Investing in Gold is Always a Good Bet
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Posted On :
Jul-08-2009
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Article Word Count :
527
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While it is important to diversify investments, many people often forget to put their money on gold. Instead they concentrate too hard on the stocks, bonds, mutual and hedge funds. Many financial experts believe that you may be able to find great fortune in the gold commodities market.
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While it is important to diversify investments, many people often forget to put their money on gold. Instead they concentrate too hard on the stocks, bonds, mutual and hedge funds. Many financial experts believe that you may be able to find great fortune in the gold commodities market. Further, historical experience tells us that investing in gold has been an excellent way to hedge against market downturns. For example, the price of gold rose from $21 per ounce to $25 per ounce during the stock market crash of 1929. While every investment started falling apart, gold was the only one to stay afloat during the great depression. Now that the recession is still in full force, don’t you think now is the time to invest in gold?
Where exactly is the gold?
The way to invest in gold is to own it outright. The US Mint issues American Gold Eagle coins that are literally worth their weight in gold. The coins can be purchased from banks or authorized retailers. A full listing of authorized distributors can be found at the US Mint official website. Further, you can also find secondary market sellers in the internet, though you must be suspicious of some because many reports have been made regarding fraudulent acts in the internet. A one-ounce gold coin established in 1985 with a $50 face value is now worth approximately $1000. You’d indeed be surprised at how profitable investing in gold can be.
Other ways to invest in gold
Aside from literally owning gold through coins or bars, you can also own gold indirectly just as you do with stocks. There is an array of exchange-traded and mutual funds, as well as common stocks that serve the gold industry in some form. The most popular gold exchange-traded fund makes you sort of an owner of actual gold, therefore the price is tied directly to that of gold. These shares of stock from mining companies and some businesses that provide service to the gold industry trade on the New York Stock Exchange can be purchased through a stock broker.
What do I need to do first before investing in gold?
Before you start filling your house with gold coins and bars, make sure you familiarize yourself with current events, both domestically and internationally, as they greatly affect the prices of gold all over the globe on a day-to-day basis. When the economy is on its way to a downturn, such as our current one, the price gold tend to skyrocket. If we are on the verge of economic upsurge, however, the price of gold weakens. This is because gold is like a bond; when the market is bullish people put a large chunk of their money in the stock market and away from everything else. And when it’s bearish, people put their money away from stocks and invest their money in less risky dealings like gold. So if you want to create your own pot of gold, you should be on the lookout at important current events that are linked to the movements of economies all over the world.
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Article Source :
http://www.articleseen.com/Article_Investing in Gold is Always a Good Bet_1602.aspx
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Author Resource :
About the Author:
If you have ever taken out any payment protection insurance it may have been mis-sold and you could be entitled to claim it back. Real Claims specialises in PPI Compensation Claims and can help you claim your money back. Alternatively if you face financial troubles Wilson Field offer free Debt Management Advice.
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Keywords :
Solutions, business recovery, insolvency, practioners, insolvency practioners, PPI, Mis sold, Miss Sold, Claim back credit ca,
Category :
Finance
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Personal Finance
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