Gold stocks have been going down with the rest of the market now for a long time. Is now perhaps the right time to start buying gold again?
People have been selling gold for one reason because they have had to liquidate all their good investments to pay off their bad ones. Many hedge funds have been selling gold for that very reason. But now that things have settled down a bit, perhaps gold will turn around and start going up. Gold cannot keep going down like the financial stocks can because gold is not in trouble like the rest of the market is.
Nothing is wrong with gold like it is with the financial stocks and all the retail stocks that are getting hit hard in this beginning of a recession. Gold is traditionally a safe place to put your money in tough times and right now should be no different. Buying gold in the form of gold stocks is much the same as actually owning the gold yourself. If the current price of gold goes up, so will the value of your gold stocks in all liklihood.
On Friday November 21, gold had a big day and some stocks like Kinross gold made jumps of more than 20%. Now on Monday November 24th, Kinross is up again for the second straight day. This is a good sign that gold will not keep going down forever like it seems the rest of the market is doing. Gold will always be gold and will retain it's value. This is why people have invested in gold for thousands of years in one form or another.
BUY GOLD STOCK FOR DUMMIES
IF YOU NEED CASH SELL YOUR GOLD
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IS IT TIME TO INVEST IN GOLD?
The Dow has right now (October 9/2008) closed under 8,600 points which is a 5 year low and it makes me seriously wonder whether now is the time to buy gold. Even gold has come down in this market so far but that has to stop at some point. The current price of gold should start to rise sometime soon one would think.
Buying gold stocks is one of the easiest ways to get the benefit of "buying" gold without actually physically buying it. No one wants to run down to their local coin shop and start buying gold coins. All you have to do is pick a good gold stock an dyou will pretty much have the same investment.
In this stock market panic of 2008, people are obviously bailing out on stocks. That also has to end at some point but it still could be awhile before that happens. Buying gold in the meantime might be a good investment strategy as the value of gold has to start going back up real soon. When panic is in the air, and it certainly is now, you want to have as much of your assets in things that are stable. Gold has shown over the years that it is a stable investment and it is only a matter of time until there is a flow toward buying gold.
Will there be a gold panic and a rush to by gold in light of the turmoil in stocks? Probably not but the worse things get in the stock market the more likely it is that the demand for gold will rise. When that rush toward gold happens you want to make sure you have some of your assets in gold to profit from it.
WHY IS GOLD GOING DOWN EVERY DAY?
The stock market seems to be in free fall lately and many investors are in panic mode. Stocks are selling off and you can feel the panic. A 500 point drop in the Dow as we had yesterday is nothing to sneeze at and is a true indication that investors are very nervous.
It is times like these that you would think the price of gold should be going up. Most people own gold in their portfolios as hedge against down times in the stock market. Usually, when stocks go down, the current price of gold will tend to go up. That is why people own this type of investment.
In this situation in September 2008 however, gold continues to go down with the stock market. The safety gold is supposed to provide is failing. sO, Why is gold going down? Is it because the dollar is strengthening against other currencies. Typically, when the dollar is weak (and it has been very week in recent years), the price of gold goes up.
Another reason why gold is going down may be because of the activity of banks and hedge fund managers that are in trouble. Because they have made a lot of bad bets which has led to this weakened economy and stock market panic, many investors want their money now. These financial institutions may be having to sell their good investments such as gold in order to cover their losses. This continuing selling of gold will of course drive the current price of gold down.
Jim Jubak and Kinross Gold Co.
One of the ways to buy gold is to buy a gold stock. Jim Jubak of MSN Money has a portfolio which has done very well over time and in it right now one of his stock picks is gold stock Kinross Gold Co. (KGC).
He picked this stock in April of 2008 and with the currant price of gold at about $963, the stock is at the same price it was in April. It is sitting at $23.31 as of July 11 and his target is $24.00 per share by September of 2008.
That is not a whole lot of upside potential but with the stock market tanking like it is, this gold stock is probably safer than many other stocks in different industries.
If you are a stock investor, you might take a look at his Jubaks picks which have done so well over the last 5 years. He is a conservative investor and he thoroughly explains all his stock picks in a way that anyone can understand.
What Is Gold Farming?
Gold is valuable in real life and apparently it is also valuable in online games. The term "gold farming" is the the activity where an online player in an computer game tries to get (farm) as much gold or other valuable game items as he can. This is usually done by exploiting repetitive elements of the game's mechanics such as killing an important creature over and over to be rewarded with gold. First though, they would probably use a MMORPG leveling guide to learn how to gain levels quickly so they can farm faster.
There are estimates that say over 100,000 people in China are employed in gold farming "sweatshops". These Chinese gold farmers usually work long hours and their wages are very low. The in game gold and valuables they get have to then be sold for real money and have often been auctioned off on sites like Ebay. Ebay has started to crack down on this type of auction, however, and the gold farmers are having to find other ways to hawk their gold.
Now you know that the current price of gold can mean several different things: Real gold or online virtual gold!
