value of gold : Gold – The Sound Investment

The value of gold continues to grow. This isn’t speculation—this is an empirical fact. While your shorting stock trader may look at a day-to-day slide as an indicator of decline, this simply isn’t the case. Many people have been brought up with the notion that sound investment means investing in low-risk stocks. Unfortunately, a “low-risk” stock doesn’t exist—only “lesser risk” stocks exist; and usually, these stocks are ones that are so inflated in price that the barriers of entry for your average investor are just too great.

Even if one were to get their hands on one of these stocks, a single painful reality still exists: a stock can default, plummeting to something of literally no value. Sound investment, then, is investing in something that has been shown to produce a return and has never hit rock bottom.
One such asset is gold, and other precious metals. Investors shouldn’t be discouraged when gold prices take a slight dip. More often than not, the “economic experts” who urge people to remain upbeat and positive about the failing stock market are the same people who try to strike fear into people when gold so much as falls by a few dollars.

Take, for instance, one example. From an all-time high in June 2010 to a slight decline in July of 2010, gold dipped only 5%. On the other hand, during the same period of time, the stock market has dropped between 7% and 8% across each of the three major United States markets—with no all-time highs, and week-long slides. Yet you hear these same fear-driving experts telling unsuspecting investors to liquidate their gold and precious metal assets in favor of stocks that are likely to “rebound.”

Unfortunately, those who get caught up in this usually end up losing substantial portions of their portfolios and watch from afar as the gold they once physically held in their hands increases in value yet again. This is the simple truth: liquidating a long-term asset, such as gold, in order to invest in a short-term asset that is being advertised as long-term just doesn’t tend to work.

If you are actively investing in gold or are looking to enter the market, the best advice one can give you is this: do not be deterred by miniscule dips. These dips often provide a great potential entry point for new investors, but do not necessarily negatively impact investors who are looking to hold onto their assets for multiple months at a time, if not years.

If history is any indicator for the stock market, it should continue to be a volatile investment path. If history is any indicator for gold, it should continue to appreciate and act as a safe-haven for long-term, responsible investment.

Which would you rather bet your hard-earned money on?

For more information on gold stock investing, including how to get on the right path to diversifying your investment portfolio with gold and other precious metals, call United Gold Group at (800) 615-1513, and ask for a Senior Account Representative who will be more than willing to get you started.

Gold coins investment

“Gold is the hallmark of quality and time.” Famous quotes like these have been written time and again for the metal of all centuries – gold. In today’s time, when the stock markets are based on speculation and losses can be expected on investments any day; gold has stood its ground. It has not only remained stable in the time of economic crises, but has given huge profits to the investors. This is the true value of gold.

Gold coins investment for the investors is available through various means. The popular ones are gold coins that can be purchased from banks, gold dealers or govt. authorized agents. The gold coins investment is nothing new, yet with time, the people who invest in gold have grown leaps and bounds. Historically, gold used to be associated with the rich and mighty. It was a treasure for the kingdoms and a way to splurge wealth by the kings and queens. Nowadays, gold is seen in the same way, but not limited to the very few. Gold coins can be purchased easily.

The denominations or weight of the coin can start from as little as 1gm and go further into pounds. Gold prices are based on the bullion rate prevailing in the market. The bullion market like stock market gives the everyday price of gold to the investors, buyers, and sellers. As such, gold can be liquidated easily in case you have a cash crunch.

The quality of gold coins can be checked with the karat stamp on the back of the coin. For example, a 22-karat gold coin will be the purest form of gold coins available. Similarly, a 24-karat gold coin will cost less in the same weight range due to its low purity as compared to a 22-karat coin. You can also purchase wholesale gold coins or bars for trade or investment in bulk through banks or authorized shops. The wholesale gold bullion rate defines the prices currently prevailing in the market.

buy gold coins : Make a Good Investment with a Bit of Knowledge Behind You

Rare gold coins are one way to invest in the gold market. With recent troubles of the stock market, more and more people see the need to put their money into hard currency. That is why many choose to buy gold coins. They present a tangible piece of metal that holds a certain amount of worth based on the material. Gold investment has historically been a common place for people to put their money during economic crisis. Whether you invest American eagle gold coins or bullion bars, getting a piece of shiny yellow metal gives many people a sense of safety for their money. In times of economic crisis, that sense of safety helps keep the economy from totally collapsing.

