Monday, September 20, 2010

Tips for Investing in the Next Gold Rush

buying goldAs gold prices are continuing to rise, gold stocks, ETFs funds and other investments are making headlines again. And with good reason as it seems we are in for some extensive inflation in the near future. Gold investment is one of the very few ways to ensure your nest egg won’t get eaten into.

Gold Shares ETF

First up is the SPDR Gold Shares ETF (NYSE: GLD). This ETF fund invests in gold bullion, and only gold bullion. “SPDR Gold Shares are up significantly year to date, a +14% return vs. a flat market, and up +25% in the last year compared to less than +10% for the Dow,” according to Richard Young, Editor of the Intelligence Report. Gold has increased in value for 10 straight years, so you can expect a sound investment in GLD.

Global Materials ETF

Other materials aren’t as easy to predict. Because they can be cyclical and often offer small dividend yields – if any at all, investing in other mining commodities isn’t always suggested. However, you can spread your risk around and capitalize on the broader gains of commodities like silver, copper and steel via materials ETF. The iShares MSCI S&P Global Materials Sector Fund (NYSE: MXI) has a global flavor. According to Young, “Top holdings include mining giants BHP Billiton (NYSE: BHP), Rio Tinto PLC (NYSE: RTP) and Vale (NYSE: VALE), along with more focused gold miners Barrick Gold Corp. (NYSE: ABX) and Newmont Mining Corp. (NYSE: NEM) among others.”

Buy Gold on Its Own

While it’s not practical for many folks, it is a perfectly good idea to allocate some of your retirement funds to actual hard assets like gold coins. In fact, Young recommends that investors keep 10% of their portfolio in gold and foreign currencies. It is important to note that buying gold retail is not always easy. Looking to a trusted gold dealer is the best practice when buying gold.

Now is the time, more than ever, to invest in gold. Call United Gold Group at (800) 488-3903, and ask to speak to one of our Senior Account Executives, who will be more than willing to help you get on the right track and provide you with the input necessary to make informed and profitable decisions.

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