The very best ways to invest in gold!

The best dollar hedge investment is going to be gold. Buying and selling in gold through possession in the metal itself, mutual funds, or gold mining stock provides the most direct counter for the dollar. Since the dollar falls, gold will ultimately rise. In just a moment, we’ll provide you with a number of ways for positioning your portfolio to gain knowledge from the bull market in gold. For the moment, we stress the top chance of gold’s future. The particular chance of profits in later on and decades will not be located in the traditional American blue nick industry. That's a fiscal dinosaur that could forget about compete on earth market.

You will find several choices.

Inside the following post, you’ll uncover five methods to purchase gold. Based on your height of market experience and understanding of products, one of these brilliant will probably be best for you.

1. Direct possession. There is nothing beats gold gold, the very best expression of pure value. Previously, many cultures have recognized the permanence of gold’s value. For example, Egyptian cultures hidden huge amounts of gold with deceased pharaohs in the truth that they'd be capable of put it to use inside the afterlife. Great wars were fought against against, among another reasons, to pillage stores of gold. Why the allure? The answer: Gold is usually the only money, which is value can not be changed or controlled by government fiat-the particular cause of government government bodies to go to in the defacto standard, sadly.Gold’s value will rise using the pure forces of supply and demand, no matter what Mr. Greenspan decrees regarding interest levels or dollars in circulation. The big trouble with having gold is it features a inclination to conduct business having a large spread between bid and ask for prices. So don’t be ready to turn a fast profit. You’ll buy at retail and then sell at wholesale, so you’ll need a large cost jump only to break even. However, you should not view gold just like a speculative resource, but a defensive resource for holding value. As the dollars will probably fall in value, gold may be the finest place to preserve value. The most effective forms for gold possession are through minted coins: one-ounce South African Krugerrands, Canadian Walnut Leafs, or American Eagles.

2. Gold exchange-exchanged funds. The present explosion in return exchanged funds (ETFs) presents an infinitely more interesting method to purchase gold. An ETF is really a type of mutual fund that trades around the stock exchange being an regular stock. The ETF’s exact portfolio is bound in advance and does not change. Thus, the two gold ETFs that exchange the united states . States both hold gold gold their only resource. You'll be able to locate these two ETFs beneath the symbol “GLD” (for your streetTRACKS Gold Trust) and “IAU” (for your iShares COMEX Gold Trust). Either ETF supplies a practical approach to hold gold inside an investment portfolio.

3. Gold mutual funds. For individuals who're unwilling to purchase physical gold, but nevertheless desire some connection with the platinum, gold mutual funds provide a helpful alternative. These funds hold investment investment portfolios of gold stocks-that's, the stocks of the kind of Newmont Mining that mine for gold. Newmont is a particualr senior gold stock. A senior can be a large, well-capitalized company which has been around a long time and contains a lucrative history. There is a inclination to own established mines that leave known levels of gold each year. For a number of traders, selection of this kind of customers are an even more moderate or conservative play (versus acquiring cheap shares in fairly youthful companies).

4.  Junior gold stocks. This amount of stock is a lot more speculative. Junior stocks are more unlikely to own productive mines, and can be exploration plays-with greater potential profits but furthermore with and also the greater likelihood of loss. Capital will most likely become more compact than capital in the senior gold stocks. This feature of possibilities is ideal for traders whose risk tolerance is bigger, and who accept the potential for gold-based deficits in exchange for that chance of triple-digit gains.

5.  Gold options and futures. For your modern-day and experienced investor, options let you speculate in gold prices. In the options market, you'll be able to speculate on cost actions in both direction. If you buy a telephone call, you are wanting prices will rise. A telephone call fixes the price and so the greater that cost goes, the greater the margin including the fixed option cost and market cost. By collecting a put, you expect the price to fall. Buying options is harmful, people nowadays lose than win. Really, three-fourths of options bought expire useless. The options companies are complex in addition to experience and understanding. To generalize, options possess two key traits-one bad then one good. The truly amazing trait is that they enable an investor to handle a substantial investment getting a little, and limited, sum of money. Unhealthy trait is always that options expire in the fixed period of time. Thus, for your buyer time might be the enemy because once the expiration date can get closer, an option’s “time value” vanishes. Anybody buying and selling in options must recognize all the risks before they spend cash. The futures companies are far too complex for your huge the majority of traders. Even experienced options traders recognize the top risk character in the futures market. Taking into consideration the plethora of techniques to get to the gold market, futures purchasing and selling is regarded as the complex and, while large fortunes may be made, they can also be lost immediately.

We can not know, predict, or possibly guess, when the demise in the dollar will occur, or how quickly it'll occur. But perform realize it will occur. The tragic mismanagement of monetary policy with the Given on the very long time makes this inevitable.


