Gold ETF – A Great Alternative To Physical Gold

gold ETF
Gold ETF

Owning physical gold, although a recommended way to invest in gold, has its problems which can be overcome by investing in a gold ETF. The issues associated with owning physical gold include storage, security, insurance and reselling.

A gold ETF can overcome these issues.

An ETF is an Exchange Traded Fund and, as its name implies, it is a fund traded on major stock exchanges, such as the New York Stock Exchange (NYSE), the NASDAQ and the American Stock Exchange (AMEX). The ETF itself normally invests in a number of different companies, so that an investment in the ETF gives you exposure to a range of businesses.

Gold ETF – An Investment in Physical Gold

A gold ETF is an exchange traded fund that invests in the gold metal. The gold ETF purchases physical metal which it holds in storage. It then issues shares to the value of the physical gold held, with an expectation that the price of the ETF shares will increase if the price of gold goes up.

Advantages Of A Gold ETF Over Physical Gold

The advantages of investing in a gold ETF rather than physical gold are:

1. Trading can be undertaken during stock market hours using your online brokerage account

2. Whilst there is a minimum investment in a gold ETF, it represents a fraction of an ounce of gold. Consequently, you can buy smaller amounts of gold through the ETF than by buying gold coins or bullion. With gold at $1,900/oz, not everyone can afford to buy by the ounce these days!

3. No need to store or insure the gold or worry about somebody stealing it from you.

4. An easy exit mechanism for your gold investment – just sell it on market like any share.

Popular Gold ETFs

Some of the more popular gold ETFs are:

  • SPDR Gold Trust (GLD)
  • Proshares Ultra Gold (UGL)

These funds invest in physical gold and hence track the gold price.

Other gold ETFs invest in gold mining companies rather than physical gold. The most well known is:

  • Market Vectors Gold Miners ETF (GDX)

which invests in a portfolio of gold mining companies, and tracks the gold stock index.

All three of these ETFs trade on AMEX. If you are interested in investing in gold ETFs, sign up to a reputable ETF-issuer newsletter, where you can access the experience of professional gold traders. This will help you to maximize your profits and reduce your risk from investing in a gold ETF.

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Investing in Gold


Pros and cons of investing in the gold market now

gold market
Gold Market

The metals market is considered to be quite a good alternative to the stock market and gold is the most precious metal, so looking at investing in the gold market makes sense. Most of the financial and investment markets have been facing problems since the recession. However, the gold market has not suffered much as a result of the recession. Gold prices have instead experienced a surge amidst the global economic turmoil. If you are able to invest properly in gold and if you are able to get good profits out of it, you may easily be able to pay off your debts like the payday loans; even if you opt for payday loan debt settlement.

Pros and cons of investing in the gold market

Though gold investment can be really a profitable thing there are some cons involved too and so you need to have some idea on that. The pros and cons of investing in the gold market are:

Pros involved with investment in the gold market

1. Gold is precious – Gold is a precious metal and the demand for this metal has always been high. So, investing in god can be a good option if you feel that the stock market or the forex market and the real estate market are not in that good position.

2. Gold prices are increasing – The gold prices are ever increasing. So, it was and is always a good option to invest your money in gold market. This can help you in getting more money at a later date when the price of gold will increase all the more. You will be able to sell it off at a higher price.

3. Different options for investment – If you are planning to invest you gold, you will easily be able to find out that there are various options for you to invest the money in gold.

4. Gold is durable metal – Gold is a durable metal and so you will easily be able to store it in a place without having to think about it much. Then at a later date you will be able to sell it off in order to gain more money.

5. Gold market performs well – Unlike the other investment markets, the gold market always performs well. The economic meltdown and the other political and social problems have never been able to affect the market negatively.

Cons involved with investing in the gold market

1. Gold can get stolen – Gold is a precious metal; this is true. Thus, the possibility of it getting stolen gets higher too.

2. Slowing economy may result in deflation – Gold in general is considered to be inflation hedge. However, though the economic turmoil has not been able to affect the market much, the slow economy can result in a deflation trend in the gold market.

3. Higher capital-gain tax – After selling gold, you will have to face higher capital gain tax.

So, before investing in gold, it would be better for you to weigh the different pros and cons involved with gold investment. As per recent reports, there was an increase in the demand for the physical gold. However, this increase in the demand for physical gold is going to result in a drop in the demand for gold ETFs. That is what the gold market watchers claim is going to happen.

