Archive for June, 2006
June 14th, 2006 | 
Author: 
As an investor, you should always know what your objectives are. One of the biggest traps investors fall into is buying a gold position that has little or no relationship to his or her objectives. Gold is not for everyone. Buying gold is usually used as an insurance policy in case other investments such as stocks go down.
Gold is in a bull market right now because its core fundamentals are so outstanding. It is also doing well because the stock market is tanking. You see, that is the “insurance” part of gold. When stocks go down, gold often goes up. A position in gold will often offset your losses in the stock market in troubled times.
The price of gold may jump up to thousands of dollars per ounce in the current rally or it may struggle and fall lower. No one knows for sure even if they pretend to. One thing is for sure: if the stock market continues to fall, things will look good for the gold investor. Gold is the ultimate alternative investment because it is tangible.
Many people, including the die hard stock investors, often still see gold as the most undervalued asset group in a standard portfolio mix. In general, gold becomes more desirable in times of banking failures and tough economic times. Also, like all investments, gold becomes more attractive to more people the higher it goes. People don’t seem to want to miss out and that is why both gold and stocks tend to go up too high before they fall back.
Before you invest in gold, you should carefully consider what percentage of your overall portfolio you wish to risk in gold-related investments. If you are thinking about investing in gold, it is worth giving the same consideration to your purchase as you would to any other investment. When you buy gold investments, you lower risk in your investment portfolio.
As more investors realize that gold is a great way to profit in today’s uncertain climate, more fund-makers have been happy to supply the means with which to buy gold. There is a whole world of excellent alternatives out there for investors who wish to invest in gold. Just be sure you understand what your gold objectives are before you allocate too much of your portfolio towards it. Gold can be a great addition to any portfolio but only in the right amounts. Putting too much of your net worth into gold would be the same as gambling.
By: Bruce Lipski
About the Author:
Gold is in a bull market right now because its core fundamentals are so outstanding. It is also doing well because the stock market is tanking. You see, that is the “insurance” part of gold. When stocks go down, gold often goes up. A position in gold will often offset your losses in the stock market in troubled times.
The price of gold may jump up to thousands of dollars per ounce in the current rally or it may struggle and fall lower. No one knows for sure even if they pretend to. One thing is for sure: if the stock market continues to fall, things will look good for the gold investor. Gold is the ultimate alternative investment because it is tangible.
Many people, including the die hard stock investors, often still see gold as the most undervalued asset group in a standard portfolio mix. In general, gold becomes more desirable in times of banking failures and tough economic times. Also, like all investments, gold becomes more attractive to more people the higher it goes. People don’t seem to want to miss out and that is why both gold and stocks tend to go up too high before they fall back.
Before you invest in gold, you should carefully consider what percentage of your overall portfolio you wish to risk in gold-related investments. If you are thinking about investing in gold, it is worth giving the same consideration to your purchase as you would to any other investment. When you buy gold investments, you lower risk in your investment portfolio.
As more investors realize that gold is a great way to profit in today’s uncertain climate, more fund-makers have been happy to supply the means with which to buy gold. There is a whole world of excellent alternatives out there for investors who wish to invest in gold. Just be sure you understand what your gold objectives are before you allocate too much of your portfolio towards it. Gold can be a great addition to any portfolio but only in the right amounts. Putting too much of your net worth into gold would be the same as gambling.
By: Bruce Lipski
About the Author:
Do you want to learn how to buy gold? Please visit my website Current Price Of Gold to find out how.
Renita Grave
For thousands of years, men and women have held gold in high regard. We want more of it! And this is not down to greed, but rather the soundness of gold. Gold is a stable investment; the price does not fluctuate as drastically as oil or the stocks on the stock exchange. Before you go and buy your hundred grams of gold investment, consider these points.
Everyone wants a gold bar. It is the epitome of wealth, after all, you likely have a wealth strategy, and if you don’t then hopefully this will make you consider it. Usually investing in gold bullion comes after investing in high yielding savings accounts, stocks and bonds, and other investments, art possibly.
A good strategy is to have 1-5% of your wealth in the form of gold. As I stated earlier, gold is stable. A look at the price of gold does not show major differences. You will not see gold increase 30% in a day, and likewise, you will not see that kind of decrease, so this makes gold such a good investment strategy (to keep just on top of inflation).
