Archive for the ‘Gold Investing’ Category

Types of Gold Investing

by IRA Rollover in Gold, Gold Bullion, Gold Investing, Gold IRA with Comments Off on Types of Gold Investing

If you are thinking of buying gold as a retirement investment there are a few ways you can accomplish that goal.  Some buy gold as a hedge against inflation while others are investing in gold for retirement.  With both you’ll have security and wealth that inflation and fickle economies can’t touch.

Buying Gold Stocks

Gold stocks are actually shares in working gold mines.  This can be a lucrative investment, especially if the mine runs smoothly and finds some great veins of gold that require minimal expenditure to extract.  There are some risks to gold stocks because their value depends on how well the mine does.  Like any other type of stock, you can monitor it closely and sell at a profit if the company appears to be in trouble.

If you decide to invest in gold stocks you should make sure that you deal with a licensed commodity broker that has a good reputation among his or her clients.  You should avoid those who try to pressure you into an investment during your first contact.

Mutual Funds

Mutual funds are a “basket” of investments that are comprised of several interests.  They may hold interests in several precious metals, including gold, as well as other commodities such as oil, grains, or technology.  Mutual funds generally do well because if one of the stocks performs poorly the others might be making money hand over fist.  This basket of investments spreads your funds across several strata of interests so that you can make consistent profits even if some of the stocks or commodities that comprise the basket don’t do well at times.

Mutual funds are considered a conservative investment because of their generally consistent returns.  Many people over the age of 50 like mutual funds because they are generally low risk and allow them to invest in gold, other precious metals, and many profitable commodities.

Gold Bars and Bullion

When investing in physical gold and silver you’ll have several options.  Both come in bars or ingots as well as in bullion form such as coins.  If you’re using it for a gold backed IRA account you must buy certified purity in an approved form.  Bullion is a bulk quantity of a precious metal that can come in bars that are stamped with their purity content after having been melted and cast.  Bullion coins are not used as legal tender but kept as assets.  Several countries around the world produce bullion coins but those made in the U.S. are guaranteed as to quality, purity, and weight.

There are many reputable gold bullion dealers that you can buy bars or coins from.  If you’re considering buying bullion you can shop around for dealers who charge the lowest premiums and who have the most satisfied clientele base.

Collectible Coins

Often called numismatic coins, these assets are valued according to their condition and how rare they are.  You can buy a US gold double eagle (face value of $20) from 1877-1907.  These are 90% gold and weight .9675 ounces.  When you buy such coins you will be paying not only for the gold content but for the rarity and collectability.  You usually end up paying much more for numismatic coins than you would for a similar weight in a gold bullion coin or bar.  You are gambling that your coin will rise in value due to its rarity.

Numismatic coins are not eligible for inclusion in a gold back IRA.  Their value is also tied to what people will pay for them beyond the gold content.  Since you are paying much more for a numismatic coin than for a non-collectible gold bullion coin, you must consider the chances of getting your investment back before you buy them.  A numismatic coin that costs you $2500 today may sell for much less if you have to liquidate for any reason.

Gold as a Hedge against Inflation

Gold will always have value no matter which form you buy it in.  People are using gold as a retirement investment specifically for that reason since it is not affected by whether the economy is doing well or poorly.  Whether you buy it for a gold IRA account or store it yourself on your premises or in a secure facility, you can be sure that your gold will never lose its value.  Gold is a foolproof way to preserve your wealth and build a secure retirement plan.

If you are thinking of buying gold as a retirement investment there are a few ways you can accomplish that goal.  Some buy gold as a hedge against inflation while others are investing in gold for retirement.

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Should You Avoid the Stock Market?

by IRA Rollover in Gold Investing, Gold Stocks Vs Physical Gold with Comments Off on Should You Avoid the Stock Market?

In the past few years the stock market has scared a lot of people away.  We watch as it climbs higher and prices rise then it dips alarmingly, particularly when news from WashingtonDC signals economic changes.  The announcement that a country is in default can make an investor lose millions, even if the news is not true.  The market is so fickle that you might wonder why you should invest your hard earned money in something that seems so unstable.

Is it really that Bad?

What you don’t see is that while the Dow might plummet several hundred points, most investors are not losing money and may even be making money on the plunge.  If you look at the earnings of companies listed on the stock market and the dividends they are paying you would get a much clearer view of the true state of the market.  The overall picture is not as bleak as the public thinks when it sees those numbers at the end of each day.

The stock market can be good and it can also be very, very bad.  A lot of investors took their money (what was left of it) elsewhere when they took big losses in 2008.  The crisis caused primarily by the collapse of the housing market made ripples in every sector of the economy but especially the stock market.  Many looked for other ways to make their money grow even when the market began to stabilize.

