Stock market investments are losing their value during these rouch economic times. Many of the world’s governments are printing money during this financial crisis to help shore up their economies. Investing in gold is a way to potentially profit from this madness.
Gold investing allows you many ways to profit. You can own the physical coins. Stock in gold miners can be owned. If you are a risk taker you can invest capital in the gold mines. But the single easiest way to get into gold investing is to own what is called an exchange traded fund. A gold ETF trades just like a stock. You can buy shares of the ETF which then invests the money in standard gold bullion.
The nice thing about ETFs is that you profit from the potential rise in gold yet you do not have to worry about storage, nor do you have to deal with selling it. Gold investing in an ETF is about the easiest way to invest in this precious metal.
Gold ETFs have no guarantee that their price will increae in value. Supply and demand dictates whether the price will go up or down. Many people believe that just because they own gold that they will instantly be rich. You should understand that gold can decrease in price as well. Of course, gold can go up in price as well.
Gold’s performance in 2008, when the stock markets were in decline, was a sturdy 5% increase. Gold “bulls” were somewhat disappointed in this performance as they figured the value of gold to be much higher given teh state of the world economy. Many analysts believe that the price of gold could very well go over $2,000 an ounce over the next few years.
If you believe that inflation will rise and that the economies around the world will continue to decline then gold may very well be a good safe haven to protect your investments. Investing in gold is wise for portfolio diversification. If the stock market for beginners poses too many challenges then a simple investment in a gold ETF might be a good place to deploy your cash until the market turmoil subsides.
How to trade gold future
Step
1
What is future??
Future is an obligation to perform. If you own or long on future then you have an obligation to take delivery of the underlying future contract.
If you sold or short on future then you have an obligation to deliver the underlying future contract.
Step
2
Owning or long on gold future can be used to hedge against inflation.
It cost much less than owning the gold bullion it self. Yet it still benefit from the movement of gold price.
Step
3
A contract of gold future = 100 troy ounces of gold.
Which mean a dollar movement of gold price will move the price of your gold future by $100 per contract. But remember there are other factors that affect the gold future price as well.
Step
4
What affect gold future price??
* The gold price it self
* Volatility is determine how volatile the future price move.
High volatility mean the price go up and down rapidly or big swing in price.
Low volatility mean the price stay in the price channel or sideway.
There are two different volatility historical volatility and implied volatility.
Step
5
There are two different volatility historical volatility and implied volatility.
Historical volatility is the past or historic volatility (the fact).
Implied volatility is the emotional factor of the price movement.
Step
6
* Future expiration date is a time value that determine when the contract will expire.
Step
7
You can close your position before expiration date. Either buy to close your position if you open a sell position or sell to close if you open a buy position in the beginning.
Step
8
95% people that trade gold future close their position before the expiration date to avoid taking physical delivery of gold bullion and come up with a lot of money to pay for it.
Step
9
Because gold future is high leverage trading and just require a small margin compare if you trade the underlying gold bullion it self, you can gain a lot of money from the money that you originally invested but you can also loss more than the original margin that you invested in the beginning. Then in this case you will get margin call or they will close some of your position until the margin requirement met.
Step
10
The other way to trade gold future is by using future options. If you own or long on gold future you can generate income monthly by selling or short on the call future options with the higher strike price but it also limit or cap your potential gain if gold price rally.
Step
11
You can use future options to limit your loss as well.
Consult with your broker! You can trade gold future with broker assisted account or do it yourself with online account.
(. . . http://www.ehow.com/how_2321000_trade-gold-future.html . . .)
1
What is future??
Future is an obligation to perform. If you own or long on future then you have an obligation to take delivery of the underlying future contract.
If you sold or short on future then you have an obligation to deliver the underlying future contract.
Step
2
Owning or long on gold future can be used to hedge against inflation.
It cost much less than owning the gold bullion it self. Yet it still benefit from the movement of gold price.
Step
3
A contract of gold future = 100 troy ounces of gold.
Which mean a dollar movement of gold price will move the price of your gold future by $100 per contract. But remember there are other factors that affect the gold future price as well.