Eliminating the U.S. economic climate within the defacto standard wasn't essentially a range of short-term effect. Nixon may have seen the move for fixing current economic problems, nevertheless it had extended-lasting impacts: trade deficits, growing federal debt, and also the chance to print money forever making a completely new credit-based economy. Worldwide, your choice through the united states . States virtually forced other major foreign foreign currencies and to trigger the defacto standard.

Any investor who sights the cost-effective situation broadly-both in your area and worldwide-are able to see that the issue here is approaching next. We have postponed the inevitable because China can be a partner inside our financial worries.

Leading the charge is gold. It's ironic that financial policy follows a expected pattern.

Government government bodies overprint money in addition to their currency crashes. Inevitably, they always return to gold, but frequently at great expense with considerable suffering. We uncover inside ourselves another of people moments with time where irresponsible financial policy has put us at risk. But we don't have to basically hold on and wait for demise in the dollar we could make a move now because that demise is fantastic for your portfolio-in the event you position yourself in solid assets rather than in empty fiat promises as well as the bizarre economic premise of U.S. financial policy.

Items or services might be taken proper care of simply with items or services. Currency is not but an IOU, a promissory note that isn't supported with any tangible value. As we achieve our national borrowing limit, financial policy will need to retreat. When that happens, traditional traders in addition to their savings accounts is going to be hit hard. The beneficiary in the falling dollar will be the investor whose holdings stress tangible price of goods: assets and silver and gold.

How to invest in gold - part 2

The second part of our two part post, How to invest in gold. This article covers the various ways you can invest in gold, through purchasing gold coins, gold bullion, and more. This is the smartest way to invest your money.  Now on to part 2 of the post:

4.Miners


A riskier way to invest in gold is through gold-mining stocks. Mining stocks can have as much as a 3-to-1 leverage to gold's spot price to the upside and downside.

Gold miners are risky because they trade with the broader equity market. Some tips to consider when picking gold stocks are to find companies with strong production and reserve growth. Make sure they have good management and inventory supported by either buying smaller-cap companies or by maintaining consistent production.

Global gold production has been declining since 2001, only recently experiencing more juice, and big miners keep their gold reserves flush by buying or partnering with small-cap companies, which are in the exploration or development stage.

Many investors make the mistake of buying small gold miners that are in the exploration phase with no cash flow. Picking among these stocks is like buying a lottery ticket, very few companies actually strike gold and become profitable. Even fewer become takeover targets.

Adam Graf, director of emerging miners for Dahlman Rose & Co., models 50 companies on a forward basis using forward curves. "On a theoretical basis, if gold moved up $100 an ounce, what does the change in the current value do based on what the forward looking cash flow should do."

Another factor to consider when picking gold stocks is how quickly the company will benefit from higher prices. Randgold Resources (GOLD), a miner in Africa, is almost 100% correlated to gold prices. CEO Mark Bristow says that the company benefits from gold prices in almost two days.

You also have to buy the right amount of gold stocks. J.C. Doody, editor of goldstockanalyst.com, bets on 10 gold stocks because it allows him to take some risk with explorers or junior miners as well as get the safety from a major.

If you do go the gold stock route, you have to be prepared for the rollercoaster ride.

Leverage swings both ways so if the gold price drops 10%, gold stocks can plummet 20%-30%. Investors often get too spooked too fast and wind up selling out of gold stocks at the wrong time.

There is always time to buy gold, you just have to know your ABCs before you start.

How to invest in gold - Part 1

Whenever you buy gold, the first rule of thumb is dollar cost averaging -- putting a fixed amount of money towards gold every month regardless of the price. For the average investor, this strategy spreads risk out over time and lessens the downside.

Most money managers advocate anywhere from 3%-10% in gold. More bullish managers recommend an allocation as high as 20%.


Gold is protection, insurance against inflation, currency debasement, and global uncertainty. Here are four ways you can invest.

1.Gold Bullion

Buy physical gold at various prices: coins, bars and jewelry. Some of the most popular gold coins are American Buffalo, American Eagle and St. Gauden's. You can store gold in bank safety deposit boxes or in your home. You can also buy and sell gold at your local jewelers. Other companies like Kitco.com allow you to store gold with them as well as trade the metal.

When you buy gold coins or bullion, avoid big premiums. You want to buy gold as close to the spot price as possible, or a 10% premium at most. The higher the premium, the higher the gold price will have to rise in order for you to profit.

Coins typically come from the national mint, where they are made and sold at a 4% mark up -- the retailer's margin is 1% to 3%.

To calculate the premium of a gold product, subtract the spot price from the price you are being quoted, divide that number by the spot price and multiply by 100.


Had you purchased a one ounce gold bar at Kitco.com for $1,225.90 -- using a spot price of $1,200 -- the bar has a 2.1% mark-up. This means that the gold price only has to rise 2.1% from spot price levels for you to break even on your investment.