Samantha Spuckler is a  writer for various finance related Communities including Debt Consolidation Care. She is a financial writer by profession and has specialization in dealing with financial problems and its solutions.  She is well equipped to write articles on debt consolidation, savings, planning, frugality, debt settlement etc.

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Gold ETFs

Investing in Gold


Sell Your Gold – Gold Selling Tips From The Experts

Sell Your Gold

Sell Your Gold

If you need to raise money fairly quickly and own some gold, it has never been a better time to sell your gold. Your gold can be anything from gold jewelry to gold coins. There are companies that will appraise your gold products, and offer to buy it from you. With the record price of gold in recent years, it is a good time to sell your gold if you need some cash.

Selling gold can be quite difficult. There are reputable companies out there who will buy your gold and give you a very fair price for it, but also plenty of businesses who will try and rip you off. It is, therefore, imperative that you only deal with businesses that have a solid reputation when selling your gold.

How to sell your gold for the highest amount, and not get scammed:

1. Use A Company That Buys Gold From People

Gold is more in demand than ever. Companies have set up recently in order to buy gold from ordinary people. They will do everything for you – even send you a secure, insured envelope to appraise your gold. You will not receive the full current market price for your gold as the company will need to take its profit cut.

Make sure you get the best deal if you sell your gold. Different companies will offer varying amounts per ounce of gold. Do your research and select one with the best gold price offer.

2. Use Ebay To Sell Your Gold

This is a more complex and difficult way to sell your gold, and there are charges involved that could eat into your profits but people DO successfully sell gold on eBay. There are plenty of buyers there who are looking to buy gold.

In order to sell your gold in Ebay, here is the procedure:

You will need an Ebay account, and probably a Paypal account as well. You will need to take digital pictures of your gold and put this in your ad. You will also need other important information – for example if stamped, include a close up picture of the stamp in your advert.

3. Sell Directly To A Refinery

This is a less used option but still a very good one. If you are using this method then make sure that you monitor the price of gold carefully – it fluctuates on a daily basis!

Selling gold can be a good method of raising funds for those who need it. Use one of the above methods to sell your gold  and get the best price you can.

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Sell Gold Jewelry


Investing In Gold


Investing in Gold – Two Ways Of Investing In Physical Gold Over Paper Gold

Gold has really shot up in price over the past few years, with many commentators believing that this upward trend is showing no end in sight, and that is why investing in gold today is so important

investing in gold
Investing in Gold

One common way of investing in gold is via the purchase of gold based equities like gold mining companies and gold funds. While this is possibly the hassle free way of doing it, some people believe that these funds are not “backed” by real gold. For example, with gold mining companies, you’re often paying for the belief that the company will find and mine gold successfully in the future. You need to do a lot of analysis to figure out if your money is actually backed by any actual gold.

Investing in gold – buy actual gold!

So, the other option is to buy actual gold. This can be done in a variety of ways – but you must be careful to know the value of the gold you are buying, and that it is what the seller claims!

Here are a couple of other ways of buying physical gold that many people may not have thought about:

1. Buying gold bars – you can walk into a reputable shop and come away with gold bars. For example, in the UK you can use a reputable company called Baird & Co and buy the amount of gold you require. Some companies will also store your gold securely, for a fee. The problem with buying physical gold is:

(a) the risk of storing it (if you are keeping it at home, you risk your gold being stolen); and

(b) the gold cannot earn any “interest”. The only appreciation is from the value of the gold commodity itself rising in price. When you hold securities , for example stocks, some companies may pay out a dividend which can be a useful source of income.

2. Buying gold jewelry – investing in gold can also be achieved by purchasing gold jewelry. However, the jewelry needs to be pure, and must be in very good condition to retain its value.

3. Buying gold bullion coins -  the other obvious way of investing in gold is by purchasing gold bullion coins. Do remember,  however, gold bullion and rare gold coins are NOT the same. Some unscrupulous dealers may try to trick you into believing that rare gold coins are a good investment due to the appreciation in gold – in fact, rare gold coins are often NOT good gold investments, you should only buy minted bullion for this purpose. Rare gold coins may be an acceptable investment in its own right, but not for the purpose of gold investment is the point to keep in mind.