Looking for a gold bullion bar will show you many sizes. From ounces to grams, right up to the kilograms if you really want to invest in gold bullion bars, you can. However, buying these amounts of gold in one piece can cause many problems in the long term.
Imagine for a moment, you invest in this gold bullion bar. Now, you have one big piece of gold. That is great! However, looking long term you likely want to pass that gold to your spouse, your children or even a charity when you leave this world. And what about if you really need to sell it to free up some cash in an emergency? The gold bullion bar will at some point in time be exchanged for cash.
Now, it is not as simple as buying the gold bar. Now, you also need to consider how you can convert the gold bar to cash. There are not that many places that will buy the gold bullion bar, and some of the places selling gold bullion bars may not be interested in buying your gold bar back.
This leaves you in a dilemma. One option is to cut the gold bar, but no one wants to do that! The gold bullion bar has stamps on it, which indicates its authenticity.
An overlooked option is gold bullion coins. Coins are small enough that there is no need to cut them to pieces! Also if you should need the cash, then you can sell some of the coins and keep the rest, thus preserving at least some of your original investment.
Gold bullion coins can also be more easily split up in your will. You can distribute some to each of your loved ones, and everyone is happy. Gold bullion coins are also more readily available, and as such more people are willing to buy them. You can even increase your holdings over time, by buying gold bullion coins every few months or once a year, and have a pouch of gold coins!
The price of the gold bullion coins does have its own problems. For example, they need to be kept in pristine condition. Obviously the benefit also is that well kept gold coins may actually be worth more than the base gold value.
By: Koz Huseyin
About the Author:
Everyone wants a gold bar. It is the epitome of wealth, after all, you likely have a wealth strategy, and if you don’t then hopefully this will make you consider it. Usually investing in gold bullion comes after investing in high yielding savings accounts, stocks and bonds, and other investments, art possibly.
A good strategy is to have 1-5% of your wealth in the form of gold. As I stated earlier, gold is stable. A look at the price of gold does not show major differences. You will not see gold increase 30% in a day, and likewise, you will not see that kind of decrease, so this makes gold such a good investment strategy (to keep just on top of inflation).
Looking for a gold bullion bar will show you many sizes. From ounces to grams, right up to the kilograms if you really want to invest in gold bullion bars, you can. However, buying these amounts of gold in one piece can cause many problems in the long term.
Imagine for a moment, you invest in this gold bullion bar. Now, you have one big piece of gold. That is great! However, looking long term you likely want to pass that gold to your spouse, your children or even a charity when you leave this world. And what about if you really need to sell it to free up some cash in an emergency? The gold bullion bar will at some point in time be exchanged for cash.
Now, it is not as simple as buying the gold bar. Now, you also need to consider how you can convert the gold bar to cash. There are not that many places that will buy the gold bullion bar, and some of the places selling gold bullion bars may not be interested in buying your gold bar back.
This leaves you in a dilemma. One option is to cut the gold bar, but no one wants to do that! The gold bullion bar has stamps on it, which indicates its authenticity.
An overlooked option is gold bullion coins. Coins are small enough that there is no need to cut them to pieces! Also if you should need the cash, then you can sell some of the coins and keep the rest, thus preserving at least some of your original investment.
Gold bullion coins can also be more easily split up in your will. You can distribute some to each of your loved ones, and everyone is happy. Gold bullion coins are also more readily available, and as such more people are willing to buy them. You can even increase your holdings over time, by buying gold bullion coins every few months or once a year, and have a pouch of gold coins!
The price of the gold bullion coins does have its own problems. For example, they need to be kept in pristine condition. Obviously the benefit also is that well kept gold coins may actually be worth more than the base gold value.
By: Koz Huseyin
About the Author:
Investing in gold or buying gold has many options. To help you find what you need, visit these sites:
* Buying Gold Bullion
* 14K Gold Bracelet
* More Investing Articles
Kira Santore
giantbigperson asked:
A karmabanque radio ad for these troubled economic times.
Jared Holliday
erick_el_rojo2001 asked:
I do extracelullar recording in sensory nerves, I need gold wire, about 0.007 inches diameter, who knows where can i buy it?
Michael Fritz
I do extracelullar recording in sensory nerves, I need gold wire, about 0.007 inches diameter, who knows where can i buy it?
