Percentage in Point

Posted: 22 Oct 2010 11:15 AM PDT

When you invest in any sort of asset, you would want to know the forecast of the increase of price of the asset by experts who have been practicing such forecasting trends since years and are now operating full time businesses.

Gold vs Silver

However if we look at gold for instance, then we would have to back in history because since centuries, gold has been used a form on investment to secure money in. Today, due the movements in the price of silver points to a potential end to the gold's rally which has been going on for years now. This is the reason why most experts believe that gold is nearing the end of its long rally.

If we look at the future forecast then forecast for the month of December closed at $1,310.30 an ounce on a weaker U.S. dollar and it is believed that money would have to be invested in the economy if this rate has to be taken up. As mentioned above about the ending rally, if we look at silver then even if its closing rate for December is at just $21.95 an ounce, but its growth has been over 30% where as for gold has been only 19%. Recently, silver had reached its peak since the year 1980 at about $22 an ounce.

Past Trends of Gold vs Silver

If we look at the past trends then whenever silver has surpassed the growth of gold then it could be said that its nearing an end of the rally. Often when economies are going through a rough patch, most people tend to invest in gold because it sustains its value over the period of time where as the value of silver is only temporary and nobody would want to invest in it for long term basis.

Many investing firms believe that this period is only a period to be caution in because silver is only on a rise for a temporary period but gold's value will rise persistently over the period of next ten years. Therefore, if an investor is just caution at the moment then it would be better than making a hasty decision by investing in silver. If we look at the past stats then from the year 2000, gold has increased by 353% because of the weak dollar and financial crises which started in 2008.

How To Invest In Gold

Posted: 22 Oct 2010 10:48 AM PDT

Most people often face this dilemma of where should they invest their money which would generate some returns for them in the future. With the unstable economies around the world, investing money in shares and other financial assets, people might have to bare some risk. However, there is a financial asset which might not lose its value compared to other financial assets and this would be Gold. When an economy is not performing well, its currency is expected to lose value because of which people don’t invest in currencies. The safe option would be to invest in gold as it never loses its value and rather rises as economies suffer. There are seven types of gold investments which you could consider.

Physical Gold

If you wish to save your money in physical gold then there is a term which you need to be aware of and that is “gold bullion”. This is the technical term which is used for investments in gold. When you wish to buy gold for savings, you could buy the 24 karat bars or coins and for this you could visit a jewellery store which sells gold bars and coins.

Stored Gold

In order to prevent theft of gold which is a very heavy financial asset and is also often stolen, people could use stored gold. This is a investment facility in which your gold would be kept at an off site facility in a bank’s vault or some other place.

Gold Mutual Funds

This is an investment opportunity in which you do not have to maintain physical possession of gold rather you have to invest your money in mutual funds which consist of gold mining securities, exchange traded funds, futures and stocks. These will help you gain much higher returns than the physical possession of gold itself.

Gold Mining Stocks

This investment refers to buying stocks of the companies who are involved in the mining of gold. Since buying stocks is a very volatile process, therefore this would promise you high returns but would also be risky. This is the best way of investing gold without having to actually keep physical possession of gold with you.

Gold ETFs

This is an investment in which you buy the exchange traded funds(ETF’s). The certificate which you would buy would represent how much amount of gold you own and is being stored. For this they would charge you a storage fees, management fees and the annual insurance fees.

Gold Futures

Under this investment tool, the investor is required to make a contract which would determine that the individual would purchase this amount of gold on a particular date. There would be no physical possession of gold, however the profit would be made on the basis that the contract is sold on a higher price compared to at which it was bought earlier.

Gold Jewelery/Coins

If you wish to make high returns on the jewelery or the coins you hold, then you need to make sure that you buy historical gold so that it earns you a higher return when you decide to sell it. This is true because, the more you go back in date, the more pure is the gold thus making its value higher.

Therefore, if you wish to save your saving by investing them into gold or other gold investments then make sure you research about it as to how you much return you could earn over a given period of time rather than making a hasty decision.

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