There are other types of ETFs.

If you want the opportunity of redeeming your shares for gold, another option is Sprott Physical Gold Trust ETV (PHYS), which is a closed-end mutual fund that gives investors the option of trading in their shares for 400-ounce gold bars.

The fund can trade at a huge premium or discount to its net asset value at any time and has higher fees, making it more expensive to invest in. An investor can obtain physical gold on the 15th of every month, although the holder has to make transportation and storage arrangements.


There are also two other ETFs to consider. Market Vectors Gold Miners (GDX), a basket of large-cap mining stocks. and Market Vectors Junior (GDXJ), a group of development-stage miners. They both have market caps of $150 million or more and have traded at least 250,000 shares per month for six months.

3.ETNs

If you want more risk, try exchange-traded notes, debt instruments that track an index. You give a bank money for an allotted amount of time and, upon maturity, the bank pays you a return based on the performance of what the ETN is based on, in this case the gold futures market. Some of the more popular ones are UBS Bloomberg CMCI Gold ETN (UBG), DB Gold Double Short ETN (DZZ), DB Gold Short ETN (DGZ) and DB Gold Double Long ETN (DGP).

ETNs are like playing the futures market without buying contracts on the Comex. ETNs are flexible, and an investor can trade them long or short, but there is no principal protection. You can lose all your money.

Why Not To Clean Silver Coins

Morgan Dollar

Let me start off by saying that most coin dealers and coin collectors do not recommend cleaning your silver coins at all. Appearance means a lot to some people because they want the coins to be exhibited with the best look possible. Although this is an admirable quality, it can have some consequences if you clean your silver coin collection. Before you decide to clean any of your silver coins, please be fully aware of the reasons of why you should not clean your coins by reading this article in its entirety.

There are many reason why cleaning your silver coins are not a good idea. Even the most careful cleaning has the potential to damage your coins. During the cleaning process the coins can lose some of their value. The loss of value can be attributed to scratching or damaging of the silver coin. In some cases the coin can become completely worthless because of a cleaning. So if you absolutely feel like your silver coins must be cleaned, take them to a professional with experience.

Peace Dollar

Some people might actually think the tarnish on their silver coins is unsightly, but the opposite is true. The tarnish on a silver coin is in fact referred to as toning. The toning on silver coins can be seen as brown or black spots, and sometimes even appear as a rainbow or iridescent hue.  Toning occurs over time as a result of environmental factors and natural oxidation from being exposed to the air. Many coin collectors consider silver coins with eye-catching toning to be quite attractive and consider them more valuable. As a result, one of these collectors will often pay more for one of these silver coins.

The toning on your silver coins helps establish the validity and authenticity of the coin. It shows that the coin has age and is genuine. If you clean a silver coin it will remove the toning, along with some of its value because it will lose its allure to another coin collector. Cleaning the toning from the silver coin also has the potential to harm the surface of the coin, which will lessen the worth of the coin overall.

Walking Liberty Half Dollar

Many times, chemicals are mistakenly used to clean coins. These chemicals are usually harsh, and can typically ruin the silver coin altogether because of the scuffs and abrasions the chemicals can produce. Chemicals will not only take away toning, but also remove the mint luster of the coin. Also try to stay away from metal polishes. Most times, these types of polishes are not meant for silver coins at all. Any or all these things can drastically lower the grade of your silver coin.

 Sarasota Rare Coin Gallery is located at 640 South Washington Blvd. Sarasota , FL 34236 just north of the 301 and 41 split. They can be contacted by telephone at 941-366-2191 or 800 447-8778 for questions or to place a coin order. With over 40 years of experience, Sarasota Rare Coin Gallery can assist you with any of your coin collecting needs!

Tips on Spotting Counterfeit Coins

Collecting coins, or numismatics, is more than a hobby these days, it is a huge industry involving several different businesses. Some of these include dealers, grading services, professional numismatic photography, auctions, collectors and more. As with any business, there are those who are unethical and try to make money by forging valuable historic coins or rare coins . The best way to prevent this from happening is to become aware of the techniques the forgers use to trick people.

Counterfeiters have developed more skills in forging historic coins. The methods of forging coins have become more advanced and can even sometimes fool dealers and collectors. One of the main problems is that once a type of counterfeit coin is detected and taken out of the market, another forgery is there to take its place. With forgeries constantly evolving it is extremely important to stay educated and continue learning about new methods of counterfeiting rare coins and other types of coins like gold coins and silver coins.

Coins That Have Been Cast

Fake coins that have been cast usually have a distinctive seam where the metal covering the coin meets up. Also look for pits on the exterior of the coins. These pits are from air bubbles getting trapped during the process of the metal solidifying. If the coin is a silver coin or gold coin, check the weight. The wrong weight is a solid indicator that the coin is a forgery. Check the details of the coin, if they appear extremely dull and have the absence of sharpness than it could be a counterfeit. In recent years, forgers have tried to eliminate the pitting and air bubbles with putting the coins through a centrifugal casting procedure. Fortunately even after this procedure the coin will most likely be the wrong weight and have that distinctive seam.

