Investing in Gold and Achieving Our Glory
 
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If you are planning to invest some of your money in gold, then you must decide the companies where you are going to put it in. Well, it's not that easy. You need to overcome many odds of investment options and assess the fundamentals of these exploration companies.

The first step of deciding on the companies is to filter a few companies from the other hundreds. You will have to analyze them properly so that you can pick the better opportunities. You can easily gather the information required for the analysis from the company websites, press releases, and various gold publications. Here are some points that you should analyze while choosing these stocks.

1. Market Capitalization: Market cap is simply the number of outstanding shares multiplied by the stock price. Comparison between the market cap and the market price of gold at reserves shows whether a company is undervalued or overvalued. The market cap analysis is different for both the junior companies and the bigger ones.

Studies say - whether it is for gold stocks or any other stocks, it is a good decision to invest your money in those companies which are undervalued relative to its peers with overvaluation. The studies also say that the margin of safety is much greater in such companies.


 
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The process of gold production with its numerous stages has undergone rapid scientific and technological development since the Klondike Gold Rush in the turn of the nineteenth century. This article offers a brief review of the ten biggest and most influential precious metal processing companies in the world.

With as much as twenty-seven operational mines scattered across the globe, the Barrick Gold Corporation, founded in 1983, is arguably the largest producer of gold in the world. Headquartered in Toronto, Canada, the company's chares are traded on the stock exchanges in New York and Toronto under the ticker ABX. Amid heavy gunning from environmentalists over the possible spills of poisonous chemicals in the area of some mines, the executive officials of Barrick managed to top the gold producers' rankings with a total output of 5,525 million ounces at the end of the third quarter of 2009.


 
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The Swiss National Bank decided it was going to print unlimited amounts of francs to stem the rise of its currency against the euro (by pegging it to the euro). The Governing Council of the European Central Bank has been informed by the Swiss National Bank about its decision to "no longer tolerate a EUR/CHF exchange rate below the minimum rate of CHF 1.20."

Switzerland is the latest country that has decided to engage in massive amounts of money printing. The Swiss decision has bullish implications for gold and gold stocks. It is becoming more and more obvious that the only solution to the currency wars is a gold standard.

It should be noted that the Swiss National Bank previously implemented a fixed exchange rate regime in the 1970's. It was an epic failure because inflation surged to almost 8%. Similarly, this time around, there will be negative implications for most Swiss citizens. Yes, Swiss export companies and manufacturers might benefit from a lower Swiss franc. However, all of the Swiss people will have to pay for this temporary economic benefit via higher inflation. As we've noted before, inflation is particularly painful for the middle class who have little in the way of assets.

 
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Nowadays routine gold - silver buyers and sellers are in big turmoil especially in countries like India, where most of the traders run business in traditional fashion. The price tracking methods of these traders are very poor hence they are unable to rationalize the price movement of the precious metals and as an upshot they incur huge loss in business. The business and trading of precious metals has become highly arduous and full of intricacies, therefore traders require either high - tech enabled systems or advisors to stay in the business but sadly this is beyond their reach.

The small traders do not understand the various multi - dimensions of price movement viz. economies, investment demand, sovereign currency and safe haven demand. The prices of gold heading for $2000/oz and silver prices also all set to test $50 levels. Given the fact that the beta or market volatility of prices has knocked record high level and the money of small traders is diminishing day by day. The situation becomes grimmer in case of those who know about Morning Stars and Evening Stars (candle stick patterns) because they are unable to defeat the emotional tide or presume the Japan's earthquake or Obama's mind. This shows the uncertainty in the system which affects the prices of precious metals so as small traders, who cannot withstand the high variation in price in short span of time and as an upshot the incur small to huge loss.

 
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It is important to grasp the big picture of why gold is going up and the factors that are fueling its rise.

An Overview Since 1974

In 1971 President Richard Nixon ended US dollar convertibility to gold, bringing to an end the central role of gold in world currency systems. Three years later Congress legalized the ownership of gold by US citizens. Freed from the government-mandated price of $35 per ounce, the dollar and gold floated. In 1979 and 1980, investors' lack of confidence in the government's ability to restrict the expansion of the money supply resulted in panic buying of precious metals as a hedge against inflation. Gold prices soared, and in January 1980 the gold price hit a record of $850 per ounce. During the four-year period from 1976 to 1980, the price of gold had risen by more than 750%.

In the early 1980s the US Federal Reserve raised interest rates to restrict money supply growth. This policy achieved its purpose and by 1982 interest rates were declining and the fear of inflation had subsided. Investment capital responded by moving into financial assets from commodities including gold, and the market soared. After the historic highs of January 1980, the price of gold meandered in the $300-$400 range until hitting a low of $256 in February 2001. Then the bull market for gold returned, and by November 2009 the price had pushed up to $1,140 - a rise of 445%. To some investors, this suggests that history is repeating itself and gold is heading beyond $2,000 per ounce. To return to the 1980 high, when adjusted for inflation, the price would need to be over $2,000 now.

