Gold Investing Strategy

We here at Gold Prices Today realize that many are looking to get into gold investing as a way to protect assets and retain wealth.  It seemed important that we outline the basics of gold investing and give a simple strategy that can be used as a beginning point for investing in gold.

Gold is a commodity, but unlike other commodities such as grain or beef, it is much more volatile when compared to the stock market as a whole.  This is because of gold’s primary difference when compared to other commodities: it is sought after not because of supply-and-demand requirements, but as an investment purely for both luxury and peace of mind.

Gold has the unique ability to be static in worth.  When adjusting for inflation of the U.S. Dollar, for example, an ounce of gold is worth the same today as it was in 1950 or 1900.  The dollar figure associated with gold has changed, but the actual value has remained static.

Thus gold is usually used as a sound investment to retain wealth and value.  Gold investing does not “make money” in the same way that stocks do, but it retains its value no matter what the money around it is doing.  For this reason, it is considered a conservative and proven way to retain wealth and give a solid foundation to an investment strategy as a whole.

The simplest and most effective gold investing strategy for newcomers is to use gold as a base point upon which all other investments are made.  Gold investing is a measure against inflation, fluctuation, and uncertainty.  Everyone’s portfolio is different, but most financial advisers recommend at least 25% of a person’s portfolio be in conservative (”safe”) investments such as precious metals, certificates of deposits, bonds, etc.

Gold ETF Guide

Probably the thing we get asked about most here at Gold Prices Today Live is what, exactly these gold ETF investments are.  So we thought that a smart guide to gold ETFs might be in order.

Gold is always a sound investment, no matter the economic climate, and in times of uncertainty, it’s the go-to for most wise investors.  An ETF is an Exchange Traded Fund which works in a way similar to money market funds, but allows multiple trades during the day, rather than just one or two.  Many ETFs are based on commodities like bullion.

A gold ETF is essentially a certificate based on a specific amount of gold.  So one certificate in an ETF might represent half an ounce of gold at current value.  As gold’s value versus the US Dollar increases, so does the value (in dollars) of the certificate.  These can be traded throughout the day like most other stocks, but are exchanged as part of an ETF, so you are always guaranteed a sale or purchase – which is based on the current market value of gold, or gold’s “spot price.”

Different types of funds give different types of ETF investing in gold as well.  The SPDR Gold Trust, for instance, is a gold ETF based on gold bullion, located in the U.S., and with a relatively high expense ratio of 0.4%.  The PowerShares DB Gold Fund, on the other hand, is based on gold futures (rather than physical gold) and has an even higher expense ratio of 0.5%.

If you have small holdings, then going with one ETF and aiming for lower costs is probably most important to you.  If you have a very large amount of holdings, diversifying between custodians rather than minimizing costs may be your goal.

In either case, gold ETFs change daily and even hourly and are a good way to get into gold investing if you don’t want to hold a lot of physical gold yourself.

Top 5 Mistakes Investors Make When Buying Gold

We here at Gold Prices Today Live know that gold investing is serious business for a lot of our readers.  We’ve also learned that many gold investors, especially those relatively new to the game, are making some very common and deadly mistakes.  Here are those most common mistakes and how you can avoid them.

Mistake 1 – Unrealistic Short-Term Expectations

Probably the most common gold buying mistakes that we see from new investors center around their expectations for their investments.  Gold is a long term investment, not a short-term gainer.  Sure, your investment today might gain $50 tomorrow as gold jumps for some reason, but most gains are slow and even over time.  At the very least, gold will always gain at inflation’s pace, even if the economy is otherwise perfect.  At best, it can skyrocket in a relatively short amount of time.  Those jumps, however, are rarely overnight and take time.

Mistake 2 – Overpaying Premiums

Gold’s spot price is not the same as what you’ll pay to purchase bullion.  Most people who purchase physical gold buy coins – usually from a well-known mint.   The premium you pay will depend upon the mint as well as the handler (seller’s) markup.  If you’re investing as part of a financial portfolio and not as a collector, then don’t overpay the premium just to get a “good mint.”  Standard “rounds” like the American Eagle and Canadian Leaf are lower-cost and just as accepted amongst gold investors as the Credit Suisse.

Mistake 3 – Discounting Ownership of Physical Commodity

Many investors only invest in one kind of gold, often ETFs or futures.  That is only one type of gold and is not guaranteed against market crashes.  Physical gold (whether stored by yourself or someone else) is one of the best ways to solidify a portfolio.

