How to Roll Money Over From a 401(K) to an IRA

401K savings plans are great in general, and do have some advantages, but they also pose a risk if you make the wrong decisions. The greatest obstacle in accumulating significant amounts of money, for any purpose not just funding your retirement, is TAX! That's right! Tax is your biggest enemy, either you are self-employed or a salaried employee, and this is where the 401K retirement plan comes in handy, it allows you significant wealth growth in a tax free environment!

But in order to retire as early as possible and keep contributions to your 401K safe, and not risk ruining your retirement in case the stock market does horribly bad, on the very year you plan to retire... just observe the following 401K early retirement tips:

Everyone talks either against or in favour of the 401K savings plan, but let's be realistic here, it has both pros and cons, the biggest advantage of a 401K is that it offers tax deferred growth, but in order to avoid the classic risks associated with the whole 401K industry, you really have to go for a Self-Directed 401K savings plan and follow the tips mentioned above.

Funding and managing a successful early 401K retirement plan is a little bit difficult but it's possible and certainly worth it, why make the mistakes of others and contribute money into unbelievably bad investments such as doomed mutual funds? No one ever became rich by following the fashion and just doing the wrong investment decisions that the crowd always makes, you should stand up and take control of your life, starting now by taking control of your retirement savings plan and turn it into a real 401K early retirement plan.

At some point or another in our professional career, we leave a company to move on to another job. But too often, we forget to pack our most important private contract in our moving box, our 401k!
The first thing we need to execute after getting a new job is to be sure they transmit our 401k. It is very essential to be sure that we do a 401k roll over properly from one job to the next. Many prefer to rollover to an IRA.
The best reason to transition from a 401K to an IRA is that with the IRA, the number of investment options we will have is nearly unlimited, while the corporation sponsoring 401K plan will allow only few choices.
If you want to roll over an IRA, I recommend that you begin to choose stocks or mutual funds based on your own research and preference, this can be much rewarding.
IRA’s can be opened at your local bank or an independent or online brokerage firm. I noticed that when you go online, you are charged fewer fees. Also, you’ll be able to compare different offers.
As soon as you choose where you want to have your IRA, the institution will give you an account number and form so the 401K plan administrator can deposit the distribution check.
Unfortunately, the whole procedure can take quite a few weeks or more. When the administrator transfers the money, it will be deposited in a “money market” account. At this step, you’ll be able to start searching stocks or mutual funds that you want to put your money into, I recommend discussing these options with an advisor. Confirming allocation occurs as a “buy order” that you place for your chosen investment option.
Also, you have two options for a rollover to be done. First, at your request, the previous employer can cash in the securities held in your account, then you’ll receive a check sent directly to you so you can deposit to your new IRA Rollover. But, you should be careful; you have only 60 days to deposit those earnings into your new IRA account without paying taxes or penalties. So, it’s very important to make sure that you receive the check from the 401k administrator and you deposit it on time.
The second option consists of asking your 401k administrator to perform a “direct rollover” or “trustee to trustee transfer”. In fact, this would help you to avoid unforeseen taxes or penalties and make sure that you respect the deadline. This procedure means that the check with the amount of your old 401k account will be deposited directly to the administrator of the new account. After all, your account statements will show the amount of the transfer.
An IRA lets your money to grow tax free until your retirement years which is comparable to a 401K but with so many more investment options. The IRA allows you to take in charge of your investments, you can make your own research and management, and this allows also, greater control over the growth of your money, so you can make big profit from it, which is very good for your retirement.
Finally, Simpler is better because simpler gets done. Move your money where you know you will keep your eye on it. Rolling a 401k to an IRA is a very easy process, but you still have to pay attention to few details.

The Many Ways To Invest In Gold

A lot of people who are learning how to invest money wonder how they can learn all they need to know to do well at it. These steps should set you on your way to learning how to invest for your future.

1.

Setting up an account often includes sending in a check and proving your identity. Once you're signed up, you can keep track of your investments in one place and also use their research tools. Then, it's time to start researching.

2.

You can discover ideas from products you use every day or from the mall. A class of schoolchildren liked a particular pen, researched the company, found the company favorable, and then bought stock in the company with their play money as part of a school project. The stock increased, and the children "made" money. The children discovered a good product, and you can do the same.

3.

Before you buy into any investment, do research. One of the world's greatest investors, Warren Buffet, says you should examine a company you want to invest in as carefully as you would if you were going to buy the entire company. Read on to learn of specific items to research.

4.

Every company will benefit from having high profits, low debt and lots of cash. You can't go wrong there. If one company spends $1 million to make the same $15 widget as a company that spends $4 million to make the same widget, you will want to buy the company that spends $1 million.

5.

When I research a stock, I look for insiders to be invested in the company. I do this for two main reasons. 1) I figure they want to make money and will work hard on the company if they are invested in it. 2) They have the inside knowledge to know if this product/company will do well. I'd say this is an important aspect - like icing on the cake - rather than one of the main reasons to buy into a company.

6.

If a company is buying back its own shares, then that means fewer stocks in circulation. The benefit of that is a higher earnings per share if the company's earnings increase or remain consistent.

These tips should help you get you started on your research. Once you have the tools to research, you'll have the freedom to make your own decisions instead of relying on possibly bad advice.