Michael Fritz
kandibabe asked:
I need to buy some gold floor candelabras for a wedding i’m organising. I don’t want to hire them and i’m having trouble finding anywhere that has what i’m looking for. Probably 5+ arms and about 5ft tall. Can you help me? The theme of the wedding is vintage but i’m open to looking around, just cant find anything i need!
Cicely Maish
I need to buy some gold floor candelabras for a wedding i’m organising. I don’t want to hire them and i’m having trouble finding anywhere that has what i’m looking for. Probably 5+ arms and about 5ft tall. Can you help me? The theme of the wedding is vintage but i’m open to looking around, just cant find anything i need!
Cicely Maish
Morgan urges investors to buy gold for the holidays
J.P. Morgan analysts John Bridges and Steve Shepard recently advised, “We’d be buying some gold for our Christmas stocking and Hanukkah gifts.”
J.P. Morgan metals analysts John Bridges in the U.S. and Steve Shepard in South Africa said that while they realize the difficulties gold miners face, “we feel they have probably underperformed enough for now, and we’d be buying the gold space for the run into the holidays.”
In a recently published commentary on gold, Bridges and Shepard advised that “the tighter gold supplies and counterparty risk could give gold (and thus directly the equities) a lift through year end.”
Investment Thesis
J.P. Morgan’s analysis suggests that “gold has shown two faces to the market: gold equities have underperformed the S&P 500 since the beginning of this financial crisis, but gold bullion has outperformed the general markets handily. We continue to feel this results from the operational challenges the gold miners face as a group but points to upside potential for gold prices as mine supply continues to fall and now central bank sales diminish.”
While Bridges and Shepard noted that “our favorite technician feels the dollar could strengthen further,” gold should not “be simplified to being the dollar not.” They asserted that gold does diverge from its relationship with the dollar “when the supply demand fundamentals for gold overcome the prevailing (price) relationship with the dollar.”
“We see mine supply continuing to fall and now, with central banks depleting planned sales quotas, we expect official sector sales to fall quickly,” the analysts forecast. “Given the very large above-ground gold stocks, falling supply does not guarantee stronger pricing, but it does, in our opinion, create the right environment for stronger prices.”
“We’d be buying some gold for our Christmas stocking and Hanukkah gifts,” they advised. “We like the pure play on gold itself and also our Overweight stocks Agnico-Eagle (AEM),Compania de Minas Buenaventura (BVN), Kinross (KGC), Goldcorp (GG) and Newmont (NEM).”
Gold equities disappoint
Nevertheless, Bridges and Shepard expressed misgivings on the recent performance of gold equities, noting, “Far from outperforming in a period of economic weakness, the gold equities have disappointed against gold and the S&P.”
“We continue to believe that gold equities trade as a type of gold option,” they suggested. “The size of the option is the amount of gold that underpins each share, and the exercise price of the option is the ongoing cost of production, which includes cash costs, maintenance capex and essential G&A. …Option pricing models show that the exercise price is a key part of the value.”
“Option price = Stock price*Probability – (Exercise price times Probability).”
The analysts said that it is reasonable to assume that the option value that gold companies represent will deteriorate “via a rising exercise price (cash costs) and/or falling ounces produced. We have one takeaway from industry’s problems, and that is that the gold price must increase.”
Central bank sales to collapse
“We believe the price of gold was artificially low starting in the mid-1990s as physical oversupply from the mines, central banks and forward selling pressed down on prices. The lack of new discoveries suggests to us that higher prices are needed to bring on new supplies,” they advised.
J.P. Morgan’s analysis concurs with that of GFMS, which expects central bank gold sales to collapse. “The banks are now close to ending a second agreement that limits total gold sales to 500 tonnes pa and with Germany, Italy and France unwilling to sell, we expect gold supplies from this source to fall,” Bridges and Shepard suggested. “Now, with supplies falling (and a weaker dollar), the bank sales are slowing.
Physical gold, gold leases
The analysts also suggest that “the gold coin and small bar market has seized.”
With the interest in gold growing, demand for gold coins and small gold bars has grown. “Tight coin supplies could have added to the panic of some buyers. Yet the gold price has been stable, and larger bars are still readily available,” they noted.
J.P. Morgan’s research revealed that gold lease rates “have picked up recently in an echo of the tightness in the coin market. …We also understand investors are switching holdings from unallocated gold (a general liability of bullion banks) to allocated gold (a more secure custodial holding).