Investing in gold

Investing in Gold

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Buying Gold Coins As A Long-term Investment

How to Invest in Gold Via Funds & ETCs


Invest in Gold – The Real Secrets To Investing In Gold

invest in gold

Invest in Gold

Gold – it has seen an incredible rise in price over the past few years to unseen highs. And many people in fact believe that this rise will continue unabated for many years to come. But how can you invest in gold?

You can invest in gold in two ways – physically holding gold and buying gold backed assets, like shares in mining companies. They both have their pros and cons but so long as the price of the rare metal keeps increasing then either method will leave you wealthier than before.

Before we look at how to invest in gold, let’s take a quick look at why the gold price has ballooned in recent times with no end in sight:

1. We live in times of war – historically, during times of military conflicts the gold price has always remained strong.

2. We live in times of political and economic uncertainty – the world economy is teetering dangerously after many countries including the USA, the UK and most of Europe face debt mountains and regression of growth. When this happens, people invest in gold as it is seen as a safe haven.

So, investing in gold is most certainly a worthwhile pursuit if you wish to hedge against inflation and save for the future. Let’s see how.

Invest In Gold Through Holding Physical Gold

1. Buy gold coins – Buying gold coins is probably the best possible route to owning actual gold that can appreciate and probably the most recommended way to invest in gold. The advantage is more than just the underlying gold value. Coins are collectors items, so this by itself will add a further premium to the value of the coins in the future.

2. Buy gold bars – Buying gold bars as a way to invest in gold is about as good as coins, except they are not collectors items. However, you can get tricked into buying coins with poor gold value while bars are a safer option.

3. Buy jewelry – Gold jewelry is a good way of stocking up on gold, but it is very important that the gold be of a high standard, and be maintained in excellent condition.

Ways to invest in gold without actually owning the metal

1. Buy gold assets like quality stock mining companies. If you are able to read financial statements, you can pick mining stocks that you believe should do well in the future.

2. Buy gold based investment funds – for people who are not comfortable with picking their own stocks, an investment fund is the answer. Here specialist managers will pick and choose quality stocks that have gold exposure. This lowers your risk and increases your chance of being exposed to only the best stocks when you seek to invest in gold.

3. Learn to spread bet. With spread betting you can make shorter term profits (within days) of an increasing gold price. But, you must know how to spread bet as you can also end up losing money if you are careless.

As the gold price marches onwards, you can choose any or a mix of the above ways to invest in gold.


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Buying Gold coins

Evaluating a Gold Mining Stock Investment

Investing in Gold

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How Best To Evaluate A Gold Mining Stock Investment

Evaluating gold mining stocks takes a somewhat different approach to picking other types of stocks such as growth ones.

Commodities like gold are largely cyclical – that is, they experience highs and lows in cycles. Getting your timing right can be as equally important as picking the right mining stock. It brings to mind the old adage “all ships rise with the tide” – in a booming gold market, where gold prices are sky high, almost all stocks will benefit from the cycle (often even those that are not particularly sound). Equally, when gold prices are low and heading south even quality gold miners may suffer in terms of their stock price. This is why getting the timing right is important with mining stocks.

Here are some important factors when evaluating a mining stock:

1. What Is The Actual Value Of The Gold Stock? “Market Cap” is the mainstream way of valuing a company. But with miners dig a little deeper and figure out what the net asset value of the stock is. If it went bust tomorrow, what would the company be sold at? How much would it’s assets minus liabilities actually fetch?

Market Cap can be calculated by multiplying the number of shares by the market price per share. But, if the net asset value of the company is a fraction of market cap, then it could be a risky investment – particularly if things turn sour for the company.

By making sure that the net value of the company is close to the market cap value, you’re getting more value and reducing your risk with your investment.

2. The Management Is Key – We know that management is a crucial element of success within any company. However, it could be argued this is even more so for companies like miners, where industry specific knowhow is key.

If the management team within your potential gold mining investment is a proven winner – and they have created success stories with other miners, there is an element of security in that. If however your management team is unproven, or worse have failed in other companies then that is something to be wary of. Do research on the people at the very top – it can be a sign of the direction your mining stock could go.

3. Look For Cash Reserves – Mining in any industry is a cash intensive operation. Exploration, obtaining permits and the physical extraction process swallow huge sums of cash. Is the miner well placed for cash or will it have to run to the bank or other shareholders to raise money for future projects. If it’s the latter, there could be negative pressure on the stock price.

