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Tips On Making Money From A Rising Gold Price
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Everything You Must Know About Investing In Gold, Investing In Silver, Investing In Gold Coins, Gold Coins, And Gold Bars.
Many people are not aware that Gold peaked at over $850 an ounce in the 1980's. It has been in a bear (depressed market) for 20 years since but Gold has been marching higher for three and a half years, even in the absence of major inflation. Now, as investors rush to gold as a hedge, you can expect far greater increases. $1,000 an ounce for Gold would not seem unreasonable for the following reasons: 1. Chinese Gold demand overwhelming Shanghai Gold Exchange – the volume of gold trading on the new exchange is exploding so much so that the computer systems and the Gold Exchange Building will have to be replaced within months if they are to keep up with demand – the world market has recently...
For years, I had a fight with The Wall Street Journal editorial board over its front-page summary of market indexes, which highlights a dozen daily indicators, including stocks, bonds, oil, the dollar, etc. Yet it deliberately omitted the single-most significant asset that each day measures the level of geo-political and monetary stability around the world: Gold! Dan Henninger, deputy managing editor of The Journal, wrote me, "We do not believe gold is the best indicator of inflation." Since the Keynesian revolution of the 1930s, gold has been relegated to a "barbarous relic." The establishment prefers flat money to the gold standard. It wants government rather than the market to...
There are many ways to own gold, many forms: jewelry, bullion, coins, mutual funds, gold mining stocks (indirectly) and ETFs (Exchange Traded Funds). The latter are similar to mini mutual funds, but usually have few stocks and they remain constant rather than have internal trading as mutual funds do.
So you can own gold. So what? Why bother when it does not pay any interest or pay any dividends? What is interesting to note that one ounce of gold today will buy the same amount of goods as it did 100 years ago. That item in 1906 might have been $1.00 and today the same item would be priced at $100, but when translated into ounces of gold the weight is the same. Doesn’t that make you...
Gold Price Close Today : 1251.50Change : 5.20 or 0.4%Silver Price Close Today : 19.615Change : 0.256 cents or 1.3%Platinum Price Close Today : 1546.00Change : 10.00 or 0.7%Palladium...
This is a summary only. Visit GOLDPRICE.ORG for the full article, gold price charts in ounces grams and kilos in 23 national currencies, and more!
Gold Price Close Today : 1244.20Change : (4.10) or -0.3%Silver Price Close Today : 19.327Change : (0.055) cents or -0.3%Platinum Price Close Today : 1536.00Change : 8.00 or 0.5%Palladium...
This is a summary only. Visit GOLDPRICE.ORG for the full article, gold price charts in ounces grams and kilos in 23 national currencies, and more!
Gold Price Close Today : 1248.30Change : 11.40 or 0.9%Silver Price Close Today : 19.382Change : 0.372 cents or 2.0%Platinum Price Close Today : 1528.00Change : -2.00 or -0.1%Palladium...
This is a summary only. Visit GOLDPRICE.ORG for the full article, gold price charts in ounces grams and kilos in 23 national currencies, and more!
Gold Price Close Today : 1236.90Change : 1.30 or 0.1%Silver Price Close Today : 19.010Change : (0.029) cents or -0.2%Platinum Price Close Today : 1530.00Change : -1.00 or -0.1%Palladium...
This is a summary only. Visit GOLDPRICE.ORG for the full article, gold price charts in ounces grams and kilos in 23 national currencies, and more!
Gold Price Close Today : 1235.40Change : (4.10) or -0.3%Silver Price Close Today : 18.978Change : (0.044) cents or -0.2%Platinum Price Close Today : 1536.00Change : 4.00 or 0.3%Palladium...
This is a summary only. Visit GOLDPRICE.ORG for the full article, gold price charts in ounces grams and kilos in 23 national currencies, and more!
Gold Price Close Today : 1240.10Change : 8.30 or 0.7%Silver Price Close Today : 19.022Change : 0.653 cents or 3.6%Platinum Price Close Today : 1532.00Change : 14.00 or 0.9%Palladium...
This is a summary only. Visit GOLDPRICE.ORG for the full article, gold price charts in ounces grams and kilos in 23 national currencies, and more!
Gold Price Close Today : 1231.00Change : 4.10 or 0.3%Silver Price Close Today : 18.369Change : 0.386 cents or 2.1%Platinum Price Close Today : 1518.00Change : 8.00 or 0.5%Palladium...
