sâmbătă, 27 septembrie 2014

How to Buy Gold Stock

In today's age invest money is probably the best way to ensure good returns. After the economic recession, everyone is still trying to invest the small amount to save. Today people really want to learn how the market works and why they are coming in full force. As a beginner in the investment world, it is advised that people should have a diversified portfolio. A diversified portfolio means that the money invested is not focused on a single investment, but various options. Now, investors have a diversified portfolio? As the investments come with its share of risks, if people invest their money in various fields, there is less chance of suffering losses. Now out of many fields of investment many investors have always been very interested to know about investing in gold. There are several ways to invest in gold and buying gold stocks is one of them. So let's see how to buy gold stocks.

Before understanding buying gold stock, it is best to know why an investor buys gold stocks now, when prices are already touching the sky. It is expected to increase even more? Most people do not know that each year more than 2,000 tons of gold are produced from the land. Despite a high quantity demand for gold is always more than supply and prices are increasing. That's why more and more people want to buy gold and that is why every investor should buy gold. There are also other ways in which people can buy gold, physical gold, certificates, ETFs, precious mutual funds, gold futures and gold paper.

How to Invest in Gold Stock

Today, the best way to buy a gold stock is through the Internet. There are many investors who buy stocks online gold to diversify their investment portfolio and buying gold stocks is always considered a great investment. Gold has maintained its value over the years and according to leading financial advisors, their value will increase over the years. So let's learn how to buy gold stock.

     If an investor wants to buy gold stocks that he / she must open an account online trading would be useful to purchase shares of gold mining companies . The investor can open a trading account with an online broker for additional help.
     The next step is knowing which gold stocks to buy and have the basic knowledge about the companies mining for gold and quality gold proves very useful in this case.
     It is advised that people who invest in gold stocks should buy stocks of companies that have a proven track record. See the performance of the previous 52 weeks and see how well the shares are held.

Once you understand the basic rules of buying gold stocks, the investor should also know how much money to spend. Gold stocks can be sold at a later stage, but investors do not need money to buy them first. Investing in gold stocks is really a good way to be in the gold business, without owning physical gold. In addition, the investor need not pay the price of owning physical gold, the price of gold stocks usually depend on gold prices in the market. Investors should not invest more than 5% to 10% of the entire portfolio as he / she is still taking baby steps. Before buying any gold stocks is always a good idea to consult an experienced financial advisor to the investor does not face heavy loses.

What is the best type of investment for 2014, 2015 and 2016?

What is the best type of investment for 2014, 2015 and 2016? Gold, dollar, estate, CBD, fixed income, savings, Treasury Direct? What are the risks, management fees and taxes involved in each investment option?

The above question is a bit complex because it involves several investment options on a 24 month horizon. To answer this question one must note how is the country's economic policy, macroeconomic, microeconomic, environmental issues, policies, corporate governance index of a company and the financial health of companies.

Unfortunately we have not learned to handle money and investment in school. At most we heard from our parents and grandparents talking to join money to buy something sight. We go to school, to college, where we become sophisticated professionals and then seek a job to work for money. An attitude short term for a long-term issue, pay the bills for years and years. Hence then the bills start to dictate our lives and do not have time to make money. On the other hand some people win money empirically, through capitalism, undertake, work with focus, persistence and form empires. Some do not get lucky, others are lucky and control their destiny.

Lifelong lot of us planned on to get a good job, buy a house, get married, have kids and be happy. Few have an investment planning to form a profitable asset that work for us throughout life, such as government bonds, stocks, dollar, gold, real estate, CBD. Knowing how to put together a series of data and analyzing them is not so easy. One must know what is right to seize an opportunity or even sell the property (real estate) assets and exit point. Therefore, companies, consultancies and experts in financial investments arise in business and real estate business. To invest you need to be planning, critical vision, focus, discipline, and patience cold blood. One must know what is your availability to risk and what is your profile. Conservative, moderate and bold. If you have a capital loss and know that you will miss him, do not make a bold investment. Accepted losing part of it, opt for a moderate investment. Not accept losing anything, conservative. Diversify their investment options is also prudent, never focus all your money in one option. Saving is not investment. Considering the annual income from savings at 6% per year and discounting the "camouflaged" 5.5% annual gain in 12 months is only 0.5% inflation.

