Gold Bullish: What Are You Waiting For?

Aug 22
06:42

2007

Mai Fadzilah

Mai Fadzilah

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Gold is a proven way to preserve wealth when your local currency may be loosing its value. Gold is also valuable for things beyond investments and this is demonstrated by the ever growing demand for gold.

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There are actually many ways to invest in gold to take advantage of its bullish fundamental activations.  You could buy gold itself,Gold Bullish: What Are You Waiting For? Articles buy gold stocks, or buy gold derivatives.  Just as any other sector, there are gold investments possibilities out there to meet the unique risk tolerance and capital development of a potential gold investor.  Before you invest in gold, you should carefully consider what percentage of your overall portfolio you are willing to risk in gold- related investments.  If you are totally new to gold and you are just getting your feet wet, protect allocations of under 5% of your capital will be great plenty.  Later as you investigate gold become more familiar with the gold world, you can increase your capital allocation to gold investments.

                                                                                                        

Gold is a proven way to preserve wealth when your local currency may be loosing its value.  Gold is also valuable for things beyond investments and this is demonstrated by the ever growing demand for gold.  In fact, over the last decade, consumption of gold has actually exceeded production. And since the production of gold is controlled by relatively few companies, whenever the price of gold dips below current production cost, these companies ceases operations.  Also gold is a good way to diversify or hedge an investment portfolio since the price of gold does not necessarily move with stock prices.

 

For example, investing in jewelry can be profitable.  The purchases and holding of gold jewelry for investment purposes is much more common outside of the United States.  This is an expensive way to collect gold since a premium will be paid for the craftsmanship associated with making gold jewelry.  Along with higher inflation and global instability, important driver of the gold prices this year is expected to be increasing demand for jewelry in developing countries.  Jewelry accounts for 70% of total demand of gold. Specifically, women see gold jewelry as both a fashion item to enhance emotional well- being and as an intrinsically valuable investment. 

 

Now a combination of factors, including a weakening dollar are aligning to drive gold prices higher as gold had been loosing investment.  Meanwhile, the demand is surging.  Markets such as Indian and China with gold ownership have largely been confined to jewelry.  Gold was in use as a form of money, in one form or the other.  Golds are assets that are both tangible and liquid too.