Ways of Investing in Gold

20. May 2012 · Write a comment · Categories: gold-investment · Tags:

1. Gold bars

The gold bars usually come in metric sizes and they are based directly on the day’s gold price. But you also have to pay a premium for manufacture and marketing. Usually if the bar is smaller the premium will be bigger.

2. Sovereigns

This is one of the most popular ways to own gold. They are 22 karat gold sovereigns and are the favourite of the British investors. These sovereigns date back to 1887 up to 1982 and are considered to be the best bet. Surprisingly the modern coins from 2000 cost even more. The most expensive coins are the ones that date before the Victorian period. They are very rare, are very valuable and therefore more expensive.

3. Exchange-traded funds

These gold Exchange-traded funds are not actually funds as they only follow only one type of security. They are usually traded on the London Stock Exchange. What they do is to track the gold price. They can be traded daily and all that one pays is the dealing charge of about 0.4%.

4. Kruggerands

Another form to invest in gold would be to purchase South African Kruggerands. It was introduced in 1967 and it was actually intended to circulate like currency.

5. Gold shares

One can easily buy individual shares of companies that either mine or trade gold. Some London listed shares are the Highland Gold. These shares are owned by the Russian billionaire Roman Abramovich and Peter Hambro Mining.

6. Gold account

There are two types of gold accounts offered by the gold banks: allocated and unallocated. The most secure form of owning physical gold is to have an allocated account. This is actually like having a security box and keeping your precious metal there. Your gold is stored in a vault that is owned and managed by a recognized dealer or depository. An unallocated account doesn’t have bars allotted to them. The main advantage is the absence of storage and or insurance charges and his is because the back reserves the right to lease the gold out.

Learn from professionals how buying gold can help you in times of recession.

Should You Buy Gold Mining Stocks?

20. May 2012 · Write a comment · Categories: gold-investment · Tags: , ,

The business of purchasing mining stocks can be a tricky and dicey business like any forms of stock especially in the modern global economic climate characterized by high level of volatile, particularly in the commodity trade directly affected by international economic upheavals. One of the best approaches in the way you can actually invest in gold mining stocks after considering whether the pricing or not, is to consider buying gold stocks. Some investors go for the alternative of buying the physical gold.

This methods is often considered most practicable by those who hold on to gold as a hedge against financial collapse wherein the cases where financial instruments such as futures, stocks as well as EFT turn to have little, or no practical value.

Buying gold mining stocks proves even a better alternative to the methods such as purchasing gold ETFs or a closed fund. The advantage with purchasing gold stocks is that it will give you more balance to escalating gold price other than gold itself.

Of course, in purchasing gold mining stocks, you will have to consider the company-specific, as well as industry related risks. The financial advantages of trading or investing in gold mining stocks is that a rise in the gold price to about $1,000 per ounce would in generally double in the EFTs values the gold demining stock like Newmont Mining has a high potential to triple.

Besides the Newmont mining entity, top managers that have given their opinions on investing in gold mining stocks have presented the following gold mining stocks as viable; Goldcorp, Freeport McMoran, and Royal Gold as well Barrick Gold.

Northern Orion is also one of the top five gold mining stocks that have been presented by top managers, as the feasible gold mining investment entity in the stock market. In the trade mining stocks, it is the smart and perceptive, which are making the most of the greatest gold bull market ever recorded in history. The reality is that while the trade is truly dicey, great fortunes are being raked in on a daily basis by those who take time to familiarise themselves with the ins and outs of making it in the game.

The perceptive traders who are making a large profit are those who have insider access to the real gold market place. Notably the price of spot gold has been on the rise for the past weeks if not months, and one cannot help, but believe that the current bullish environment is being driven, as well as sustained by aggressive fund purchasing.

What one needs to consider here also is that the general gold market is comparatively small when compared to trillion dollar global hedge funds. The critical part here is that one large hedge fund has the capacity as well as the potential to influence the entirety foot in the gold market.