If you want to get into rare gold coins, American eagle gold coins are good way to start. Manufacturers make these gold coins in 22-carat gold. Due to its soft nature, the manufacturer mixes 22 parts gold with two parts silver and copper in order for the coin to retain its shape. These gold coins date from 1986. Manufacturers have produced sets every year since then. When many people think to buy gold coins, these are usually the first ones that pop into their mind. There are two types of these coins. One is the American eagle gold proof. The other one is the American eagle gold bullion. When you get into gold investment, you need to know the difference.

American eagle gold coins are the official gold bullion coin of the United States. They come in different weights. All of the gold comes from sources within the United States. They come with a guarantee of quality and purity from the United States government. When you decide to buy gold coins, you need to make sure they are of high value and good quality. Gold investment is not for the rank amateur. There are a lot of scams out there trying to sell low-quality gold coins at premium prices. Rare gold coins have become the latest scam artist’s tool.

Many people see gold investment as a way to hedge against the bad economy. However, historically gold has only had about a 7% return on investment. That is why it is important to invest in high-quality rare gold coins to make sure your money is in the right place. American eagle gold coins are one of your best options. When the economy goes down, the cost of gold goes up. Make sure you buy at a good price in order for your coins to retain their value. Buy gold coins as part of an overall investment plan.

price of gold : What really controls the price of gold?

If you were to ask your average person the question: “what drives the price of gold up or down?” they would probably give you an answer that has been told to them for years: the value of the U.S. dollar entirely dictates the value of gold. This is often one of the biggest misconceptions in the modern, globalized economy. While it may have been true twenty years ago that the value of the U.S. dollar (primarily due to inflationary cycles) was the sole indicator of the value of gold, it is no longer the case.

Today, everyone has their own theories as to what controls the price of gold. If the economy worsens, then the price of gold should increase. If the economy improves, then the opposite should occur. If interest rates are low, then gold will rise. If interest rates are high, gold will fall.

You get the idea, right?

Clearly, these all cannot be true—at least not simultaneously. History has shown us many instances where our commonly-accepted economic rationales for the value of gold simply do not hold true. For instance, there have been many periods where the strength of the dollar has improved, yet the value of gold has increased as well. Likewise, such as in 1989, interest rates were high yet gold was as well. Moreover, certain concepts of supply and demand—the very backbone of economic theory—don’t apply either. At the end of 2009, when the IMF released nearly 400 metric tons of gold for sale, the price of gold continued to rise. Despite an increase in readily available supply for consumption, prices did not fall.

What gives, then? What is the correct answer?

If we use the old macroeconomic adage of “if everything else is held constant, then this theory is always true,” each theory could be correct at any particular moment in time. Unfortunately for theories, the real world is a different animal entirely. There are, quite literally, hundreds of factors which can dictate gold prices. In this globalized economic world, almost every commodity has its value based to some degree on the value of every other commodity, with particular emphasis given to complimentary commodities (i.e., gold and precious minerals such as diamonds). World crises, domestic economic crashes, foreign economic crashes, foreign credit market collapses, domestic credit market collapses—these all would lend one to believe that the value of gold would increase.

There are, however, daily indicators of the value of gold. In addition to the value of the U.S. Dollar, it’s important to look at the price of other commodities which are essentially large enough to be their own individual markets, such as petroleum. On the grand scheme of things, the largest factor driving the price of gold may be civil and foreign conflict, but to judge this on a day-to-day scale becomes impractical.

Ultimately, it comes down to one reality. Every nuance of the world economy affects the price of gold. The difference, of course, is that gold sometimes does not act like other commodities with respect to economic principles. But this is because it isn’t just another commodity.

Gold is money.

Gold vs. The Stock Market Which is Truly the Better Performing Investment?

One of the biggest misconceptions in the United States economy is the state of the stock market. Many people base their faith in the economy on the performance of the Dow Jones Industrial Average (DJIA), often times because it has been publicized as the primary indicator of the direction of the market. Unfortunately for your average person, the DJIA is hardly as much of an indicator of the economy as it is hyped to be. The DJIA is a price-weighted, averaged listing of 30 companies, and is misrepresented as the whole market. In fact, not only is the DJIA an inaccurate indicator of the United States economy, but many experts argue that it isn’t even the most effective gauge for the health of the United States Stock Market. That title truly belongs to the Standard & Poor’s 500 Index (S&P 500). The S&P 500 is an index of 500 stocks, selected based on a number of factors: market size, liquidity (how easily a stock can be traded without affecting its price), and which industry it operates within.