Cash For Gold - How To Sell your Gold Jewelry
The current price of gold is so high that many people are trying to sell their old gold jewelry online. It seems you can buy and sell everything online and selling gold jewelry is no different.
If you want to sell your old gold that is laying around the house the best way to do it is through a company called Cash For Gold. The way it works is this:
1) First you request a FREE, INSURED Refiner’s Return Kit by completing the simple form the first page of the website.
2) When you get the kit in the mail, you place all your unwanted gold, silver or platinum jewelry in the secured envelope. Drop the pre-paid insured envelope at ANY convenient mail box at NO CHARGE!
3) They will then send you either a check or by using our system your payment will be deposited into your checking account within 24 HOURS!
This is a legitimate company that has been talked about on NBC America's Good Company morning show and written about in Forbes. If you go to the Cash For Gold website you can see several videos of how it works and see that they are the nation's largest buyer of gold. This is a great way to take advantage of the high current price of gold and do some cleaning around your house as well of your old unwanted jewelry.
How To Sell Gold
If you sell gold at the right time it can make you richer for sure. Now that the current price of gold is historically high, now might be the right time to sell gold. Investors who are wise may use gold as a hedge against unfortunate mishaps and bad times in the economy.
If you are looking for a place to sell your gold jewelry you should try Dollars4Gold. This is how it works:
"When you complete the form they will send you a package containing all the materials you will need to ship items to our refinery. Simply place items containing gold, silver, platinum or palladium into the packaging materials (which include a pre-paid return shipping envelope).
Deposit the envelope in any US Postal Service mailbox. Your package will be insured against loss or damage for up to $100.00 in value and you can track your package using the tracking number that will be provided to you.
When they receive your shipment they will analyze your valuables using non-destructive testing and assign a value to them based upon the weight and purity of your items and the current market price of the precious metal.
They will immediately forward a check to you. If you are satisfied with the payment, cash the check. If you are not satisfied, return the check to them and we will send you back your items. Your satisfaction is guaranteed!"
Give Dollars4Gold a try.
If you are interested in selling other kinds of gold you first you need to learn about the different purity levels of gold and the different forms in comes in. If you have coins and ingots of pure gold, you can most likely sell them in coin shops or jewelry stores. If you have jewelry and gold plated items, those can be worth money also. Shares of gold mining stocks and precious maetal shares are the most common way of owning larger amounts of gold.
Secondly, you need to know that the current price of gold changes everyday but the buyers of gold set their prices at the beginning of each day before they open for business. Gold at the end of the day will be worth no more or no less than it was valued at the beginning of the day.
To receive and instant payout for your gold, take it to stores which specialize in gold and can be found in the phone book under "precious metal dealers". You will usually be able to sell your gold scraps and gold jewelry to these types of dealers.
If you like, you can also sell your gold on Ebay or you can use Ebay to get an aproximation of what your gold is worth. Ebay is a free marketplace and you can sometimes get good prices for your gold jewerly there. Signing up is free and easy at Ebay.
If you own shares of a gold mining company, you would buy and sell them just like you would any other stock.
Buying Gold As An Investment
One of the biggest traps investors fall into is buying a gold investment that has little or no relationship to his or her objectives. Gold is not for everyone. Buying gold is usually used as an insurance policy in case other investments such as stock go down.
Gold is in a bull market because its core fundamentals are so outstanding. The current price of gold may jump up to thousands of dollars per ounce in the coming rally or it may struggle and fall lower. One thing is for sure though, it will always be worth something. Gold is the ultimate alternative investment because it is tangible.
Many people, including the die hard stock investors, often still see gold as the most undervalued primary asset group in the standard portfolio mix. In general, gold becomes more desirable in times of banking failures and tough economic times. Also, like all investments, becomes more attractive to more people the higher it goes. People don't seem to want to miss out and that is why both gold and stocks tend to go up too high before they fall back.
Before you invest in gold, you should carefully consider what percentage of your overall portfolio you wish to risk in gold-related investments. If you are thinking about investing gold, it is worth giving the same consideration to your purchase as you would to any other investment. That is just good financial planning. When you buy gold investments, you lower risk in your investment portfolio.
As more investors realize that gold is a great way to profit in today's climate, more fund-makers have been happy to supply the means. There is a whole world of excellent alternatives out there for investors who wish to invest in gold.
The Current Price Of Gold Keeps Rising
Similar to all investments and commodities, the current price of gold is in the end driven by supply and demand. A lot can be learned by understanding what the rising dollar price of gold means.
Thousands of years ago, gold and gold items were buried with pharaohs to use in the after-life because gold is free from corrosion or decay. Gold and silver meet that test while paper money does not. Today, gold investment is seen as attractive in times of economic uncertainty and oil-led inflation. Gold is really the only viable alternative to the dollar. Gold is bought and sold in dollars, so any decline in the value of the dollar causes the gold prices to rise.