Step
4
What affect gold future price??
* The gold price it self
* Volatility is determine how volatile the future price move.
High volatility mean the price go up and down rapidly or big swing in price.
Low volatility mean the price stay in the price channel or sideway.
There are two different volatility historical volatility and implied volatility.
Step
5
There are two different volatility historical volatility and implied volatility.
Historical volatility is the past or historic volatility (the fact).
Implied volatility is the emotional factor of the price movement.
Step
6
* Future expiration date is a time value that determine when the contract will expire.
Step
7
You can close your position before expiration date. Either buy to close your position if you open a sell position or sell to close if you open a buy position in the beginning.
Step
8
95% people that trade gold future close their position before the expiration date to avoid taking physical delivery of gold bullion and come up with a lot of money to pay for it.
Step
9
Because gold future is high leverage trading and just require a small margin compare if you trade the underlying gold bullion it self, you can gain a lot of money from the money that you originally invested but you can also loss more than the original margin that you invested in the beginning. Then in this case you will get margin call or they will close some of your position until the margin requirement met.
Step
10
The other way to trade gold future is by using future options. If you own or long on gold future you can generate income monthly by selling or short on the call future options with the higher strike price but it also limit or cap your potential gain if gold price rally.
Step
11
You can use future options to limit your loss as well.
Consult with your broker! You can trade gold future with broker assisted account or do it yourself with online account.
(. . . http://www.ehow.com/how_2321000_trade-gold-future.html . . .)
How to trade gold future
Step
1
What is future??
Future is an obligation to perform. If you own or long on future then you have an obligation to take delivery of the underlying future contract.
If you sold or short on future then you have an obligation to deliver the underlying future contract.
Step
2
Owning or long on gold future can be used to hedge against inflation.
It cost much less than owning the gold bullion it self. Yet it still benefit from the movement of gold price.
Step
3
A contract of gold future = 100 troy ounces of gold.
Which mean a dollar movement of gold price will move the price of your gold future by $100 per contract. But remember there are other factors that affect the gold future price as well.
Step
4
What affect gold future price??
* The gold price it self
* Volatility is determine how volatile the future price move.
High volatility mean the price go up and down rapidly or big swing in price.
Low volatility mean the price stay in the price channel or sideway.
There are two different volatility historical volatility and implied volatility.
Step
5
There are two different volatility historical volatility and implied volatility.
Historical volatility is the past or historic volatility (the fact).
Implied volatility is the emotional factor of the price movement.
Step
6
* Future expiration date is a time value that determine when the contract will expire.
Step
7
You can close your position before expiration date. Either buy to close your position if you open a sell position or sell to close if you open a buy position in the beginning.
Step
8
95% people that trade gold future close their position before the expiration date to avoid taking physical delivery of gold bullion and come up with a lot of money to pay for it.
Step
9
Because gold future is high leverage trading and just require a small margin compare if you trade the underlying gold bullion it self, you can gain a lot of money from the money that you originally invested but you can also loss more than the original margin that you invested in the beginning. Then in this case you will get margin call or they will close some of your position until the margin requirement met.
Step
10
The other way to trade gold future is by using future options. If you own or long on gold future you can generate income monthly by selling or short on the call future options with the higher strike price but it also limit or cap your potential gain if gold price rally.
Step
11
You can use future options to limit your loss as well.
Consult with your broker! You can trade gold future with broker assisted account or do it yourself with online account.
(. . . http://www.ehow.com/how_2321000_trade-gold-future.html . . .)
1
What is future??
Future is an obligation to perform. If you own or long on future then you have an obligation to take delivery of the underlying future contract.
If you sold or short on future then you have an obligation to deliver the underlying future contract.
Step
2
Owning or long on gold future can be used to hedge against inflation.
It cost much less than owning the gold bullion it self. Yet it still benefit from the movement of gold price.
Step
3
A contract of gold future = 100 troy ounces of gold.
Which mean a dollar movement of gold price will move the price of your gold future by $100 per contract. But remember there are other factors that affect the gold future price as well.
