Sunday 26 June 2011

Gold commodity invest

Gold is one of the most highly-sought Commodity after precious metals in the world. It is used in jewelry, electronics, and coinage. Gold is widely considered to be an effective hedge against inflation, which means that when the dollar depreciates, demand for gold increases. In addition, during times of economic and political uncertainty, the demand for Gold rises due to its high intrinsic value and relative stability. Moreover, the introduction of gold ETFs and the increasing wealth in emerging markets, such as China, India, and Latin America have contributed to rising demand for gold. While demand for gold has been rising, supply has been dropping as many of the top gold producing countries have had decreasing production over the past few years.Gold has been used as money for more than 3,500 years as it doubles as a currency and a store of value. Gold is one of very few assets that are not the obligation of someone else. It has also proven to be a good hedge as inflation since the experiments with unbacked fiat money began in Europe and the USA in the 18th century.

Gold commodity Tips

A soft metal with a characteristic deep lustrous yellow or yellow-brown color. Au chemical symbol, with the chemical element of atomic number 79, valued for use in jewelry and decoration, and to guarantee the value of currencies. The purest form of money, and the oldest, most durable. Gold, Aurum was already legal tender before the first coins. The oldest gold coins derive from the seventh century BC.

Investors use Gold as a store of value. Gold metal offers the appearance of capital appreciation compared to depreciating currencies. Gold has always had favorable liquidity, but Gold is sterile, it does not provide any current income. [1] Gold does not provide positive cash flow to the owner. Gold owners must pay to maintain, store, and insure Gold, which is an expense. On a cash flow basis Gold a liability, Gold costs you to own it.As an example, if returns were adjusted for inflation from 1802 to 2001. $1.00 invested in stocks would have returned $599,605.00 while bonds and bills would have returned $952.00 and $304.00. The results for investments in gold and the US dollar would have resulted in losses, since that $1.00 investment in gold would have been reduced to 98 cents and the US dollar only seven cents.
How to Invest in Gold

Commodity Tips Maybe you do believe gold is a good investment but not sure how to invest in gold, here are a few ways one can invest in gold.
Gold Funds
With the recent gold buzz more and more gold mutual funds have come to existence, pretty much every mutual fund company now offers gold funds. You can also look at ETFs and gold index funds.
Banks
If you are looking for bullion check out your financial institutions, most banks offer bullion to their clients. You can also purchase storage room from them if you do not have a safe place to keep them.
Brokers
Depending on who your broker is, you can probably purchase bullion from your brokers.
Buying Gold Online
You can now buy gold online, there are many online websites you can purchase bullion from, I wouldn’t trust every site I go on so do a little bit of research.

3 comments:

  1. Nice post, Buying Gold Coins for Investment
    Before an investor makes a decision to buy gold coins, he or she should take the time to learn as much as possible about numismatics and gold.

    The world of coinage has a history dating back literally thousands of years. Throughout this history, people have used and possessed coins for 3 primary reasons:

    1.As money
    2.As collectibles
    3.As investments
    Coins have been used as money to facilitate commerce for thousands of years and served this purpose exclusively up until roughly the past century. In this period, coins were practical items, used every day by rich and poor alike to obtain the goods they needed to survive or the luxury items they sought for prestige and enjoyment.
    us mint gold coins

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  2. !Good Information!

    All post in this blog is very informative and tell what and when should we do some thing related to commodity trading so that we can make some extra money.

    Mcx Trading Tips

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  3. I also like to invest in Gold, There are various forms of investing in gold in which some of the best are Gold ETF, Gold Refinery Stocks, Gold Jewelry, Gold Commodities. Gold Jewelry is always in Physical form & others are in virtual form. So if you want to make more money in short duration then commodity investment is the best option where you can make huge profit. All the other like gold etf, gold stocks are best for long term. Now its upto you, do you want to make money in short or long duration.

    Thanks
    Commodity Tips India

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