Instead of concentrating on the dollar price of gold, one might wonder about the depreciation of the dollar. Never let it be said that higher oil prices and profits cause inflation. Inflation of the money supply causes higher prices. Gold prices are surging which reflects the dollar's devaluation and is warning us to pay close attention to our fiscal, monetary, and foreign policy. When the gold price rises sharply against a country's currency, as it has against the dollar, it points to trouble ahead for that country's economy and monetary policy.
Accurate predictions for the future price of gold are an exercise in speculation. Should the the price of gold burst through the $1,000-per-ounce barrier, many experts predict it could reach higher records and even double. The weakening dollar and troubles in the financial markets have driven current price of gold to record highsand it might be headed to well beyond $2,000 per ounce.
What Percentage Off My Assets Should I Invest In Gold?
No matter what the current price of gold is, there is no one answer for this question. Often, personal finance articles tell you that individuals may want to invest anywhere from 10% of their portfolio to 30% in gold.
Someone who is more optimistic about the economy would be more likely to want to invest toward the lower 10% level. Gold is much like an insurance policy against the economy and someone who feels that good times are ahead would want to have less "insurance". Someone who feels there are dire times in front of us whould be interested in investion more toward the 30% level or even higher.
Gold investment will alway be a secure alternative to stocks and bonds. Traditionally, gold has been a favorite of wealthy European and Asian families who have opted to keep a significant percentage of their wealth in gold. This investing style has also become a favorite of many U.S. upper class families who want to make sure their future is secure.
With stocks going down for much of 2008, many are turning to gold and gold stocks for security. Gold investing has been getting more and more attention as investors flock towards safety. The current price of gold may still have many years of upwards growth if this trend continues.
Why Invest In Gold?
No matter what the current price of gold is, the question might be asked "why invest in gold?" Historically, gold investing has been a proven method of maintaining value when stocks are going down, inflation is occurring, and/or the national currency is being devalued.
Investing in gold is like having an insurance policy. If you fear that rough times are ahead, investing in gold would be the right thing to do. Gold is now almost at $1000 per ounce and many people predict it will continue to rise for some time.
Although gold has done very well for the last 5 years, it did not do well prior to that. The 80's and 90's saw very little movement in the price of gold. This is something to take into consideration when deciding whether to invest in gold. Nothing is guaranteed and the current price of gold may not hold as it is already historically high. However, for the concervative investor who wants to protect themselves from inflation and the falling stock market, gold is a good choice for your investment dollar.
Why Gold Holds Value Over Time
The main reason that gold does not lose value over time is that the amount of gold is finite. The current price of gold has to do with, among other things, how much of it is mined.
As the dollar goes up or down, gold also moves with it. Inflation is a bad thing for the value of the dollar and so people try to protect themselves by investing in gold.
If you think that their are tough times ahead economically, now is the time for you to invest in gold. When the stock market goes down and stock market investing makes you cautious, that is time to buy gold. Gold will hold its value when everything else is going down.
It is probably not wise to put all your investment money into investing in gold. You should pick a percentage that you feel comfortable with such as 10% or 20%. Of course if you feel you really want to be safe and you feel that really tough times are ahead, you might choose to make more of an investment in gold. Whatever you do, you can rest assured that you will will be safe as the current price of gold will in all likelyhood remain constant.
Current Price of Gold - How To Invest In Gold
Whatever the current price of gold, many people want to learn how to invest in gold. Metals such as gold and silver are called commodities. Commodities are more complicated than stocks for the normal investor because there are different ways you can invest in them.
If investors want to buys stocks or bonds, they can call up their brokers and make the purchase. Commodities such as gold and silver are more difficult due the the complicated way in which they trade through futures and options markets.
Luckily, investing in gold is one of the easier commodities to invest in. If you like, you can invest in gold coins (for instance you can buy krugerrands) that are obtained from a dealer and from some banks. If you do this, though, you will have to find a safe way to store the gold. Many people who have gold, store it in safe deposit boxes in banks. as this seems to be the most secure method of storage.
The second way to invest in gold is to buy an ETF. Exchange traded funds work much like stocks and they can be bought and sold any time the market is open. These funds mirror the price of gold and so even though you do not directly own any gold, you have a fund that has exposure to it. Investing in gold through ETF's is probably the easiest method and the most recommended method of gold investment for the average investor.
The third and most complicated way to invest in gold is to trade futures and options in the commodities market. This takes a lot of knowledge and experience to know what you are doing and it is not advised for the normal investor.
Investing in gold is not as intimidating as it sounds. Usually people can easily buy ETF's and this is by far the most popular way. As the current price of gold fluctuates, these ETF funds go up and down correspondingly. If you like to have the physical gold in your hands you can always buy it but then the safety issue comes into play. Whichever method or methods you use for your investments in gold, you will still have the benefits of owning the most treasured metal in earth's history.
Current Price of Gold
The current price of gold is a website that is set up to show you how to invest in gold for your future. Gold prices are always fluctuating and you can take advantage of that.
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