The Stock Exchange experienced its golden years when in 2009 earned 82.86% annually. In 2010 fell to 1.04% in 2011 fell to -18.11% in 2012 yielded 7.40%, 2013 was -15.30% loss in 2014 and by June 2014 shows gain of 6.07%. Featuring since 2010 great escape from investors. An action is good to buy when you have more people wanting to buy than sell. When stock prices fall, analyzing your industry, projections of future prospects, its financial health, it may be the time to buy. When the stock market falls too, companies buy back their shares to show the market that its stock price is wrong. A tactical maneuver. We assess whether the price of a share is fair or not by the formula E = (Dividends / Ke-g), where Ke is the rate and L is the risk premium to be paid. But you need not go around the calculated value of each share, since often the brokerage report these values​​.


The example of the founder of McDonald's.

Ray Krock, founder of McDonald's in 1974, was invited to give a lecture at MBA, University of Texas at Austin, USA. After the lecture, Ray Kroc was with colleagues to a bar. And there between a beer and another asked for gifts, what is my business? And everyone burst into laughter and one of the friends said, that there is nobody in the world who does not know he is in the business of burgers. Ray replied, I do not act in the business of burgers, my business is real estate. Ray has focused its business plan on selling hamburger franchises. But never lost sight of the location of each franchise. He knew his estate and its location was the most important factor of success of each franchise. Basically the person who bought the franchise was also paying a portion of the land. Mc Donald's is now the largest single owner of land in the world, surpassing even the Catholic Church. Currently the Mc Donald's is the owner of some of the most important intersections and not only in America, but the world corners. From the book Rich Dad, Poor Dad.

Some companies acquire land and shops to open their business in neighborhoods still under development. The companies that buy the properties are designing not only the future of your business, but also the appreciation of the property.

Gold or silver: which is best for you?

Currently, we are in the midst of a strong upward trend in the gold and silver industries. Deciding between investing in gold or silver can be difficult because it is largely a personal choice. With the world economy facing such uncertainty, there has never been a better time to carefully protect its assets by investing in gold or silver. However, there are a number of differences between the two in terms of market fluctuation and availability.

Market Size

The market of silver is less than the gold market. The amount of gold bullion available for investment is estimated to be twice that of silver.

Oscillation

Because the silver market is smaller compared with the gold, and he has large oscillations. So it is common to see the value of high silver and sudden drops. Obviously, this can make an investment silver possibly riskier than gold.

However, in certain periods becomes more rewarding, since the price of silver may also grow faster than gold. The year 2010 is a good example of a time when the price of silver - at least in the first half of the year - has increased much more than the price of gold.

Availability

There is much more silver deposits on earth than gold. Some believe that the availability of gold will decline in coming years, since most of the major gold deposits have already been extracted.

The fact that there is greater availability of silver may suggest that the price it does not get as expensive as gold. However, the use of silver is intended largely to industry, thus making this metal, a product much desired by all.

Then, gold or silver? It is essential to consider the following points:

     The main use of silver is for commercial purposes. Approximately 65% of silver is used for industrial sector and the rest of jewelry, coins and medals;
     After oil, silver is the most useful product in the world! In addition to the monetary value, silver is a reflective metal no known substitutes on the planet;
     The main use of gold is in jewelery making. About 55% of the intended use of gold is in jewelery making India being the largest user of the metal (though China is about to overtake India in this regard);
     During the last 30 years the world has spent more than silver extracted, therefore the stocks of this metal are hitting record low;
     Gold has tradition to prove its stability in the market. More than 5000 years gold was already used as a form of money in Egyptian culture; Since then, people have used the gold in several ways, both in the monetary system as a luxury product;
     About 33% of gold is used for investment purposes;
     Currently, there is only the equivalent of 1/14 ounce for every person in the world to invest in silver;
     In times of crisis, gold is the safest and most potential investment to increase their wealth;
     Bars and gold coins are easy to negotiate.

Also consider that historically an ounce of gold has always been about 15-20 times more expensive than an ounce of silver. Today, this relationship between the two metals is 50 times more for the gold. This indicates that either the silver is very undervalued, or gold is ultravalorizado.