Gold is not just an ancient metal with no usefulness in today’s society. Gold’s value is also on the rise. Therefore, the obvious question is this: How do you get gold for yourself?
Today, gold trades in many markets around the world. At any time of the day or night, a current market price is being established somewhere. Two of the most important world markets, however, are in London and New York.
The London market is one of the oldest in the world and is the largest market for physical gold. Since September 12, 1919 the price of gold has been set at “the London gold fix” and this price is used in contract arrangements around the world. Today, the gold fixings take place at 10:30am and 3pm and provide published prices that are used as official pricing medium by producers, consumers and central banks.
The New York market opens as the second London fix takes place and gold then trades throughout the day. The New York market is particularly noted for the volume of “paper gold transactions” such as futures contracts that are traded on the exchange.
There are other important gold markets in Zurich, Tokyo, Sydney, Hong Kong and elsewhere – so gold is being traded somewhere 24 hours a day.
Investment in gold can take many forms. What follows is a summary outlining various investment vehicles, their advantages, disadvantages, and levels of risk.
Gold bars are offered in a variety of weights and sizes. Since broker commissions are typically low, bullion is the most cost efficient way of owning actual gold. Be sure to get gold that bears the hallmark of internationally recognized refiners so that it will be easier to sell.
Another popular way to own gold and have it in your physical possession is through gold bullion coins. Gold bullion coins are actually the money of the issuing country and have a guaranteed gold content. The face value of the coin is not the true value. The true value depends upon the gold content and the price for gold at the time.
Bullion coins are minted in affordable weights such as 1/20, 1/10, 1/4, 1/2, and one ounce (about 31 grams). The bullion coin represents an investment in pure gold and, because it is legal tender, its authenticity is guaranteed by the country of origin. Gold bullion coins can be easily bought and sold virtually anywhere in the world. Prices for the most popular one ounce coins are quoted daily in most newspapers around the world.
Some of the most popular bullion coins are the American Eagle, the Australian Kangaroo Nugget, the UK Britannia, the Canadian Maple Leaf, the Austrian Philharmonic, and the South African Krugerrand.
Gold coins are traded throughout the world on a daily basis as an integral part of the international gold business, so they always have a ready market, and the spread between the buying and selling price is usually quite small.
While bullion coins are normally purchased for their intrinsic value, they are also appreciated for their artistic appeal and beauty. Coins make memorable and valuable gifts, are easy to store, easy to transport, and anonymous.
Gold statements are obligations of the issuing institution to deliver upon demand, a specific quantity and fineness of gold. An investment in a statement account provides safe and convenient storage and allows investors to buy gold in convenient dollar amounts.
There are two types of gold accounts: allocated and unallocated.
Holding gold in an allocated account is like keeping it in a safety deposit box. Specific bars, which are numbered and identified by hallmark, weight, and fineness, are allocated to each particular investor, who has to pay the custodian for storage and insurance.
Many investors prefer to hold gold in unallocated accounts, which are similar to foreign exchange accounts. Unless investors take delivery of their gold, they do not have specific bars ascribed to them. An advantage of unallocated accounts is that investors do not incur storage and insurance charges. However, they are exposed to the credit-worthiness of the bank or dealer providing the service in the same way that they would be if they had any other type of account.
Gold Accumulation Plans (GAPs) are similar to conventional savings plans in that they are based on the principle of putting aside a fixed sum of money every month. What makes GAPs different from ordinary savings plans is that the fixed sum is invested in gold.
A Gold Accumulation Plan is set up just like most other savings accounts. The investor commits to investing a fixed amount every month, usually for a minimum period of one year, although about 90% of contracts are rolled over (extended) when the one-year term is complete. Once the Plan is set up, installments are withdrawn from the investor’s bank account automatically.
The monthly amount is then used to buy gold every trading day in that month. The advantage of this is that less gold is bought when the price is high, and more is bought when the price is low, since the daily amount of money invested is fixed.
At any time during the contract term, or when the account is closed, investors can get their gold in the form of bullion bars or coins, and sometimes even in the form of jewelry. Of course, they can also get cash should they choose to sell their gold.
A gold option provides you with the right to buy or sell gold at a fixed price at some specified future date. Investors may take or make delivery of the gold underlying the contract on its maturity although, in practice, that is unusual. The major benefit is that such contracts are traded on margin, that is only a fraction of the value of the contract has to be paid up front. As a result an investment in a futures contract, whether from the long or the short side, tends to be highly geared to the price of bullion and consequently more volatile.
The cost of a futures contract is determined by the “initial margin”, that is the cash deposit that has to be paid to the broker. This is only a fraction of the price of the gold underlying the contract thus enabling the investor to control a value of gold that is considerably greater than the cash outlay.
Futures contracts are traded on regulated commodity exchanges, the largest of which are the New York Mercantile Exchange Comex Division and the Tokyo Commodity Exchange.
Gold options give the holder the right but not the obligation to buy (“call option”) or sell (“put” option) a specified quantity of gold at a pre-determined price by an agreed date. The cost of such an option depends on the current spot price of gold, the level of the pre-agreed price, known as the “strike price”, interest rates, the anticipated volatility of the gold price and the period remaining until the agreed date.
A number of mutual funds and investment trusts specialize in investing in the shares of gold mining companies. The appreciation potential of a gold mining company share depends on market expectations of the future price of gold, the costs of mining it, the likelihood of additional gold discoveries and several other factors. To a degree, therefore, it depends on the future earnings and growth potential of the company.
Most gold mining equities tend to be three to four times as volatile as the gold price. While they are subject to the same risk factors that influence the prices of most other equities there are additional risks that are specific to the mining business generally and to individual mining companies specifically.
With gold mutual funds, you are buying general market risk instead of company-specific risk. Mutual funds diversify their holdings among dozens of companies. Some funds offer a broad mix of international mining stocks, while others invest in specific regions such as North America, Australia or South Africa.
If you are planning to have gold as part of your portfolio, you will undoubtedly have it in one of these many ways. Determining which way is right for you is a matter best discussed with your broker or financial advisor. Regardless of the path you choose, always remember to diversify!

