Crisis Proof?

The general uncertainty regarding the economic situation and the developments that lie ahead still has led to a veritable gold rush. The flight to the supposed crisis- and inflation-proof investment instrument should still be carefully considered. Find out what you should keep in mind when investing of gold.

The main reason for investing in gold is its long-term value for savers is gold represents a form of value hedge or a form of international currency, which is why those who fear the “drop” of a currency, like access to gold. Because gold has an exchange value as a precious metal, is thus never “worthless”, as can happen with stocks.

The gold price itself depends on the amount funded, the industrial demand (jewelery) and the needs of the central banks. In times of crisis, of course, the demand for gold, which is where the gold price is soaring – as was also observed in the crisis year 2008. In March 2008, the gold price reached for the first time a value of more than 1,000U.S. dollars per ounce. Within six years, the gold price almost quadrupled it.

2011 was, however, time and again the price of gold declines observed. This was due mainly to the spending behavior of various speculators, the profits made from the gold investments to cash. Thus, the price of gold is currently (as of 05.09.2011 reached) from its all time high at $ 1,895 removed.

Gold Investments

It can be hard to know what to invest in once you have the available funds to put into something that will get you past just paying bills and making it by. You might think that just holding on to that money in a savings account is a good enough idea but the fact is having investments not only can increase the interest on your investment but can also be a safe place to put your money. You might feel that there isn’t a safer place then the bank, but by making a gold investment you’re going to get your money’s worth and more. Gold has been one of the most revisited investments for decades and it’s easy to see why. Gold values continue to increase along with other precious metals, and it continues to be one of the most lucrative and secure ways to invest your money.

When you consider gold investing you have to remember that this is primarily a long term investment. While you will make interest in the short term the real draw of the investment is the long term opportunities. You’ll certainly want to look into gold investments at various places, and figure out the right time to buy because the values on precious metals can fluctuate slightly however in the long run they are always able to keep their value. In addition, when the economy is suffering investing in gold is one of the best choices you can make. With our economy seeming to be taking a slight upturn at the moment and projections say it’s going to do so for the next few years, there has never been a better time for investing in gold then right now.

Because of the rising price of gold there’s always a reason to invest in it. You’ll have to do some research to find the best price and decide whether you want to go with a long term investment or a short term one, but either way the options are there to make your financial commitment easy. You won’t have to struggle with picking which stocks or which banks to put your money into when you decide to turn you cash into gold.

Buying gold isn’t always easy for beginners however and investing is always a bit intimidating, so below is a short list of frequently asked questions to help you have a better understanding of the process.

Q) What types of gold should you I invest into?

A) If you are concerned with the wavering price of gold then you’ll want to purchase pre-1933 gold coins. These coins are one of the most liquid coins out there when it comes to investments and are almost always easy to sell at a great rate.

Q) When should I invest in gold?

A) Gold has always been a great investment choice and there’s never really a certain time to do it. Gold prices have a tendency to shift slightly throughout the year however usually increases in value. This means buy at a decent average and wait to sell. Financially, it’s important to buy when you are financially stable. Gold can take a while to show a profit and if you are struggling you don’t want to have your money tied up in gold coins.

Invest in gold if you’re looking for a safe investment, just make sure you invest only when you are ready and financially stable enough to do so, stress free.

Investments: Gold As Tangible Assets

Basics: Gold as an investment

Gold is considered a safe haven. Especially in times of financial crisis, many investors have once again turned to the investment in gold. So the price of gold was in the wake of Greece and therefore the euro crisis in May 2010, the first time the limit of 1,000 euros pierced for listing troy ounce (31.1035 grams) in Euros this is about $1,300 USD. Those who wanted to buy in August 2011 to sell a gold bar or had to pay $ 1,900 for an ounce or allowed to collect as much money. The financial crisis has unsettled investors’ money. So it was no surprise that gold speculators and conservative investors who after the Lehman bankruptcy (September 2008) and invested the broad disclosure of the Greek crisis in gold, were happy about significant growth. With the appreciation of the currency in the quotation is taken into account.

Performance in dollars and euros

The gold price “ounce in euro” is because of the exchange rate euro to dollar significantly below the price “ounce in dollars.” For the results achieved in the past “all-time high” for an “ounce in euro” also considerably the low dollar exchange rate is responsible. Because of the stable euro and the low dollar exchange rate and the flight into real values in late August 2011 was “scratched” in the mark of $ 1,900 per ounce and thus also a new record and an important marker for the gold price in dollars per troy ounce reached. End of September 2011 came suddenly a drastic price decline in gold, silver and Kpfer. Therefore becomes increasingly clear: A gold buying also includes a currency risk. This “Gold Guide” will help to arguments for and against gold as an investment alternative to weigh objectively.