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An Inside Look on the Price of a Gold Bar

20. May 2012 · Write a comment · Categories: gold-investment · Tags: ,

For centuries, gold has always been regarded as a sign of wealth and power. It is a much sought-after precious metal. This is because it is difficult to find large deposits of gold. The scarcity of gold resources made it such a valuable element and made the price of a gold bar so expensive. Because of its value, gold has evolved into a great form of investment.

By buying gold bars and keeping them safe, you are assured that when the value of paper money drops, your gold remains valuable. It guarantees you a more stable and secure future amidst the unpredictability of the economy nowadays, especially with the deflation and inflation of the value of money worldwide.

What you are Really Paying For

Understanding the price of gold is crucial to buying and investing wisely. The price of this precious metal that you normally see is based on the weight per ounce or troy ounce. The type of gold varies according to origin and form. They come in the form of coins and bars that are available for purchase and investment.

Aside from the weight in ounces, there are other factors that affect the price of a gold bar, namely the purity, and the spot price that changes every day. The weight of a gold bar refers to how heavy the bar is. Most manufacturers already weighed the gold bars upon production. The weight is then stamped on the bullion bar. This also serves as your reference if you wish to double check the weight of the precious metal.

Purity refers to how much gold the bar actually contains. The purest is 9999 gold bar, meaning it contains 99.99 percent of gold. In some countries, their purest gold is at 96.5 while others are 98.5 percent pure. Its purity depends on which country it was manufactured and how much alloy and gold were mixed together. Gold mixed with alloy makes it hard enough and resistant to damage like scratches and dents. Gold in its purest form is soft. Therefore, there is no manufactured that is 100 percent pure. For manufacturers to be able to shape them into coins or bars, the gold needs to be mixed with another type of metal alloys like copper.

The spot price of gold usually fluctuates throughout the day. This is why it is important to keep track of spot prices. You would be able to determine the price for buying and selling gold bars by checking this, and be able to track the growth of your investment as well. Most websites that sell gold provide the current spot price for your reference.

Most spot prices show the price per ounce. And in order to calculate the value of the gold bar you want to purchase, get the weight in ounces and multiply it with the current price of gold or the spot price. Websites that sell gold also provide their own calculator for buyers’ convenience in computing for the price of a gold bar to prevent confusion resulting from miscalculations. For more relevant information, ask any accredited dealer or check out online consumer reviews and feedbacks.

Aaron Kutchinsky is a writer, lecturer, and committed financial activist.

In 2010 Aaron created and founded Guardian Gold & Silver as a definitive and groundbreaking alternative to the gold industry norm, a mission-oriented and revolutionary precious metals company with 3 specific goals in mind:
? Do the right thing.
? Lead others to understanding.
? Get as many into the boat as possible.

It is extremely important to understand the current world financial paradigm shift, which is now well underway. Please visit http://www.guardiangoldandsilver.com for more information and insights.

How to Buy Mint Gold Coins

19. May 2012 · Write a comment · Categories: gold-investment · Tags:

Mint gold coins are a good investment. Gold is a good investment in any times but as the economy is in flux gold is one of the best ways you can build a hedge against the tough times ahead. The reason is that paper currency will always have ups and downs.

There is little stability compared to gold. One reason you want to invest in gold coins verses gold bullion is that coins are free from government seizure. There has been a law in place since the great depression that the government can seize gold from the citizens of the country.

However gold jewelry and gold coins are exempt from this law. So if you have choice of buying gold coins or gold bullion it is best to go with the coins. This is not to say that the government is any time soon planning to seize gold but it is better to safeguard your investment.

The other reason you will want to collect coins is that they are simply beautiful art pieces. When you purchase your first gold coin take a good look at it. You will see the beauty of the piece that has led many to spend a lot of time collecting the coins simply because they are beautiful to look at.

You will find many companies that are willing to help you buy and invest in gold. Find one with an experienced staff that is able to help you buy and sell. You will want to find a company you are comfortable doing business with. You also want to find a company to build a relationship with.