By: tristass
About the Author:
J.P. Morgan analysts John Bridges and Steve Shepard recently advised, “We’d be buying some gold for our Christmas stocking and Hanukkah gifts.”
J.P. Morgan metals analysts John Bridges in the U.S. and Steve Shepard in South Africa said that while they realize the difficulties gold miners face, “we feel they have probably underperformed enough for now, and we’d be buying the gold space for the run into the holidays.”
In a recently published commentary on gold, Bridges and Shepard advised that “the tighter gold supplies and counterparty risk could give gold (and thus directly the equities) a lift through year end.”
Investment Thesis
J.P. Morgan’s analysis suggests that “gold has shown two faces to the market: gold equities have underperformed the S&P 500 since the beginning of this financial crisis, but gold bullion has outperformed the general markets handily. We continue to feel this results from the operational challenges the gold miners face as a group but points to upside potential for gold prices as mine supply continues to fall and now central bank sales diminish.”
While Bridges and Shepard noted that “our favorite technician feels the dollar could strengthen further,” gold should not “be simplified to being the dollar not.” They asserted that gold does diverge from its relationship with the dollar “when the supply demand fundamentals for gold overcome the prevailing (price) relationship with the dollar.”
“We see mine supply continuing to fall and now, with central banks depleting planned sales quotas, we expect official sector sales to fall quickly,” the analysts forecast. “Given the very large above-ground gold stocks, falling supply does not guarantee stronger pricing, but it does, in our opinion, create the right environment for stronger prices.”
“We’d be buying some gold for our Christmas stocking and Hanukkah gifts,” they advised. “We like the pure play on gold itself and also our Overweight stocks Agnico-Eagle (AEM),Compania de Minas Buenaventura (BVN), Kinross (KGC), Goldcorp (GG) and Newmont (NEM).”
Gold equities disappoint
Nevertheless, Bridges and Shepard expressed misgivings on the recent performance of gold equities, noting, “Far from outperforming in a period of economic weakness, the gold equities have disappointed against gold and the S&P.”
“We continue to believe that gold equities trade as a type of gold option,” they suggested. “The size of the option is the amount of gold that underpins each share, and the exercise price of the option is the ongoing cost of production, which includes cash costs, maintenance capex and essential G&A. …Option pricing models show that the exercise price is a key part of the value.”
“Option price = Stock price*Probability – (Exercise price times Probability).”
The analysts said that it is reasonable to assume that the option value that gold companies represent will deteriorate “via a rising exercise price (cash costs) and/or falling ounces produced. We have one takeaway from industry’s problems, and that is that the gold price must increase.”
Central bank sales to collapse
“We believe the price of gold was artificially low starting in the mid-1990s as physical oversupply from the mines, central banks and forward selling pressed down on prices. The lack of new discoveries suggests to us that higher prices are needed to bring on new supplies,” they advised.
J.P. Morgan’s analysis concurs with that of GFMS, which expects central bank gold sales to collapse. “The banks are now close to ending a second agreement that limits total gold sales to 500 tonnes pa and with Germany, Italy and France unwilling to sell, we expect gold supplies from this source to fall,” Bridges and Shepard suggested. “Now, with supplies falling (and a weaker dollar), the bank sales are slowing.
Physical gold, gold leases
The analysts also suggest that “the gold coin and small bar market has seized.”
With the interest in gold growing, demand for gold coins and small gold bars has grown. “Tight coin supplies could have added to the panic of some buyers. Yet the gold price has been stable, and larger bars are still readily available,” they noted.
J.P. Morgan’s research revealed that gold lease rates “have picked up recently in an echo of the tightness in the coin market. …We also understand investors are switching holdings from unallocated gold (a general liability of bullion banks) to allocated gold (a more secure custodial holding).
By: tristass
About the Author:
Susan
Posted in International Business | 
Tags: John Bridges, Operational Challenges, Price Relationship | 
No Comments »
RAW asked:
This money has to be printed up and it has to be sending us in to deeper debt and decreasing the value of the dollar. Shouldn’t I go buy gold and silver?
Lance Bothof
This money has to be printed up and it has to be sending us in to deeper debt and decreasing the value of the dollar. Shouldn’t I go buy gold and silver?
Lance Bothof
Posted in Other - Business & Finance |
Tags: Buy Gold, Gold Silver, Value Of The Dollar |
3 Comments »