GOLD - SILVER TRADING & ONLINE REAL TIME TRADE

Investing in gold: online markets and producers

Gold is a refuge value, suitable for periods of economic crisis, but involves additional costs for maintenance and safety

In times of financial crisis, with international stock exchanges installed in a large uncertainty, many people wonder about the existence of an alternative investment for these periods of economic recession. Precisely one of these options focuses on a classic: gold investment, an interesting option for investors seeking maximum return on their savings, even at the cost of using markets that require a deep knowledge. Moreover, while gold is a safe haven value and provides security in times of crisis, does not provide dividends and involves additional costs for maintenance and safety. The metal can be purchased physically fit bullion (gold bars have almost one hundred percent pure and whose prices range between 5,000 and 20,000 euros depending on their sizes), but can also be purchased through other forms more conventional and certificates of deposit, gold futures, or the growing market for investment funds. What is important is to make revaluations is getting over the last few years. Thus, in 2008 has managed to stand above the psychological barrier of $ 1,000 an ounce, which means that investors who enter into this market in January, a revaluation would now nearly 15%.

Gold is an asset not a perfect person to invest in situations of high debt levels and risk of bubbles

Gold is an asset with no liability, perfect to invest in situations where there is a high level of debt and risk of bubbles, a situation that is beginning to discover some unusual countries in Europe, where we have witnessed a sensible growth of real estate investing. However, it is not an isolated phenomenon, and there is some consensus on the existence of a worldwide real estate bubble (U.S. households have debt levels above 80%), which has begun to "pop" ... What is the best place to take refuge in these cases? The experts are clear,  which is gold the best savings option for an economic situation such as that undergone  other industrialized countries.

Diversifiy your risks: The saver can afford the investment from various perspectives, and this is precisely one of the main advantages of the yellow metal for investors. Can be used to direct investment in gold bullion securities or shares of mining companies, the best solution to not having physical bullion at home, very annoying for all investors, both from the point of view of safety as comfort. But in addition, the financial market has developed other ways of investing in gold, with great potential for profit.

* Certificates of deposit: They are one of the easiest ways to acquire physical gold market, as the purchaser of such certificates owns physical gold but do not have it at home or any financial institution. What do you get with this mode of operation? First, lower transport costs and maintenance with this type of operation and, secondly, reduce the risk of theft. These operations are limited and may not be through any financial institution but is exploited by means of investment banks specializing in high-end such operations.
* Futures on gold and silver: One of the particularities of this operation is that the spread between buying and selling is minimal. It has some advantages, such as a product to be used by the small and medium investors, but, as happens as with other more traditional financial assets with the same mechanics, must be aware of expiration dates, quotes, etc.
* Investment funds: It is the most common among all forms of investment. These are funds that invest primarily in shares of mining companies. However, due to its poor implementation in the financial landscape is a risky choice that based on companies listed major stock exchanges. Its future profitability depends on the time to get into these funds, and of course also on their way out, as in traditional equities. It may be an option for times of crisis, especially in bullish periods in which the profitability of gold funds is often higher than others.

But gold is the only financial asset that is not under the control of governments, but what really makes their employment more attractive is the value its role as refuge during periods of uncertainty and economic recession, higher than that provided other financial assets. The purchase of this precious metal, through its various forms, grows significantly in times of financial crisis, and many international brokers who take positions. Furthermore, it is an investment that provides high liquidity and you may buy and sell quickly, without delays or penalties. The increase in the price of the precious metal is generating benefits that exceed the two-digit even to the point of becoming one of the most profitable investments in recent years, over equities, the bond market or other more or less traditional investments. Gold, says Charity, "is defended well" in both inflationary or deflationary scenario, and is presented as an asset, "uncorrelated" of the evolution of the dollar. For investors "to expect a depreciation of the dollar" is a potential source of profitability.

Investmenting in gold provides liquidity and allows buy and sell without waiting or penalty

But while investment in gold has many advantages, can not be neglected some disadvantages such as failure to provide any dividends (as with the purchase of securities on an exchange). It also has a maintenance complex, either because they can be stolen, and for the additional costs involved in deposit safes with the banks, usually paying noticeably more expensive investment. Another aspect that can retract the small and medium investors is not knowing about the financial market, from how to hire, the products on offer, through the pillars underpinning the development of this market.