4. Analyze Annual Reports & Broker Research – Arguably, you should do this for any stock you potentially buy, but within the context of mining stocks, the tone of the annual reports (is it very bullish with lots of ambition and clearly defined strategy?) as well as what brokers believe the stock will achieve. Brokers are paid to be able to estimate future earnings and in turn they are best likely to be able to judge what levels of metal (etc) the company may be able to mine.

5. Low PE Ratio – Companies with Low PE ratios typically have lower to fall in case anything goes wrong (and with Mining stocks, they often do) – sound fundamentals should also be sought, including low debt, and good cashflow.

6. Exploration In Low Risk Areas – Many mining companies have lost value in their stock price because they try to extract their commodity from a politically unstable location. Such locations can be difficult to obtain permits from, and the fragile nature of their politics means the company can be subject to sudden changes that can lead to it abandoning projects at huge losses.

7. Good Prospects In The Pipeline – The company should have some exciting projects in the pipeline.

If you stick with these basic rules, then you will improve your chances of adding only the best gold mining stock prospects to your portfolio.


The Economic Argument For Long Term Gold Inflation

Right now the U.S. government is desperately trying to fight deflation (lower prices) and it has categorically stated that it will look to prevent this at any cost. The long and short of this is that more “paper money” becomes available while the amount of gold stays constant. Can you think what this means?

The same amount of gold costs more paper dollars (or “money”) to buy.

So as the amount of money being printed goes up – so gold prices strengthen. It’s expected that a significant amount of money will be printed over the next years, and you don’t need me to tell you what that means for where gold prices are heading.

Sadly, there are even more reasons why the current gold run could well be the start of a huge bull run. Traditionally, gold has always performed strongly during times of uncertainty. I say “sadly” because as the long running war on terrorism sees no end in sight the amount of paper money needed to pay for conflicts etc rises. This huge increase in paper money will only continue to peg up the gold prices.


Buying Gold Coins As A Long Term Investment

Now you may ask why rare gold coins instead of say gold bars? After all, gold bars are cheaper to buy than gold coins! True, but the appreciation potential of gold coins in a bull market is far better than gold bars. It’s also easier to sell gold coins than bars, and to receive a higher price for them.

You’ve already seen the types of appreciation that our secret gold has brought over various stages in history. But before you dip your toes into the rare coin market you should be aware of the highly important considerations set out in this document. Here, you’ll discover the most important factors that you must be aware of when investing in gold coins. This simple yet powerful information could well decide how your gold portfolio performs – because not all gold coins are made equally…and their value and potential appreciation can vary

wildly based on many factors. After we discuss the major points of successfully investing in the gold coin market we’ll look at some of the most valuable rare coins that could grace your portfolio.

So why certain rare gold coins?

1. Because the pedigree gold coins we’re going to talk about are a form of pure gold. This sounds obvious, but these coins will rise as the base value of gold as a commodity rises. And as we have seen, the likelihood of this to happen in the short/medium term is very high.

2. These rare gold coins not only give you a superb vehicle for owning GOLD but they have a sub- market within gold. The collectors market is huge – and this means that as the gold prices rise, so does the rare coin market.

3. The specific gold coins we’ll disclose in this guide are the ones that should in our opinion perform the best within any market condition – when choosing gold coins you should ensure that they have a high popularity (if the coin has been in great demand in the past you can almost guarantee that it will continue to experience demand in the future). There should also be a large market that will potentially buy the gold coins – owning a coin that cannot be readily sold can have serious problems for the coin holder in getting a fair price when the time comes to take profits.


Some Rare Gold Coins That Can Make Good Investments

For gold coins to be valuable in the long run, they should be fairly popular, actively traded and have had a distinguished past (where they have been in demand). The gold composition of the coin will be important along with the relevant grading.

Here are some gold coins that the experts believe can be good gold investments:

Coin Name: $20 St Gaudens
Description: One of the worlds most popular & well regarded coins. Used as actual moneyin the United States until the infamous coin for cash exchange in 1933.  Most likely to hold it’s value during poormarkets and soar during bullish markets. Many of these coins are graded Mint State 65 or better.
Coin Name: British Gold Sovereigns
Description: In the world of rare coins, British Gold Sovereign make up some of the worlds “most wanted” list.
Types: Queens -  (minted 1893 to 1901)
Kings – Edward VII (minted 1902 to 1910)
Kings – Canada Mint (minted 1911 to 1919)
Kings – India Mint (minted 1918)
Kings – George V (minted 1911 to 1935)
Coin Name: Texas Commemorative Half Dollar
Description: The popularity & scarcity of this coin makes it a fine addition to any investment portfolio. The coins were minted between 1934 and 1938 and it’s estimated that 30% of the issued coins no longer exist.
Coin Name: German Gold 20 Marks
Kaiser Wilhelm II Military Bust (minted 1913-1915)
Kaiser Wilhelm II (minted 1888 to 1912)
Description: Due to the scarcity of these coins they tend to fetch very good prices.
Coin Name: French 20 Gold Francs
Types :
Emperor Napoleon I (minted 1809 to 1815)
Lucky Angels (minted 1871 to 1898)
Roosters (minted 1899 to 1914)

