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