Gold quotes aren’t going to be something that most people really want to concern themselves with. Consider the fact that in this recession it isn’t likely that many people will spend their precious money purchasing something that they believe to be so expensive, such as gold. Yet, gold is the best way to invest especially in a down economy.
One reason most people really have no accurate idea of how much gold is going to cost is because whenever gold is shown in the media the value of it is going to be greatly over exaggerated. This is because gold is something of a universal symbol of wealth, so the actual value doesn’t matter because when people see gold their mind is going to immediately jump to something that they know to be valuable, even if they don’t have an exact number to associate with the gold.
Gold is indeed valuable, there is no denying that, but if gold was as expensive as the stories always make it out to be then it wouldn’t be such a popular precious metal because it would have a much smaller market. One of the greatest things about gold is that almost anyone can purchase gold because the gold is priced is by how much gold an item actually contains. However, collectible gold coins have a value based on the gold they contain, but have additional worth based on collector demand. Bullion coins on the other hand obtain their value solely from gold’s spot price.
The more gold in an object then the more that object is going to cost, just as the less gold it contains means it becomes more affordable. Keep in mind that collectibles do have a value that is also based on how bad collectors desire the item. The price range is such that there is likely going to be something that will appeal to everyone. This makes gold one of the most popular of the precious metals, and is something that investors will keep a keen eye on.
Investors are always looking for popular items, and in this recession gold is quite popular in large because of the fact that average folks fear something could happen to the banks. People want to have some other form of maintaining their wealth, and gold is one of the most popular choices for people to convert some of their assets into. Gold is universally recognized as being valuable, and it is possible to have it converted into whatever currency is desired, because gold is highly liquid.
Commodities is a confusing subject for a lot of people. However, what you need to know is that most trades work by buying and selling futures contracts instead of dealing directly with the commodity itself. Futures contracts are traded much like stocks and bonds. Nevertheless, many people are still confused by this.
Gold As A Commodity
A lot of beginning traders are interested in gold as a commodity. It is quite enticing and comes with a historical track record. Gold is also quite accessible and generally alluring and irresistible. You will also find that gold quotes are usually quite straightforward and will not give you a lot of issues.
How Gold Prices Are Set
Exchanges set the minimum gold price movement. Gold futures are traded on the COMEX (Commodity Exchange of New York). Here they have a minimum “tick” or price movement of 10 cents. Each futures contract deals with 100 troy ounces of gold making the minimum tick contract worth $10. This is a lot more money than the average stock maker is used to. The reason for this is that stock prices will usually only move from 10 to 25 cents. Usually these quotes are shown without the dollar sign being present though. There are also some times when the decimal point is also ignored. As such, 58065 means that one troy ounce of gold would be worth $580.65. Usually this price is displayed as 580.65 though.
Watch Out For Commodity Prices
It is important to understand that commodity prices do have a tendency to change quickly. Oftentimes they can change significantly in just one day. As such, commodities trading is very volatile, which is what makes it so risky. This is something that you should be prepared for if you do decide to get involved with commodities trading. While you may not believe that this is true now, you will believe that it is true once you start feeling the adrenaline coursing through your veins.
Now that you have a better understanding of how the commodities market works, you may be ready to jump in and start doing some trading yourself. Of course, there are still a lot more things that you do need to know first. What you have here is a basic overview of things but there is much more information that you should look into in order to ensure that you do not lose your shirt while trying to make a few bucks here.
When times become as tough as they are for the economies of the world, it becomes imperative for investors, both small and large, to hunker down, to preserve the value of their holdings, rather than roll the dice for double-digit growth. In tough economic times likes this, it becomes more a matter of investors looking askance at risk in any form. This is the nature of the bear market. In increasingly larger numbers, though, investors are turning to gold to help maintain the value of their holdings, experience some semblance of growth in a rocky economy, and as a hedge against profligate currency inflation. One of the most crucial tools you need to understand when investing in this metal is the spot price of gold.
The spot price is the price, at any given moment, that gold is trading for on various national and global market indexes. For some markets, the price and value of gold moves 24 hours a day, for others it trades during the same hours that the stock market does. Continue reading
Did you know that you can actually use tax-advantaged retirement accounts like the IRA and the 401k to invest in gold? Why, you might be wondering, would anyone want to do that in the first place? Some people think of gold as a rather archaic, outdated investment in the times of real estate, stocks, and bonds. However, gold can be an excellent investment option, especially for retirement accounts.
We’re not saying that you should put every penny of your allotted retirement cash into gold, but investing at least a certain percentage into this type of thing can be an excellent idea. The main reason for this is that gold goes against the grain of other investments. When the market in general is falling, gold almost always rises – sometimes its price positively skyrockets. Continue reading
If you are trying to become a serious coin collector then, you should be looking for a coin dealer that knows what he/she is talking about! In this article, we are going to discuss five different coin dealers and the qualities that make them valuable to a starting coin hobbyist. Your goal is to find all five of these people in one perfect dealer!
1. An Honest Dealer
This doesn’t only mean that the dealer should be forthright when it comes to handling money; he or she should also resist pushing quick sales or exaggerating facts. You want a dealer that is honest in every respect. The coin dealer doesn’t just play by the rules—he or she looks out for your interests as well. Continue reading
When you look at your investment portfolio, chances are, you are going to think one thing. You are going to think that there just is not enough. You may feel that your portfolio is severely lacking or you may feel that it just needs a little more. Of course, there are other things you may think.
You may not even have an investment portfolio, and you may think that you should really get one started soon. You may think that it terrifies you because all of your investments are in stocks, and quite frankly, the market has been nowhere near the epitome of dependable. Continue reading
The US Treasury has, since 1986, offered the American Eagle gold coin as among its gold bullion coins. There are other designs available, as well, and all of them exhibit the characteristics that make US gold coins desirable. Among the current offerings are different grades in bullion and very diverse designs. Any gold bullion coin from any nation is backed by that nation’s treasury as being of the stated purity and weight. The Treasury of the largest economy in the world, obviously, enjoys a great deal where credibility and collectability are concerned. It also produces some of the most beautiful coinage in the world.
The Gold American Buffalo coins have two aspects that make them particularly attractive. First, the design is an American classic, from the same artist who designed the famous “buffalo” nickels in the early 20th Century. The obverse features a Native American man in profile and the reverse a buffalo. The nickels which bear similar designs are highly sought-after by collectors, and including this art on a gold coin was a natural choice. The coin is also .999 fine gold, the first gold coin of this purity produced by the US. Continue reading