Tuesday, 2 October 2012

Protect your wealth, Buy Gold

Buying gold is the best way to guarantee your wealth. Nowadays, as recession takes place, dollars are fluctuating and getting a lower value than before.  On the other hand, gold increases its price as years go by, and it has been continuously used as the real basis of money’s value.

Protect Your Investment and Wealth
How will you protect and maintain your wealth?  It’s simple.

These are ways to do them:
·         Buying gold items or gold coinsand bullions. This is done by obtaining minted gold coins produced by the government. Some of the popular ones include American eagle gold coins and South African krugerrands. These often have higher value, thus, more expensive than other types of gold, but are sold in a lower, premium price.

·         Obtaining gold investments through mutual funds.  This is an alternative for you, if you don’t want to buy gold physically. Find a company who’s doing it and invest your money, much like being a partner. You can do this by investing in funds that holds stocks in a well-established company.

·         Through gold ETF. Exchange traded gold or ETF is the newest way of investing.  You will invest your money and obtain units.  Each unit (1 unit=1gram of gold) represents 99.5% pure gold and these units can be traded like a company’s single stock in the stock exchange market. It allows the investors to mount up gold in a certain period as they can exchange it in smaller numbers or quantities.

·         Junior gold stocks are another way to invest in gold. Though they are considered risky investments because they are still in exploration stage, they have less capital and they rely solely on their future production.

·         Gold futures. This is done by making a deal to trade gold now (agreeing to prices and amount to be bought), but settling the deal in the future, usually after 3 months (but this mostly depends on the agreement). This is considered to be risky because a change in gold price determines the loss or win of the investment. That is why this is usually done by most experienced investors.

·         Spot gold trading. This investment requires the least capital of them all. You can do this by going online and then buying certain gold coins or bullion at a specific amount.  Selling and trading can be done online so it’s much accessible and practical. It also brings higher profit at a low capital cost.

·         Buy real physical gold bars. Ultimately, they are safe as you own the bars, the only thing you need to worry now is where to keep them.

Gold is robust and dependable. It counters the effect of inflation and exchange rate fluctuation. It also sets the real value of money that is why it is best to get them. In this sense, I can say that wealth is where the gold is.

You may want to read "Gold - A Smart Investment?" too.