Best Gold Investments

9 Ways to Invest in Gold.

First off, it is really difficult to quantify the best gold investments as what’s best for me is not what is best for you. You may want to request from REGAL ASSETS, their FREE GOLD INVESTMENT KIT.  Regal Assets is one of the top rated copanies in the gold and silver business.

1. Gold exchange-traded funds. (ETFs)… What is a Gold ETF?

An ETF is a type of mutual fund that trades on a stock exchange like an ordinary stock. A gold exchange traded fund is a commodity ETF that consists of only one principle asset, Gold. However, the fund itself consists of gold derivative contracts that are backed by gold. You do not actually own any gold. Even when you redeem a gold ETF, you do not receive the precious metal in any form. Instead, an investor receives the cash equivalent. The main advantage to holding gold through an investment product is liquidity.

best gold investmentsThe recent explosion in exchange traded funds (ETFs) presents an even more interesting way to invest in gold. The ETF’s exact portfolio is fixed in advance and does not change. Thus, the two gold ETFs that trade in the United States both hold gold bullion as their one and only asset. You can locate these two ETFs under the symbol “GLD” (for the streetTRACKS Gold Trust) and “IAU” (for the iShares COMEX Gold Trust). Either ETF offers a practical way to hold gold in an investment portfolio.

2. Closed-end funds…. What is a Closed-end fund?

There are closed-end funds that invest in gold. These funds typically trade at a discount or premium to the underlying asset, depending on the market. So if you find one trading at a discount and you believe the price of gold will go higher, this could be an option. But fees in closed-end funds typically are 1 percent to 2 percent higher than in mutual funds or ETFs.

3. Direct ownership.

There is nothing like gold bullion, the ultimate expression of pure value. Gold is the only real money, and its value cannot be changed or controlled by government fiat-the underlying reason for governments to go off the gold standard, unfortunately. The best forms for gold ownership are through minted coins: one-ounce South African Krugerrands, Canadian Maple Leafs, or American Eagles.

4. Single stocks … What is Single Stocks that invest in Gold.?

You can also invest in gold-mining companies. As a rule of thumb, gold mining stocks can have as much as a 3-to-1 leverage to gold’s spot price to the upside up and down.

5. Gold coins … What are the Gold Coins and should you invest in them?

The most popular and liquid 1-ounce coins are Krugerrands, Canadian Maples and American Eagles. This has always been one of the best gold investments. If you want to  keep your gold in your safe, then gold coins may be the way to go.  If you want to buy a gold coin, you have to purchase it through a network of authorized dealers that include wholesalers, brokerage companies, precious metal firms, coin dealers and participating banks.

best gold investments

Death of the Dollar

6.  Gold options and futures.

For the more sophisticated and experienced investor, options allow you to speculate in gold prices. But in the options market, you can speculate on price movements in either direction. If you buy a call, you are hoping prices will rise. A call fixes the purchase price so the higher that price goes, the greater the margin between your fixed option price and current market price. When you buy a put, you expect the price to fall. Buying options is risky, and more people lose than win. In fact, about three-fourths of all options bought expire worthless.

The futures market is far too complex for the vast majority of investors. Even experienced options investors recognize the high risk nature of the futures market. Considering the range of ways to get into the gold market, futures trading is the most complex and, while big fortunes could be made, they can also be lost in an instant.

7. Gold jewelry … What kind of Gold Jewelry?

Jewelry remains the most popular way to hold gold, accounting for nearly half of gold demand, according to the World Gold Council. When buying jewelry as an investment, understand the karat amounts and how it affects the price and durability of each piece. Nevertheless, it’s best to buy jewelry with an eye to wearing it, not primarily as an investment. Because it is so illiquid, you run the risk of losing money on your gold jewelry if you need to sell at an inconvenient time. This is not always the best gold investment so beware.

8. Gold mutual funds.

For people who are hesitant to invest in physical gold, but still desire some exposure to the precious metal, gold mutual funds provide a helpful alternative. These funds hold portfolios of gold stocks-that is, the stocks of companies  that mine for gold. Newmont is an example of a senior gold stock. A senior is a large, well-capitalized company that has been around several years and has a profitable track record. They tend to own established mines that produce known quantities of gold each year. For many investors, selection of such a company is a more moderate or conservative play (versus picking up cheap shares in fairly young companies).

9.  Junior gold stocks.

This level of stock is more speculative. Junior stocks are less likely to own productive mines, and may be exploration plays-with higher potential profits but also with greater risk of loss. Capitalization is likely to be smaller than capitalization of the senior gold stocks. This range of investments is for investors whose risk tolerance is broader, and who accept the possibility of gold-based losses in exchange for the potential for triple-digit gains.