Why You Should Invest in Gold Stocks and Watch Gold Prices

Before we can answer the question "should you invest in individual bonds or bond mutual

funds", we have to first understand the purpose of owning bonds in your portfolio. Novice

investors use bonds as an income generator, relying on yields to supplement living expenses

during retirement. Institutional investors and competent advisors, on the other hand, view

bonds as a tool to reduce portfolio volatility. Total return, not just bond yield, is what counts. If the purpose of holding bonds is to control portfolio risk, then owning bond funds, not individual bonds, is the appropriate choice.

Individual bond shares are not cheap. A single corporate bond can cost you $10,000 or more.

So, if a retiree with a million dollars decides to allocate 40% of his portfolio to bonds

($400,000), he would likely have to purchase at least forty different issues to achieve a

somewhat diversified bond portfolio. The higher costs associated with acquiring individual

bond issues may prevent many investors from sufficiently diversifying among different issues.

In contrast, an initial investment in a bond fund might cost only $1,000 to $3,000 depending on

if you purchase it in a retirement account or not. As a bond fund holder you can own stakes in

dozens, perhaps hundreds, of bonds with one purchase. Let's take for example the Vanguard

Short Term Bond Index (VBISX). If you own an IRA, you can hold 642 distinct bond positions

with a $1,000 investment in the fund-a far cry from the 40 issues we purchased in the

previous example.

While individual bonds do not incur the ongoing management and operating expenses of bond

funds, they do have associated expenses including brokerage commissions/fees and bid-ask spreads) that all investors should consider. Furthermore, retail investors (as most of us are)get less favorable pricing (commissions AND bid/ask spreads) than institutional investors. The

costs of trading individual bonds are very hard to accurately pin down and commissions are

never fully disclosed. If ever there was an area for institutional traders to make obscene profits

in the markets, it's the bond market.

When you purchase a bond fund, you know what the cost will be: a transaction fee and the expense ratio. There are a handful of low priced bond funds available, including the Vanguard

Bond index we discussed above whose annual expense is only 0.20%.

Many investors are under the impression that owning bonds is a risk-less transaction. That is a myth that results in a false sense of security. The fact is that bonds, whether corporate or treasury respond to daily changes in interest rates as well as credit conditions. Individual bond investors might take comfort in knowing that at the end of the maturity period, their principal will be returned. However, throughout the maturity period, their principal will fluctuate. As interest rates rise, bond principal will go down (since the bonds become less attractive to new investors). If the owner of the individual bond feels compelled to sell their position before the maturity date, they may likely take a loss during a period of rising interest rates.

Bond funds are much more liquid. Granted, bond funds do not have a fixed maturity (meaning

principal nor income is guaranteed). But, fund managers are constantly buying and selling

bonds within the portfolio in order to maximize interest income and capital gains.

Additionally, if you only own forty bond issues in your portfolio, having one or two of them

default can put a serious damper in your day. In contrast, because a bond fund holds

hundreds of bond issues, if a handful of them default the impact might be nonexistent.

By now I hope I've convinced you that bond funds are more attractive than individual bond

issues. But, what type of bond fund should you buy?

There is a strong argument in favor of owning bond index funds instead of actively managed

bond funds. In general, bond index funds offer you broad bond market exposure for a fraction

of the cost of an active fund. All other things equal lower expense ratios result in higher returns for you. Furthermore, with actively managed funds, investors assume an additional level of risk: manager risk.

In conclusion, there are distinct benefits to owning bond funds in lieu of individual bonds.

Despite their ongoing expense, bond funds provide a better alternative in terms of diversification, liquidity, and the availability of reinvesting dividends. A low cost low cost bond index fund will help you achieve the portfolio risk control you need. Remember, just as with equity investments, the more broadly you diversify, the better results you will attain.

Gold price is a very important economic indicator. Without knowing the current gold price, inflation and deflation can spark worry and nervousness among investors. Find a site that has updated gold prices and I suggest that you familiarize yourself with the site so that you are able to check out the real-time gold prices.
Gold prices dictate economic policy decisions and relates to gold stocks. Production estimates, mineral reserves, and cash costs also feed the changing dynamics of gold stock prices. Interestingly, most people do not take the time to analyze their portfolios. Risk assessment is key and the already mentioned site should have a custom analyzer that can rank you gold stocks.
Gold price is key in that the entire world revolves around currency and would be unable to further itself without a steadfast currency that endures. Gold, Gold, Gold!
I must also add that other economic indicators are of great importance. Information about stocks that relate to the metals and minerals sector is very hard to come by and should not be missed. I would suggest looking into gold stocks for additional information regarding general news stories but would use a single site for all other gold concerns. I find it to be essential to be up-to-date on the world news (
).
After all, information is key and must be transferred around the world in terms of assessing stocks and venture portfolios. I would definitely expect that information has the power to dramatically shift markets that are no longer following the gold standard.

Gold’s Value

With the recent instability in the stock market and in world affairs, you may be looking for the most stable investment solution you can get. Investing in gold may not be as exciting as holding an aggressive stock portfolio, but it offers a solid, reliable return in times of uncertainty. And, it couldn't be easier to get into.

There are three basic ways to get started in gold investing: coins, jewelry, and securities.