Step
4
What affect gold future price??
* The gold price it self
* Volatility is determine how volatile the future price move.
High volatility mean the price go up and down rapidly or big swing in price.
Low volatility mean the price stay in the price channel or sideway.
There are two different volatility historical volatility and implied volatility.
Step
5
There are two different volatility historical volatility and implied volatility.
Historical volatility is the past or historic volatility (the fact).
Implied volatility is the emotional factor of the price movement.
Step
6
* Future expiration date is a time value that determine when the contract will expire.
Step
7
You can close your position before expiration date. Either buy to close your position if you open a sell position or sell to close if you open a buy position in the beginning.
Step
8
95% people that trade gold future close their position before the expiration date to avoid taking physical delivery of gold bullion and come up with a lot of money to pay for it.
Step
9
Because gold future is high leverage trading and just require a small margin compare if you trade the underlying gold bullion it self, you can gain a lot of money from the money that you originally invested but you can also loss more than the original margin that you invested in the beginning. Then in this case you will get margin call or they will close some of your position until the margin requirement met.
Step
10
The other way to trade gold future is by using future options. If you own or long on gold future you can generate income monthly by selling or short on the call future options with the higher strike price but it also limit or cap your potential gain if gold price rally.
Step
11
You can use future options to limit your loss as well.
Consult with your broker! You can trade gold future with broker assisted account or do it yourself with online account.
(. . . http://www.ehow.com/how_2321000_trade-gold-future.html . . .)
Trade Gold Online
How to invest in gold online??
Here comes the solution
Many investors are turning to gold as the traditional hedge against inflation. In the 1970s gold soared from $35 to $850 an ounce against a background of rising oil prices, high inflation and a stock and real estate crash. But now you can even buy gold online.
One of the problems for gold bugs is how to stash their hoard. Generations have found that stuffing gold bars under the mattress is not particularly secure, and gold is such a heavy metal that the floor could collapse.
So it is intriguing to learn that there is an online solution. Last autumn a system of gold depository receipts was established on the New York Stock Exchange traded under the symbol GLD.
Thus all you need to own, hold and trade gold online is to open an account with an online stock broker - such as the excellent www.internaxx.lu which is an AME Info sponsor - and you are in business.
This is alarmingly easy, and just involves completing and returning a form with your passport copy, and funding the account with a wire transfer. Hey presto! No need to have those gold bars cluttering up your bedroom.
Over the past three weeks gold prices have been steadily rising as the data suggesting that inflation is on the rise has gathered pace. And a poll of analysts by Bloomberg predicted further rises in the price of the yellow metal in the weeks ahead.
Of course nothing goes up in a straight line, and gold bugs have seen a retraction from the highs of $455 an ounce at the end of last year. But the upward trend looks clear, and many expect this bull market to continue for a couple of years, possibly ending in a Nasdaq-style peak.
Opponents argue that gold is just for jewelry these days, and point to rising interest rates as being good for the US dollar and therefore bad for gold. However, they forget that interest rates will only rise if inflation is picking up and that gold is the classic hedge against inflation.
Besides if inflation picks up strongly real interest rates will turn negative which would be bad for the US dollar, and positive for financial assets whose supply is fixed. In short, gold will inflate in value against a falling US dollar.
Whether we will see a super spike in gold to match the spike Goldman Sachs has forecast for oil is a more difficult argument. But once speculators get behind a rising asset stranger things have been known.
(by the refrence of http://www.ameinfo.com/57539.html)
Here comes the solution
Many investors are turning to gold as the traditional hedge against inflation. In the 1970s gold soared from $35 to $850 an ounce against a background of rising oil prices, high inflation and a stock and real estate crash. But now you can even buy gold online.
One of the problems for gold bugs is how to stash their hoard. Generations have found that stuffing gold bars under the mattress is not particularly secure, and gold is such a heavy metal that the floor could collapse.
So it is intriguing to learn that there is an online solution. Last autumn a system of gold depository receipts was established on the New York Stock Exchange traded under the symbol GLD.
