Sunday, November 25, 2012

A Better Tips For Buying Gold Part.I

Today we are going to more about the gold. Commodities such as gold, oil or food grains are on the rise in the recent years. The oil price is soaring obviously because of its increasing demand and its scarcity which causes an imbalance between supply and demand. Because of demand raises the prices very quickly. The similar happens in gold also. On one hand the excessive indebtedness of countries and the Currency crisis raise the importance of yellow metal and on the other hand the demand chiefly come from its safe haven of quality and rarity and also the speculation which amplifies the rapid movement of the rare metal.

 Then how can we invest in gold? There are three ways to invest in gold. The first and easy one is purchase of physical gold that is the gold bars are the coins etc. The second one is buying gold stocks and the third one is buying gold in “paper”.

 Buying of physical gold is of centuries old and is the wide spread traditional one. In this type of investments you can buy a kilo in lot or of five hundred grams or of pellets of lower denomination. Now days you can buy the bullion directly from a specialty shop on the internet or the special counters in our banks. The greater disadvantage in this type of investments is safety. You have to store them somewhere in our home or in safety lockers at your home. Keeping the gold in the safety lockers in the banks are not safe. Let us discuss the reason in some other post later.

 The purchase of precious metal is also speculation on gold. The share prices of gold does not always follow the price of the open market. It fully depends on the health of the financial market of that day. In the international market the price of the gold has increased in price around 3.91% from the starting of the year. Usually the precious yellow metal fully depends on the financial market and tends to follow according to the ups and downs of the financial market.

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