Gold Investment Alternatives

Are you hungry for more gold? Is gold bullion investing too risky for you? Does the timing not seem right?

There is more than one way to invest in gold. One does not have to endure the risks of trading gold bullions when there are professionals that will do the investing for you. Of course, I am referring to investment advisors and fund managers.

When the price per ounce of gold rise into record-breaking high numbers as we have been experiencing lately with above $1100 values, my common senses tell me that "what goes up, must come down." This is truly an unpleasant position to be in because you don't want to buy gold when the gold market is sitting on the bubble. It would be nice if an investor can short-sell gold, but there is no such option in the gold bullions.

The next best option, is to invest in gold funds. The easiest way to see what is available to you is to browse over to the website of your local bank or investment agent to review their precious metals portfolio. There are always a fund on their portfolio dealing specifically with gold commodities or in gold-based manufacturing corporations. The advantage of working with funds is that fund managers are able to play the investment game from many angles. If the gold market is on the rise, your fund manager will buy. When the gold market is on the decline, they will sell and profit-take or they can even short if they are confident that the market is on a strong decline.

If you have never setup an investment portfolio, I would strongly recommend diversifying your portfolio by acquiring some gold funds. It is a safe, stable, and long-term strategy for growing your net worth.

Indians Buy Lots of Gold

In my last post, I blogged about how East Indians love their gold, especially during the Diwali season. Well, the numbers are in and unsurprisingly Indians bought more gold than ever for Diwali which occurs between the weeks of October 12 to October 17.

A total of 56 tonnes of gold were exchanged which is up by 5.7 percent. However, the Diwali season might not be the only motivator for the high volume of gold being bought. Many consumers, especially those in 3rd world countries, believe that gold is the only safe investment to shelter them from the unpredictable global market.

India is the world’s largest purchaser of gold and gold products.

Diwali Gold No More. Think Silver

East Indians love gold (there is no doubt about that). And why not? Gold looks beautiful, is a great store of value, and is a universal currency sheltered from the drastic rise and falls of the economic tide. But this Diwali, if you are an east Indian investor, you may want to look beyond gold towards, perhaps, silver bullions.

Gold is trading at nearly $1068 an ounce, making it an extremely expensive time to start looking at gold for either investment purposes or jewelry making. However, as a sharp-eyed investor, I would focus my eyes on silver as silver prices have risen almost 60% since earlier this year. Now compare this number to the price of gold that has risen only 24% since January of this year.

Industrial and investment demand is driving the prices of silver bullions up with signs of global economic slowdown quickly waning and signs of third world industrial activiting rising again, the prices of silver have surged to meet the demands and investor expectations.

Adding to the momentum of rising silver prices and demand is the rise of other precious metals such as copper, lead, and zinc. All of these metals produce silver byproduct during the processing of these base metals. When the economy slowed down, most base metal produced clawed back production thereby leading to a state of shortage. With increased production rapidly on the rise, there are still no signs that supply will meet demand any time soon. What a great opportunity to be investing into gold and silver bullions.

Hedging Dollar, Gold Soaring

It is all over the financial news. The dollar is on a disturbing downward trend and investors are dumping their money into precious metals and other commodities to hedge against the lower dollar. Commodity prices are rising everywhere, toe-in-toe with inflation, as seen by the rise of crude oil today past $74 a barrel, and similarly for gold.

As I predicted almost 16 months ago, the continued non-confidence of the US economy is going to leave investors fleeing for more stable territory such as gold and other metal bullions. Last year around this time, gold prices were sitting at around $800 an ounce and many investors were skeptical it would go past its last high of nearly $900 an ounce. Today, we've seen prices of gold trade as high as $1,070 an ounce.

Bullions, having an inverse relationship to the dollar, witnessed a 21% rise this year. This is definitely a bearish market and as the market continues to deteriorate, there is no telling how high these wonderful metals could climb. Though far from a senior market analyst, I will lay claim that gold is still far from a bull market. It still has some ways to go as the dollar continues to bury itself in a bear market.

What is my advice to those who missed the $800 an ounce boat for gold? Stay out of it. Though I am claiming that gold is not in a bull market, it is still very high risky at this point to know where gold is heading next. All signs indicate it will climb higher, but it is extremely unpredictable. If you have missed your opportunity, I would say stay out of it to be on the safe side.

Gold Apple iPhone

I was wondering about what other blog posts related to gold could be covered on this site and then I tried looking for various items in gold to see what else is out there for us gold junkies. To my surprise, there is a shit load of stuff that that is either covered, dipped, or cast in gold.

Out of jolly ole England, I learned of the company named Continental Mobiles who has been making gold versions of various cellular phones to give that added touch of uniqueness to your most essential communication device.

One of the hot-selling feature items of Continental Mobiles is the Apple iPhone Featuring here is the Apple iPhone in 24-karat gold. What better way to personalize the best mobile phone out there than to showcase the phone in gold, a touch that adds uniqueness to your sense of fashion that will ensure that you are unique in your device.

