Category: Gold


Benefiting From Copper ETFs

Filed Under: Gold by Don Weststein — Comments Off
May 5, 2011

There are several kinds of investments to choose from. If you are seeking stability and growth, a copper ETF may be something that you should check into. Since the economy is still recovering, the cost of copper is still lower than it was a handful of years ago. Copper is used for many things such as piping and the majority of electric devices to name a few. Investing in copper ETF may be as good as investing in water ETF funds.

When the world markets start recovering, they will spend on growth in government infrastructure plans and consumer projects, thus increasing the need for copper. As the need for copper increases, the cost also will increase. The primary sources for increasing demand are growing markets such as China, who have been a little reserved throughout the down turn. It is only a question of time before China’s economy starts to grow again and the world needs to produce more copper. Just think, the population of China is more than 1 billion and all homes and businesses need copper for pipes used in plumbing and electric wiring. Add this to the growth in the American economy, that is quite well for people thinking of investing in copper ETFs.

If you wish to know more concerning such opportunities it is a good idea that you perform some research of your own accord on different companies dealing in copper. The cost of copper is quite stable unlike that of precious metals such as gold, which vary a lot depending on political acts of different countries. Friends and peers who are involved with this and fully understand it are a great source of information. The commodities market has been around for a long time so there is no question that there is an available market for it. Also, this is a liquid investment. Copper is tangible and used by everyone.

A good advantage of a copper ETF is that it is tax efficient. As with any type of investment, risks are involved. However, the risks here are quite a bit less and there is much growth potential.

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Invest In A Silver ETF

Filed Under: Gold by Don Weststein — Comments Off
February 16, 2011

An exchange-traded fund is an investment that takes its value from whatever it tracks, which could be a particular fund, an index or a commodity, among other market products. These types of funds generally have lower costs associated with them and can be set up to reduce tax consequences upon payout. A popular ETF investment is in precious metals which can include a gold or silver ETF.

If you have researched options in silver investment, you probably know that silver is less volatile than gold. You may have determined that silver should appreciate and it is time to invest in this metal. However, before you go out and purchase a bunch of silver to stash in your safe deposit box, you may want to consider an ETF purchase instead.

When you purchase a silver ETF, a company is in possession of the actual silver. Nevertheless, your ETF is tied to the price of silver, not to the value of the company holding the silver. Thus, when the price of silver goes up, the value of the ETF goes up. You may choose to purchase an ETF that tracks bullion or silver coins, silver mines, leveraged silver, double silver, and silver named after various funds. Although these funds are slightly different, they all offer opportunities to invest in silver ETFs.

Tracking your silver investment is fairly easy online. You can use MSN Money or Yahoo Finance to view your silver ETF value, along with an ETF stock trader (there are financial, energy or inverse ETFs, among many others). Keep in mind that even if you are investing through a particular company, your fund value is not connected to the performance of the company. If the price of silver goes up but the company holding your fund is showing a quarter loss that results in a drop in their stock price, your ETF value will still go up. It’s tied only to the going price of silver and nothing else.

As mentioned, ETFs can be designed to minimize your tax burden, so be sure to protect your investment by thoroughly vetting your agreement.

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The Gold Standard No More

Filed Under: Gold by Don Weststein — Comments Off
January 14, 2011

Investing in gold is a great investment for anyone, listed below is a brief description of two ways to invest in gold.

Gold stocks are a secure investment in a publically traded company within the gold sector. This usually takes the form of an investment in one of 300 publically traded within the U.S mining companies. Investors are buying ownership in a company and thus receive a portion of profits made by the company.

Many companies have dividends and thus a steady stream of income is provided to investors even when the company is not growing. Dividend payments are not usually any higher than two percent. Cash dividends can be reinvested in a company to compound returns. Stocks earn value when the share prices increase.

Many investors reinvest a fixed dollar amount of shares, that way when shares are low more are purchased, and when shares are high less are bought. Thus the investor benefits from a theory known as dollar cost averaging. If an investor is new to the stock world investing in gold stocks are not advised, there are many variables to investing in gold sectors, thus extremely complicated.

Gold bullion is another way to invest in gold. Gold bullion investing is buying physical gold in the form of bars or coins. Gold coins come in purity of at least 0.900 percent, and in fractions or multiples of one troy ounce.

Gold coins or bars are extremely useful in the case of a financial crisis. The reason for this is because an investor has physical gold on hand, other ways of investing in gold is to gain worthless paper. During a crisis paper money will have no value and cause debt, but due to gold being rare and unable to produce whenever gold is always valuable. Gold is not useful for short term profit because of a premium placed on each piece, thus gold is a security investment.

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Even You Can Invest In Corn Or Metals On The Commodity Markets

Filed Under: Gold by Don Weststein — Comments Off
December 10, 2010

Recently investors have become very interested in something called Commodity Exchange Traded Funds or  Commodity ETFs.  These are one subclass of ETFs which are a diverse investment product that combines stocks, bonds and other products in a package that roughly rises alongside of the corresponding index.  So if it is affiliated with the New York Stock Exchange it will rise (or maybe fall) with that exchange. The commodity version of these funds is one that is tracked to one of the commodity indices.

Throughout the world, there are many commodities indices.  These indices deal with many raw materials that have an agreed upon definition.  For instance, the Minneapolis Grain Exchange focuses on grain which has a fairly standard definition.