In a pure yield viewing the gold investment for many investors, however, is anything but a reward system. In early 1980, the gold price had climbed to $ 850 per ounce (31.10 grams). Then the price fell down greatly. Gold was everywhere known at this time as the safest inflation and protection crisis. One reason was the following: “For thousands of years, the yellow metal has fascinated people and it will not in the future be different.” For a rationally acting investor a difficult access point. Allowing for inflation, the gold price would have to be around $ 2500 .

The investment of funds in interest-free coins and bullion to the crisis assurance serve. Ultimately, such a hedge is only useful when we come to a time where the next one’s own labor and the hoarded gold anymore. Sober saw this is a hedge for a very unlikely event. The distinct financial crisis of 2008 and 2009 has shown that the “unlikely event” is discussed in detail, at least in the media. Sun noble houses consoled in October 2008 their customers because of the gold rush was especially easy to become too big. Online shops for gold coins and gold bars were temporarily closed because the demand for physical gold products could not be met. In October 2008, it was primarily the fear that perhaps could collapse the whole monetary system. Today, it is more the fear of a new looming inflation. For as to be “paid back” to combat the financial and economic crisis rapidly rising government debt other than by inflation.

Gold for retirement?

What drives the gold buyer? Is it published opinion (“media report you about buying gold”) or because the colleague, the friend, the neighbor also talks about buying gold? Or is it really a well thought out action to secure their own retirement? Why then is not always in other areas of life, such a provision (including pensions) operated or is it the herd mentality that drives the buyer of gold bullion? For example, a gold buyer, but no adequate insurance coverage for loss or damage has finished running, certainly not a balanced private financial management.

December 2004, in the media for gold, a 16-year high of 456 was identified ounce. If we had not chosen a 16-year period (1988-2004), but a 24-year period, the item would be quite different. One would of still have (without inflation) speak low gold price. Because of the high demand for precious metals (especially China) and the global real estate and financial crisis, the price of gold has since stabilized significantly upwards. See the current gold charts the development of the gold price .

Gold, like all commodities to the law of supply and demand. Speculation expectations affect demand huge. The indicator “ounce” is the German investors also a currency risk. In early 1985, for example, because of the high dollar price for the buyer from Germany was still quite high, while the indicator “price in dollars” had its lowest. Who bought consequently in the first half of the 80s gold was destroyed a few years later, half of the capital invested. The capital is halved and there was not interest. Predict how the Dollar-/Euro-Kurs will look like in 5 years, bordering almost on “reading coffee grounds.” Also the analysis of the so-called experts are often taken by surprise by the behavior of market participants. Example end of September 2011 and days before a further increase in the price of gold has been published in the analyses.

Speculation in precious metals (eg, silver)

The four major precious metals, which are traded on the international financial markets, gold, silver, platinum and palladium. Also speculation in metals other than gold is a very hit and miss affair. Here is an example for an investment in silver. The price of silver had risen from mid-2010 until the end of April 2011 at about 140 percent. Newly boarded in silver investors and speculators had immediately afterwards (early May 2011) “stop breathing” the. Listed prices for silver were in a week dropped by about a quarter. The speculation of the Hunt brothers silver is also widely regarded as the biggest open precious metal bubble.

The basic rule is that inflation expectations cause an increase of the precious metals is true (anymore). Who sat on platinum and silver, has destroyed in poor timing maybe even more money. Besides, if silver is “running”, platinum must not “run” long. Another uncertainty in precious metals: What precious metals are required in the future? Do we need yet for platinum catalysts? Gold is needed in the future in addition to the main use for jewellery, electronics and more for dentures? The Chinese and Indian consumers are actually buying several hundred tons of gold per year in addition for jewellery?

Cost of buying gold

The purchase of large quantities of gold in physical form causes a surcharge of between 2.5 percent and more than ten percent of the material value. For smaller units (small gold bars and gold coins) the premiums are high. So taste a five-gram per gram bars around 20-30 percent more than the equivalent of kilo bars. If you buy a one-gram ingots, must reckon with the double price compared to the purchase price. The problem of storage just adds.