When you visit their office you should be treated like a client not just a customer. The goal of the gold company should be to help you plan your investments not simply to sell you more gold

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Why Are Gold Sovereigns Such a Great Investment?

19. May 2012 · Write a comment · Categories: gold-investment · Tags: , ,

The many reasons to buy gold have been very well documented over the past few years. Most people are aware that the price has increased dramatically, they understand that gold offers great portfolio balance, protection against inflation and security against economic and political uncertainty. What’s less obvious is which forms and types of gold to invest in. Like any tangible asset you buy, it is the price you ease you can sell it for which will determine your profit. If you buy a piece of gold that no one wants then it doesn’t matter how much the gold spot price has risen.Sovereign gold coins offer a number of compelling reasons to invest.

First of all, they’ve been around for hundreds of years so enjoy a very well established reputation and deep developed secondary trading market. This means they’re easy to sell anywhere globally. The very fact that there are a huge number in circulation throughout the years also means a buyer has a great choice when buying. This contrasts with another UK coin, the Britannia, which has only been around for 20 or so years. So buyers generally only have the choice of brand new coins.

As a relatively small coin, they offer the chance of owning a larger number and variety than 1oz coins. Variety and diversity are always good benefits when you’re seeking a balanced gold portfolio. Because you get roughly 4 Sovereigns to an ounce it is easy to liquidate the portfolio in smaller fractions. This increased divisibility offers the investor a high degree of flexibility with their gold coins. It is also easier to find buyers of coins worth ?200 or so than ?900.

A major selling point of Sovereign gold coins is their tax free status. As a 22 carat coin Sovereigns are classified as investment gold and so are VAT exempt. This contrasts to some other forms of gold such as jewellery and gold nuggets, and indeed other precious metals such as Silver and Platinum which all attract VAT of 20%.The real bonus with Sovereign coins is that they’re also Capital Gains Tax free for UK residents. As legal tender in the UK, the Government don’t tax the movement of legal currency. This means that unlike some great foreign coins like the Krugerrand and Maple Leaf, investors get to keep 100% of their profits upon disposal rather than pay up to 28% to the tax man!

So the case for buying Sovereigns is strong, but you still need to ensure you’re getting the best value for money. Almost always avoid buying proof Sovereigns if you’re an investor. You can pay 15-30% premium over bullion coins and will likely receive a fraction of this benefit when you come to sell. You should only consider proof coins if you’re paying close to the bullion price or if you’re a collector. If you’re considering choosing between full Sovereigns and half or quarter Sovereigns, then always go for a full Sovereign if you can afford it.

You’ll likely pay a higher premium for the smaller fractional coins equating to less gold for your money. I also think there is less demand for the half and quarter Sovereigns as they really are very small coins. Conversely I think the ?2 ‘double Sovereign’ and ?5 ‘quintuple Sovereign’ represent good options.Finally, you need to ensure you buy the right age of Sovereign. This rule is relatively simple. Right now brand new Sovereigns remain expensive in my opinion. While they are beautifully finished you can pay 5% or more on top of second hand prices. Like buying a car, that coin will not be the latest mint year within a year, so will represent bad value.

I don’t see a huge difference in the various years of issue in second hand Sovereigns. In fact I see value in holding a nice mix of coins, whether they be Elizabethan, Edwardian, Georgian or Victorian. As long as the condition is decent, it can be beneficial and enjoyable to hold coins from a number of eras. Some dealers may pay a little more for Edward VII Sovereigns purely because of his short stay on the throne but the difference is marginal.All our semi-numismatic Sovereign coins are of at least selected quality which means we handpick our coins for a large number, rejecting those that may be showing their age more than others. Happy investing!

Buy Sovereigns & UK Gold Sovereigns coins from a reputable gold dealer having an experience of 15 years in gold investment. As a coin of the realm in the UK, Gold Sovereign coins enjoy the added benefit of being free from Capital Gains Tax for UK residents.

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