| Copyright 2006 Jason Chew
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| | that gold will further appreciate its
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| Tradionally, many investors shunt gold
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| | value and continued its bullish run for
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| and invest in equities or fixed income
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| | long term.
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| markets. With the price of gold
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| | It is never too late to invet in gold
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| performing extremely well, alot of
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| | now!
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| investors are turning their attention on
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| | There are a few ways to invest in gold
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| gold.
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| | which are shown below.
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| The price of gold has topped US$700
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| | 1. Gold Jewelery
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| recently. Gold has been in a bullish run
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| | Gold jewelery is a popular means of
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| since 2000. What is the implication? Will
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| | investing as savings in developing
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| gold continue to rise in the future? Is
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| | countries like India and Middle East.
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| it time to invest in Gold now? How to
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| | 2. Gold Bullion and Coins
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| invest in Gold?
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| | Gold Bullion are gold bars in 1g to 400g.
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| The rise in price of Gold is due to a
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| | Goid coins are legal tendar of issuing
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| number of factors. Some of them are
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| | countries and usually sell at a small
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| listed below.
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| | premium above current spot gold price.
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| 1. International tensions and Bad times
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| | Popular investment grade coins are US
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| During internation tensions and war, gold
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| | Eagle, Canadian Maple Leaf,
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| will always hold it values. Sometimes,
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| | 3. Gold Certifcates or Accounts
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| investors trade currency for gold In
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| | These are ownerships rights to gold
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| recent Iran and US nuclear issues, price
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| | bullion held by a financial instution
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| of gold was shot up to US$700 in fear of
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| | such as a central bank for safe keeping.
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| oil prices rising. US dollars and
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| | 4. Gold Mining Stocks
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| inflation along with high federal trade
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| | These are stocks of gold mining and
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| deficit and debt have make investors
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| | exploration companies. When price of gold
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| buying gold to heged against currency
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| | rises, some mining stocks offer handsome
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| flunctuations.
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| | dividends when the issuing companies
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| Though now the price is fallen slightly,
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| | profits.
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| it believe that gold is a good investment
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| | 5. Gold Mutual Funds
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| tool to use as a safe haven in time of
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| | These are funds that have gold in the
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| crisis and bad times.
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| | portfolio managed by professional fund
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| 2. Supply and Demand Fundamentals
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| | managers. Some funds are region specific
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| When the price of gold rise, more
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| | (such as US) or spread across different
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| investors will buy gold. Since the supply
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| | mining companies.
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| and production of gold is limited, it
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| | No matter what kind of instruments you
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| will not be able to keep up with the
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| | choose to invest in, you have to mix your
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| increasing demand from the market. This
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| | portfolio with the right proportion with
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| will make the price of gold rally
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| | your equities. The strategy to investin
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| further.
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| | gold is to have balance portfolio with
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| 3. Stock Market Bearish vs Gold Market
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| | diversification. The objective is to use
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| Bullish
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| | gold as a hedge against flunctuations in
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| Gold always perform opposite of stock
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| | fixed income market. The best strategy is
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| market historically. When stock markets
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| | to start with 10 % level of your
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| are performing badly lately, gold markets
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| | portfolio to invest in gold and slowly
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| were bullish. With uncertain economic and
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| | varies you level of gold to increase your
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| global conditions, some analyst believe
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| | portfolio stability.
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