In the financial journals sometimes encountered Council of conservative financial advisors, generally hold about 10 percent of assets in gold is, therefore, somewhat questionable. Seen quite sober, it is a speculation on a real value. An investment in a precious metal like gold brings no income, such as interest income. A gold investor is thus dependent on the gain of gold, making gold to a very speculative investment. An investment in gold is mainly therefore generally not advisable. As a speculative supplement it may make sense, especially in the form of securities to gold, as gold certificates and gold ETFs .

Conclusion: Do not use gold as an important part of the investment. But if you want to speculate on gold, then a metal account, a gold mine shares, an index fund or a gold certificate of the physical plant is preferable. The feeling of owning gold is to feel but barely. This real “gold feeling” only investors who are a gold ingot in the locker.

Who can do without the “perceived gold”: mutual funds that invest in gold setting, mostly on gold mining stocks. These funds are in particular passive index shares on the gold index usually the best choice of the speculation on gold. Speculation chance: if the price of gold goes up strongly (or down), there is most likely a correction at some point again, because the gold price usually runs cyclically.

No guarantee for accuracy

Investment Opportunities In Gold

The gold price is quoted in dollars per ounce (28.35 grams) and ounce (31.10 grams). Gold is bought and sold in the form of coins and bars. In Austria Philharmonic coins and ducats common coinage. The world’s leading bullion coins are the South African Krugerrand, the Canadian Maple Leaf and Australian Nuggets.

It is necessary to distinguish exactly which type is bought by coins. Bullion coins go in value relative to the price of gold, while commemorative coins or collectible coins are also influenced by the specific demand and support and other, sometimes difficult to predict factors in their price. Gold coins can be bought in Austria in banks or at the coin Austria. Negotiations regarding fees or purchase price agreements are often possible and pay off well.

Furthermore there is the possibility, not directly into gold, but to invest in funds or certificates with the subject of gold. Here you buy fund shares or certificates of companies that invest in gold, such as gold mines. Here you have the advantage that you need to make you ensure the retention of gold no idea, however, comes in addition to the risk of fluctuating price of gold will add the credit risk of the banks, in which is invested. Further costs are incurred for safekeeping.

Benefits of investing in Gold

Gold is considered as a safe means of payment crisis. Again and again, it was observed that in times of crisis, gold prices rose as demand was usually very large because of the fear of inflation. And falling dollar prices repeatedly led to an investment in gold. Gold is hoarded as a universal medium of exchange, to the event of a collapse of a currency still be solvent and to maintain his property.

Disadvantages of investing in Gold

While gold has always at least an exchange value, but must not be forgotten that just as gold has a price like a stock. And can rise as well as fall. And often, when the gold price rises, he falls immediately back as investors who bought at lower levels, exploiting the high level to take profits.

An entry should be considered carefully, as it may be due to the fluctuating prices that a sale is associated with a loss. Because you climb at a rate of 1,600 egg, and a few months later have to sell 1,440, you realize a price loss of ten percent.

The price of gold has historically always moved pretty stable, since the outbreak of the economic crisis, however, were sometimes extreme price jumps of up to 25 percent within a year reported. Therefore, no more than five to 15 percent of their assets in gold. Furthermore, should not be forgotten that gold pays no interest, but on the contrary often brings costs for storage in a safe with him. Income may be generated only in the case of rising prices through a sale.

Investing In Gold

What investors need to know?

Rare Gold was as popular as in the global crisis. It has fetch more than $ 1000 per troy ounce, the listing has achieved a new record in the fall of 2008. Even today the price is high. Anyone getting it, so take a risk – and should take care.

Investors clamor for gold. During the global financial crisis, investors wanted to reallocate their assets in gold bullion or coins. Gold specialist reported that there were people waiting for a long times. This is different to cash or fixed-income investments, the valuable metal reserves in times of crisis with high inflation. This is also different to cash, central banks do not reproduce any gold. In addition, the precious metal is a recognized across the world as a store of value. However, the fluctuating exchange rate, increase in cost of living and small increase in income are the major uncertainties of the financial crisis. This final test is to examine the different investment opportunities and define the risk factors with the opportunities.

Who wants to have physical gold should buy common bullion coins. These are South African Krugerrands, Australian Nugget, Vienna Philharmonic, Maple Leaf from Canada or China Panda. These coins are collectible coins, unlike in times of crisis easily tradable. Investors they relate best to banks or bullion dealers like Euro Changeover in Berlin, Munich and West Pro Aurum Gold. The dealers also offer the coins to their online portals. The institutions and professional traders adjust their prices several times a day on the stock market. Measure of real gold is the troy ounce, it is 31.1 grams customers should seek to create an offer by banks and merchants, including shipping costs and any fees.