Coins That Have Been Altered

It has become common for counterfeiters to attempt to alter a legitimate, genuine coin. Most likely, the forger will alter or modify the coin so that it appears to be more rare than it actually is. Of course the end goal of this type of forgery is to misrepresent the coin and charge more money then it is truly worth. The best way to combat this type of counterfeiting is a close examination of the suspect coin. Under magnification is one of the most reliable ways to spot a forgery of this type.

Sarasota Rare Coin Gallery has over 40 years of experience as a full service coin dealer. Call (941) 366-2191 or (800) 447-8778 for any questions or assistance with any type of coin or paper money! They are also available by email at Sarararecoin@aol.com

How To Protect Yourself From Gold Scams Part 2

Scams and fraudulent activity are no stranger to the american people. It seems that the more upheaval there is in the economy, the more scams that pop up. While there are many commissions and groups readily hunting such scams, fraud still runs rampant. For every scam than gets shut down, it is suspected that twenty more take its place. With no moral or ethical bounds holding back these criminals they are free to prey on our friends and family. Priority targets for these lawbreakers are commonly the elderly, many of whom are on a fixed income and end up investing, and then losing their life savings.

The burden falls on the consumer to protect themselves. It is also recommended that you bring up and talk about concerns of scams, fraudulent activity, and questionable investments with parents, friends, and family; so that they can be made aware and be able to protect themselves against crooks looking to take their money. If you suspect that you, or someone you know, has been scammed, take action so that no one else will get taken in by the same scam. Visit StopFraud.gov, Fbi.gov, the United States Department of Justice, or the USDOJ recommend Fraud.org, which is the home of the National Consumers League's Fraud Center.

There are a few things that any consumer should look out for before they purchase gold, especially if you are planning a big or bulk purchase, or intending to buy gold online. Although this is a tip I have given before, it is definitely worth mentioning again because it has the potential of thwarting a would be scam artist. Research the dealer that you are potentially going to work with! Things you should be doing research on are how long the dealer has been in business, their BBB rating or if they have had any complaints, and do an online search of the dealer by using their company name and placing the word scam or fraud after. Also, only deal with local companies, instead of doing business with someone in another country. By dealing locally, you can ask around about your dealer in the community they are in, or go into the store and get a feel for the person yourself.

If you are working with someone for the first time, do not make a huge purchase or buy in bulk! First, make a small buy and see how that deal goes and check to make sure you received everything the dealer promised and if it is good quality gold. There is no harm in waiting, if the dealer claims you will miss out on special low rates or tries to bully you with any other sales tactic, than they are probably just trying to take your money and run away with it! Only buy gold that the dealer can deliver and you can actually hold in your hands. A wise and widely used expression for this is "If you can't hold it, you don't own it!" If you are unsure, or are a new investor in gold, than buy gold bullion coins. Mainly, these coins are bought for their gold content, which is the actual amount or weight of gold that the coin contains. Buying these kinds of gold coins make them easier to trade or sell, and also protects you from purchasing coins that are sold at inflated prices claiming to be collectible, when in reality they actually are not.

If you have any questions or concerns about gold or a gold coin purchase please contact us by phone at 941-366-2191 or 800 447-8778 or through email at Sarararecoin@aol.com. Not only are we not afraid to talk to you, but we love to talk!

How To Protect Yourself From Gold Scams

Gold fraud is everywhere across the globe. The scams can be relatively simple or astoundingly complex. For the most part the end result remains the same; hard working people scammed out of their money. These days it seems as though the scam artists have no shame. The scammers have even gone as far as to prey on the elderly, having them take out a reverse mortgage on their homes and then stealing all the money those people thought they were investing.

So how you protect yourself and avoid such pitfalls? The most important thing you can do is get educated about gold and the gold market before you make any purchases. A good thing to learn is what the current price of spot gold is when you plan on making a purchase. Typically, most dealers will charge about 5% over the gold spot price. If the dealer of gold wants you to pay more than that, it is time to find yourself another gold dealer. The best thing to do is find a dealer with years of experience. Not only will they be knowledgeable, but they will have a great passion for their work if they have devoted years of their life to it.

Before choosing a dealer or company you need to do some research about them! Most reputable dealers belong to the American Numismatic Association or the Professional Numismatists Guild. This adds an extra layer of protection because the dealer must be ethical and make a fair attempt to resolve any conflicts. Failure to comply with the rules of these associations can result in the dealer losing their membership. Also check out the Better Business Bureau. On their website you can find what their rating is and if they have had any complaints lodged against their company.