Thus all you need to own, hold and trade gold online is to open an account with an online stock broker - such as the excellent www.internaxx.lu which is an AME Info sponsor - and you are in business.
This is alarmingly easy, and just involves completing and returning a form with your passport copy, and funding the account with a wire transfer. Hey presto! No need to have those gold bars cluttering up your bedroom.
Over the past three weeks gold prices have been steadily rising as the data suggesting that inflation is on the rise has gathered pace. And a poll of analysts by Bloomberg predicted further rises in the price of the yellow metal in the weeks ahead.
Of course nothing goes up in a straight line, and gold bugs have seen a retraction from the highs of $455 an ounce at the end of last year. But the upward trend looks clear, and many expect this bull market to continue for a couple of years, possibly ending in a Nasdaq-style peak.
Opponents argue that gold is just for jewelry these days, and point to rising interest rates as being good for the US dollar and therefore bad for gold. However, they forget that interest rates will only rise if inflation is picking up and that gold is the classic hedge against inflation.
Besides if inflation picks up strongly real interest rates will turn negative which would be bad for the US dollar, and positive for financial assets whose supply is fixed. In short, gold will inflate in value against a falling US dollar.
Whether we will see a super spike in gold to match the spike Goldman Sachs has forecast for oil is a more difficult argument. But once speculators get behind a rising asset stranger things have been known.
(by the refrence of http://www.ameinfo.com/57539.html)
Use of Gold in Computers
Gold is used in many places in the standard desktop or laptop computer. The rapid and accurate transmission of digital information through the computer and from one component to another requires an efficient and reliable conductor. Gold meets these requirements better than any other metal. The importance of high quality and reliable performance justifies the high cost.
Edge connectors used to mount microprocessor and memory chips onto the motherboard and the plug-and-socket connectors used to attach cables all contain gold. The gold in these components is generally electroplated onto other metals and alloyed with small amounts of nickel or cobalt to increase durability.
Financial Gold - Coinage, Bullion, Currency Backing
Because gold is highly valued and in very limited supply it has long been used as a medium of exchange or money. The first known use of gold in transactions dates back about 6000 years. Early transactions were done using pieces of gold or pieces of silver. The rarity, usefulness and desirability of gold make it a substance of long term value. Gold works well for this purpose because it has a high value, is durable, portable and easily divisible.
Some early printings of paper money were backed by gold held in safe keeping for every unit of money that was placed in circulation. The United States once used a "gold standard" and maintained a stockpile of gold to back every dollar in circulation. Under this gold standard, any person could present paper currency to the government and demand in exchange an equal value of gold. The gold standard was once used by many nations but it eventually became too cumbersome and is no longer used by any nation.
The gold used as a financial backing for currency was most often held in the form of gold bars, also known as "gold bullion". The use of gold bars kept manufacturing costs to a minimum and allowed convenient handling and storage. Today many governments, individuals and institutions hold investments of gold in the convenient form of bullion.
The first gold coins were minted under the order of King Croesus of Lydia (a region of present-day Turkey) in about 560 BC. Gold coins were commonly used in transactions up through the early 1900's when paper currency became a more common form of exchange. Gold coins were issued in two types of units. Some were denominated in units of currency, such as dollars, while others were issued in standard weights, such as ounces or grams.
Today gold coins are no longer in wide use for financial transactions. However, gold coins issued in specific weights are popular ways for people to purchase and own small volumes of gold for investment. Gold coins are also issued as "commemorative" items. Many people enjoy these commemorative coins because they have both a collectable value and a precious metal value.
Jewelry: The Primary Use of Gold
The production of ornamental objects was probably the first use of gold over 6000 years ago. Gold is found in the pure state, is very easy to work and was probably the first metal used by humans. Today, most of the gold that is newly mined or recycled is used in the manufacture of jewelry. About 78% of the gold consumed each year is used in the manufacture of jewelry.
