For years, investors have known gold to possess intrinsic value and safe investing features. Since properties, currency and shares are prone to inflation as well as their prices may go up and down with the market, it is far better to invest in gold and silver like gold since the prices will always be expected to increase. Gold, as a commodity, not only has long-term store of value but also provides a hedge against inflation. In last one 10 years, the price of 1ounce gold has shown a dramatic increase from $300 to $1,500 and is likely to raise much more. This makes gold investments very profitable.
Are you interested in making safe investments in gold in gold but don’t know the tips for doing so? Simply check out the tips mentioned here.
Strategies for Investing In Gold Safely:
1) If you’re keen on possessions then you can certainly purchase physical gold in the form of bars, coins and bullion. Gold bullions are made from 100 percent pure gold and they are sold in increments of just one oz. hence they are popular type of investments with regards to purchasing physical gold. Various nations sell bullion coins that are denominated in local currencies. American Golden Eagle is the local bullion currency in the usa which is easily available at local outlets as well as on online websites.
2) Women especially prefer to purchase gold jewelry. This is due to the fact most jewellery pieces are marked and priced based on the weight and quality (pureness) of metal used in it too as the cost of labor included in making it. You will get the rarest ornament pieces from jewelry auctions and online websites (they offer discounts top). However, purchasing ornaments online will need focus on your part because you will have to determine the purity and price of those items, think about the interest in brand and find out the shipping cost of gold. If you buy excellent quality jewelries, you can make profits by reselling it.
3) Exchange Traded Funds (ETFs) are second most popular types of investments after physical gold. In the event you can’t figure out what to know about gold investing, you are able to seek advice from an ETF expert and invest your hard earned money in it. Look for an online brokerage firm and open up an account there. Evaluate the current market prices of gold ETFs by making use of symbols like SGOL and FLD. They possess ETFs prices at 1/10th the price of an ounce of gold whereas PHYS and IAU have their ETFs costing 1/100th of the cost of an oz of gold.
Firstly, determine the amount of ETF shares you want to purchase and appropriately, divide neglect the amounts. You may make use of the online screen of your brokerage account to purchase ETF shares. The process of buying ETFs is just like purchasing stocks or shares. The broker may offer discounts of $5 to $10 on share trades. Here you must remember that gold ETFs don’t supply you interest amounts or dividends because the profits or losses incurred by investors depends upon the fluctuating selling price of 1 ounce of gold. Thus, you should use ETFs for either short term trading of gold belongings or for making long term savings.
4) If your luck is at peak, you can consider investing in stock exchange and mining companies. You can invest in shares of Barrick Gold (ABX) the largest gold mining company. One benefit of purchasing stocks is you can easily sell or buy them with little fuss.
5) Lastly, there are gold mutual funds which are ideal for group of businessmen. Mutual funds directly track the cost of gold and cost of shares of gold mining agencies and are collectively owned by some people. Look for company that offers lower investments and lets you invest in an automated monthly schedule. Put smaller amounts in gold investments for a long period of time to be able to gain maximum profits. If you are a first time investor, you should collaborate along with other experienced traders of the market to stop losses.
6) You can also buy possessions on monthly installments. You can set up an automatic investment scheme that deduces money from your banking account and directly transfers the profits incurred by you there. This will prevent you from going out of budget.
If you would like more information regarding shipping cost of gold, please check at well-known dealers or visit trusted websites to find opinion from the specialists.
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Are there major advantages of owning or buying gold or silver graded collectible coins over that of bullion or bars? Most definitely there is. The following is not an exhaustive list, but does include several things to consider. Coins cannot be beat as an investment opportunity.
Coins are extremely easy to handle and store, in contrast to bars or bullion, which is not. They are manageable in size. They are easy to hide for the sake of security, and they are not heavy, so are easy to carry from place to place. This makes their sale much easier than bullion.
Coins are also very easy to buy. The buyer only has to check the karat and percentage. These should be 24 k and .9999 percent, respectively. When buying or selling bars, they must be assayed. This means involving transport and a third party, all which make for a security problem. This is not true for coins. Collectible gold coins are not only a beautiful acquisition; they have a history behind them. They have been in circulation for some period of time. The following coins are not all that are collectible, but are the major ones.
American Gold Eagle Coins These coins are beautiful, one of their pluses. They are considered possibly the most beautiful of all coins. A nest of eagles is on the reverse side, and a walking liberty on the obverse side. They were minted and issued as with a face value. They can be bought directly from coin dealers or at auction, such as at Ebay. Of all coins collected and traded, they are the most traded. They consist of 91.67% gold and are 22K. This is below the desired standard, but because of their beauty they are still much desired.