A good way to start investing in gold is to buy coins made of pure gold, and keep them in a safe place. The governments of the United States, South Africa, Canada and many other countries issue coins containing a specified quantity of gold, such as 1/4 ounce or 1 ounce. These coins do have a "face value", such as $10 or $20, so they are considered legal tender. However, the value of the gold content is usually far greater than the face value, so these coins are essentially the same as bullion bars.

Since you may already own some gold jewelry, you may have already started investing in gold. A big advantage of gold jewelry is that you're able to enjoy the beauty of the piece while you are using it as an investment. Buying 24 karat gold is generally the best way to invest, but

jewelry works just fine as long as you are sure of the gold content and the weight. Any reputable dealer will be able to provide you with the content of gold by weight, and thus the investment value of the piece.

There are also ways to invest in gold without physically possessing the gold. These include securities such as mutual funds and ETFs.

A mutual fund is an organization of investors who contribute money to a fund that is professionally managed. Each investor can buy as many shares of the fund as he or she likes, so owning shares in a mutual fund is similar to owning shares of stock. In a gold mutual fund, the money is invested in gold bullion or futures, rather than business stocks. One example of this kind of fund is the BullionFund.com.

An ETF (Exchange Traded Fund) is a bit different- these allow you to buy shares that directly represent a quantity of bullion that is stored in a secure location and insured. There is no pooling of assets involved. Examples of ETFs include the iShares COMEX Gold Trust in the US, and the ZKB Gold ETF in Switzerland.

Gold has been a solid and secure mean of investment for millennia. The power to purchase anything, anywhere in the world is an invaluable benefit of owning gold. It maintains its value through times of economic downturn, and is essentially wear-less over time when compared to other forms of currency (namely paper). Since the beginning of society gold has been a powerful trading tool that fascinates its holders. Majestic, innocent, and unique; Gold will forever be marked as a diverse investment.
Among the most reliable forms of gold investments are gold bars and gold bullions. These chunks of solid gold vary in size and purity, ranging from 10oz. .995 gold bullion bars to .9999 kilo bars. Refiners will mark their gold bars and bullion with levels of purity and weight. Also available are various coins usually in fractions of 1, 0.5, 0.25, and 0.1 Troy ounces. 31.104 grams is equivalent to one troy ounce.
When it comes time to sell your gold back into the market, it works just as any money market would. With prices willing to be paid actively marked on exchange charts that can be found with the click of a mouse. A pro of invest in gold [http://www.atlantgold.com/Home.aspx] is that it maintains near full value when being exchanged between governments or when it’s taken outside of the country it was issued.
Another logical option would be keeping your money in gold. An alternative to banking and a sound, secure way of doing it. Just as gold will always be in demand, so will your ability to cash in your stock. Since the trading price of gold varies, you can pick and choose the right time to sell gold. A benefit of this is the fact you don’t have to rely on businesses (banks) to store your wealth. A Con however, is safely storing your gold.
The price of gold as of today is about $950 U.S. dollars/Toz., a strong selling point for the precious metal.

Should I Buy And Invest In Oil Stocks Now?

Throughout history, gold has represented wealth and money, and there are many reasons why you should invest in gold now. In 2001 the gold spot price per ounce bottomed at $250 and has been rising ever since. There is a long-term multi-year bull market in process, and gold is still an affordable investment.

Why is gold rising in price so dramatically? Gold has historically been a barometer of the health of our financial system. Currently, the fiat paper money system is near collapse, and throughout history, any fiat paper money system has collapsed. From ancient Greeks and Romans, through France and England in the 1600 and 1700 hundreds, to our own experiments with paper money in the Revolutionary and Civil wars, each time a ruler or government wanted to finance war or conquest, they just created more money.

Both the ancient Greeks and Romans debased their silver and gold coins to fund their excursions. Later, both England and France experimented with paper money, which initially was backed by gold or real estate, but then couldn't resist the urge to drop the association to real money, and print up more. America's own revolution was financed by "continentals", papers printed to use as payment for weapons and supplies for the new country. Yes, it did the job, but as paper loses value, the cost of those supplies increased exponentially. Whereas one continental started out equal to one silver Spanish milled dollar, the cost of one of those silver pieces eventually went to 100 continentals, thus the famous phrase, "not worth a continental".

Invest in gold now as a hedge against the ravages of inflation that always occur with a paper money system. Annual inflation of 5% is thought by many to be understated by 5%. As fiat paper loses value, as it inevitably does, people are less willing to accept it as payment for goods or services. The velocity of money, or the rate at which money circulates through the economy, increases to the degree that people want only tangible commodities, and at that point, the commodities themselves become money.

Finally, looking at the charts for gold since 2000, the trend line is clear, we are in the first phase of a multi-year bull market in precious metals. Did you miss the bull stock market of the 80s? Were you late into the tech run of the 90s? Did you get to the housing party too late? The investment opportunity of a lifetime is happening now, for the first phase of a bull market is the time to get on board. The final phase occurs when the larger investing public becomes aware of the opportunities in gold and that's when the mania begins, driving prices exponentially higher. Buying during the mania doesn't create big profits, but investing in gold now does.