Special properties of gold make it perfect for manufacturing jewelry. These include: very high luster; desirable yellow color; tarnish resistance; ability to be drawn into wires, hammered into sheets or cast into shapes. These are all properties of an attractive metal that is easily worked into beautiful objects. Another extremely important factor that demands the use of gold as a jewelry metal is tradition. Important objects are expected to be made from gold.
Pure gold is too soft to stand up to the stresses applied to many jewelry items. Craftsmen learned that alloying gold with other metals such as copper, silver, and platinum would increase its durability. Since then most gold used to make jewelry is an alloy of gold with one or more other metals.
The alloys of gold have a lower value per unit of weight than pure gold. A standard of trade known as "karatage" was developed to designate the gold content of these alloys. Pure gold is known as 24 karat gold and is almost always marked with "24K". An alloy that is 50% gold by weight is known as 12 karat gold (12/24ths) and is marked with "12K". An alloy that contains 75% gold by weight is 18 karat (18/24 = 75%) and marked "18K". In general, high karat jewelry is softer and more resistant to tarnish while low karat jewelry is stronger and less resistant to tarnish - especially when in contact with perspiration.
Alloying gold with other metals changes the color of the finished products (see illustration at right). An alloy of 75% gold, 16% silver and 9% copper yields yellow gold. White gold is an alloy of 75% gold, 4% silver, 4% copper and 17% palladium. Other alloys yield pink, green, peach and even black colored metals.
Special properties of gold make it perfect for manufacturing jewelry. These include: very high luster; desirable yellow color; tarnish resistance; ability to be drawn into wires, hammered into sheets or cast into shapes. These are all properties of an attractive metal that is easily worked into beautiful objects. Another extremely important factor that demands the use of gold as a jewelry metal is tradition. Important objects are expected to be made from gold.
Pure gold is too soft to stand up to the stresses applied to many jewelry items. Craftsmen learned that alloying gold with other metals such as copper, silver, and platinum would increase its durability. Since then most gold used to make jewelry is an alloy of gold with one or more other metals.
The alloys of gold have a lower value per unit of weight than pure gold. A standard of trade known as "karatage" was developed to designate the gold content of these alloys. Pure gold is known as 24 karat gold and is almost always marked with "24K". An alloy that is 50% gold by weight is known as 12 karat gold (12/24ths) and is marked with "12K". An alloy that contains 75% gold by weight is 18 karat (18/24 = 75%) and marked "18K". In general, high karat jewelry is softer and more resistant to tarnish while low karat jewelry is stronger and less resistant to tarnish - especially when in contact with perspiration.
Alloying gold with other metals changes the color of the finished products (see illustration at right). An alloy of 75% gold, 16% silver and 9% copper yields yellow gold. White gold is an alloy of 75% gold, 4% silver, 4% copper and 17% palladium. Other alloys yield pink, green, peach and even black colored metals.
The Many Uses of Gold
Of all the minerals mined from the Earth, none is more useful than gold. Its usefulness is derived from a diversity of special properties. Gold conducts electricity, does not tarnish, is very easy to work, can be drawn into wire, can be hammered into thin sheets, alloys with many other metals, can be melted and cast into highly detailed shapes, has a wonderful color and a brilliant luster. Gold is a memorable metal that occupies a special place in the human mind.
When Spanish explorers first arrived in the "New World" they met the native South Americans. These two cultures had been separated by a vast ocean, they had never touched one another, they spoke different languages and lived entirely different lives. Yet they had one thing in common - they both held gold in highest esteem and used it to make some of their most important objects.
Throughout the history of our planet almost every established culture has used gold to symbolize power, beauty, purity and accomplishment. Today we continue to use gold for our most significant objects: wedding rings, Olympic medals, Oscars, Grammys, money, crucifixes and ecclesiastical art. No other substance of the same rarity holds a more visible and prominent place in our society.
When Spanish explorers first arrived in the "New World" they met the native South Americans. These two cultures had been separated by a vast ocean, they had never touched one another, they spoke different languages and lived entirely different lives. Yet they had one thing in common - they both held gold in highest esteem and used it to make some of their most important objects.
