Gold Investment

Gold has been the standard of wealth for centuries. In troubling economic times investing in gold can secure your money from plummeting stock prices, dropping interest rates, and the devaluation of paper currency. Your gold investment can help keep your finances safe and secure, provided your gold holding are stored in a secure environment.

There are many different ways to buy gold. Some investors choose to participate in gold stock investing and purchase shares from popular precious metals mining companies. With online gold trading it’s possible to access the latest spot gold price, check the futures gold rate, monitor gold trading stock charts, get the latest financial market news, and purchase gold securely from your computer. Using a Forex software platform you can purchase precious metals including gold and silver as well as the major currencies. Investing in gold mutual funds is a way for the investor to spread their risk over many different investment types. With these mutual funds you put your confidence in the hands of a fund manager to pool your money in with other investors.

Another popular investment strategy is to buy gold bars from a bank, mint or private dealer. Gold in this form comes in two different styles which are minted or cast ingots. Each bar is usually stamped with the name of the manufacturer, purity amount and a unique registration number. One more popular method of investing in precious metals is to purchase them as coins. Many investors prefer to purchase gold coins over bars because coins do not require assaying when sold. Coins such as the American Eagle, Canadian Maple Leaf, Chinese Panda, and the South African Krugerrand are popular choices. Typically theses coins sell for a small premium just higher than the value of the gold found in the coin itself. The best gold coins to buy will depend on the design, the rarity of the coin; and its value.

Many people already own precious metals in their home. This could be in the form of dental scrap gold. Dental gold is usually 18 Karats in its fineness and can be sold to gold brokers at the current gold rate, minus a small commission. To determine the dental gold value you will want to find the weight in grams and karat amount of your gold. To figure out the gold price per gram value you will want to take a look at the current gold price per ounce in your country, and convert it to grams [1 gram = 31.10 troy ounces] to find its worth.

Will Gold Prices Rise in 2015?

Experts are predicting that gold prices will increase in 2015, with volatility in the global market prompting investors to turn to gold.

Gold prices haven’t really been doing very well in the past years. In 2011, they reached a record high of $1921.50 per once but have not risen since then. In fact, in 2014, gold was only traded for around 1,230 an ounce.

In an interview with British publication The Telegraph, fund manager Evy Hambro of Blackrock Gold and General, stated that, gold has “bottomed out” and is due for a price recovery.
Mr. Hambro argues that, with the European Central Bank expected to print billions of new euros to boost growth and stave of deflation, not only will European equity markets receive a boost but gold as well.

“In periods of uncertainty people reach out for gold as a safe asset. With this loose monetary policy around the world and fears around deflation, people will want to reach out for safe assets and gold is the natural place that people will move to as a store of wealth,” Mr Hambro said.

stack-gold-barsMr. Hambro isn’t the only one optimistic for gold in 2015, HSBC has also raised its average gold price forecast for the year. The reason given was that, due to the growing strength of the dollar and global geopolitical fears, gold’s reputation as a “safe-haven” investment will make it even more attractive to investors.

An increase in gold prices has already been seen for this year, following the news on January 15 that the Swiss National Bank had abandoned their three-year-old cap against the euro.

Following the news, spot gold rose to $1,252.06 an ounce by end of the day (1226 GMT).
“Gold is gaining from a risk-off situation because nobody expected the Swiss central bank not to keep that cap, and this has created potential big losses in many places and is obviously triggering some flight to safety,” Saxo Bank senior manager Ole Hansen said in Reuters.

Commerzbank is also predicting a rise in gold prices for the second half of this year, spurred by plans from the U.S. Federal Reserve to raise interest rates in 2015.

According to Commerzbank, there will be two distinct phases for the gold price in 2015. The first phase would be a decrease in price for the first six months of 2015, due to increased speculations about interest hikes. However, once interest rate hikes are in place, the pressure on gold is likely to abate and a rise in price will be seen in the second half of the year.

The Commerzbank forecast sets the gold price at $1,125 for the first half of 2015 and $1,250 for the second half of 2015.

Volatility in global markets has often prompted investors to channel their investments in gold which is considered a “safe haven” investment.