CONCLUSION

If you are motivated to buy gold, just be aware of what’s driving you—the desire for owning a precious commodity that can be a hedge against risk in a volatile marketplace. The good news is there are a multiple number of ways to diversify your portfolio in gold. The one you choose depends in part on how much liquidity you need.

BEST GOLD INVESTMENTS

You can see from the above 1-9 gold investments that this can be a very confusing area.  To come up with the best gold investments is really impossible as there is so much variance in all the methods.

Fortunately you can get assistance from REGAL ASSETS by requesting their FREE GOLD INVESTMENT KIT

 

 

 

5 myths about gold

Myth No. 1: Rising interest rates are bad for precious metals prices.
Myth No. 2: The government raided safe-deposit boxes to confiscate gold during the 1930s.
Myth No. 3: Numismatic coins are “confiscation-proof.”
Myth No. 4: Gold mining stocks deliver two-to-three times the gains of gold bullion.
Myth No. 5: The powers that be don’t want gold to go up, so it’s futile for the little guy to invest in it.

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5 biggesst myths about investing in gold

Myth No. 1: Rising interest rates are bad for precious metals prices.

Must Read: 11 Safe High-Yield Dividend Stocks for Times of Volatility and Uncertainty

It’s surprising how persistent this myth is given that gold and silver experienced one of their greatest runs during a period of rising rates. That was back in the late 1970s, when bond yields surged into the double digits.

Today, some analysts are invoking the threat of the Federal Reserve rate hikes as a reason to avoid precious metals. Of course, it remains to be seen whether the Fed follows through on its rhetoric about higher rates later this year. But nominal interest rates do not determine whether precious metals are more or less attractive than interest-bearing debt instruments.

What matters is whether real interest rates are positive or negative. Negative real interest rates, which occur when rates are running below the inflation rate, are favorable for precious metals. So interest rates could skyrocket at the same time as precious metals prices rise. As long as rate hikes are behind the curve, gold and silver will have a tailwind.

Myth No. 2: The government raided safe-deposit boxes to confiscate gold during the 1930s.

Yes, it is true that President Franklin Delano Roosevelt’s Executive Order 6102 prohibited the “hoarding” of gold bullion and ordered citizens to surrender their gold bullion in exchange for cash. But this 1933 directive relied mainly on voluntary compliance. It didn’t authorize government agents to conduct random sweeps of bank vaults.

Some safe-deposit boxes were indeed seized as a result of bank failures, but gold confiscation only took place on a very small scale. Many Americans who held gold in their own home safes simply ignored the executive order. Government officials back then had no ability to keep tabs on individual bullion owners. And it doesn’t today, either, provided that you buy your metal directly from a dealer and hold it outside of financial account structures.

The U.S. government claims the authority to expropriate any private asset in a time of national emergency, but the likelihood of another government demand on citizens’ private gold seems low. One reason: The dollar is not on a gold standard anymore, so the restraint of gold backing no longer limits the issuance of more dollars.

Myth No. 3: Numismatic coins are “confiscation-proof.”

This particular myth is spread by rare coin dealers who sell heavily marked-up numismatics, or collectible coins made from precious metals, using false pretenses. In the first place, mass confiscation of any type of gold coin seems a remote possibility now, as discussed above. Second, there is no law that explicitly exempts numismatics from a future order prohibiting gold ownership.

If the fears of confiscation stoked by numismatic coin promoters keep you up at night, then you can simply opt for the U.S. Mint’s American Eagles. They are considered to be legal tender coins in the U.S., which would seem to provide at least some legal barrier to any potential gold prohibition effort. Premiums on Gold Eagles are only slightly higher than for most other bullion coins. With rare coins, on the other hand, premiums can be multiples of the actual metal value — and you may get only a fraction of that back when you sell if collectors no longer find the coin as valuable as they once did.

Myth No. 4: Gold mining stocks deliver two-to-three times the gains of gold bullion.
It’s a demonstrable fact that long-term investors have actually fared better with gold bullion than with gold stocks. Not only is bullion less risky, it’s also been more rewarding.

From 2000 through 2014, gold gained 309%. Over that same period, by how much did the mining stocks best those gains? Actually, they didn’t. From 2000 through 2014, the benchmark HUI gold stocks index managed a gain of only 122%. And when gold prices were falling during the 1990s, gold mining stocks fell even further.