Diversify!

The key to preserving your principal and growing your wealth is to diversify.  You can save your money but the average person will never have enough to live on throughout their retirement if they don’t find ways to make those savings grow.  It is important to start saving early and make good investments in a variety of financial products.  The more places you put your money, the better chance it has to grow into a fund large enough to support you in the lifestyle you’d like to have after your career comes to a close.

You should have some good stocks, some bonds, some mutual funds, and even some real estate in your investment portfolio.  One of the safest ways to escape inflation and currency collapse is to have part of your money in precious metals, particularly gold.  Gold never loses its value no matter what is happening with the economy or around the world.  The dollar, euro, and other currencies go up and down in value but gold will always have the same buying power that it always did.

Should you avoid the Stock Market?

The stock market is a great way to grow your wealth if you know how to make good decisions or have an advisor that is knowledgeable.  People who invested in IBM, Apple, and Microsoft aren’t sorry they decided to take chances on small, innovative companies and they certainly don’t regret the millions they made.  You may never make such a fortuitous investment but you can invest in companies with steady growth that will build your nest egg.

So own some stocks and don’t be afraid of the market!  But make sure you have other financial products such as mutual funds, bonds, or even certain types of annuities.  You should also invest in gold and other precious metals, too, because they will never lose value.  A variety of investments, including gold, will insure that your money grows enough to support you nicely when you retire.

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Is Investing in Gold Right for You?

by IRA Rollover in Gold Investing, Gold IRA with Comments Off on Is Investing in Gold Right for You?

The public has been bombarded in the past few years with ads about investing in gold—on the television, in print, on the radio and even on billboards.  They encourage gold investment and at the same time they advertise that they give the highest rates if you want to sell your gold jewelry, coins, or ingots.  If you haven’t yet bought gold or other precious metals you might be wondering if this is a passing fad, the sign of economic panic, or just another campaign to encourage hysteria and thus enrich the coffers of dealers in gold.  As you watch the economy getting worse and gold prices rise higher you might wonder if gold investing could protect your savings.

Just half the world’s population is responsible for 50% of the gold sales in 2011.  India and China account for half of all gold sales in the second quarter of that year and it makes you wonder if they know something that Americans don’t see.   These cultures look at gold not only as a source of wealth but as an expression of love, the perfect gift, and as a status symbol.  India prizes gold above all other material wealth and even the poor save what they can to buy miniscule pieces of it.  It’s not at all unusual to see nearly everyone on any random street decked in gold.  But how does this apply to the average investor and is it a good idea to get involved in gold investing?

Gold is The Most Stable Commodity in any Economy

If you look at economies that have both thrived and fallen in the past few thousand years you’ll see that gold (and other precious metals) have been the standard of wealth.  Whenever people could, they bought gold whether it was small coins or large bars.  Gold was used to back and stabilize currency.  When governments removed the requirement that gold back that currency, you got inflation, deflation, and hyperinflation.

Myanmar (formerly Burma) is an excellent example of paper based currency.  In 1948 its government began printing money that was not backed by any commodity and inflation soared.  A cup of rice cost more cash than a person could comfortably carry.  Since most currency is no longer backed by a commodity such as gold, that scenario may rear its ugly head again in the near future.

Those who hold gold will have buying power in even the most dire of economies.  Gold never loses value.  The same amount of gold that bought an acre of land in the 16th century will still buy that much land in the 21st century.

Gold Supply and Demand

Many people think that since demand is high there will be more mines opened and more gold will come onto the market, devaluing their own holdings.  However, gold mining is not a simple industry.  Most of the accessible gold has been found already and whatever is left in the bowels of the earth is much harder to find and recover.  This is one reason that the price stays high and demand is never quite satisfied.  There is little danger of the supply of gold ever meeting the demand, which makes gold investing a very smart way to maintain and grow one’s wealth.

Gold investing can be easy and even economical.  Many investors with average incomes have a savings plan that enables them to buy gold bullion or smaller ingots on a quarterly basis.

If you are within ten years of retirement, gold investment is an excellent way to protect your retirement dollars from inflation and rapidly changing economies.  You can do this through a gold IRA or choose to retain physical possession of it with, of course, proper and secure storage.

There are so many advantages to owning gold yourself or including it in a retirement account.  Gold gives you security and a foolproof hedge against inflation.  Your future will be more secure and your wealth more stable by investing in gold.

Investment in Gold is an important decision and to make your decision easier we have reviewed all the Top Gold Companies