Mistake 4 – Numismatics as Your Only Choice

Numismatic coins are nice and can be nostalgic for many investors, but they are not the same as .999 fine rounds.  Most of their value is in their collectability – something that fluctuates wildly and is more market-dependent than simple gold value.  IF collectors can’t afford to keep collecting, the market dries up.   New finds in the same series or type of coin may also drive down values unexpectedly.

Mistake 5 – Nuggets and Jewelry

The largest problem with owning pure gold nuggets or gold jewelry is that its value is a matter of opinion.  They can be a great part of an investment portfolio, but by themselves they are some of the least portable options for gold investing.  The value of jewelry is dependent on what someone is willing to pay for it and whether it can be tested for its actual gold content.  Nuggets are similar, though not as difficult.

Avoiding these five mistakes and keeping a diverse, rounded, and thoughtful portfolio of gold to fit with the rest of your investment goals is the key to maximizing both the returns you can expect over time and the security of your finances.

Gold ETF Investing

The latest buzz for those investing in gold are exchange traded funds (ETF) based on gold.  These are a relatively new phenomenon to the markets and are becoming wildly popular.  Most investors understand the solidity and stability of precious metals investing and in today’s market, it’s hard to find another commodity (or stock, for that matter) that gives as steady a return against inflation.

Gold ETF investing can be done through several types of gold commodities on the market.  Gold futures, actual gold (in certificates), or even physical gold can all be included in a gold ETF.  Usually these funds focus on one type or another, but some dabble in two or all three of them.

Some interesting mixes in this gold ETF investing include some gold ETF offerings that mix the above types, such as the Sprott Physical Gold Trust.  This offering issues gold as certificates (at 1/100th ounce per).  Anyone with at least 4,000 certs (or 400 troy ounces) can redeem those for a London Good Delivery Bar (a 400oz gold bar).  The certificates are removed from the fund and the physical gold is delivered.  This call option often drives the price of each share upwards, beyond gold’s spot price.  This can be good or bad, depending on your perspective.  If you plan to take physical delivery of the gold, you will pay a premium and would probably be better off just purchasing gold itself without going through a gold ETF.  If your purpose is speculative investing, however, funds like this have the ability to be real money makers.

Other offerings on the market offer futures as part of a gold ETF.  This type of gold ETF investing is more speculative than others and requires a real keen eye on current markets (in futures) and their trends.  While investing in gold futures is trending upwards on the whole, individual mines and consortiums may not be doing well or may be stretched to the limit with their futures already – which dogs their price.

Overall, the world of gold ETF investing has definitely gotten interesting and there are few investments that are as exciting when investing in gold today.

Best Gold ETF

We here at Gold Prices Today know that people have always been interested in gold trade. Even when there were no stock markets and no capital funds, people were actively buying and selling gold. Another unique feature of gold trade is the fact that is equally prized in all parts of the world and people have been aware of the value it can play in improving their financial conditions. In the investment circles, best gold ETF is a source of both concern and excitement. Exchange Traded Funds, which are known as ETF, are the best investment option in gold.

They provide the best gold investing option because they are certified and approved by the stock markets and have billions of dollars in assets. This also means that fluctuations in gold price boost the value of the entire fund which is later transferred to each individual investor.

If you are interested in gold ETF then you will have to keep certain things in mind. The first thing to focus your attention on is the type of ETF that you are going to invest your money in. Try to invest in funds that have higher values and market capitalization. This will enable you to earn significant profits. Any rise in the prices of gold will increase the value of the fund. If the increase is 10% then you will see a boost in 10% of your investment. You can always sell your investment whenever you want. It is as simple as that.

Gold Prices May 2010

Today at Gold Prices Today Live we’re going to look at the gold spot price to show you the trends for May 2010 gold prices.

If you are interested in finding the latest gold prices May 2010 then you will have to start an internet search for that. The first thing that you need to focus on is the daily price of gold per ounce, gram and kilogram. You also need to focus on the currency in which you want to find these prices. Dollar, Euro and Pound remain the most popular currencies in the gold market.

May 2010 gold prices are available on goldprice.org. The website features a complete database of gold prices ranging from live charts that display the current fluctuations to daily and weekly charts. Monthly charts are also available for investors that want to invest for a period of at least 30 days.

The phenomenon of gold spot price is integral to the investors’ community. It can be defined as the price determined by market expectations of future price movements. Spot settlement is made one or two days from trade date. Differences in prices and other overheads are then adjusted with the initial trading price. Investors can find further details of these prices on goldprice.org. They will also be able to convert spot prices into their respective currencies. Graphs and charts are also available that show the latest trends in price fluctuations and other details. They can also use indicators like 3-day periods and COMEX listings to find accurate details of any particular gold trade and then base their buying or selling strategies on that information.

