Friday 18 May 2012

Best Three Ways to Invest in Gold

By Jason Nolan


Gold will always be the absolute best thing to invest in. Even when the dollar loses its value gold will always rise. We have outlined the top three ways to invest in gold. We like to point out that gold's future always has a great looking future; nearly always a bull market. Historically, gold has always had an rock solid staying power. Investing in gold is a no-brainer.

Know that you have a good amount of ways to get gold!

Choose the one that is best for you.

1. Gold Ownership - There is nothing like owning a ton of gold. It is the highest indicator of value. The truth is: gold is the only real money. The value of gold can't be modified by governmental authorities. Like many commodities in the world, the value of gold rises and falls relative to its supply and demand. However, these is a fairly serious disadvantage to owning actual gold - which is that it generally will trade with a large spread between the bidding and asking prices. The gold will be purchased at market price and will sell wholesale, which means that you will need a fairly large price jump in order to reach 500. Gold should be considered a defensive asset.

2. Gold mutual funds - For people who don't want to invest in actual physical gold and still want to invest in the precious metal, there are gold mutual funds. Gold mutual funds are portfolios of stocks for gold of companies mining for gold.

3. Gold options and futures - For the more seasoned investors, gold options let you hypothesize the gold prices. In an options market you're able to hypothesize on which direction the prices will move. Buying a "call" means that you think the prices will go up. It set the price of purchase so that the higher a price, the larger the margin between the fixed price to the current price. When purchasing a "put", you think that the price of gold is going to decline. To be honest, buying options is a fairly risky business. You shouldn't be surprised to find that there are more losers in this game than there are winners. Roughly 75% of options expire. The gold option market is intricate and it recommends that you have strong skill and knowledge on the subject. They are good and bad. They are good in that they let you possess a great investment with a smaller price. That bad thing is that these options expire, sometimes relatively quickly. This makes the clock the biggest opposer. You should always understand risks before investing your hard earned money. There are many ways to invest in gold and you need to find the best one for you. While you can win big, you can also lose too.




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