Gold Investing Hub

There are alternatives to choose from when you want to invest in gold. Shares and stocks will diversify your portfolio which will protect you against losses in case one of these investments does not work out well. A good investment portfolio will contain a wide assortment of investments that complement each other.

The stock market has always been an attractive means of earning quick money not to forget also a place where you can lose a lot as well. However, with the current financial uncertainty that has engulfed the world the fear of recession is present at the back of everyone's mind. This has had serious repercussions on the stock market.

However, it is also very important to understand that although some of the stocks continue to provide returns in terms of share price however the extent to which they give returns now as compared to the returns that these shares used to give a couple of years back has definitely been on the downslide.

Exchange Traded Funds are what you can invest in instead of gold in its physical form. You can choose to buy various quantities of gold depending on the quantum of your investment as in this case the quantity of gold that is purchased is maintained in electronic form so the aspect of security concern is completely ruled out. Gold investing has thus become a very safe and secure way of making money. In the past few years it has also proven to be the most profitable mode of investing. Gold investing though profitable is subject to a couple of global aspects. Studies have shown that crude oil prices around the world have a direct relationship with the gold price. Higher the crude oil price, the more is the price of gold. This is because crude oil is a very important raw material that is used in the mining of gold and also getting the final finished and polished product to the market.

Another major impact is due to the fluctuation of the dollar value. If the dollar value is prone to a great amount of fluctuation the gold price is adversely affected. Many investors who used to be known for making money in stock markets are now doing so through gold investing. Gold investing although a relatively new concept has become very popular amongst the investor community because of its capability to provide higher returns than any other investment. The willingness of people to be involved in gold investing is going to see a rise in the near future.

As a commodity trader and investor in gold, I'm always on the look out for the best gold investment available out there in the market. As you know, gold is probably the best hedge against a falling dollar. The more the dollar drops, the more gold rises.

The fact that spot gold price has been breaking new highs and the US dollars breaking new lows is a testimonial that the "gold standard" is still much relevant today despite the prevalent use of fiat currencies around the world. When the central banks are flooding the market with cheap money, people always turn to the tangible value of gold as the basis for real value.

If you want to protect your wealth, it's time you start doing some gold investment. In fact, there are quite a few gold investment opportunities that can potentially give you good returns and I'll cover them here. There are basically 6 ways you can invest in gold and they are:

1. Own physical gold. In terms of pure value, nothing can beat ownership of pure gold like gold coins and bullions. The most traditional method of such precious metals investing involves buying gold coins that have been produced in government mints. These coins are legal tender and are often more expensive than other types of gold, but are sold at a low premium. Popular minted gold coins that are worth buying include one-ounce South African Krugerrands, Canadian Maple Leafs or the American Eagle gold coins.

2. Gold Exchange Traded Funds (ETFs). This is a relative new and interesting way to invest in gold. An ETF is a single gold index or stock that is backed by gold bullion holdings and is considered a moderate risk investment. There are 2 ETF that trade in the United Status that hold gold bullion as their only asset. They are the StreetTRACKS Gold Trust (symbol GLD) and the iShares COMEX Gold Trust (symbol IAU). ETF is a practical way to hold gold as part of your investment portfolio.

3. Gold Mutual Funds offer a wide range of mining stocks. This type of gold investment is usually for people who don't want to own physical gold but still want to do some precious metals investing. It provide an investor the opportunity to limit or expand their risk easily. If you want to do gold investment through mutual funds, it's better to select those funds that hold stocks in more established, well-capitalized company such as Newmont. Such "senior gold stocks" have been around for several years and usually have profitable track records as compared to fairly young companies.

4. Junior gold stocks. If you are more adventurous and has more risk appetite, you may consider this. Junior stocks are less likely to own their own production mines. They are typically in the exploration stage for gold and therefore have a great risk of loss. Compared to senior gold stocks, they may have less capital. Since most of these companies hedge on their future production, the return on these shares can be volatile and are considered high risk.

5. Gold futures. This is only for more sophisticated and experienced investor. They are one of the least expensive ways to purchase gold, but is considered higher risk. This may be the most complex of all gold investment but it is one that potentially big fortunes could be made. Having said that,the futures market is far too complex for the vast majority of investors.

Now that you know the real impact of gold in the steady flow of income, you probably want to know how to make use of gold to build the foundation of your wealth. If you are someone who is retiring, you can invest using a gold IRA. With this IRA, you can invest in tangible gold like gold coins and bullions. Gold in IRA can definitely give you more security compared to other forms of investments most especially when you are faced with financial setbacks which are often related to piling medical bills, debts and expenses. When you can no longer work for yourself, the gold in IRA will serve as your life vest.

If you want to make a coin gold investment buy gold coins only after you have determined the gold's purity and weight. This is the amount of actual gold contained in a single coin.

However, if someone purchases bullions and coins, it is likely that the person who bought it will sell them eventually. You must then consider what will happen if you sell your coins. If coins are sold for less than a year, the money you earn is counted as ordinary income and is taxed accordingly. But if you sell the gold after owning it for a year or so, the returns are taxed at a maximum of 28%.

With the unparalleled blend of gold's features such as its indestructibility, uniqueness and beauty, gold has always been sought after. Many people have used gold as a medium of investment. The tendency of the gold price to increase even in states of economic crises has made a lot of people turn to gold investment as a means of financial security. If you are a novice in the gold knowledge area, then know that gold investment for beginners need not to be confusing and stressful.