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[G338]Gold As An Investment

by Dori Kelsey, Dor

?In past civilizations and societies not so long ago gold was used as currency and thus provides strong financial capabilities to its owners. In this very modern time, gold is still synonymous to money. Many people still realize the potential of gold especially in periods of war and crisis where currency may become worthless. Gold is seen as an asset that can always purchase food and transportation. It is a common misconception that gold investment is generally buying and storing physical gold items such as gold bars and gold coins. The modern and digital world has created various ways to invest in gold without actually carrying or storing it. Below are some examples:

?Gold bars and coins ? the most conventional and still quite a popular way to engage in gold investment are through purchases of gold bars and coins. . Buying and selling of gold ?over the counter? on major banks do exist in some countries such as Switzerland, Austria, Liechtenstein and Argentina. Gold bars come in different sizes and weights. Buying of gold coins is another fashionable way to hold coins and has become rather popular in the past decades. Some of the most popular bullion gold coins include the American Gold Buffalo, American Gold Eagle, Australian Gold Nugget, Canadian Gold Maple Leaf, Chinese Panda, and the South African Krugerrand.

?Gold certificates ? are issued to gold investors as a certificate of ownership. Obviously, its big advantage is the comfort of not holding and storing actual gold items. The only government insured gold certificate program in the world is the Perth Mint Certificate Program (PMCP) which allows investors to stock up gold, silver and platinum without worries of ballooning storage costs.

?Gold accounts ? these include Digital gold currency, Bullion Vault, and Gold Money. A number of Swiss banks provide gold accounts in which one can instantly buy or sell gold just similar to any foreign currency. The Digital gold currency and Bullion Vault gold exchange functions almost the same. A so-called ?digital gold? provider since 2001, the Gold Money stores gold accounts with various intermediation levels between their clients and its gold.

?Gold exchange-traded fund (GETF) ? similar on how shares are traded and are available in major stock exchanges such as in New York, London and Sydney. It was on the Australian Stock Exchange in March of 2003 when the first GETF was ever traded. GETFs are completely backed by gold that is both insured and deposited.

?Spread betting ? if you have the ability to foresee the price of gold maybe because of luck, experience, and any other legal means or if you have third eye then you should try this type gold investment. UK firms Cantor Index and IG Index allows bettor to take a stake on gold price with a minimum bet of $2 per point. Let's say you bet that price of gold will sell at $480.25 and it closes at $483.25, your bet of $2 will make you $600 richer because of the 300 points gain. Added information, no commissions and taxes are imposed in UK spread betting.

?Other gold investment. systems are gold forwards, futures and options and investing in gold mining companies. If you can't decide which type of venture method to take, well you are still lucky at least you've got money to invest? happy gold investing!

In today's tough economic times there are many investors whoare beginning to panic. These investors no longer trust the stock market. Yet,these same investors have no idea where to put their money now. This is becausea lot of investors seemingly think that their only option is to invest in thestock market. They seem to think that their other option, investing in realestate, is way too risky. What they are looking for are safe, smart investmentsthat will yield them positive results now as well as in the future.

While we do live in such uncertain times, there is still onesure thing: gold as an investment. Investing in gold is a safe investmentregardless of where you are from. In fact, the National Bullion Investors, LLC(NBI) states that the price of gold will continue to rise over the course ofthe next year as many investors will abandon the stock market and begininvesting in precious metals instead. This is why it is believed that the priceof gold will average $958.60 per ounce by November of this year. Whenever youconsider that the price of gold is already at $902 per ounce, this is a majorincrease that is being expected here.

Over the past 10 years, Alan Greenspan, the highly respectedformer chairman of the U.S. Federal Reserve has seen gold as an investment as awise choice that he has recommended to others as well. He has even gone so faras to say that while fiat money is going to be worthless someday, gold willstill be accepted.

Today, there are a lot of people who are beginning to agreewith Alan Greenspan. In fact, Jeremy Charles, London's head of precious metals at HSBC, hasseen that many people are now beginning to invest in gold as their confidencein the U.S. dollar has been shaken. Jeremy Charles believes that what we areseeing is a structural change in the way that investing is being approached. Hedoesn't believe that this will be a temporary fix either. Instead, he feels asthough gold will still be viewed different even after the current state of theeconomy improves. Instead, it is believed that gold is going to continue to bea wise investment option for many years yet to come.

Now is a good time to reconsider the investments thatare within your portfolio. It is also a good time to be open-minded whenever itcomes to new opportunities such as gold as an investment. By diversifying youwill be creating a safety net for yourself. However, if you are still notcomfortable with investing all of your money in gold, then simply start off slow.Place around 10% of your portfolio funds into gold as an investment. In theend, simply remember that gold is a lot more than the jewelry you wear. It isalso something you can pad your savings account with and thus increase yourwealth.

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Dori Kelsey has sinced written about articles on various topics from Investing and Trading, Education Toys and Education. Dori Kelsey:, ,. Dori Kelsey's top article generates over 550000 views. to your Favourites.

Mohammed has sinced written about articles on various topics from Investing and Trading, Investing and Trading and The Internet. . Mohammed's top article generates over 4400 views. to your Favourites.