Canadian Gold Maple Coins These coins rival the Gold Eagle coin for beauty, and are even considered the most beautiful in the world by some. They are the most pure, consisting of .9999% 24 karat gold. They are inscribed on the obverse side with a bust of Queen Elizabeth II and the maple leaf on the reverse side. They are legal tender in Canada, and can be purchased from most coin dealers.
Gold Krugerrand Coins The South African president, Stephanus Johannes Paul Kruger is the figure depicted on this coin. Due to several adventure movies featuring the coin, it became very famous. It contains a full ounce of gold, one of the first to do so. It can also be obtained in one-fourth, one-half, and one-tenth ounce sizes. Though they are not beautiful like the Gold Eagle and Maple Leaf, they are nevertheless at a premium due to their popularity. They can be gotten at most coin dealers, but demand a high price.
Silver Collectible Coins These coins have all the advantages of gold coins, except the beauty. Most of the silver coins are not considered nearly as beautiful as the gold coins. Most investors actually collect the junk dime, because it is so cheap, readily available, and result in the best investment. Silver has risen in price much more lately than has gold; making these silver coins the better investment. Still, the beauty of the gold coins can’t be discounted. Collectors tend to collect them for their beauty as well as their investment. In a time of great economic catastrophe, though, beauty might not be such a consideration.
In summary, the advantages of coins are that they are relatively easily obtained and have almost nonexistent buying and selling costs. They can be stored locally and handled with ease. They are readily available to the collector to admire. Coins are also easily recognizable and can be assumed to have certain known traits, though if they have been tampered with, this won’t hold true. Tampering will probably be evident, however.
What to Expect When You Sell Your Gold Selling gold that you have in your possession is usually a pretty straightforward deal. You take or send your gold into a dealer or shop, they test the fineness, and then give you an offer based on the quality, quantity, current spot price, and how much they need to profit to cover their overhead. One of the most important things to keep in mind when you are selling your gold is that you will probably never get spot price for your bullion, and you won’t get anywhere near spot price for scrap gold. This is simply because places won’t be able to resell your gold for much over that price. For most people selling jewelry, or some other sort of gold that either isn’t in coin or bullion form, the gold dealer might make you an offer from anywhere between 20% and 80% of what they can sell it for. The lower end of this range would be from pawn shops late at night, or from ads you might see on TV where you can mail in your gold for cash. The higher end of the range will come from jewelry shops and specialty gold buyers. If you have a lot of gold to sell you can get a higher premium on it. If you are selling gold coins, you might be able to get higher than spot price because of the numismatic value of the gold, but that’s unlikely as most gold coins have essentially no numismatic value. The same goes for very fine jewelry, especially if it is very old or has some sort of documented history tied to it. Places to Sell Gold One of the first places that come to mind when someone thinks about where to sell gold is a pawn shop. Pawn shops are well-known for buying pretty much anything, but if you go into almost any pawnbroker’s store, you will find an expansive jewelry counter with plenty of gold. Pawn shops are one of the most popular places for selling gold because you can walk out with cash for your gold 20 minutes after you walk in the store. This can be handy in a pinch, or if you are just looking at selling gold jewelry or other pieces of gold you might have around your house. Most major cities have dedicated gold buyers. These are people who make a living off of buying and selling gold, and they are always in need for more supply. Finding a gold buyer around your area isn’t very hard, most of the time, they advertise pretty heavily because they know there are plenty of people out there who have gold, but they may not be willing to part with it at a certain point in time. Later on down the road, they might think, “Hey, I’m wanting to sell my gold, who should I call?”, and the branding that the gold buyers have done around town would likely pay off. Coin shops are usually good for selling gold, especially if you have gold coins, since they probably already have their own list of gold buyers, allowing them to give you money that day, then turn around and unload the gold on another buyer soon thereafter. It’s possible to sell scrap gold at coin shops, since most of them have the right tools needed to gauge the quality of gold that you have, but there are better places where you can get more money for when you want to sell your old gold. Jewelry stores will often advertise that they can buy gold, since they do use so much of it anyway, especially the stores that specialize in creating their own jewelry. If you plan on selling gold to a jewelry store, call around to get their current offer prices before driving around town to 5 different places just to hear 5 different answers. Larger jewelry stores will usually tend to give more money for your gold than both smaller stores, and chain stores. If you have a lot of gold for sale, you might be able to sell it to a gold investor. These investors are looking for physical gold to hedge against inflation and the stock market. Generally, they will not be interested in a couple of gold rings, but they would certainly be interested if you had gold bullion for sale, or a large amount of gold from the Treasury, or just investment grade gold in general. Finding a gold investor can be difficult, but if you talk to your financial advisor, they may be able to point you in the right direction, or they may know someone looking for some gold for sale.
