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The time now is 01/08/09 - 23:46

Sep 09, 2008

Is investing in gold a good idea right now?

by InFlames20

RealCool.BIZ Forum Index -> Tax -> Tax Planning / Exemption Investigations

People and the money

 

People have always looked for ways where they can either earn money or save money. It’s the same thing today. Many have seen opportunity in stocks, money funds or even real estates. Those are not bad solutions but can be very expensive and they are very risky. Investing in gold is a different story.

 

Situation today

 

Let’s see what we have here today. This can also be a part from some daily news because it’s happening very often lately. There are wars, always, for lot’s of reasons, mostly because religion and oil. Of course, everyone can feel inflation in the air. The oil prices are going up and with it everything else too. And sadly, the difference between poor and rich is getting larger day after day, the rich are getting richer and the poor are getting poorer.

 

That’s not everything but it’s good enough example for this story. The one thing that hasn’t changed, or that doesn’t change often, and even when it’s changing it’s mostly rising up, is GOLD.

 

Why is gold better than anything else?

 

Here are few reasons why you should choose gold as investment in this moment beside everything else. Gold has rise rapidly since 2001. and even in these days it’s steady or rising. On the other side the value of dollar is falling down. Today we have inflation in all around the world, the oil prices are going up every day now, and with it the prices of everything else too. But guess what, the gold is not affected by inflation. Also, gold is much safer than any other investment because you can never practically go broke. The stocks, banks or funds can bankrupt but the gold can’t, it will always have some value. The main reason that gold does not lose value over time is that the amount of gold is finite. Even in history you can see that investment in gold was a proven and very often investment method.

 

But than again, like in every other investment, it’s probably not best idea to invest all of your money into gold. However, you can pick a percentage that suits you the most, as 10%, 20% or higher.

 

How, where and in what shape you should buy gold?

 

Depending in what country you live you can buy gold in banks, in coin stores or even in jewelry stores. You can also invest in gold funds if you prefer.

 

You can choose between bars (which come in all sizes, some small enough that they're more like wafers than bricks) and coins. The only difference between coins or bars (bullions) is that coins can have some historical value. Best known coins are American Eagle, South African Krugerrand, Austrian Philharmonic, Chinese Panda, Australian Kangaroo and Canadian Gold Maple Leaf.

 

There are also few other ways of investment like:

 

            - Certificates - A certificate of ownership can be held by gold investors, instead of storing the actual gold bullion. Gold certificates allow investors to buy and sell the security without the inconvenience associated with the transfer of actual physical gold.

            - Accounts - Most Swiss banks offer gold accounts where gold can be instantly bought or sold just like any foreign currency.

            - Exchange-traded funds - Gold exchange-traded funds (or GETFs) are traded like shares on the major stock exchanges including London, New York and Sydney.

 

Conclusion

 

Investing in gold is not completely safe, one could say it’s risky, but not that risky as most other investments are. You should always have in mind that gold is not affected with inflation, which is probably the best reason why should anyone invest in gold.

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