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Following Gold Price Closely

The increased economic uncertainties and financial excesses of the age in which we live have boosted demand for investment assets that offer protection from inflation, stock market weakness, collapsing prices of housing, currency problems, and the overall financial frailty. In such an environment, gold and silver have shined the most. These assets have also served as a hedge against the rising global political instability, particularly the increased incidence of terrorism and wars, which, in recent years, have driven energy prices, and therefore inflation, higher. All this has boosted prices of gold to the highest-ever levels in the recorded history of gold trading. Silver prices have also surged to near their recent peaks. Yet, despite the spectacular run-up to date, the rally is bound to continue as economic, financial, and political risks persist. Therefore, the time is ripe for all investors, who may have missed the opportunity so far to capitalize on this bull market, to diversify their asset holdings and capture the ever-rising cost of investment safety, as reflected in the booming prices of gold and silver.

Yet, any novice investor in gold and silver may wonder about the most appropriate venue to buy and trade these metals. The right answer will depend on the level of investment sophistication and market knowledge of each individual investor. Trading spot gold and silver in the financial markets, as well as gold and silver futures, is too risky, given that trading in these assets in the financial markets is highly speculative and leveraged. Therefore, only investors with substantial experience and sufficient financial means may afford to trade actively these commodities in the financial markets. They can do so by opening a forex trading account, which will allow them to buy long or sell short both gold and silver, thereby trading on both ups and downs in the prices of these assets. However, this form of investing in gold and silver will not provide the hedge against economic and financial risks. On the contrary, it can only heighten investment risks and potentially result in large capital losses. 

The real hedge against these risks, and thus the best investment medium for the risk-averse investors who prefer security over financial speculation and who may have a limited knowledge of financial and commodity markets, is the acquisition of the physical gold and silver bullion.  Investors interested in investing in tangible gold and silver assets can buy gold and silver bullion in the form of bars, ingots, and coins. Actively traded products include the American Eagle, Canadian Maple Leaf, South African Krugerrand, Austrian Philharmonic, Chinese Panda, Swiss Gold Bars, Englehard and Johnson-Matthey silver bars, and other brands.

When you purchase precious metals through your GoldMoney Account, you actually hold and own the metal in your name. GoldMoney is not a "paper gold" product, which means that your gold ownership is not dependent upon an exchange traded fund's (ETF's), certificate issuer's or pool account operator's ability to obtain and redeem metal for you when you want to sell it.



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