make sure that you are properly acquainted with that method of investment, if you opt to invest in physical gold, then you have to make sure that you have a secure location to store and keep your gold, you can store your gold with storage companies or in the vaults of your local bank, but avoid putting your gold in your basement, this could get you robbed or even killed.

When choosing to invest in gold exchange traded funds or gold mining stocks, do ensure that you have done a good background check on the company you are about to invest in, this is because with this type of investments you do not own the gold and your best bet is that the company is doing well and has an excellent track record.

A Beginners Guide to Spot Gold and Siver Investment

With the current economic outlook off things a lo of people have turned to gold as a reliable investment vehicle that can increase or at least preserve their wealth, if you are one of those wanting to invest in gold then you probably have to get familiar with a gold buying guide.

Stock gold trading is a transaction that can be easily done over the counter, at the price of spot gold is actually controlled by the forces of demand and supply, there they might be quite a bit of fluctuations in the price of spot gold. In  spot gold trading the price of the spot gold is determined twice a day from a base in London, and the trading system entails  that if a transaction is conducted today the price of the spot gold or silver is then payed two days later.

This system is a binary system of trading in which case spot trading is similar to currency trading but in this case the trade is between the Dollar and Gold. traders have he option of taking a long or short position depending on their analysis and perception of the market trend. Also in a similar way to how currency is traded gold is traded from three major centers of the world these are New York, Zurich and London. The market opens on a Sunday at 6 p.m. EST and runs till Friday at 5 p.m. EST.

The market operates round the clock and this provides a way of predicting the price trends and variations, normally the market begins to pick up when the Us and European markets begin to open when they is high liquidity and towards the end of the day when  the liquidity levels must have declined. The down side to this method of investing in precious metals is that it is almost driven completely by the forces of demand and supply, but the good side to it is that it is a very exciting market to be involved in.

You can easily get a spot account with any online Forex broker, spot trading of precious metal and Forex trading have quite a lot of similarities and among them is the high risks involved in undertaking such a business. Spot gold trading is just one of the investment vehicles for gold.