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Category: Finance

Gold is a popular investment, particularly during bad economic times when it typically acts as a counter to down markets. People often purchase gold as a hedge against these down turns as well as a way of limiting inflation risk and it is highly recommended to purchase at least some gold for your portfolio. But what is the best method for holding gold? There are many options each with their pluses and minuses.

Gold bullion is the purest form of gold that can be owned and is basically just a gold block. While this provides pure exposure to gold it needs to be stored and maintained and is only available in set denominations. While owning gold bullion makes sense for some individuals, it doesn’t for all and in particular smaller sized investors who have to turn to alternative ways of investing.

Many smaller investors will turn to gold electronically traded funds (ETFs) that purchase gold bullion and store it on behalf of the investors. While this provides investors with the benefit of the pure exposure to gold and no additional time spent to store the gold, gold ETFs do charge a management fee for their operating costs.

Some people choose to invest in gold mining companies but the value of these companies can be significantly impacted by factors outside of the price of gold. This can be good or bad depending on the underlying company and their success in mining, as well as their management’s competence. This can be confusing to a new investor who is not familiar with gold markets and trading and expert advise is often needed to find the right gold investments.

Finally, other options include purchasing gold jewelry and gold coins and holding these as investments. There are unique benefits and risks to each as both can retain value above and beyond the intrinsic value of the gold in the coins themselves and can be repurchased into bullion if their value declines below the value of gold. However, it sometimes takes an expert eye to understand and locate bargains with gold jewelry and coins.

Gold investing, as we have seen, can be confusing and it is important to gain the expertise and experience of professionals to help to locate the best way to invest, given your unique situation. That is where a firm like US Money Reserve, Inc. can step in and provide you with the assistance that you need in locating the right gold investments and understanding how to purchase gold in the best way for you. Reach out to US Money Reserve, Inc. to learn about the services that they offer to current and potential gold investors so that you can gain the gold investments you need for your portfolio.

Gold is considered the best form of investment in comparison with all other precious metals. Investors buy gold in order to diversify risks. After the start of the Eurozone crisis, Chinese investors in 2011 began to look into gold as an avenue of investment as an alternative to investing in the Euro. The gold market, like any other market, features speculation and volatility. Historically, gold has been used as money. Gold has also been used as a measure of the standard for currency value in various regions and countries.

The price of gold, like any other product, is influenced by forces of demand and supply. However, saving and disposal play a greater role in affecting the price than consumption. The Central Bank and IMF play a major role in gold price. The price of gold is more or less determined by interest rates. An increase in the interest rates causes the price of gold to fall since gold earns no interest. A decrease in interest rates leads to the rise in the price of gold. Due to this, the price of gold is closely correlated to central banks’ interest rates that arise from their monetary policy decisions. The investment vehicles available to gold investment are listed below.

The most traditional method used in gold investment is buying of bullion gold bars. In countries like as Switzerland and Canada, trading in bullion bars takes place in major banks. There are also other dealers buy and sell the bullion bars. The bars come in various sizes.

Gold coins are also a common way of making an investment in gold. The price of Bullion coins is derived the fine weight. A small premium is added to the price that is derived from demand and supply. The size of the coins varies.

Gold certificates are also used for investment and help the investor to avoid risks and costs that arise from the transfer or movement and storage of bullion, e.g. theft, by being issued with another set of risks and costs that arise from the certificate itself, e.g. commissions.

The US Money Reserves is among the largest distributors of US Government-issued gold, silver and platinum coins. The coins are produced the US mint and are backed up fully by the US government. Since its inception, the company has shipped more than 1 million coins and offers a 30 day money-back guarantee on its certified coins.

Day trading has become wildly popular thanks to the arrival of so many outstanding online trading platforms. People who never previously could access the market for day trades can now do so. Exclusively dealing with a broker on the phone is a thing of the past. Again, online software “robots” provide a better and more direct strategy.

While all this is fine, access to day trading does not automatically mean trading is advisable. The profit potential associated with day trading is enormous. This is what attracts people to trading. Forex, stocks, commodities, and other assets could lead massive profits with the right trade. People have amassed millions due to making smart trades. This, however, is not a blanket endorsement for day trading.

The trouble with day trading is not exactly hard to figure out. The risks are enormously high. Easy access to day trading software is definitely a positive technology advancement. Having access to the market does not mean the person with access is actually able to make the right trades.

Only those who have sufficient knowledge about day trading should jump right into the process. Most definitely, only those willing to accept a lot of risk should day trade.

Not everyone has the same experience as those who work for Madison Street Capital. The professionals who work for Madison Street Capital provide advice to major corporations and small businesses to better explore financial strategies. Whether or not Madison Street Capital would advise an entrepreneur on day trading has to examined on a case-by-case basis.

Individuals have to look at their own personal goals when it comes to how they put their money to work. Those interested in modest gains over time may find traditional investments to be better. Anyone interested in high risk, more dynamic vehicles, day trading might be worth investigating.