This is a question that is asked very frequently, by beginner investors, all the way to the very top of the echelon. Whether or not you should buy and invest in oil stocks now, depends primarily on your financial standings. Oil, which has been refereed to as black gold, is a very valuable commodity, mainly because it is a limited resource that we (the entire world) need to live. Not because we eat oil to survive (laughs… ), but because it is what makes the economy revolve, and what keeps the world going at this very fast pace we have set.
The short answer to, “Should I Buy Oil Stocks Now?”, would be you should have bought them 20 years ago. But that answer can be said for almost all stocks. With this knowledge, and view of the history of most limited resources, like water, gold, silver, and oil, I can confidently say that in my opinion it is safe to by oil now. Not only is it safe, but it could turn out to be one of the best investments you ever make in your life.
Oil fluctuates on a daily basis, just like the other commodities on the market. One of the things I’ve noticed over the years of watching the stock market, is what kind of situations drive the price of oil up, and bring the price down. Since oil is so precious and valuable to us, it reacts rather aggressively to market conditions, such as shortages in supply, or over supply. If there is too much oil stocked up, the price per barrel will decrease, and vice versa.
I have also noticed that the oil prices react a lot to news that may affect its supply. So even if supply is normal, but there is a threat that will cut off supply, you can bet (literally) that the prices per barrel will spike up fast. I’ve noticed this phenomenon during threats of war, in which main oil supply ports could potential be cut off.
So, besides oil being very volatile to shifts and news in the market, it is still a very solid long term investment, because it is a limited resource that we have not yet found a replacement for. How would we drive cars, or fly airplanes without oil? We need oil right now, and our supply sources are not growing, which is one main reason why you should buy and invest in oil stocks right now.
Until we find a replacement for oil (potentially electricity), it will still increase in value over time. In the extremely unlikely event that we find an instant oil replacement, we would see prices plummet down to nothing. But ask your self, “what are the chances the world finds a replacement for oil in my lifetime”, and make your bet on the answer. Buy it!
Buying into oil can be done multiple ways. You can do it the most direct way, which would be to invest directly into the commodity via ETF. Or you can do it less indirectly by buying stocks in an energy company that deals very closely with oil. One such company that I have invested in, and really like is SU:CA, Suncor. Energy companies like this will go up and down in value according to the price of oil, and react to changes in the general indices and news. By investing indirectly via energy stock, you also get the added benefits of choosing a solid company with a good future, that may also pay dividends!
Overall, if you have money that you want to invest, adding oil to your portfolio would be a great idea. On a more riskier note, oil can also be fun to swing trade! If you get wind of a situation that may decrease oil supplies, then buy in low, and ride the swing up. The possibilities are endless, have fun investing!

What’s the Best and Safest Way to Invest in Gold?

Depending upon your investor needs and how you view the economy, the best way to invest in gold could be something different for you than it will be for someone else. The fact of the matter is that every person out there has a slightly different set of wants and needs, so each person will need to make investment types that suit their long term goals.

So what is the best way to invest in gold? Many people will extol the virtues of investing in gold coins, but there are some limitations to consider with coins. They can be highly useful, but you will want to make sure that you consider other gold investments, too.

Before you can determine the best way to invest in gold, you need to figure out what you're trying to get out of the gold investment. If long term security against complete economic collapse is what you are looking for, then gold coins are probably your best bet. They are tangible and you will be able to liquidate them quickly if the need arises. Those people who are looking for short term profits probably would want to look somewhere different than gold coins, though, because coins do not offer the type of short run return that you'd need to be successful.

When investing in gold coins, you will know that you have something of value in case of economic collapse. It is basically the ultimate security investment, as it guarantees that you will not be left holding an empty bag if the worst case scenario happens. Though most people do not anticipate this sort of thing coming along, there is always the chance that the American dollar will hit rock bottom and people will be left with literally nothing from their stock portfolios. If that were to happen, you could sell your gold coins rather easily and transition into more viable assets and currencies.

Additionally, gold coins are nice because they provide some value on the long term. If you are under the feeling that the US economy is going to continue to suffer in the fact of growing global competition, then you'd be smart to invest in gold coins. The value of these coins will increase as the strength of the dollar decreases, and this will give you the ability to make enough of a profit to beat the mark up over the gold standard price in order to make the coin purchase a profitable one.

Some people are looking for quicker ways to make a profit, but that's not really a good reason to invest in gold. It is much better used as a long term hedge product for inflation. If you must invest with your eye on short term profits, then avoid coins. The problem with coins is that they carry a mark up over the standard gold price, which means you will be paying somewhere between 10% and 20% more than the gold price. This means that in order for you to make money with coins, you will need the

to rise more than that. This is not going to happen over the short haul unless you get very lucky, and luck is not a good tool to depend upon when investing.

Though most will tell you that it probably will not happen, there have been times in American history when the government has confiscated gold coins rather easily. Around the time of the Great Depression, this happened regularly for people with private gold coin investments. If you are looking for a type of coin that will not get nicked by the government in a time of need, then it's smart to go with coins made before 1933. The reason for this is that the pre-1933 coins are seen as collector's coins by the government. Though they retain the value and the use of other gold coins, they are safe in times of absolute economic disaster, which is what you should be looking for when investing in gold.

Some investors are more comfortable putting their money into companies that have a chance to offer dividends and large scale growth. This is something to consider, especially with the number of gold mining stocks out there. If you think that inflation is on the way and the price of gold is going to rise as a result, then blue chip gold mining stocks offer a solid return amount. The risk here is greater, but that is because the rewards are much greater. You will come to see that gold is still in high demand, so the gold mining stocks are a solid play for those who consider the economy's slump to be a long term thing.