Best Gold Coins 2010

No one will argue when it’s said that the gold investment market is booming right now.  With a shaky world economy, uncertain times, and many having lost big in the stock market, it’s no wonder people are turning to the stability and surety of gold.  We here at Gold Prices Today Live know this and are here to help by showing you some of the best gold coins 2010 right now.

Gold is an inflationary bulwark.  An ounce of gold could purchase a good suit of clothes in 1700 and can still do the same today.  Currencies fluctuate, gold doesn’t.  With that in mind, the best gold coins to purchase right now will depend on your investment plans.  For most, just having the anchorage against an inflating or sinking currency is all they need.

For this, any trusted mint’s 2010 best coins, such as the US Mint’s eagles or buffalo coins or the Canadian maple leaf from the Royal Mint in Canada are good choices.  Any certified bullion from any reputable mint is a good choice.  A mix of coins is even better.

If you are a collector as much (or more than) an investor, then you’ll want good provenance with your old coins.  Where were they minted, when, how many, and what is their worth (value) and why.  Those are what you’ll need to know if you’re collecting.

Well-made jewelry is another way to get into gold investing.  Quite often, jewelry not only retains it value, but that value can increase with time – especially if the maker is well-known or the piece is a one of a kind.  Be aware that the jewelry market often falls with the economy, however, but it can also be a great time to get in on some lower-priced bargains.

However you do it, now is probably the best time to get into gold investing for the future.

Best Ways To Buy Gold Bars

There is not any single way of buying gold as there are virtually dozens of avenues for people that trade in gold or want to enter into this lucrative market. Some of the best ways to buy gold bars are mentioned below and will help potential investors in improving their gold buying strategies.

The first step in gold bar buying is the ascertainment and evaluation of the money one can spend on this purchase. In case of minimal money for investment, people can buy small bars. These bars come in the shape of 10 grams gold biscuits and can be easily purchased from any gold retailer or from dozens of websites offering gold items for sale.

People that want to buy gold bars but are afraid of the best ways of doing so should follow certain rules. They first need to identify the place that offers the best gold bars. It can either be a website or an ordinary retailer outlet but its reputation should be good. Websites provide better places for gold buying as people do not have to visit any place and can do all of their shopping over the internet. They can find the best websites by reading gold industry magazines or visiting websites that offer customer opinion and other details.

This information will come in handy in identifying the best gold websites. They should purchase gold bars from websites that offer secure home delivery service and other perks. It will make the whole process simple and time efficient.

China Gold Companies

Today on Gold Prices Today Live, let’s look at where some of this gold comes from.

China gold companies are practically digging in this precious metal and earning millions of dollars thanks to the increased production in the country. China has emerged as the largest producer of gold in the world and has even surpassed South Africa that remained a gold superpower for more than 100 years.

People interested in buying gold from China or investing in the country’s infrastructure need to know some basic facts about the country and its gold trading policies. China has only recently opened a gold futures market and is relatively new in the gold market, especially in its role as the largest producer. Given the restrictions, people might face some problems in investing in the country’s gold market.

Chinese gold companies have started offering investment options to foreigners and there are some new opportunities springing up for these investors. Although investment options are still low, investors should not resist investing in the Chinese gold market. Gold deposits are relatively low in China – at approximately 7% of the total established and proven deposits in the world – but rapid exploration has created diverse investment opportunities. It is nothing short of gold rush for China and people can use reliable sources to invest in Chinese companies that deal in gold and other precious metals. They will have to do some research and tread carefully but they will be able to reap greater profits if they have made the right investment in the right company.

Kitco Live Gold Prices

Kitco Live gold prices are an excellent way of finding the latest prices and gold charts. Information on Kitco is presented in a graphical format. Information is available on 24 hour spot gold, New York spot gold, 30-day old and 60-day old prices. Price for one year, five year and 10 year gold bidding are also available and constantly upgraded, so it’s a great source for gold prices today live.

It is easy to find the latest gold prices at Kitco Live. Users simply have to log into the company website and access the live gold charts. They can scroll down the web page to find the latest prices of the gold trades that they are interested in following.

Kitco gold prices are not just the latest gold trading rates but a complete collection of historical daily gold charts. It is easy to dig gold trading and prices details on the company website. They are currently offering complete records and price graphs of as far back as 1999 gold prices. Users simply have to select the date from a scroll down menu and hit the “view charts” button and the website will display the relevant results. Users can use comparison tools to ascertain the fluctuations in gold prices and can also draw and year-wise or decade-wise comparisons. All the price graphs and other details can be easily printed and kept for records. Price graphs are also available for other metals including silver, platinum, palladium and rhodium along with all the technical specifications.