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