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Tuesday 1 January 2013

Gold as a creator of wealth in investments strategies

By Rick Turner


Gold has for the last couple of decades become a very important part of the people`s lives. It is common to hear investors and economists say that the value of a currency is determined by the market forces but it is the people that decide what currency is. This statement can be accurately said to be true since over the last decades gold has been transformed by the demand forces from a precious metal to a form of currency which has led many to consider their alternatives when considering how to buy gold.

Gold is one of the best metals to invest in since it does not experience high losses or changes in its prices as compared to some of the current world currencies. It has managed to make a special place in the investment industries where many of the investors have been able to make high gains by simply holding onto the metal for a given length of time during which its prices slowly but steadily increase.

In order to make it in the gold market you will require having some of the common knowledge and some lever of leverage over other investors in order to make an extra dime in the market. Some of the information that guarantees this is the kind market knowledge you will be getting as an investor. Just like the stock market having some form of way to access any information and activity taking place in the gold markets as it takes place is very vital for the success of the investment.

The small price fluctuations of the metal also facilitate and opportunity for investors to make an extra dime out of their stored wealth. This is because it is hence possible to monitor the trends of the gold prices in the market and determine when it is at its peak point and liquidify every piece of gold you buy, at a higher price than you had actually bought it.

The most traded ETF is the SPDR Gold Shares (GLD) which saw record inflows over the years that Europe was experiencing a high debt crisis and the US experiencing a struggling economy.

Just like you would buy shares to a particular company but never have access to any of the assets in the company, the same case applies to these ETFs. They ensure that they follow up on the various prices of the metal facilitating this information to the investors such that if one would like to sell or buy extra new gold at the current prices they are able to easily do so. However they never buy actual gold but just play around with the figures with the intention of making some extra dime from the market.




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