Depending upon your investor needs and how you view the economy, the best way to invest in gold could be something different for you than it will be for someone else. The fact of the matter is that every person out there has a slightly different set of wants and needs, so each person will need to make investment types that suit their long term goals.
So what is the best way to invest in gold? Many people will extol the virtues of investing in gold coins, but there are some limitations to consider with coins. They can be highly useful, but you will want to make sure that you consider other gold investments, too.
Before you can determine the best way to invest in gold, you need to figure out what you’re trying to get out of the gold investment. If long term security against complete economic collapse is what you are looking for, then gold coins are probably your best bet. They are tangible and you will be able to liquidate them quickly if the need arises. Those people who are looking for short term profits probably would want to look somewhere different than gold coins, though, because coins do not offer the type of short run return that you’d need to be successful.
When investing in gold coins, you will know that you have something of value in case of economic collapse. It is basically the ultimate security investment, as it guarantees that you will not be left holding an empty bag if the worst case scenario happens. Though most people do not anticipate this sort of thing coming along, there is always the chance that the American dollar will hit rock bottom and people will be left with literally nothing from their stock portfolios. If that were to happen, you could sell your gold coins rather easily and transition into more viable assets and currencies.
Additionally, gold coins are nice because they provide some value on the long term. If you are under the feeling that the US economy is going to continue to suffer in the fact of growing global competition, then you’d be smart to invest in gold coins. The value of these coins will increase as the strength of the dollar decreases, and this will give you the ability to make enough of a profit to beat the mark up over the gold standard price in order to make the coin purchase a profitable one.
Some people are looking for quicker ways to make a profit, but that’s not really a good reason to invest in gold. It is much better used as a long term hedge product for inflation. If you must invest with your eye on short term profits, then avoid coins. The problem with coins is that they carry a mark up over the standard gold price, which means you will be paying somewhere between 10% and 20% more than the gold price. This means that in order for you to make money with coins, you will need the
to rise more than that. This is not going to happen over the short haul unless you get very lucky, and luck is not a good tool to depend upon when investing.
Though most will tell you that it probably will not happen, there have been times in American history when the government has confiscated gold coins rather easily. Around the time of the Great Depression, this happened regularly for people with private gold coin investments. If you are looking for a type of coin that will not get nicked by the government in a time of need, then it’s smart to go with coins made before 1933. The reason for this is that the pre-1933 coins are seen as collector’s coins by the government. Though they retain the value and the use of other gold coins, they are safe in times of absolute economic disaster, which is what you should be looking for when investing in gold.
Some investors are more comfortable putting their money into companies that have a chance to offer dividends and large scale growth. This is something to consider, especially with the number of gold mining stocks out there. If you think that inflation is on the way and the price of gold is going to rise as a result, then blue chip gold mining stocks offer a solid return amount. The risk here is greater, but that is because the rewards are much greater. You will come to see that gold is still in high demand, so the gold mining stocks are a solid play for those who consider the economy’s slump to be a long term thing.

Is Gold a Good Investment?

Anything that is widely accepted in payment for goods, or in discharge of other kinds of obligations, is called money. The only essential requirement is general acceptability. Money need not itself be valuable. It must, indeed, be relatively scarce, since it would hardly do if money could be plucked off every tree. But, provided precautions are taken to keep it relatively scarce, money can consist of things as worthless as a scrap of paper or the scratch of a clerk's pen in a bankbook.

In recent years, there has been a keen controversy on what is and what is not money. This controversy hinges on what functions money is expected to perform, i.e., whether money is to be regarded as a mere medium of exchange, or a store of value. Obviously, when money is to serve as a store of value, other assets besides currency and demand deposits must also be included in term money.

Money supply should be defined as a weighted sum of currency, demand deposits, time deposits and liabilities of non-banking financial institutions, weights being assigned on the basis of degree of their substitutability for currency.

Money is not, however, an unmixed blessing. Money is a good servant but a bad master. When there was no money, savings was not divorced from investment. Those who saved also invested. But in a monetized economy, saving is done by some people and investment by other people. Hence, it does not follow that savings and investment should be equal. When saving in a community exceeds investment, then national income, output, and employment decrease and the economy is engulfed in depression. On the contrary, when investment exceeds savings (i.e., investment financed not by genuine savings but through deficit financing), then national income, output and employment increase and there is a spell of prosperity. Hence, the disparity between savings and investment resulting from the creation of money is said to be the main cause of economic fluctuations.

Gold has been used as a medium of exchange for more than six thousand years, this is one of many reasons why gold was and is considered one of the soundest investments to own. Gold just like any other investment out there can only be recommended if the investor’s goals coincide with what gold is likely to do in the future. If the investor’s goal is to take a high risk investment in order to see large and quick returns; physical gold may not be the best investment that coincides with their goals.
If an investor is looking for an investment for the long term that has low risk; physical gold would be the ideal investment in that case. One other aspect about gold is unlike other investments gold can not become worthless because of the actions of a few, unlike a stock or a bond. If the organization that issues the stock or bond is engage in dubious accounting practices, the value of the stock or bond can be affected drastically.
Gold coins and bars have been shown to hold its value or sometimes even increase its value when the manufacturer of the coin or bar ceases to exist. The reason for this is if a gold coin stops being manufactured it can essentially mean that coin becoming a collector’s item. Also if the coin was not manufactured extensively it can mean it becoming rare as well. To answer the question is gold a good investment, knowing the investor’s goals is one of the most important factors in answering the question.

How to Invest in Gold and What You Need to Know

The diversified portfolio has a small position in the gold market. For some investing in such market means holding its coins. Some speculators buy the contact futures on the commodity exchange. Future contracts are risky because you are betting that the price of the commodity will go higher in the future. The contract requires a relatively small up front payment, but there can be daily fluctuations that require you have funds to back the dips in the price of daily increases.