This is a summary only. Visit GOLDPRICE.ORG for the full article, gold price charts in ounces grams and kilos in 23 national currencies, and more!
I am often asked - why do I invest in gold and gold stocks? There are many reasons why gold prices are increasing and will continue to increase, but the simplest answer is the basic principles of supply and demand. In the early 80s, Cabbage Patch dolls were selling 100 times retail price due to lack of supply. This priced many people out of the market and angered parents around Christmas time. I don’t believe the company intended to drive prices up with a limited supply strategy - especially since it didn’t benefit from the higher prices as a secondary market evolved. Thus, to profit from the demand the company had to increase production. I believe that a similar scenario is evolving in the gold patch.
From 1980-2001, there was very little interest in Gold as it fell to a low of $255/oz. Mining companies were not able to attract investment capital to bring new mines and projects to fruition, thus gold supplies diminished. During this same time period, India and China were beginning to see the fruits of their industrialization efforts. As the countries industrialized, their citizens benefited and began moving from the poor to middle class.
There are literally billions of people in India and China. Each has cultures that encourage savings and have a strong affinity to gold. As more move to the middle class and transfer a part of their savings to gold, the investment demand will be tremendous. This will be exciting for gold investor; however, that will only be a fraction of the demand. The central banks of Russia, Argentina and South Africa have all announced that they will be increasing their gold reserves with rumors of China and perhaps all of Asia to follow.
The gold mining companies do not have the luxury of the Cabbage Patch doll company which was able to quickly ramp up production. It takes 5-10 years to bring a new gold mine into production. This will leave the industry in supply deficit for many years to come. Investment demand alone should be enough to get you excited about investing in gold. However, there are many more reasons. The Aden Sisters captured it extremely well in their latest commentary.
The investment demand from individuals as well as governments will put a tremendous demand on an industry that is already in supply deficit. As with any investment, its price will not go straight to the
moon, but will ebb and flow. However, until supply and demand are in balance prices will continue to increase. An investor with a systematic approach as described in my previous article, “Dollar Cost Averaging Your Way to Double Digit Returns,” will be extremely pleased.
About the Author
Michael Dawson, is the founder, of The Time and Money Group. The company was created to encourage others to achieve their dreams through financial freedom.
Gold is Money Gold is the only commodity produced for accumulation of wealth. All other commodities are produced to be consumed by industry. Coal for example is widely used in the production of energy. Gold, on the other hand, is not consumed, but stockpiled. It is this tendency to hoard gold rather than consume it that makes gold a store of value. Gold is money. Money has three consistent characteristics. It is a medium of exchange, a store of value, and a unit of account. Gold has performed all three functions reliably for thousands of years. Paper money, on the other hand has proven to be very unreliable throughout the ages. Paper money is a bad store of wealth due to the fact that central banks around the world print too much of it. And the more money that gets printed, the less value it holds. Gold holds its value through political unrest and economic turmoil. These are events that often devalue paper money. In terms of purchasing power, gold can sustain its purchasing power over very long periods of time. It has after all been used as a currency for thousands of years. The reason that gold is more effective as a store of wealth is because it is a tangible asset and not someone’s liability written down in a book or stored on a computer system. It actually exists. And it shines. Gold is also not restricted by borders, its value is accepted the world over. Gold as an Investment Diversifying risk is key to any successful investment portfolio. Gold shows a low or negative correlation to most stocks and bonds. This is because people turn to gold as a safe haven when they perceive other investments to be too risky. Including gold in a portfolio of stocks, bonds and currencies greatly reduces the overall risk of the portfolio by decreasing volatility. Studies by...
PRMinds - Found Sep. 6, 2010 ... of investing in gold and one of the most profitable gold investments is definitely the gold IRA. There are various ways of investing in gold...
PRMinds - Found Sep. 5, 2010 (E-Business) When investing in gold, one of the best options are and gold Swiss There are many that invest in gold because this precious metal is
PRMinds - Found Sep. 4, 2010 ... money in collecting gold coins. While gold bullion bars is far more expensive investing in could be affordable for many. Moreover, gold coins...
Associated Content - Found Sep. 3, 2010 Many people are already starting to pay attention to the newest online trend: E-gold investing. E-gold investing is all about a system that allows...
CNBC - Found Sep. 1, 2010 ... chairman of Rogers Holdings, expects a larger percentage rise in silver than gold. He shares his views on investing in precious metals with...
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