During favorable up cycles for mining equities, they can potentially deliver outsized gains compared to the metal itself. But during unfavorable periods, the downside for gold and silver mining stocks is much more severe than it is for the bullion.

Myth No. 5: The powers that be don’t want gold to go up, so it’s futile for the little guy to invest in it.

Yes, price manipulation does take place — not just in the gold market, but in many asset markets. Over the past couple years, interest rate rigging scandals have roiled markets across the globe. Technically, there’s no asset class that is safe from price manipulation.

The Gold Anti-Trust Action Committee and its many supporters insist that manipulation is orchestrated by arms of the U.S. Treasury Department and Federal Reserve to artificially suppress gold and silver prices. Others in the hard money community doubt that manipulation extends much beyond a few opportunistic rogue traders who don’t care which direction metals prices go beyond any given day.

Regardless of which side is correct, what’s the practical significance to investors? Manipulation would make buying precious metals fundamentally unattractive only if prices were being set artificially high. If they are artificially low, it’s a gift to buyers.

Hard assets are ultimately ruled by the laws of physical supply and demand. Industrial users of precious metals and investors in coins, bars, and rounds all require physical product; not a mere paper representation. When demand for physical metal depletes available supply, prices in the physical market must go up. Owning the metal itself and avoiding futures markets, where big institutional traders dominate, is the safest way for the little guy to position himself in precious metals.

The collapse of the Dollar…  and yet  It’s Great For Your Investments

We cannot know, predict, or even guess, when the collapse of the dollar is going to occur, or how quickly it will take place. But we do know it is going to occur. The tragic mismanagement of monetary policy by the Fed over many years has made this inevitable. The ultimate dollar hedge investment will always be gold. Investing in gold through ownership of the metal itself, mutual funds, or gold mining stock provides the most direct counter to the dollar. As the dollar falls, gold will inevitably rise.In a moment, we’ll provide you with many ways for positioning your portfolio to profit from a bull market in gold. For now, we emphasize the high probability of gold’s future. The future growth is going to be seen in gold. The world economy may remain off the gold standard, but ultimately the tangible value of gold as the basis for real value-whether acknowledged by central banks or not-will never change. Historically, this has always been the case, and it always will be. In other words, we are on a “gold standard” inspite of the popularity of fiat.The real potential for profits in the coming years and decades is not going to be found in the traditional American blue chip industry. That is a financial dinosaur that can no longer compete in the world market. Fortunately you have many choices. Any investor who views the economic situation broadly-both domestically and internationally-can see that trouble lies ahead. We have delayed the inevitable because China is a partner in our monetary woes. Removing the U.S. monetary system from the gold standard was not merely a decision of short-term effect. Nixon may have seen the move as a means for solving current economic problems, but it had long-lasting impacts: trade deficits, growing federal debt, and the ability to print money endlessly and build a new credit-based economy. Internationally, the decision by the United States virtually forced all other major currencies to also go off the gold standard. The tangible asset play is clearly where future value is going to lie. With China’s never-ending need for coal, iron ore, tungsten, copper, oil, and other metals, the future of tangible markets is the bright spot in the gloomy financially based economics of the world. The Chinese are building their own debt on the dubious foundation of the U.S. dollar, and other Asian economies have been forced to go along for the ride. When the dollar falls, many other countries will suffer as well. The offset, logically, is found in commodities. Investing in oil stocks makes sense, for example, because the price of oil is rising and as it becomes more difficult to drill oil those companies that own drilling and exploration operations will benefit. It makes sense to invest in other commodities as well. Leading the charge is gold. It is ironic that monetary policy follows a predictable pattern. Goods and services can be paid for only with goods and services. Currency is nothing but an IOU, a promissory note that is not backed up with any tangible value. Once we reach our national credit limit, monetary policy will be forced to retreat. When that happens, traditional investors and their savings accounts are going to be hit hard. The beneficiary of the falling dollar will be the investor whose holdings emphasize tangible value of goods: resources and precious metals. Governments overprint money and their currency crashes. Inevitably, they always return to gold, but often at great expense and with considerable suffering. We find ourselves in another one of those moments in time where irresponsible monetary policy has put us at risk. But we don’t have to simply hold on and wait for the demise of the dollar; we can take action now because that demise is great for your portfolio-if you position yourself in tangible assets rather than in empty fiat promises and the bizarre economic premise of U.S. monetary policy. Every danger to one group of people is invariably an opportunity to another. It all depends on where you position yourself. Those investors positioned in dollar-based investments are going to suffer the loss of purchasing power when the dollar’s value disappears. Those who have moved their investments to higher ground will benefit from the change.

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