Throughout the history of our planet almost every established culture has used gold to symbolize power, beauty, purity and accomplishment. Today we continue to use gold for our most significant objects: wedding rings, Olympic medals, Oscars, Grammys, money, crucifixes and ecclesiastical art. No other substance of the same rarity holds a more visible and prominent place in our society.
What percentage of my assets should I invest in gold?
Once again the answer is not cut and dried, but a general rule of thumb is 10% to 30%; and how high you go within that range depends upon your analysis of the current economic, financial and political situation.
Obviously, the individual with a low level of concern about the current economic situation will tend toward the 10% level. Those with lagging confidence in the way things are going will gravitate to the higher end of the range. In recent months, we have had a number of investors go substantially over the 30% figure based on their own reading of the economy and the various investment alternatives available.
In the current investment environment, with yields still running below the inflation rate and stocks and bonds still suspect, gold remains a healthy and viable alternative. Many, including even the die-hard stock investors, still see gold as the most undervalued primary asset group in the standard portfolio mix. As a result, gold is getting a lot of attention. Gold is still in the beginning stages of what many financial experts see as a long term bull market. Since 2001 gold has tripled in value.
Obviously, the individual with a low level of concern about the current economic situation will tend toward the 10% level. Those with lagging confidence in the way things are going will gravitate to the higher end of the range. In recent months, we have had a number of investors go substantially over the 30% figure based on their own reading of the economy and the various investment alternatives available.
In the current investment environment, with yields still running below the inflation rate and stocks and bonds still suspect, gold remains a healthy and viable alternative. Many, including even the die-hard stock investors, still see gold as the most undervalued primary asset group in the standard portfolio mix. As a result, gold is getting a lot of attention. Gold is still in the beginning stages of what many financial experts see as a long term bull market. Since 2001 gold has tripled in value.
When should I buy?
The short answer is 'When you need it.' You cannot approach gold the way you approach equity investments. Timing is not really an issue. The real question is whether or not you feel the need to diversify your present portfolio with gold. If you feel the need, the best time to start is now. With rising competition for the limited gold supply from both nation states -- like China, Russia and South Africa (to name a few) -- and individuals across the globe, there is the chance that small investors can be crowded out of the market at some point down the road. It is better to be a day early than an hour late.
What kind of gold should I buy?
We probably get that question more than any other -- pretty much on a daily basis. The answer, however, is not as straightforward as you might think. What you buy depends upon your goals. We usually answer the "What should I buy?" question with a question of our own: "Why are you interested in buying gold?"
If your goal is simply to capitalize on price movement, then bullion coins will serve your purposes. If you are interested in long-term asset preservation and you have additional concerns about capital and/or monetary controls -- a more complicated scenario -- then you might want to include the lower premium variety of pre-1933 European and American coins in the mix. These have been treated by the government since the 1930s as historical, collector items and, as a result, afford the privacy-minded investor with a greater degree of safety than gold bullion.
But what I just gave you is a rough sketch. To develop a more refined strategy, we recommend spending time with your representative here at USAGOLD-Centennial Precious Metals. He or she can help you match the type of gold you buy with your goals. All of our client representatives are seasoned professionals with substantial experience. They can help you zero in quickly on your needs, and make sure you are not going in a direction contrary to your goals and needs.
If your goal is simply to capitalize on price movement, then bullion coins will serve your purposes. If you are interested in long-term asset preservation and you have additional concerns about capital and/or monetary controls -- a more complicated scenario -- then you might want to include the lower premium variety of pre-1933 European and American coins in the mix. These have been treated by the government since the 1930s as historical, collector items and, as a result, afford the privacy-minded investor with a greater degree of safety than gold bullion.
But what I just gave you is a rough sketch. To develop a more refined strategy, we recommend spending time with your representative here at USAGOLD-Centennial Precious Metals. He or she can help you match the type of gold you buy with your goals. All of our client representatives are seasoned professionals with substantial experience. They can help you zero in quickly on your needs, and make sure you are not going in a direction contrary to your goals and needs.
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