Investing your money in gold is a much better decision than choosing to invest in many other investment such as mutual funds. The reason behind this is that investing in gold poses much less risks than other investment methods do. Investing in gold is a long term plan and can offer you a steady return on your original investment.
But after deciding to invest in gold many people run into what is one of the most common dilemmas that there is when it comes to gold investment. This dilemma is what is best to invest your money in – gold or gold mine stocks?
The purpose of this article is to really get to the core of this question and to determine which is the best thing to invest in.
One of the main reasons that people invest is gold is that they want to hedge against the inflation rate. The price of gold has almost always been much higher than the inflation rate, so has been a good a good investment for a number of years. It continues to be a good investment as the value of gold keeps increasing and increasing and shows signs that it will not slow for a long period of time.
However although the value of gold is often high, it can become subject to large crashes that may rapidly dwindle the return that you get on your original investment. As gold is a long term investment you always have to bear in mind that in the years to come the price of gold may plummet. This is very difficult to predict as markets change on a daily basis making it impossible to work out how they are going to be in the years to come.
Yet owning physical gold is often seen as a better investment than gold mines stocks as it protects you against a lot of risks that come with gold investment.
The value of gold mine stocks depends on the current price of gold. For example if gold is worth $1600 dollars per troy ounce and the production cost to make the gold is $800 then the gold mine is going to make $800 dollars. This would mean that your stocks and shares are going to be a worthwhile investment. But the risk comes if the price of gold dips. This is because the production cost is going to be more than the value of the gold, which means that gold market stocks will be running in the red.
Therefore actually owning physical gold is seen to be much better as you already own it so don't have to worry about production costs affecting its value. It is also good to own physical gold as if you ever need to withdraw you investment you can, but if you have invested in gold mine stocks you can't as you don't actually own any gold.
Due to all the reasons discussed, investing in physical gold is a much more safer option. It can also be more fun as you can invest in gold items such as gold coins or you could just stick with gold bullion. Gold market stocks on the other hand rely on too many factors, so If you are considering investing you need to make sure that you research it extremely well.
This is a guest post by Daniel Roberts. Occasional guest blogger on online shopping and full time blogger on investing in precious metals. Daniel currently represents Regal Assets the best gold coin delears online.
Photo By digitalmoneyworld License By http://creativecommons.org/licenses/by/2.0/deed.en
But after deciding to invest in gold many people run into what is one of the most common dilemmas that there is when it comes to gold investment. This dilemma is what is best to invest your money in – gold or gold mine stocks?
The purpose of this article is to really get to the core of this question and to determine which is the best thing to invest in.
One of the main reasons that people invest is gold is that they want to hedge against the inflation rate. The price of gold has almost always been much higher than the inflation rate, so has been a good a good investment for a number of years. It continues to be a good investment as the value of gold keeps increasing and increasing and shows signs that it will not slow for a long period of time.
However although the value of gold is often high, it can become subject to large crashes that may rapidly dwindle the return that you get on your original investment. As gold is a long term investment you always have to bear in mind that in the years to come the price of gold may plummet. This is very difficult to predict as markets change on a daily basis making it impossible to work out how they are going to be in the years to come.
Yet owning physical gold is often seen as a better investment than gold mines stocks as it protects you against a lot of risks that come with gold investment.
The value of gold mine stocks depends on the current price of gold. For example if gold is worth $1600 dollars per troy ounce and the production cost to make the gold is $800 then the gold mine is going to make $800 dollars. This would mean that your stocks and shares are going to be a worthwhile investment. But the risk comes if the price of gold dips. This is because the production cost is going to be more than the value of the gold, which means that gold market stocks will be running in the red.
Therefore actually owning physical gold is seen to be much better as you already own it so don't have to worry about production costs affecting its value. It is also good to own physical gold as if you ever need to withdraw you investment you can, but if you have invested in gold mine stocks you can't as you don't actually own any gold.
Due to all the reasons discussed, investing in physical gold is a much more safer option. It can also be more fun as you can invest in gold items such as gold coins or you could just stick with gold bullion. Gold market stocks on the other hand rely on too many factors, so If you are considering investing you need to make sure that you research it extremely well.
This is a guest post by Daniel Roberts. Occasional guest blogger on online shopping and full time blogger on investing in precious metals. Daniel currently represents Regal Assets the best gold coin delears online.
Photo By digitalmoneyworld License By http://creativecommons.org/licenses/by/2.0/deed.en
Purchasing gold is an excellent and also safe manner to invest your cash. You can acquire gold bars, gold coins and also jewelries made of gold. No matter what product you would wish to purchase, the most crucial thing to carry out initially would be to perform research. Discover for yourself which form you would enjoy having and get the most out for your funds. Hurry buy gold assets now.
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