Gold & Silver Investing

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Investing in Gold and Silver

I have decided that I am going to let Robert Kiyosaki introduce to you my topic on Investing in Gold and Silver.

"Americans Are Still Asleep - Yahoo Finance Article.

The secret to surviving the next few years is keeping your wealth in real money, not in the U.S. dollar. Buy things that hold their value and are exchangeable all over the world. Commodities such as gold and silver have a world market that transcends national borders, politics, religions, and race. A person may not like someone else's religion, but he'll accept his gold.
One of the reasons why I'm bullish on gold and silver is because the American public is still sound asleep to this asset class. Most Americans have no idea how or where to buy physical gold and silver. The outlets that sell gold and silver I have visited are already low on inventory.
If and when the American public wakes up to the reality that their dollars are not money, but a currency, the panic and stampede will begin. Should that happen, today's prices for gold and silver will look like bargains.
Today, very few people realize that Warren Buffett reportedly holds one of the largest caches of physical silver in America. He purchased silver in the late 1990s, when it was cheap -- and while others were criticizing him for not investing in tech stocks." - Robert Kiyosaki

Link to site.

Why is Gold so Precious?

Out of all the precious metals, Gold is the most popular investment. Gold is definitely one of the safest investments you can make, especially when times are rough and the economy may be going through hard times. Some of the factors that cause these hard times are market decline, war, social unrest and inflation. Currently, the US is experiencing a recession. A recession as defined in Wikipedia is "a general slowdown in economic activity in a country over a sustained period of time, or a business cycle contraction. During recessions, many macroeconomic indicators vary in a similar way. Production as measured by Gross Domestic Product (GDP), employment, investment spending, capacity utilization, household incomes and business profits all fall during recession." One of the scary things is that the Governments response to such times is usually to increase money supply (print more money), increase government spending and decrease taxes. For those of you who don't know, printing money = inflation. The basic supply and demand will be affected, and prices of gold will increase due to increased money supply. Gold is not something that can easily be found in mass quantities. Unlike money that can be printer, gold must be mined. Due to its scarcity as a precious metal, it will always hold its value.


Useful Resources for Investing in Gold

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Videos on Gold Investing

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Factors Influencing the Gold Price

What does Inflation mean on the price of gold?

Good question. Let me first tell you that Gold used to be used as money. Instead of using dollar bills, things were bought using gold. The American dollar used to be backed by gold, meaning there was as much gold as there were is equivalent in dollars. America agreed to not print any more money than they had gold. The gold standard was established in 1946, and diminished in 1971. After the gold standard was changed, the price of gold increased dramatically. Due to supply and demand, there was now all of a sudden more money, but the same amount of gold. This is the same thing that will happen with today's circumstances.

Besides inflation, some of the other factors that influence the price of gold are demand. Currently, gold is demanded for things such as jewellery, industrial/dental production, etc. Currently, the annual demand for gold is 1000 tonnes higher than what is annually mined.

War is another big factor that affects the price of Gold. In times of crisis, people have a natural tendency to fear that the currency may become worthless. Gold is viewed as a solid asset which will always buy food or transportation. In times of uncertainty the price of gold will rise.

Reasons why Investors Buy Gold

There are 2 main reasons why people choose to invest in Gold.

The obvious reason being to make money by buying low and selling high. This is the typical way people make money when buying and selling.

The second reason is to have Gold act as a hedge or a safety in the case of an economic crises.

Both of these reasons are in the making in today's economy. Although the price of gold seems extremely high, there are many predictions that the price will go a lot higher. Many of the factors influencing the rising price of gold have only just begun.

Buy Gold on Amazon

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Methods of Investing in Gold

Investing in Gold can be done a few ways. Those ways include: purchasing bullions or coins, purchasing certificates, accounts, spread betting, derivatives and shares. I would recommend buying actual gold if you are looking at a long term investment. Also, if you are investing due to the second reason mentioned above, to have gold act as a safety, you would obviously want to go with purchasing bullions of coins. Those of you who want to make some quick money, you might want to invest indirectly through certificates. This can be done fairly easily online through an organization like ADVFN where you can get a FREE stock quote
or Wall Street Survivor.


Who is ADVFN?
ADVFN is the one of the worlds largest stocks and shares websites. Offering the private investor FREE streaming prices from NASDAQ, NYSE, Dow Jones and many more indices from around the world.

What is Wall Street Survivor?
Wall Street Survivor is the Web's best free fantasy stock trading game and investment contest portal where players can manage their own fantasy stock portfolios and compete risk-free against friends, peers, colleagues or other players for the most lucrative cash prizes on the web.

Gold Gold and more Gold!

As you can see, gold is on a lot of peoples minds, and is almost everywhere we look.
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How to Invest in Silver

In the process of making this lens I decided to make an entire lens on Investing in Silver.
Learn all about how to invest in Silver.

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