Best Place To Sell Gold Figuring out the best place for selling your gold can be very tricky, since it does depend on a variety of factors. • Location – Selling your gold in a large city is a lot easier, and can potentially bring you more money since there are plenty of other people who want to buy gold as well, driving up prices. • What’s in demand – In a down economy, bullion gold will be in higher demand than treasure gold. • Supply – If there are a lot of people in a certain area looking to exchange their gold, you will still be able to find someone to buy it off of you, but you might get a lower price than you normally would. • Season – The closer you get to the holidays, the more people are trying to spend money on gifts and parties instead of scrap gold or investment gold. At the same time, people looking to get extra money will be selling gold and the prices will go down. • The kind of gold you have – If you have gold that is considered investment grade, sending it into a “mail-in your gold” program makes little sense. The same thing goes for very nice gold coins, taking them into a pawn shop when you can sell them to a coin dealer isn’t the best way of going about things. • Who you sell it to – Jewelry stores may not be able to handle a large amount of gold, or may shoot you a lower price than normal if they think they can’t use it right away. The individuals you sell your gold to are all in their own unique markets and situations. If you have gold bullion or proof gold coins, you can easily get 90% of the spot value, most of the times closer to 98%+ of spot value from people looking to buy gold as an investment. These people realize are buying not to turn around and sell it right away, but they are going to hold onto it. Since historic rates for gold have been trending higher, investors can afford to pay near spot price for your gold now, then sell it years down the road, hopefully for a profit. The best place to sell your gold if you have jewelry or other small items could very well be a nice pawn shop. Pawn shops that cater to people looking to spend a decent amount of money can afford to give you more money for your gold than you might be able to get elsewhere. If they have their own gold smelting operation, or can sub-contract it out, they stand to be able to make more money the more gold they get, so they offer a higher price hoping to outbid their competition. Selling gold coins to a coin shop is usually your best option when it comes to how much money you’ll get from selling, how easy the people are to deal with in regards to knowing what the coins is worth, and the ability to possible consign your gold for a certain percentage if the dealer would rather go that route. How to Get the Best Price For Your Gold Getting the best price for your gold depends a lot on who you sell it to. Besides the obvious differences in the people who buy gold as an investment as opposed to pawn shops and online gold companies, and what they can offer you, there are a few tricks you can use to make sure that you get the highest amount for your gold. 1. Call around – This is probably the best tip that can help you get the most money out of trading in your gold. Call around to jewelry stores, pawn shops, coin dealers, and gold buyers in your area to see what kind of price they can offer you for your gold. This works well when you try to sell your scrap gold, when you have a gold coin or a piece of gold jewelry, you may actually have to take it in so they can put a solid price on it depending on the condition. 2. Check online – There are plenty of places online that can help you find the best place to market your gold. Online gold buyers may enable you to send your gold in by insured mail, send you an offer, and if you accept it, send you a check. These mail-in programs are probably the most convenient way of selling gold online. 3. Take in your gold for an appraisal – If you have a lot of gold and you aren’t sure whether it’s 14k or 24, or if you have gold coins and you aren’t sure of their value, take it to someone who can give you an honest assessment of what the gold is worth. By having a firm number in your hand, you will at least know if someone is making you a fair offer, or if they are trying to lowball you when you sell your gold. 4. Always negotiate the price – When you sell, you’ll usually be able to talk to someone with the authority to make a deal with you. They do have to make a profit, but their first offer will always be their bottom price, with a little bit of negotiation, you can get them to raise their offer. You’ll win because you get more money, and they’ll win because they will still be able to sell your gold for a profit. Selling Gold Online If you decide that selling your gold online is the best way to go, you are going to have to choose among many different gold buying websites. These can be divided into two basic categories: scrap gold sites, and bullion gold sites. Scrap gold sites will buy just about anything. If you have old jewelry, medallions, coins, even bullion – they’ll buy it. The down side is they are also likely to give you a really low price. Their typical customers aren’t investors – they are people who happened to have gold and now need cash, and are usually desperate. Hopefully you’ve taken our advice on buying investment-grade bullion and aren’t in that boat! Worse yet, you really have to read the fine print with these operations. Some of these placed let you ship the gold to them for free, but essentially hold the gold hostage if you don’t accept their (low) offer, charging you a high shipping fee to get it back. Especially if you’re dealing with small amounts of scrap gold this can devastate your returns and you’re almost stuck selling to them. While the number of “mail-in your gold” ads have gone down over the past year, there are still plenty of TV spots that run which promise a lot of money for your spare gold. These services usually give you the least amount of money out of any buyer, mainly because they have to pay a lot of money for every TV commercial that they run. Selling your gold at a scrap site is probably not the best idea for most people, especially if you live near a pawn shop or any of the other places listed above, since you will get quite a bit more money from those places. If you do decide to exchange your gold at one of these locations, be sure to check around for some customer reviews before you send anything in. People tend to talk about how much they were offered from online gold buyers, which means you can get a basic idea how much they are giving per ounce of gold. The other kind of site is the bullion gold site. Most often, these are the exact same sites that you purchased your bullion from in the first place. In fact, some will even store it for you between purchasing and selling back to them (for a fee, of course). Almost invariably these guys only accept identifiable investment-grade bullion, including the common bullion coins and marked bars from well-known mints suck as Perth and Credit-Suisse. The good news is they pay top-dollar for this gold, often at or barely under the spot price. This is why you bought investment gold in the first place.