Many investors like Commodity Exchange Traded Funds because they trade like stocks and are easily understood; they are cheap; and they are quite stable so lend themselves well to long term investments.  However, despite their reputation as a safe long term investment, some investors enjoy trading them throughout the day to increase their profit potential.

The rules governing these funds are different than those governing funds that contain securities because they are considered as a different product.  Most commodities are traded as futures which means that an agreement is made to sell for a preset price on a set date.  For example, a corn grower could set futures with a cereal maker that they will buy a certain amount of corn on a certain date for a predetermined amount of money.  This protects the farmer from falling prices and the cereal maker from rising prices. However, these futures can frustrate the novice investor because he or she may find that their ETFs do not rise when the value of the commodity rises because of the way the market rolls front month futures exchanges.

Even with the potential vagaries of the market, Commodity Exchange Traded Funds are a great investment and a effective way to diversify your portfolio.

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Dealing With Cash For Gold Buyers

Filed Under: Gold by Don Weststein — Comments Off
October 23, 2010

Are you one of the many people who is looking to introduce some excess liquidity into their lives? Well, we have a possible solution for you. Have you ever considered liquidating any old items of value that you have? You can get rid of your car, if you think that you can get by without it – or even your house, if you are willing to take up the practice of renting a place instead.

There are other options as well, but very few can generate as much liquidity as a car or a house.  And then, of course, there is the jewelry option, which is becoming more and more common. As you are probably aware, there is an entire industry dedicated to going around the market and soaking up any excess gold jewelry that is wasting away in people’s drawers – and many of these businesses can offer you quite decent prices for your gold items.

Of course, it is important to keep in mind that the prices will all depend on one thing – how much gold is in the items that you are selling.

Most of these cash for gold buyers are not interested in the sentimental value of whatever you are selling – their aim is to melt the item down and recover and gold that it contains. As a result, it is probably a very smart move to sell only when scrap gold prices are high, for the simple reason that you will get a lot more for your offerings during these periods.

There are a lot of other things that you should be careful of when dealing with these gold dealers. It is important to remember that you can, and indeed should, walk away if you feel like you are not getting the kind of value that you were looking for in the transaction.As the customer, the main thing that you should care about is low prices, and good service.

If you feel that you are not being delivered either of these, walk away – there are plenty of other dealers.

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Selling Gold Jewelry for Instant Cash

Filed Under: Gold by Don Weststein — Comments Off
September 19, 2010

Are you perhaps interested in making a little bit of extra money on the side? There are a lot of ways of doing so, provided that you have the capital and are willing to put in a bit of effort. The first thing to keep in mind is the fact that you are likely to do better in industries that are on a growth path. As John Kennedy once said, a rising tide lifts all boats – and if you moor your boat to a rising industry, the chances are that much greater that you will experience success.

So what are some successful industries, then? Well, one of them is the gold trading industry, which has done exceedingly well in spite of the recent financial crisis that had very pronounced negative effects on most other industries. The reason that gold merchants were able to do so well over the last few years has to do with a single idea that they came up with – the whole “cash for gold” concept, wherein gold buyers offer to purchase people’s stocks of old gold jewelry, and then process that jewelry in order to retrieve the gold from its composition.

This idea has been around for ages, and people have been doing it for a long time now, but by marketing it properly during the recession, the gold trading industry was able to take a bad situation and profit off it. The fact that they tried to promote this idea during a recession was what made all the difference, because there were so many people who were negatively affected by the crisis and were looking for a way to create a quick boost of liquidity to add to their cash reserves. Of course, getting rid of their old jewelry – which, in most cases, was lying unused at the bottom of a drawer or bank vault – was one of the easiest ways to do this, and very soon, everyone was selling gold jewelry to gold merchants, who racked up a tidy sum.

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Inverse Gold ETF: For The Gold Bear

Filed Under: Gold by Don Weststein — Comments Off
March 18, 2010

As most gold bears should know, an inverse gold ETF or (exchange traded fund) is a type of short gold investment. The ETF is backed by gold but is not physical gold itself. This type of investment strategy has been around for nearly two decades. Investors who trade in ETFs feel that it is more stable than trading the physical commodities. ETFs give the investor a clearer picture of the actual value of the commodity and whether it is increasing or decreasing in that value. When the market is bullish you sell, and some investors buy in a bearish market just as they would in trading regular stocks.

The key to short gold ETFs is to know when to buy and when to sell. If you watch and analyze the market closely enough you should sell when the price of gold is going up in value and use the funds you get from the ETF to buy physical gold. In this way you have something tangible and an asset that you can count in your portfolio. When the ETF is in a bullish state you want to sell because with this trading platform things can get a bit tricky.

You should always consult with a professional investment advisor if you are considering trading in ETFs because they will be able to give you some pointers that could help you reap the benefits from this type of investment instead of losing your shirt. A professional investment advisor or financial advisor can assist you in buying and selling ETFs and analyzing the market for trends and patterns.
If you are considering ETF trading you will with the help of a professional in the field trade more successfully than if you tried to do it on your own. There are many different types of investments that may suit your needs and financial situation a lot better but you won’t know if you do not ask.

As with any investment there are always risks that you need to take into account beforehand in order to decide if you have the capital to do so and make allowances for losses due to your investments. If the possibilities of gains far outweigh the possibility of losses with an inverse gold ETF, then you are far ahead of the game. Just remember to invest responsibly and do not invest more money than should before you know what the market is going to do. Have an investment budget in place and stick to it.

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