All this means that only you can choose the most suitable metal for your situation and purpose. Investing in silver, for example, can mean greater return on investment in the short term. While investing in gold can mean more stability and less risk but also lower investment in the short term.

The gold bars are an excellent starting point for your investment.

Common Questions on Investing in Gold

I have listed below some questions that may have been left without answers throughout this paper.

If after the end of this article you still have any questions, leave a comment to make this article more complete.
How to identify a good time to buy gold?

That's the question we all want ready response with several tips investment.

Although it is impossible to predict the future, a good time to buy gold would be:

     high inflation
     The high price of the Dollar
     Low interest rates
     Financial Crises

Gold's investment or capital protection?

We can say that it fulfills both functions well, given due attention to both functions.

From a technical point of view of investment, it offers a low correlation with other assets and a high return (historic). Since 1999, Gold has had a return of 1,050% or an annual return of 21.52%.

Therefore, any portfolio that had gold in its allocation since 1999 has improved its risk return ratio x.

Besides the good historical returns, Gold is an essential investment in financial crises, ensuring optimal protection for the investor.

In these times of crisis, assets such as stocks, real estate funds and fixed and indexed to IPCA long maturity bonds tend to lose value.

Few assets that earn value in these periods and Gold is one of the best, along with the Dollar.
Investing in Gold in cash or certified Gold in?

Some more conservative and concerned, readers probably prefer the Gold in kind and saved you to avoid confiscation by the government and serve as currency in extreme situations.

Already certified gold, offers more convenience to buy and sell, and less bureaucracy and their own safe place for safekeeping.

This answer depends on the investor's preferences. Personally, I prefer the Gold certificate in, its convenience in relation to Gold in kind.

I prefer a certificate that my Gold is stored in the bank than to have my own gold stored at home.
What are the risks related to gold?

The main risk for those looking to buy certified Gold is your depreciation on the stock market price.

For those who want physical gold at home the main risks are:

     Do not have a safe place for the custody of the Gold and increase the chances of being robbed.
     Extra need for assessing the quality of gold, to attest whether it is actually 24k (99.9% pure).
     Lack of liquidity at the time of sale.

What is the Appropriate Allocation of Gold in a Portfolio of Investments?

Despite all the attractiveness of investing in Gold and its great profitability in the last 14 years, the investor is not recommended to have more than 20% of its allocation in Gold.

Ideally the investor seeking broad diversification of its portfolio of your asset allocation, never putting much of their capital in a single class of investments.

As it is very simple to invest in Gold through Gold Fund Orama from $ 5,000, I think very viable for all types of investor put at least 5% of your capital in gold.

Generalizing, investment in gold could be allocated as follows:

     Optimistic Economic Scenario: 5%
     Economic Scenario Neutral: 10%
     Pessimistic Economic Scenario: 20%

This is just an example, and the optimal allocation varies from investor to investor.

How to Invest in Gold?

Ways to Invest in Gold:
1 Buy Gold Through Jewelry

gold jewelry How to Invest in Gold: The Complete Guide Buy jewelry is one of the opportunities to invest in gold. Just like investing in the stock market, the goal is to try to buy cheap sell high.

Some think the jewelry simply as equity, accumulating gold, silver and the like as part of household goods.

Despite the ease of investment, gift in gold jewelry is not always the 24k (999 shares to 1000 shares of Gold Metal), but 18k (750 shares to 1000 shares of Gold Metal).

Therefore, one must keep in mind that the level of purity for this investment is 75%, as opposed to investment in Gold through the BM & FBovespa, which is 99.9%.

advantages:

     Having money is very easy to get into a jewelery shop and leave with a gem.
     Easy to store, and even usable if the buyer want jewelry.

disadvantages:

This is an uncommon mode and has its difficulties for various reasons such as:

     Need to assess the quality of jewelry at the time of sale.
     Every jewel guarded home needs a very safe place to avoid looks selfish.
     Not always the price obtained when selling gold jewelry through is fair, depending on the expertise of the evaluator.
     Investment option impractical.
     The correlation with the gold price is not very strong.

Conclusion: Not Recommended for Investment!


2 Pawn Jewelry (Gold)

pawning jewelry How to Invest in Gold: The Guide has CompletoQuem jewelery or gold bars can use the pledge as a way of capitalization.

