Monday, June 11, 2018

Investing in gold is the best way to reach success and get rich. If we look at the daily economic news that is presented, we will note that it is not without mentioning the prices of gold on the local stock exchange and international exchanges. Recent statistics have mentioned that trade in gold accounts for eighty percent of trade Global.

Anyone can invest some of their own money in gold by trading gold bullion through banks, international exchanges or even brokerage firms. The best way to invest in gold is to trade in bullion.

Ways to invest in gold
Investing in gold is one of the most successful investments, but it has a great deal of risk. Investing in gold is done by trading in gold bullion by purchasing pure gold pieces of twenty-four caliber, and then reselling them in several forms according to their cut and weight, Equals twenty-five grams pure pure gold.

Investment in gold is done in two ways:

The first method: It is common that the prices of gold on the local and global stock exchanges can see several changes from time to time, and the first ways we talk about is a way of trading through the Internet, in which the investor in gold to open a special account to trade in a global bank or An electronic bank or brokerage firms.


All these means make the investor ways to trade his investment from gold through the Internet, he buys and sells through his mobile phone or laptop, for example: the company responsible for brokerage in investment in gold, you specify some numbers for the purchase and sale , And advises the investor the right time to do the sale as well as purchase.

The second method is that the investor buys gold bullion, either through banks that have gold trading transactions or companies that sell gold bullion. The investor must be careful about the right choice for the company that will buy gold bullion. That have a good reputation in selling gold bullion.

It is worth mentioning that the gold bullion companies serve the delivery to the investor to Bab al-Bayt or put the alloy on deposit in banks, and there are companies and banks are major global stores provide the customer with gold alloys characterized by purity.

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.

Although it is easy to buy gold jewelry, it is not the appropriate way to invest in gold for several reasons, including that the price of the gold item depends on the design, implementation and other stones added, so there is no direct and accurate relationship between the price of an ounce of gold in international markets and the price of products made of gold. For this reason, there are those who buy gold coins and molds that come in pure gold of 24 carats, which is the caliber used in gold trading, either through spot markets or futures, and then stored in safe places in banks' tanks or by specialized companies with insurance work on them .

With this high percentage of gold, 24 carats can not be used in jewelry nor in many products because of the softer gold at this concentration, despite the high density of the metal. For the scientific benefit - even if it is in the field of chemistry which I do not know - the gold density is equal to 19.3 grams per cubic centimeter. In other words, the weight of a piece of gold in the form of a cube of 1 centimeter is 19.3 grams. Which are often priced higher than gold.

Therefore, attempts to cheat in gold is very difficult because any other material added instead of gold will lead to a lower weight of the piece less than the right weight. But for practical and economical reasons, using 18 carats instead of 24 carats, which contains 75 per cent gold, 75 per cent is divided by 18 carats on 24 carats. Other materials are added to increase hardness and color control, mostly copper, silver or rhodium Or zinc and others. Even a 14 carat is considered a real gold, but the gold ratio is only 58.3 grams per cubic centimeter.


However, the easiest way to buy gold is through specialized funds or even through the purchase of ETFs, which are shares sold and bought like the rest of the shares and no different from them. For example, the GLD, which simulates the price of gold ounce, Ten shares of it the price of one ounce of gold. Despite the popularity of this fund and its ease of circulation, there are those who do not consider it a real purchase of gold, and differ from the actual possession of gold molds or gold coins.

The reason is that these funds may sell more shares than they have gold, which is dependent on the idea that they have enough gold to meet the redemption requests that are made on a daily basis and that it is not expected that all investors will claim their money once, But it is not guaranteed. The other option to invest in gold is by buying shares of companies engaged in gold exploration. There are specialized funds that bring a number of these companies into one basket to reduce the risk of buying shares of one particular company.

In conclusion, the investment in gold is still an appropriate means for those who have a great fortune and want to preserve it against the actions of central banks and the impact of inflation. Gold prices may go through financial bubbles due to the fluctuation of purchasing power of the dollar. It is possible to speculate on gold prices, So do not be risk free and lose a large part of the capital.

Trade experts confirmed that investment in gold can only succeed through the trade in alloys, because if the trade or investment in jewelry will lose the investor a lot of money, because gold works added to the workmanship and manufacturing, but gold bullion is sold in full without loss of any amount paid In which.

Gold bullion speculation on the global stock exchanges is also making a lot of profits, but it also has its risks. These risks are the difference in currency rates, where the currency falls and rises in less than minutes.

The reasons for the fluctuation of currency prices are trivial reasons may be a rumor of a country, which exposes any investor in gold for loss, but in any case invest in gold from successful investments and spread around the world.

The search and exploration of gold from the exotic and exciting hobbies offered by people, which are considered interesting adventures even if not finished by the desired result, and gold of precious metals is also considered a chemical element and its properties is shiny and has been used in the old currency industry, Nature is found in the rivers in a granular form within the rocks and also exists in the veins of the earth, but does not exist alone, but exists with other minerals such as lead and copper and is characterized by smoothness and density and does not erode. 


It is said that modern gold was discovered in Australia in 1896 and most of its places in America, especially Alaska, California and Dakota. The continent of Africa is located in the South and Africa is the world's leading producer of gold. Despite the presence of gold with other metals, it is quick to appear because these minerals degrade quickly when exposed to any climatic conditions, which works on the emergence of gold easily and is deposited near the surfaces of soils and beaches.

This will make it an easy target for those looking for gold. In this article we will learn about very important points regarding the location of gold and the important tips for those who want to start looking for gold. We will also show you the most important tools for searching for gold.