Pros and Cons of Places to Sell Your Gold • Jewelry Stores – Pros: Plenty of jewelry stores to choose from, helpful staff in a professional environment, usually you’ll get a fair price for your gold. Cons: Some stores may not be interested in buying, you will get below spot price. • Pawn Shops – Pros: You will get money for your gold immediately, you can negotiate the price, they will take about any kind of gold. Cons: Most pawn shops will give you below spot price, there may not be a lot in your area. • Gold Investors – Pros: Usually will give near spot price for gold. Cons: Most of the time they are only interested in investment grade bullion or coins, may be very hard to find an investor in some areas. • Coin Shops – Pros: They will offer a decent price for most gold coins, you might be able to consign instead of sell outright. Cons: Only interested in coins made of gold for the most part, there may not be too many in your area. • Online Gold Buyers – Pros: Very convenient, usually don’t even have to leave your house to get your money, great prices from investment gold sites. Cons: Offer you the least amount of money for your gold (from scrap gold sites), it can take a couple of weeks from the time you wish to sell until you have your money. So Where Should I Sell My Gold? If you have investment grade gold bullion, the best bet would be to find a gold investor and sell your gold to them, or to sell directly to a large bullion dealer/mint. You’re going to get pretty close to spot price, and they will be interested in any good gold that you have. For scrap gold, if you can find a jewelry shop buying gold at a decent price, they would probably be your best bet, you’re not going to get spot price, but you’ll get more than at most other places. If you can’t, pawn shops in large cities that deal with a lot of gold or similar specialty gold buyers are your best bet. Avoid anything that starts with shipping scrap gold so your gold can’t be held hostage with shipping costs.
If you aren’t much interested in purchasing physical gold, you can take a different approach and purchase the shares of the mining companies that produce gold. This is one way that you can cut out a lot of work and hassle on your part. In the event that the price of gold increases, you can surely expect that the profit margin of the company will rise; consequently, the worth of the company as well as the share price will increase. However, this may not be the case always.
As a result, there are quite a few factors that you should think about thoroughly and take into consideration while buying the share of a gold mining company. Prices aren’t the only instances that you should concern yourself with. You will also have to worry about structural failure, flooding and subsidence in the mines. Management is yet another aspect that you will need to worry about when you purchase gold mining companies. When the company or situation is handled or managed in the improper way, you could face negative publicity, along with theft and corruption. In such cases, the unhedged gold shares might be even more volatile than the gold price itself. Hence, it’s in your best interest to plan and prepare well before investing in gold mining companies.
There are three types of derivatives that you should make yourself familiar with. These derivatives are gold options, forwards and futures. You can trade them on different exchanges all around the world. You can also trade them over the counter, also known as OTC, and it goes directly to the private market. In the United States, COMEX (New York Commodities Exchange) and Euronext.liffe are the major market of trading gold futures. As far as India is concerned, these futures are exchanged in NCDEX (National Commodity and Derivatives Exchange) and at times, MCX, which is Multi Commodity Exchange.
In 2009, many gold future holders from COMEX had experienced a lot of issues in the delivery of their precious metals. A few issues in this situation included unnecessary delivery delays and delivery of bars not matching with serial number and weight written in the contract. Due to these issues, concerns rise that COMEX may not have enough inventory to back up its receipts in the market.
Many companies from the UK, Hong Kong, Portugal, Germany offer CFD (contract for difference) and spread betting on gold price. In case of CFD, the seller pays the buyer the difference between the present value of the gold and its value at the contract time. The situation is reversed, if the difference comes to negative figure; in that case, the buyer is required to pay to the seller.
Spread betting mirrors the CFD in many ways; it is a particular type of wagering where the pay-off is determined based on the precision of the wager which is quite different from a simple win/loss situation. While investing in gold, derivatives, CFDs and spread betting might be very lucrative option if you don’t want the physical ownership of gold. However, they are very risky to invest in and you must be aware of that.