The reasons investors have been interested in this commodity is that the old reasoning was that if the stock market was down the commodity market was generally up. This reasoning has become a possibility, but not an axiom of the current marketplace. The weakness in the dollar generally brings a surge in the price. The current price is in the range of $670. Prices have fluctuated within a range of $664 and the current high of $672. Traders think this product could easily go as high as $1,000 an ounce.

Investing in such commodity stocks and precious metal index funds can be purchased through a stock broker. A stock broker specializing in this area is very important because the investment needs savvy investment advice. Most of the larger brokerage houses have individuals that are specialized in the area of commodities and precious metal stocks.

There are certain international commodity stocks that are noteworthy. A Canadian based international player in this type of commodity market is Agnico-Eagle Mines. It trades on the New York Stock Exchange and the Toronto Stock Exchange under the stock ticker AEM. The stock is also sold on the Frankfurt Stock Exchange. This company has more than thirty year history in the production of this kind of commodity Since the year 1970s AEM has produced over four million ounces. The company is international and has operations in Canada, United States, Mexico, Sweden and Finland.

Other noteworthy of such stocks include; Barrick Gold Corp, Goldcorp Inc., Kinross Gold Corp., and Newmont Mining. All of these commodity stocks are currently trading on the upside, but it is advisable for all investors to make sure these stocks fit your investment risk potential.

In recent years the price of this commodity has been as low as the $450 an ounce range. Since the late 1970s it has made huge profits for holders of this commodity. The key to owning it, is to know the various resistance points and to assess the global market for the use of such. It is used primarily in jewelry manufacturing and other types of manufacturing. Currently in India there is a small slow down in the use of this commodity for jewelry making. The same applies to a degree in China. Whether it is enough of a slow down to effect the price of this commodity is uncertain.

Investors who trade in such commodity should seek the advice of an analyst that can factor in all the various aspects that affect the price of this commodity. If you own it as a hedge against a weak dollar you should look for any strengthening in the dollar. The important thing to remember is to guide your investment in it to a level that you are comfortable. If you bought spot of this commodity at $600 an ounce, you might consider a rise to $720 a good profit. The rise to $1,000 an ounce may be bumpy and there is no telling when it will reach that level if it does as speculators have gambled.

There are numerous mining stocks of this product in the market and if you are interested in a small investment you can find these stocks in the $5 to $12 range. The smaller mining stocks of this product do carry a risk because a great deal of overhead goes into making a mining company profitable.

The range of risk and amount you decide to invest in this product is a personal choice. It is always advisable to seek the expert advice of a stock expert or commodity expert before leaping into this market. Another sage piece of advice I learned is to trust my sense of cashing out before the price drops significantly due to outside pressures.

If you want a simple answer on how to invest in gold then it really can come down to it simply being about what you’re most comfortable with, the way that just sits right for you. There really are so many ways to invest in this metal that it would be difficult to prove that one way is more superior than the other.
There are some smarter moves you can make for sure when it comes to investing in this metal or any type of investment for that matter, but at the end of the day you need to make a decision. The best thing you can do is to research and find out as much as you can so you make informed decisions and can easily sleep at night with the choices you’ve made.
Here’s a couple of ways on how to invest in this but remember there are many more to choose from if none of these feels like the right match with you and your needs.
Coin collecting is loved by many people worldwide and can be quite a fun way to invest. Researching all the different coins available and learning about their value, opening yourself up to the world of grading coins and so forth can be quite rewarding. For someone who wants to be really involved in the decision making of their investments, this could be a great match up. It can become a great and rewarding hobby.
You can simply buy pure bullion, the bars that come in various weights. You need to be able to store your bullion safely and to be aware that disposing of it, for example turning it back into cash, is not always going to be easy.
Although not considered a serious gold investors option, jewelry is another way to invest in. The quality of the jewelry is not usually that of the gold traded on a day to day basis however it’s still contains some and possible some other valuable metals and does have significant value.
There are many more ways to invest in this precious metal, such as mutual funds, certificates, and mining, you really need to get a feel for all the different avenues and choose what meets all your needs.

Why Invest in Gold Bullion?

From a very young age, humans are somehow intrinsically aware of the value and precious nature of gold. It has long held a special place of significance in our society, both as currency and as an adornment meant to please the eye and communicate a status symbol. It's important for people to realize that although the paper money you carry around in your pocket (most likely in the form of credit and debit cards) no longer has pieces of gold backing it up in the federal reserve, gold investing still holds a great deal of promise for savvy traders.

Those that are interested in the potential profits of gold investing would do well to conduct a little bit of research about the history of this commodity and the way that its value has changed over the past century. Since the beginning of our country, gold has always been accepted as the highest form of currency. From the time that Roosevelt was president during the Great Depression until the day in the 1970s that President Richard Nixon removed the country from the gold standard; the value of an ounce of gold held steady at $35 per ounce. Following the decision to take the country off of the gold standard, investors saw this valuation increase dramatically, so much so that prices in the 1980s sometimes topped $800 per ounce.

Gold investing demands that a trader be both patient and knowledgeable about monitoring the stock charts and constantly watching for the best time to buy and sell this commodity. If you follow the practice of technical analysis, you'll agree that watching the price movements for gold over time will allow you to start to detect patterns and trends that can relay valuable information about what's likely to happen to commodity values in the future.