One of the major problems of recruitment is to find an organization that works in this kind of market. Usually, the most likely to offer them are the large international banking groups as well as some domestic banking sector highly specialized departments that have qualified to operate this product series. Gold Direct is the only national company that sells gold for investment. Before deciding to invest in gold is paramount that decision consult with the experts of this market through an entity or a financial intermediary, which will be the ones to dictate the suitability of using these channels, depending on the needs of each client. The advice for investors who do not know this market is to not invest, since each product (physical buying, certificate of deposits or future) has a complex mechanics, that must be handled properly by specialists. One of the main attractions of buying gold for investors is that it is exempt from VAT. Indeed, the exemption from value added tax is provided in all investments made in the yellow metal as contained in Chapter V of the Special Regime of Investment Gold, Article 140 of the Tax Law on Value Added 37/1992. In practical terms, this means that compared to other goods, there's no 16% surcharge for this item. But in addition, the investor can benefit from the fact that increasing the money supply makes the paper money steadily loses value, which is not true with this precious metal, and not devalued.

Silver, the alternative investment

It does not need much capital and can enter the market through investment funds or by buying physical bars and coins. Jose Antonio Lopez-Esteras Camacho, an Spanish Investors and Trading Consultant, concludes that: "It is not necessary to have a large capital to invest in one of the most precious metal has appreciated in recent years: the silver. The offer is limited, but you can enter the market through the purchase of bullion and coins, or through investment funds, an option that involves risks and is common among investors". Other possibilities are investing in mining companies, futures and options, although these next generation products involves risk and it requires the supervision of experts.

Investment funds: The offer to invest in silver is not as large as that of other financial assets. Furthermore, not all institutions have the capacity to take up positions in the metal. You can invest by buying physical bullion or coins, or by hiring investment funds based on the precious metal. The latter alternative is more common among savers, since it is a way to enter this market without taking risks and with the endorsement of the agents. In conservative investments, the annual yield may exceed 5% in half term. The main appeal of these products is on the potential financial gain for its customers. In conservative profile, the annual yield may exceed 5% in the average time when the risk increases slightly, you can get more than 15%. It should be noted that neither the carriers nor the distribution of funds guarantee profits, but provide recommendations to clients based on past performance and projections. However, it is the only way to enter this market, until recently little explored years. There is a limited range of markets and products exposed to silver from mining companies listed on Stock Exchange (American stock indices and English) to more sophisticated as options. They are next-generation products, which account for investment risk and must be subscribed under the supervision of an expert.

Lingots, bars and coins

Another alternative is to buy physical silver. You can buy bars and coins, from both large and small quantities. In the spot market, investors buy the metal of large banks. To avoid costs and risks, bullion is not physically moved and operated with papers. You can also buy through the futures markets, where contracts are negotiated for the purchase of raw materials at a fixed price until a certain date. Retail buyers can be made with metals through operations in specialty stores, online or at the bank. There are entities that serve a diverse clientele of producers and consumers of bullion in a variety of sectors ranging from mining companies, cast, designers and manufacturers of jewelry to traders and brokers. It is a risky investment, subject to supply and demand in international markets. The brokerage and banking services related to operations include cash bars, future long-and short-term, options and derivatives linked to silver. You can even find the precious metal coins at competitive prices from small quantities (50 euros) to other more relevant (6,000 euros). Investment risk should be considered because it is subject to the forces of supply and demand in international markets, which may limit the potential benefits.

Is it beneficial to enter this market? Over the past few years have seen a major bull rally that has benefited all savers positioned in the silver market. This has been one of the most profitable. The benefits it has generated in recent years are enormous, over other major financial assets. Of course, it exceeds the return to the battered international equities. The precious metal ended 2009 with a wide revaluation was quoted at $ 17.48 an ounce on the London market, representing a profit of 61% over the previous year. This trend in recent months has been accompanied by those experienced by other precious metals such as gold, platinum or palladium, whose gains have been at double digits. But while money has been in recent years one of the most financial assets have been revalued shall spare no precautions before investing in this metal.

Advantages:

* One of the largest financial assets revaluation in recent years. In 2009, he closed with a profit of 61%, well above other financial markets.
* Value is considered a haven in times of uncertainty and economic instability. It is therefore highly demanded by the most seasoned investors.
* Financial institutions have increasingly products referenced or linked to this precious metal.
* You can enter this market through traditional and less risky, such as investment funds.

Disadvantages:

* When new products, require some practice to operate them.
* You need expert advice.
* Pay special attention to the conditions of contracts of silver-based products: expiry, fees, penalties, etc..
* At times, investing in precious metals should be considered at risk, as it is subject to the forces of supply and demand of international markets, which may limit the potential benefits.


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