Investment Methods in Gold

What is the investment in gold .. What are the best ways to invest in gold and what is the difference between these methods? Many questions have been received and will try to cover in the next article.

First: Investment in gold is considered one of the best investment methods during the last three years, due to several reasons, including gold prices in the last three years, which leads to opportunities to make a profit from investment in gold, in addition to gold has been considered a haven safe and wise periods of history due to the value Time of crisis.

Second: The methods of investing in gold are many and varied. These are the stock exchange, funds, joint investment, gold futures or gold storage in several forms, whether in the form of gold bullion for the purpose of investment or in the form of jewelry and gold jewelry.

Third: Investing in gold through stock exchanges or gold funds or gold contracts must be through a broker approved in the stock market, such as the stock market is exactly that way and suitable for large investments of gold and medium and fit for those who buy and sell gold with the price change

Fourth: One of the ways to invest in gold or from the forms of investment in gold is to buy gold and keep it for certain periods and then bet either with the change in price and achieve profits or with the need for more cash flow, and individuals can buy gold to invest in the form of alloys of a different weight of 5 Grams per kilo of gold or in the form of gold objects for the purpose of adornment and investment together.

How can a gold investor sell?
The method of selling gold varies according to the shape of the gold. For example, gold bought through the brokers of the stock market is sold by the same broker, while the gold bought in the form of alloys or gold works can be sold by trading gold according to the price of gold today and the weight and the gold.

Investment in gold bullion
Is a smart investment because gold is a commodity required of everyone, everyone wants to acquire it .. (But) must be aware that investing in gold needs some craft in dealing with some of the most important things:
(1): The purchase of gold is in the form of raw gold (alloys) and not the work where the alloys do not pay for the factory (only a very simple commission for the jeweler never exceed 1%) and the bullion is characterized by accuracy of gold,
(2): The person who wishes to buy is only buying the full surplus of his capital, but an appropriate part thereof.
(3): When he sells the gold that has already been bought the best to sell all the quantity but only some of them and keep others
(4) To buy from a specialized place with a good reputation and to obtain a purchase bill or even a statement of account.
(5): that does not deal with the absolute term, but the immediate deal only initiated by either in the purchase or sale.
(6): Be a follower of prices to be aware of the direction of the price, especially from the specialized sites on gold prices such as the site of KTCO or Saxo Bank or the World Gold Institute. As well as follow-up shop where I bought it.

The buyer should take gold as gold prices change continuously but gold is a high price for gold whenever an appropriate period is passed. The general rule is that the price is higher than the drop. Gold is a safe haven in times of crisis.

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What is the difference between investing gold and silver?

In the developed world, investment in precious metals such as gold and silver is not treated as a way of physical security but as an important source of profit. Physical safety comes through the realization of continuous profits over the years.

This means that investments remain to be sold later, if these investments do not grow to achieve greater future returns. The investor in this country is the sole decision maker in the case of permanent monitoring of investments to achieve the greatest possible percentage of profits.

While the situation is very different for investors in developing and poor countries, most often go through nightmares of poverty and loss of wealth due to the rapid and violent fluctuations of these economies, precious metals in general and gold especially here plays the role of the only safe means of economic volatility and instability in local currencies in this country .

Gold has proved in the last decade in particular that it is the only safe way to protect wealth from the risks of inflation and economic volatility. Even in bad times, gold prices have moved in different ranges, keeping them in real terms, as opposed to keeping money in banks. Emerging Communities Gold investors will grow in particular to take the idea that gold is the 1 safe haven.

There is no conclusive evidence that gold is a greater financial metal than its presence in international transactions like deposits and deposits. It is not hidden from anyone that the central banks around the world and in the majority of the developed countries and even the emerging ones, including many Arab and Islamic countries, Except in extreme cases, and this is not what has happened before, where most of the countries in the world, especially the developing countries, were dependent on selling most of their precious metal reserves to conduct development operations in exchange for raising their foreign exchange reserves and the US dollar, Key to the world level, but after the US currency has seen a lot of violent fluctuations reinforced gold position, bringing it up to demand by businessmen and investors as a safe haven to protect the strongest capital from major currency fluctuations and economic and inflation risks.

Before asking whether silver is a financial metal like gold or not, it should be noted here that only central banks are granted the title of financial metal and not investors. There is no silver metal in the coffers of central banks around the world, and silver has never before been a valuable tool for disbursement, and it is unlikely that this will happen unless the entire world financial system collapses, but in general it is unlikely that silver Or even part of central bank deposits.

It should be mentioned here that silver metal in the developed world is not treated as a metal close to the character of financial metals even, although the difference is entirely for developing countries where it is difficult for investors in this country to acquire gold amidst these waves of unprecedented heights Which drives them to search for a cheaper alternative to the price to match their material potential, namely silver, and despite the success of silver in the fulfillment of the wishes of investors, especially in light of past strong rises, but as mentioned above it is not the power of anyone to describe metal as a metal.

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Gold Funds Dulled by August Drop 1993, Bloomberg Business News

After five months of brilliance, gold mutual funds are losing their luster. Values are declining. Redemptions are rising.

This is major news in the investment business, which has always been perplexed by gold. The most precious of metals dropped to $366.30 an ounce Thursday on the Commodity Exchange in New York, a noteworthy decline considering that gold stood at its 52-week high of $411.30 as recently as July 30.

What had driven up gold's price were the fears - or hopes, on the part of gold mavens - that inflation was on the march once again. But that five-month buildup appears to have fizzled.

Now, though gold's price makes it tantalizing once again, gold bugs must decide whether they should prospect for gold mines or sidestep land mines. The provocative issue has fund managers split in a lively "point-counterpoint" debate.

"The demand for gold dropped in August, primarily in the Middle East and the Far East," said Ted Arnold, an industry analyst with Merrill Lynch & Co. "I wouldn't recommend buying shares of gold mutual funds right now."

On the contrary, said Malcolm MacNaught of Fidelity Investments. He manages $759 million in a gold fund and a precious-metals fund. "Twelve months from now, gold will be over $400 an ounce because of increasing demand from the jewelry trade and a drop in supply in South Africa," MacNaught said.

Gold's rise to its $411.30 high on July 30 - a 24 percent increase over March's low of $332.50 - was especially significant because gold hadn't broken through the $400 threshold in three years.

The surge was a bonanza to gold funds, which wooed plenty of small investors. The Investment Company Institute, the fund industry's largest trade group, said $1.5 billion had flowed into precious metals funds, which are dominated by gold. That's more than three times the $488 million that had been amassed in the comparable seven-month 1992 period.

But gold started to weaken, shedding a few dollars.

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