 
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While bullion dealers the world over provide services to investors wanting to put their money in gold bars, some major banks in Switzerland, Austria, Liechtenstein and Argentina buy and sell them over the counter.

Many sized bars are available and are measured in troy ounce, tola or tael depending on the country it is bought from and they can be either personally held or with bank in a safe deposit box.

It is a big hassle moving around with the bars or storing and transporting them which has made the gold account a preferred system of holding for small and medium investors. 
Gold accounts offered mostly by Swiss banks help investors buy and sell gold or gold bars easily like foreign currency.

While Gold Money account has been in operation since 2001 providing digital gold currency, there are also Digital Gild currency and the Bullion Vault, both similar in operation. All these gold accounts have different set of rules for their clients and their gold investment through a trust or Bailment.


 
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If you have already learned about the advantage of gold investments, the next important question will now be, "how to start investing in gold?" Here are a few steps you can follow to begin:

Gold Forms

There are various forms of gold you can be able to invest in. These include physical gold such as bars, coins, and jewelry. Gold mutual funds are also great sources for investments. You do not own the gold reserves found but the monetary currency represented by them.

Another form which is closely related to mutual funds is gold exchange trade funds or ETF's. Some of these maybe a branch out of certain mutual fund investments but in general they are different due to the presence of physical gold attached to a stock. The real gold in bullion represented by your stock is safeguarded and kept by the sponsoring company.

Digital gold currency or DGC is another gold form. These are electronically represented gold which can be cashed out when needed. Printed versions are also called paper gold and earlier forms of this are gold certificates which were in circulation from the late 1800's until the early 1900's in the U.S.

 
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The easiest and simplest way prospecting for gold can be done is by panning for gold.

Panning for gold is the cheapest way to find gold. Firstly you need to find the best location in the area you are prospecting. Pick a spot where the water is about 6 inches deep and flowing steadily. Just fast enough that you can see the pan in the water and can sit comfortably.

The trick of panning for gold is in the dexterity in using the gold pan and keeping a sharp eye out. Patience is very important as you might spend a long time with no results, but when you do get results the satisfaction will be marvelous.

First, fill the pan with about three quarters gravel. Then submerge it just under the water surface. Give the pan a few shakes from side to side but not to violently. You don’t want to wash material out of the pan just yet.

Then change from the shaking motion to a circular motion swirling the material around in the pan in a circle. This will get most of the dirt and clay to dissolve in the water and make it easier to wash out of the pan. If you find any roots, moss or other debris just pick them over with your fingers to break up any lumps. Often gold can be found clinging to bits of moss and roots or twigs even in the dirt attached to them. So you want to gently dissolve the dirt and clean the debris you find.

 
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Gold investment can be termed as a long term investment which gives long term benefits also. There are many people who are investing in stocks, shares and gold nowadays to earn handsome amount of money. Nowadays it is one of the best options to prevent loss and ensure, financial security of the finances you are going to spend.

For people who are retired or are looking for any firm source to invest in must stay updated to gold news. This will help them in making a wise decision and help them earn easily. There are several benefits which are associated directly with the gold investment. A few obvious and vital benefits are discussed below:

Value 
Most of the investment experts and consultants nowadays recommend gold investment due to the worth of gold. Unlike other currencies and materials of financial interest gold never loses it worth and will bring a lot of revenue. The value of gold is not affected by inflation or devaluation of money because of it rare or unique existence. Thus, gold investment is a very nice option as it will help in securing a safe and a prosperous future.

 
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With the cut-throat financial system that we have today, many companies are choosing to close. It is not new to us that even prestigious corporations are shutting because of liquidation, lack of customer spending and unaffordable loan payments.

Even if they say that the recession is over, there are still many major corporations and small businesses that are folding. As to counter such tribulation, fiscal experts are recommending that people begin investing in gold and other valuable metals. Nonetheless, many are still unconscious about the business of gold and why this metal is worthy of investing. Let’s find out why. Following are the best reasons why many believe that gold is a good venture.

Gold Can Protect Your Wealth From Inflation
Inflation occurs when the prices of goods and products are on the rise and the buying capacity of the customers are down. If you have stocks and your wealth is in that money, fatefully all your funds and resources will go down with the currency. However, it is a different story if we are talking about gold. With the account of gold, it it a good protection of wealth against inflation.

Gold is Marketable
A lot of experts would say that gold is more lucrative than stocks. Gold is easy to buy and sell. Thanks to the development of the internet, gold can now be advertised and promoted online. Furthermore, social media is very in these days. It serves as a marketable means for retailers and buyers to barter and negotiate. Gold is easy to liquidate in the present economic state. People can easily retail all forms of gold. Gold are very in today especially among gold collectors and investors because of their uniform weight and purity. Aside from using the internet, gold can also be marketed in your local pawnshops, antiquity stores and certain gold parties.