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[S474]Silver And Gold Investment

by Gold Silver, Gol

With the economy in constant fear of recession, the stock market, along with many of the other financial markets, has suffered greatly. Some people even fear that the stock market will crash. In these times of economic uncertainty, how can you be certain that you can get a return on your investment. Many experts are turning to gold trading and gold investment as a new option, hoping that it will pay off. Experts will agree that it is always a wise decision to diversify your portfolio, and gold trading is the perfect choice. But before you can begin trading gold and other precious metals, you need to learn a thing or two about the market and the different types of gold you can choose to invest in.

First off, it is important to know that trading gold or commodities is not like trading normal stock. The gold market or commodities market is not as stable as the other financial markets, the stock market for instance, but the return on investments can be much greater.

Its important that you understand the different types of gold investments, and how they will affect your portfolio as a whole. If you are looking at gold as a potential investment, you will find that there two commonly used ways to invest; through spot gold trading or gold GLD index, Gold certificates, or the trading of physical gold as bullion gold, whether it is bullion, bars, or jewelry. Most investors tend to agree that it is wisest to invest in certificates as holding costs at a bank or private institution can cost almost as much as the gold itself in the long run. On top of this, investing in gold funds or certificates allows investors to trade freely on the gold market as easily as they would trade on the stock market or foreign exchange. Gold certificates and funds are fully backed by gold and insured. The other option gold investors have is to invest in physical bullion, coins, bars, and even jewelry. The main problem with physical gold is that it needs to be stored and ownership must be physically transferred. However, trading gold bullion and coins can have its advantages. Unlike a gold bar which is priced by its weight in gold, bullion, coins and other gold artifacts are priced by their weight in gold as well as their age. So a century old gold coin containing one ounce of gold might trade for more than the price of gold because of its age.

Whether you choose to invest in physical gold or certificates and funds, there is no doubt that gold can prove to be a worthwhile and profitable investment. Like all precious metals, the Earth's supply of gold is limited, and once it has all been extracted there will be none left. Because gold gets rarer and rarer by the day, its no wonder the price for gold is so high and it will only continue to rise. Now is the perfect time to invest in gold. With the economy at historical lows, gold can provide a sound and secure investment, with the potential to make a profitable return for you.

Central Banks are in all sorts of a pickle.

With overwhelming evidence that the global economy is slumping badly:

* UK Retail Sales see Worst Slump in 20 Years
* Business confidence in Germany is at lowest level in 2 years
* New Zealand's central bank cutting interest rates saying slowing economic growth will curb inflation.
* Japanese exports decreasing YoY, and imports climbing on record Oil prices.
* US unemployment at 4-year highs

The knee jerk reaction by central banks is to man the printing presses and hit the accelerator. And whilst this medicine has worked well over the last 25 years, Central Banks are now hitting a brick wall that they haven't encountered since pre-Keynesian 1930s.

Freshly minted fiat currency is falling into the hands of a crippled banking sector with little capital, ability or desire to carry out the multiplier effect and make loans to real people in the real economy. In a debt laden global economy with no reverse gear this headwind is possibly the biggest threat the Federal Reserve and its ilk aka the establishment have ever faced in carrying out monetary policy

Point #1 – Gold investors are well aware of the risks inherent in the current financial system.

The beauty of capitalism and the associated free movement of capital is that smaller more focused entities aka Hedge & Private Equity funds can and are rapidly moving into long held banking preserves.

* Direct lending to mid and small cap entities is now a well worn hedge fund territory.
* Extracting value through Shareholder activism.
* A much larger pool of capital available for short selling.
* Private Equity funds increase investment time horizons.

Highly secretive and operating out of non-transparent domiciles these entities are by and large out of the reach of the central banking system.

Point #2 – Hedge Funds and Private Equity Funds do not benefit from Fed handouts and would be better served by a currency that acts as a stable store of wealth – Gold!

The transfer of the financial system is akin to the explosion of information on the internet. The players that used to have a monopoly on information become less effective. There will be winners and there will be losers. But right now a bet on Gold Investments like Gold Stocks and Gold ETFs is a bet against the Establishment and the out-dated mega-banking system.

Slower growth will continue to cause problems for financials as bad debts soar, and as a result Gold investments will continue to propel higher in its multi-year Secular trend.

Short-Term Opportunity

The above trend stretched too far technically over the last 3-months and there has had a rapid reversal over the last 2 weeks. This is a technical pullback only and the above fundamentals have not changed. There's more to come in this fundamental story and Gold investments (we use GLD gold Exchange Traded Fund) and we could be getting close to another buying point for gold soon.

Gold Investment GLD Fund Prices - $85 is strong support as a confluence of lateral support and the 50-week Moving Average converge. Its just a matter of time before we have another entry point to add to our positions and or make another profitable gold investment.

Article Source : Pg. 22

About Author

Both Gold Silver & Chris Vermeulen are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Gold Silver has sinced written about articles on various topics from Finances, Investments and Finances. Check with the gold forecast services offered by The gold trading with this gold signal provider comes with a week trial. If you believe that. Gold Silver's top article generates over 4400 views. to your Favourites.

Chris Vermeulen has sinced written about articles on various topics from Mobile Phone Reviews, Investments and Jewelry. Chris Vermeulen is a trader and newsletter writer specializing in the price of gold stocks, gold ETF, oil stocks, oil etf, silver stocks, Junior Mining and Energy Stocks listed in the US, Canada and Australia. Please visit my website for more information.. Chris Vermeulen's top article generates over 2400 views. to your Favourites.