These are some of the best french coins to hold gold deposits in. The Angel is far more scarce than the Rooster but tend to be available at the same price so holding this particular french coin can be a good addition to any gold portfolio.
Coin Name: South African Krugerrands
Description: These South African coins have had a turbulent history and were at one time banned from the U.S. – now, they are one of the most popular gold coins traded and over 42 million of these coins have been minted, mostly between 1967 to the mid 1980’s to cope with increasing demand for gold. This is one of the best ways to own gold in coin form because they are quite readily available but are relatively inexpensive.
Coin Name: Indian Head Eagle
Description: Minted in the early 19th century, the Indian Head Eagle coin is regarded as one of the U.S. most elegant coins. Given their relative scarcity and collectibility factor these coins tend to be rather pricey but the mint stateof these coins are typically high and thus will grow very well in value.
Coin Type: Canadian Maple Leaf
Description: This is one of the purest forms of gold coins with each coin providing an almost 100% gold composition. As such, the Canadian Maple Leaf coin is one of the best ways of investing in gold and gold coins. It’s also possible to purchase the maple leaf for practically the base gold price (the premium on these coins is far less than with other coins).
Coin Type: Swiss Gold 20 Francs
Description: The “Helvetias” were minted between 1897 to 1949 and are considered by many experts to be among the best pedigree coins available within Europe.
Coin Type: Capped Bust Eagle
Description: It’s estimated that there are no more than 65,000 of these coins in circulation, and aside from their gold content they are a favourite with many coin collectors.
Coin Type: US Gold Coins Dating Pre 1834
Description: In 1834 a lot of then existing gold coins were melted down. This makes any well preserved gold coins from prior to this date extremely valuable.
Coin Type: Australian Kangaroo
Description: The Australian Kangaroo was initially minted in 1989 and is still being produced to date. It’s known for its high gold content & is considered a leading gold coin to buy/sell.
Coin Type: Chinese Panda
Description: First minted in 1982 and still being produced, the Panda is a 24 karat gold coin well regarded by coin collectors.


Where To Buy Gold Coins For Investment

Investing in gold coins can be an expensive affair. Depending on the type and condition of the coin you may be required to invest several hundred to several thousand dollars so it’s worth knowing the best places to buy gold coins (and how to avoid being ripped off).

Coin Dealers
One obvious and reliable way of buying pedigree coins for investment is through a reliable coin dealer. Note that it can be risky using the first dealer you come over in Google!

The question is how do you know that a coin dealer is reputable? Here are some traits to look out for before doing business with any coin dealer:

1. How Long Has The Dealer Been Around For – Here, you’re looking for some evidence that the dealer is experienced and has been in business for a relatively long amount of time. An experienced dealer is more likely to be “on the ball” and length of time indicates that they wont suddenly close shop and scarper (in case you’re sold a donkey).

2. Is The Coin Dealer Recommended By His Peers Or Fellow Coin Investors? It’s always reassuring to do business with a dealer that is well respected and comes recommended by fellow dealers and investors. It significantly reduces your chances of going through an unethical or dishonest coin dealer.

The PCGS website has a listing of authorized dealers. Visit the below site and choose the Authorized Dealers link.

Or, you can choose to use the PNG dealer directory:

Rare Coin Trade Shows:

You can also discover more information about gold coins by visiting special seminars and exhibitions that tend to specialize in gold and rare coins. There is often a tremendous amount of information available in these shows and they can be a great way of learning more about rare gold coins and finding reliable contacts and dealers.

In the past, the coin market has had a dirty reputation because of sleazy agents and salesmen mis- selling coins for 50% to 500% over their market value. It’s important you do not get taken for a ride by these shady dealers.

Other Sources
You can get details of gold coin dealers in specialist magazines from your local newspaper store.