The operation is much more advantageous than a personal loan, for example, since the jewel serves as collateral for the loan made ​​from the pledge.

This is a rather traditional way, as capitalization can not exactly be considered a form of investment, but decided to put it in the article, since it involves the gold bars.

Conclusion: Not Recommended for Investment!

3 Buy Gold through the Auction Sites

australia How to Invest in Gold Gold: The famous CompletoSites Guide auction as the Free Market and eBay (links to the section of these gold sites) offer opportunities to buy jewelry as much coins and gold bars.

Despite the wide variety of options and prices, one should be very careful about buying gold through these sites, as informality is great and the quality of the material can not always be trusted.

advantages:

     Practicality of buying over the Internet.

disadvantages:

     Quality of the material sold depends on the credibility of the seller, which is not always reliable.
     High prices compared to the price of gold on the BM & F.
     Lack of standardization of the material.
     Difficulty of resale, since you would have to follow the same path of your purchase, announcing this type of site.
     The Purity of Gold sold (18k, or 750 parts of gold per 1000 parts of metal) is different from gold in the BM & F (24k gold or 999 shares for every 1,000 parts of metal).

Conclusion: Not Recommended for Investment!
4 Buy Gold Through Securities Dealers

Card ourominas How to Invest in Gold: The Guide today CompletoExistem some brokers and securities dealers (DTVMs) that create products from contracts and bars Gold 250g, selling small amounts (1g to 25g) on laminated cards and bars of different sizes .

The products are based on the daily price of gold plus a premium (extra) set by the distributor. All are standardized, certified and sealed.

The most common are the companies in this segment and the Ourominas Fitta Group (Reserve Metals).

advantages:

     Practicality of buying over the Internet.
     Easy to carry and store the gold (mainly the cards, with the same format of credit cards).

Although the apparent option is attractive, it has some strong disadvantages that are worth being mentioned:

disadvantages:

     Warranty on Sale Gold. Before closing any deal with a securities dealer, check their history and their warranty conditions. The Parmetal, for example, had its owner arrested for illegally extracting gold on a scheme that was worth $ 150 million. (news link)
     High costs. Since insurance, freight to the spread (difference) between the price of gold in bars and BM & F, it becomes very expensive to invest through this modality. I myself have invested through such and doing the math I realized that sometimes the costs came to 10% of the amount invested.
     Sale is Physics. How do you get the gold in your house to sell it you need to go to one of the distribution of values​​, mostly located in São Paulo agencies. The spread between the price of Gold BM & F and the price of its small bar of gold is also present at the time of sale.

Conclusion: Not Recommended for Investment!

Factors That Influence the Gold Price

Every investment asset has its price influenced by the relationship between supply and demand.

With the Gold is no different and we need to evaluate the two sides to understand the factors that influence its price:

On the supply side, the price of gold can be altered due to their extraction and production, as well as the sale held by central banks, investment banks and individuals.

The greater the supply of gold tends to be lower its price. Similarly, the lower supply (scarce), the greater will be the price of gold.

On the demand side, the price of gold is influenced primarily by the jewelery industry and investors in the metal.
Know the 4 Factors Influencing More Gold Price:

1 Economic Scenario

As discussed earlier in this paper, the Gold is a highly sought after asset in times of financial crises. Therefore, its price tends to rise enough during these periods.

2 Inflation Rates

Another factor that strongly influences the price of gold is the inflation expectation, considering that the metal is seen as protection in relation to both inflation and deflation.

The Gold tends to be sought in times of monetary instability and periods of high deficit spending.

3 Dollar Exchange Rate

The conventional and most convincing relationship between the gold price and the dollar is that a weak dollar leads to higher gold prices.

This is a trend that is already evident since the devaluation of the dollar in 2002, when the dollar reached the maximum level close of £ 4.00.

4 Interest Rates

Basic relationship for every kind of investment. The higher the interest rate tends to be lower the attractiveness of other financial assets.

This is because investment in government bonds is considered less risky investment. So if he has a high return and a lower risk than other assets, the logic is that investors prefer this type of asset.

After this part of the history of gold, statistics and price of gold going to what really matters: After all, how to invest in Gold?