 Places that are considered the best places to search are:
Land that is not owned and refers to land that is not owned by the state or anyone because the search in places owned by others may put the gold researcher in legal liability, although it is necessary to search in places owned by others must obtain official permits, most notably the owner of the actual land.
Places where gold has already been found, these places are easy for the researcher because the researchers had previously searched for gold and these areas represent a very low risk and waste time and effort wasted.
The presence of gold in nature, gold is found in abundance in the inner layer of the earth and exists in the form of yellow veins and with other elements, but as we mentioned under the circumstances disappear these elements and remains gold, and the seas and rivers, we find him in the depths of the rocks inside certain known to chemistry scientists and is clearly present as herbs The yellow color is very clear to see.

Gold lost about 30 per cent of its value in 2013, raising doubts about the quality of investment in gold and the importance of escaping currency to tangible assets as a result of the erosion of the real value of currencies as they continue to be printed by central banks around the world. Is gold, in general, suitable for investment? Is gold still suitable for investment? What are the ways to invest in gold?

With a brief historical review, gold has grown by about 300 per cent in the past 15 years, while stocks (represented by the Dow Jones Index) have reached about 80 per cent over the same period, although gold has lost 30 per cent of its value this year, At the same time, the Dow Jones rose by about 23 per cent. That is, except for 2013, gold has grown by over 450 per cent in 15 years, while Dow Jones has grown by 42 per cent over the same period, plus annual dividends of 1-3 per cent.

There is no doubt that one of the most important reasons for the rise in the price of gold in the past years is due to the great appetite to be acquired by investors and some central banks who believe that the dollar is in a state of deterioration will continue for many years, and that there is no room to save wealth only through tangible assets, . Despite the negative performance of gold this year, there are many who adhere to the idea of ??investing in gold and does not deviate from it, whether it has risen or fallen. 


What is the reason for the attraction of gold?
The idea of ??investing in gold is based on two hypotheses. First, the purchasing power of paper currencies is constantly eroded. Second, the supply of gold is limited, so the price of gold is always at the mercy of demand, which is expected to last for decades. As for the limited quantities of gold, it is known, as the total of the extracted from gold over the life of mankind estimated at less than six billion ounces, or about 170 thousand tons, and produces annually in the world about 2500 tons, and more than half of the production was during the 100 years past.

This means that the amount of gold in the world is increasing annually by about 1.5 per cent, which makes gold fundamentally different from many other goods that do not have the factor of accumulation, that is, those goods that are extracted and remain on the face of the earth, unlike many other goods as depleted as oil Which is extracted and consumed irreversibly. But since the amount of gold extracted on the surface of the earth is increasing - that is, the quantity is increasing - under the law of supply and demand is supposed to increase the supply lead to lower prices, the gold price is supposed to fall! The imbalance in this analysis is that demand is growing more than supply, and this is true even in years when demand is relatively modest, due to the weak growth rate of annual gold, which we have seen does not exceed 1.5 per cent.

Gold Trading
How can a person invest in gold? There are several ways, one of which is the purchase of products made of gold such as jewelry and ornaments, which can be used as a decoration for women and as an investment at the same time, but there are a number of reservations about this method. First, we have to know that the quality of gold is measured in carats, and the highest quality is pure gold, which was given a measure of 24 carats, since the gold ratio exceeds 99 per cent and up to 100 per cent.

After the first six months of 2018, the luster of gold did not fade. On the contrary, the yellow metal rose, not all as expected, did not win the strong Trump dollar. Gold was the biggest beneficiary of the US interest rate hike. Which is a coup in the economic base fixed in the minds of almost all economists, has changed this rule? Or does gold no longer care about the dollar? Or what happens?

In the beginning, gold is the most important and most valuable precious metal, and the acquisition of gold is a constant desire of individuals and countries - central banks - and is the most important part of the reserves of countries, because of the material value and moral enjoyed by the yellow metal, American interest, and political events in the world.

The relationship between gold and the dollar is inverse. The demand for one increases when the price of the other rises. This relationship is that gold is one of the most important hedge instruments against the risk of change in the exchange rate. Investors use it to cover the risk of weakening the dollar. Safe haven or security haven for investors, and gold speculation is always linked to the economic risks in the world which are the main factor in the demand for gold at the moment.

By the end of last year, all expectations were in the interest of the dollar. The worst for the financial markets, according to analysts, ended in 2016, as the year passed with major events, which helped the collapse of economic indicators and the recovery of gold, we saw Britain's sudden exit from the European Union, Voting on the Italian constitution, the victory of Donald Trump, raising American interest, Turkey's military coup, continuing tensions in the Middle East, terrorist attacks in Europe, and so on. 


Apart from the narrative, all these factors were a major reason that gold ended the year 2016 with its first annual gain since 2012, although the yellow metal fell sharply following the victory of Donald Trump in the US presidential election in November. It fell 12% in the fourth quarter, but a strong start to gold in 2016 helped to end the yellow metal last year up 8.5%.

Dollar
We mentioned that there is a close correlation between gold and the greenback, as the dollar's appreciation increases the cost of gold to other currency holders, while the increase in interest rates leads to higher bond yields, which limits the demand for non-yielding gold and increases US interest twice within 3 months , All expectations were in the interest of the dollar, which did not happen, as the green currency continued to fluctuate during the first quarter of this year.

The Federal Reserve's New York Federal Reserve Chairman William Dudley said the central bank was not rushing to tighten monetary policy. James Bullard, the Federal Reserve chairman, "I do not think we need a major adjustment of monetary policy at this point in order to stay on track and keep inflation near the target," he said.

Another reason for the volatility of the US currency is the expectation that Federal Reserve Chairman Janet Yellin will pursue a sharp austerity policy towards the interest rate by increasing the rate at a higher rate, which did not happen at the last interest rate hike. The dollar is reviving, but markets are not reacting enthusiastically if events are below market expectations.

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