It's not always true with all stocks or commodities, but with gold investing it's very important to monitor inter-market relationships. Those committed to successful trading of the gold commodity should spend a great deal of time watching the value of the euro as well as the U.S. dollar index. By watching foreign currencies, as well as keeping an eye on the crude oil prices around the world, traders will be alerted to any early clues about gold's trending action. You might think that these markets are unrelated to the valuation of gold, but they can actually give you important clues about whether the gold's value is likely to drop or increase in the future.

Why invest in gold bullion? Learn the reasons why you need to invest in gold in order to secure your savings, fight the consequences of inflation and reckless monetary policy, protect yourself against coming bank collapses and ride the current gold bull market all the way to the top.
One of the most popular reasons to invest in gold, especially gold bullion is to “hedge” against inflation. Because the main factor behind increasing inflation rates is the creation of additional currency (sometimes called the printing of money) gold bullion is a way to shield yourself from the effects of this. Every time more money is added to the supply of money, the purchasing power of all the money in the supply decreases because there is more currency chasing the same amount of goods. When you go to the supermarket for some groceries, this inflation is what makes everything get more and more expensive each year. According to official sources inflation is around the 4.2% mark. However, it is really much higher than this as that figure is an
of most goods available for purchase, including ones that tend to decrease in price such as electronics. Because the average person spends more of their money on things that are inflating in price at a greater rate, such as food, fuel, accommodation and education, the true rate of inflation is around the 10-20% mark.
To invest in gold bullion means that the money you have put into that gold is protected from inflation. Because gold is in such limited supply, it’s value cannot be inflated by increasing its supply. However, when the supply of currency such as the US dollar or British pound increases, the value of that gold goes up as well. Therefore, that same gold bullion, adjusted for inflation, is worth a the very minimum, the same amount virtually all the time. Having gold investments, especially in bullion protects you from inflation and stops the purchasing power of your money from being destroyed. That is reason enough for why you should invest in gold bullion.
However, with the demand for gold set to increase from countries such as China, India and Russia, as well as the worsening sub-prime mortgage crisis and a loss of confidence in “paper” money, the price of gold looks set to skyrocket. With gold sitting at just under $1000 an ounce, it is still very good buying. The current gold bull market is very young, and a large number of trusted analysts are predicting that $2000+ per ounce is not unlikely.
Why invest in gold bullion?
To protect you and your family’s money from inflation and ensure that your current level of purchasing power is maintained. Also, with the price of gold set to skyrocket, it looks like a very promising investment that is currently undervalued. What tends to happen with gold is when its price starts to increase rapidly, more and more people pile in and the price shoots further upwards. This phase hasn’t been reached yet, so I would highly recommend that you invest in gold now, before the increases in price make investment more difficult and less rewarding.

Gold Futures – Investment

By analyzing the historic ratio between gold and silver prices, I would be the first to admit that you should invest in gold. However, when you look at the current historic trend of gold and silver in the last thirty years, silver may actually surprise you. That is one reason why I would consider investing in silver more than gold. The price of silver has increased dramatically in the last few years giving them the chance to be reviewed more closely.

In 2001, prices for silver were quite weak. It was selling for a little more than $4 per ounce. Normally, it's a great investing price but due to its less than stellar historic performance, it was more likely that people would invest in stocks or gold. Nevertheless, in eight short years, prices increased by a whopping 300%, to over $16 per ounce of silver. With those numbers, it is true that people have overlooked and undervalued the potential.

Silver is not a luxury precious metal like gold. Gold is almost entirely viewed as a monetary symbol while silver is rather multi-purpose. There are various industry sources which state that the demand for silver is divided into the following categories:

· 45 percent from the electronics industry

· 30 percent from the jewelry industry

· 20 percent from the photography industry

· 5 percent from investors

With these numbers, I can see why people have repeatedly undervalued and overlooked silver. Nonetheless, there has been a steady increase in silver investors which has helped the price to skyrocket. Just like in any investment, there will be risks to investing in silver as it is viewed as a multi-purpose industrial commodity before being viewed as a monetary symbol, like gold.

Silver has been a stable yet unlikely precious metal to invest in. However, due to its recent history and incredible percentage increases in relation to gold, I would consider investing in silver as it has been overlooked and undervalued for too long. Caution should be taken for any investment opportunity but silver definitely seems to be on the rise and a major player in the investment world for years to come rather than simply an industrial commodity.

Gold is also called yellow metal and is precious. Gold is the world’s favorite method of investing. Gold market is also called bullion market. Gold futures now began to capture the imagination of the people. Gold futures is one of the newest forms of investing but is hugely popular these days because of the fall in the market. Falling markets bring people back to the bullion market because people withdraw money when it is unsafe in stock market and they deposit the amount in gold pushing the rate of gold further high.
Investment in traditional times happened physically with investors buying ornaments or gold biscuits personally and stored them only to sell when they smell profit. This required huge safety problems regarding storage etc. The trading in futures remove this hurdle. In futures trading a buyer or seller enters in to a contract where he speculates the price of gold after 3 months or so. He does not take or give delivery of gold here. He can even settle the difference in cash after 3 months. What really happens here is pure speculation. People in the commodity market say it is easy to speculate which way gold would move than speculate the stocks.
You are not required to pay the entire amount of money to trade in the commodity exchanges. You have the benefit of margin system. All you have to do is to deposit only 5 or 10 percent of the total value of the amount. To have your account going strong in case of losses you have to deposit extra. Gold futures is one of the greatest money making ideas online. You have to take decisions based on knowledge to keep making money here. Take it seriously ask all the help you need with people who know more and trade safe.