So why shouldn’t you invest in the stock market? In order to understand this, it’s necessary to understand what it is. The stock market is, essentially, where shares are issued and traded to allow companies access to capital. It additionally provides investors with the belief that they are receiving an owner’s stake in the company so that they may receive a share of future earnings. In reality, though, the investor is receiving an unsubstantiated, un-backed promise based solely on the success of a company. Worse yet, since the stock market is driven by human interaction, the investor is almost always manipulated by the company’s executives, who have access to sensitive insider information.

In a heartbeat, a stable, multi-billion dollar corporation can hit rock bottom, leaving its investors in many cases with nothing to show for it. For example, in August of 2000, energy giant Enron (which had revenue in excess of $100 billion USD) had its stock peak at $90 per share. By the end of November of 2001, it was worth $0.61 per share. Here is the biggest pitfall with investment into the stock market: the worth of something deemed so valuable can literally become worthless. The saying of the stock market being this “high risk, high reward” place of investment still doesn’t hold, especially if you compare its performance relative to other areas of investment. Such an area includes gold, which is often mistakenly looked at as simply a safe investment with no high reward potential. Attached below is a simple chart outlining the performance of gold compared to the S&P 500, which clearly tells a different story:

Analyzing this graph, we learn two very important things. First, gold outperforms the S&P 500—the primary stock market indicator—by an amazing margin. Second, the stock market may not be as much of a “high risk, high reward” investment, leaving it only as a “high risk” investment. The bottom line is this: gold cannot ever be worthless, and it continues to outpace other areas of investment. It is always a good idea to buy gold.

Where should you invest your money, then? First and foremost, never put all your eggs in one basket—a diverse portfolio is always the smartest route to take. One of the best ways of diversifying your portfolio in such a way that ensures it always retains value is by investing in gold and other precious metals. Call United Gold Group at (800) 615-1513 today and talk to one of our Senior Account Executives to get on the right track to protecting you and your family for the future.

gold investment - Investing in Gold?

Gold is one of the oldest forms of showing who is wealthiest of all. Many battles have been fought over gold and other jewels. It has also been used as a form of payment throughout history and is used as a relative standard for currency equivalent to specific economic countries or regions.

It is for this reason; gold investment is one of the widest known way of accumulating for future. European and other countries implemented the gold standards during the mid 50s. Until the Second World War, these used to be dismantled to take care of the financial crises.

After the war, the wholesale gold bullion pegged the United States dollars to gold rate at US$35 per ounce troy. This resulted in a large amount of gold coins investment from people o all sections of society.

Since 1930s, the commonest benchmark for the gold price has been the famous London gold fixing. It is a twice a day telephone meeting of different representatives from the five major bullion-trading firms that also represent the gold dealers. The London bullion market has many wealthy dealers associated with it who make thousands of dollars by trading on the volatile nature of gold.

In addition to this, gold is traded continuously all over the world based on intra-day price that is derived from gold-trading markets throughout the world. Some of the factors that influence gold prices are the availability of gold in the market and its demand. This is very much similar to all other types of investments and commodities.

Many traders believe in creating scarcity by getting into unlawful practices such as hoarding. Though central banks and other official organizations all over the world keep a strict eye on the moment of gold, they still have only 20% of the total gold reserves.

gold coins - The Yellow Metal Sees a Steady Rise

Gold or gold coins have always been considered as an auspicious and valuable since centuries. The value of gold has never vanished during the past many decades even though other metals have more or less disappeared from the scene and for this reason, many people like to trade and buy gold coins.

The glitter of the yellow metal has made many people search for this treasure throughout the world. Yet, gold has never been out of value and quality during the number of years. Gold’s worth can be quantified due to its elegance, history, purity, and aesthetic sense over the years. It has been worn by Kings and Queens in the form of beautiful bracelets and necklaces, and often used as utensils in the palaces. Nowadays, gold can be found in ornaments, watches, mobile phones, clothes, shoes and many other accessories.

Today, gold is sold through retails banks, ornament shops, government approved gold coin shops and dealers, merchants and collectors. The wholesale gold bullion market is witnessing a huge rush of rare gold coins too.

There is a growing concept nowadays of certified gold that not only confirms purity but also considered full proof in terms of price. This type of certified gold comes in the form of gold coins and small bricks that are usually sold through banks or govt. licensed shops in the market. The gold coins are sold according the prevailing bullion rate in the market that shows the current price of the gold as per the market trends.

These coins are trendy, pure, and hold true value for money spent on them. You can use these coins as collectibles or can keep them for future investment purposes. The quality can be checked by hallmark of purity stamped as Karat on the back of the coin. Gold can be easily purchased and transferred from one country to another without any hassles. As such it is a truly international demand and presence, have a high liquidity, value does not get affected with changes in the economy.