All phones from Continental Mobiles are delivered with an exclusive Gold Card. Just like Apple change the game in the MP3 scene with the Apple iPhone and its incredibly massive Apple iTunes online music store and library, Apple did it again with the iPhone. The smartphone features a large 3.5-inch glass touchscreen with a native resolution of 480x320.

As with everything design by Apple, extreme care and detail was focused on usability and the best user experience in the market. There is only one button on the iPhone, which I call the Home Button. The device is almost entirely operated by the amazingly precise touchscreen.

Something to note is that not the entire phone metal case is covered in gold. Only the front bezel is covered in gold, which was a bit of a disappointment to me. I've seen other pictures on the internet that show the entire metal case in gold.

If you are interested in viewing the entire collection of products from the Continental Mobiles, please visit their website at http://www.continentalmobiles.com and browse at their selection of gold products. However, whatever product you choose, would surely be unique, but is probably not what I would consider an investment.

Russia GOLD 5 Roubles 1897
Russia GOLD 5 Roubles 1897
Paypal   US $226.86

Gold coins suspended by US Mint

american-eagle-gold-proof

It would appear that the United States Mint has officially suspended production of American Gold Eagle coins. The mint claimed that low supply of gold is being blamed for this. The unprecedented demand for American Eagle Gold Bullion Coins and the low supply of gold is being blamed for this. The mint is required by law to produce the American Eagle Gold Bullion Coins to meet public demand. Therefore, the resources have to be allocated to this program.

Anyway, the US Mint website describes this issue better than I can.

Production of United States Mint American Eagle Gold Proof and Uncirculated Coins has been temporarily suspended because of unprecedented demand for American Eagle Gold Bullion Coins. Currently, all available 22-karat gold blanks are being allocated to the American Eagle Gold Bullion Coin Program, as the United States Mint is required by Public Law 99-185 to produce these coins “in quantities sufficient to meet public demand . . . .”

The United States Mint will resume the American Eagle Gold Proof and Uncirculated Coin Programs once sufficient inventories of gold bullion blanks can be acquired to meet market demand for all three American Eagle Gold Coin products. Additionally, as a result of the recent numismatic product portfolio analysis, fractional sizes of American Eagle Gold Uncirculated Coins will no longer be produced.

Market meltdowns are a fact of life.

It is irrefutable historical fact that all bullish markets are followed by a thundering crash. The year 2008 saw the beginning of a bullish market in the United States come down in a thundering crash as major financial institutions are hit hardest by the subprime mortgage crisis and all other industries are subsequently affected by it.

Economic Crisis

However, believing that market meltdowns are the end of the world for your investment portfolio is a mistake, especially if you think that the stock market is the only place to invest. Smart investors have long forecasted this economic turmoil and have since moved their investment into gold bullions and other precious metals. Buying gold (not decorative jewelry, but pure gold) is considered a store of value and allows your investment to ride the rough tides of the global economy.

Gold is stable and an old-fashioned workhorse. Gold has been seeing an incredible resurgence as investors seek for more stabile investment options, one that is less volatile and more predictable. If you have not started buying gold, I would strong consider adding this to your investment portfolio. For new players to game, invest in American Eagle gold coins (our best seller) and support your local economy.

Best wishes!

Volatile Gold Trading

Last March, Gold reached a record $1,000/ounce level and stayed there for a couple of days. Today, the gold market in New York is seeing volatile trading on Wednesday that brought the price of gold down $3.68 to close a $966.20/ounce on the New York Mercantile Exchange.

This is no surprise because gold was able to break the $1,000/ounce resistance last week and this week, the trading session started off with investors taking profits from gold after it's large rally last week. A US economic report showing an unexpected sharp fall of U.S. home sales again instigated the rally to buy gold as investors searched for a safe haven, pushing gold prices into positive territory not seen since about this time last year.

The World Gold Council indicated that gold is the most favored investment tool this year compared to other asset classes. It reported that demand for gold was 64% higher in 2008 than around the same time in 2007. The current drop in gold prices is a great opportunity for investors to get back into this metal.

Gold bucking the trend.

While most commodity futures are falling broadly throughout world markets, gold has decided to buck the trend by returning to above $900 an ounce today. Fueling this rise is the quest for safer investment haven as more bad economic news in the U.S. are surfacing once again causing many investors to bail out of Wall Street. You can say that gold prices have been benefiting from the turmoil of our economic conditions. News today that the U.S. economy dropped by another 3.8% in the fourth quarter will surely fuel the prices for gold in the upcoming days.

Timing is everything – Invest in silver now?

You guys should read this interesting article posted by David Morgan on Should You Invest in Silver Now? Rich Dad Thinks So! David Morgan believes that now is the time for baby boomers to invest in silver bullions if they want to retire comfortably without fear of investing in the once heavily volatile precious metals market.