Gold Investment Guide
Invest in gold and secure your financial future from;
- Stock market failure
- Currency failure
- Runaway inflation
“Converting your retirement account to gold will provide you with unparalleled safety and security.”
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Why should I invest in gold in 2015?
If you’re looking for a sound long term investment, then the truth is that there has never been a better time to invest in gold stock, with their being several advantages and benefits that make it a particularly wise decision.
Due to supply and demand, as more and more gold is mined and natural resources get depleted, the price of gold will normally increase due to scarcity and supply constraints.
Gold has a long history of maintaining its value over time and where paper money and other currency can fluctuate, gold is seen by most as a relatively safe way of preserving their wealth, especially if the US dollar loses its value against other currencies.
Investing in gold is also generally considered a good way to protect your investment against both inflation and deflation, with the price of gold usually rising in line with the cost of living, but also increasing in times of economic depression.
It is also considered a good investment due to the fact that you can diversify your portfolio with it, and safeguard yourself against ‘putting all of your eggs in one basket’ with your only investments being stocks and shares. Generally speaking not all of your investments are likely to all perform well at any given time (normally gold will perform well when stocks perform poorly, and vice versa), so by adding gold to your portfolio you can decrease the volatility of your investments and help spread the risk.
A gold investment is usually considered a shrewd move in times of uncertainty, either due to rising unemployment, world tensions, or other events that can cause low confidence in world economies or governments. During such times, the price of gold usually rises, almost always out performing other types of investments.
Are there any risks with such an investment in gold?
As with any investment there will always be a certain degree of risk, so to speak. However, gold has long been considered one of the safest types of investment you can make.
Things to consider when investing include;
- Gold can be quite volatile in the short term, but normally shows a steady increase over time.
- Interest rates rising above the rate of inflation could potentially see a drop in the value of gold.
What kind of return could I expect to see on my investment?
Between 2008 and 2012 the price of gold nearly doubled, with the spot price of gold currently holding steady at around the $1200 per ounce mark - a 10 year increase of about $800 dollars per ounce.
What are the key price drivers of the precious metals market?
Interest rates
Interest rates can affect the value of gold with it becoming a less attractive proposition when interest rates are high, due to the fact that a gold investment doesn’t pay you interest where as other types of investment would.
Inflation
Gold prices tend to rise with inflation with a fairly close correlation between the two.
Stock Markets
Generally speaking, when stocks fall gold rises, and when gold prices rise, stock prices fall.
Geopolitics
Rising tensions and current affairs can often see gold prices rise.
Oil prices
Generally speaking the value of gold will move in unison with the rising prices of oil, in part due to its connection to geopolitics and world tensions.
The dollar
The perceived value of the dollar can also have a bearing on the price of gold.
Investors and other market forces
As investors look more towards gold as an investment the price will rise, and as other commodities become more attractive and they move away from it, then it will start to fall.
How to invest in gold stock?
There are several ways that you can invest in gold with the most prominent being to buy and take delivery of physical gold, either in the form of bullion, or gold coins such as the sovereign or krugerrand.
Such purchases can be made online, via a broker, or by telephone.
Another such investment is what’s known as the Gold IRA (individual retirement account), which simply put is a tax free way of investing in gold for your retirement. Such an investment may take the form of physical gold, or a something like a gold-backed exchange-traded fund. You also have the option to rollover your 401k.
What should I look for when choosing a company to invest with?
If you choose to invest in gold than you should look for a company that specializes in such investments, preferably with a good history, positive reviews, and industry accreditations.
One such company is Regal Assets, who have been in business for several years, and over which time have earned an impeccable reputation for professionalism and also the following accreditations;
- A+ rating with the better business bureau
- AAA rating with the Business Consumer Alliance
- 5 Star rating with trust link
- A feature in Forbes magazine’s 2013 investment guide.
Click here now to visit the Regal Assets website for further information!
