Finclub

Investments in precious metals

Buying jewelry is a popular means of investing money in developing countries. However, in countries with developed market economies, people prefer other ways of using precious metals investments that will yield more substantial revenue.

One of the most common ways to invest surplus funds is to purchase gold bullion. Different countries have their own legislative rules governing this market. For example, in the U.S. implementation of ingots and coins are engaged in "gold" dealers who specialize in this type of activity. Market players are also brokerage houses and major banks. For the investor are available ingots of different sizes, which can vary from 1 gram to several kilograms. The buyer may use different methods of purchase of the metal and its subsequent storage. However, this type of investing, there are disadvantages, among them - the regulation of large banks of the minimum volume of purchases, which often amounts to 1000 ounces, or more than 25 kg. This circumstance makes the market unavailable to investors with little capital.

Alternatively, you can choose the investment coins, which are also called ingot. The cost of these coins depends on the price used in the minting of gold and the amount of compensation costs for their manufacturing and sales. This amount, called the premium, depending on the weight of the coins and does not exceed 8.4 percent of the price of gold content.

In this market are investment coins of different countries, and they are all available to a private investor. Among the most popular "Eagles" from the U.S., "United Kingdom" of the same name of the country, the Canadian Maple Leaf, and many others. Undeniable advantage of coins is the stability of prices and high liquidity - they can be bought and sold at any time. In addition, a number of countries buying the coins are not subject to VAT.

As an object for investment is often considered numismatic or commemorative precious coins. Their price is determined primarily by factors such as historical value, quality and rarity of coinage. Such coins are higher in this case, a collector's premium than investment. Weight of the precious metal, although it has an impact on price, yet here is not determinative. Accordingly, the fall in gold prices does not entail a depreciation of collectible coins. Place for the treatment of rare coins certified by a specialized market where trades take place electronically. Such a method of sale provides high liquidity numismatic coins. Among the methods of treatment and public auctions and direct sale to the dealer. Competently assembled collection is an asset that is guaranteed to growing in price.

Futures and options are popular among gold producers, who seek to minimize risk in the event of adverse changes in market conditions. These futures contracts are traded on the commodity and options exchanges, and the precious metal in this case is the underlying asset for derivative financial instruments. Get income from changes in prices of contracts and seek to bulls on the spot market. Among the negative aspects of futures and options - high risk.

An effective way of investment include the purchase of securities backed by gold. Organization of trade in such instruments on the London Stock Exchange by the World Gold Council - The World Gold Council (WGC). He organized a number of large companies in gold mining. This security gives the right to buy 1 / 10 ounce or 3.11 grams of gold. The very precious metal stored in London, HSBC Bank, and provides exchange-traded securities.

Among the advantages of this form of investing - no commissions for buying gold itself, which in some cases account for 7% of the value of the metal. In addition, trade data tools through the Internet by opening an account at one of the brokers, that makes the market accessible to a private investor anywhere in the world.

Buying shares of mining and gold mining companies during the period of rising prices for metals, the investor has the potential to multiply their money. These companies listingovany on major exchanges. For example, in New York traded shares of American Newmont Mining, Anglo-Australian BHP Billiton, Canadian Barrick Gold, Russia's Norilsk Nickel. Significantly, that when investing in the stock market return can be obtained not only from the growth of the securities, but also as a result of payouts of dividends.

However, investing in the stock market quite risky. In the case of quotations is a risk of losing much of the money. Shares best seen as a speculative means of obtaining a large profit, and not as some kind of financial insurance. When working in the stock market is important to correctly assess the risks and relate them to the potentially possible returns. Be aware that the growth of quotations depends not only on increasing the price of gold, but also on financial performance of issuers. In periods of rising gold prices, companies often start to upgrade plant and equipment and the development of less profitable mines, which leads to a drop in profitability and reduction of the growth dynamics of the shares.

A popular form of investing, as the opening of "metal" accounts. If the account is opened escrow, coins or bullion physically located at the bank, and for the keeping of the investor pays a certain amount. Impersonal, or combined accounts are a kind of deposit. When you open such an account each investor buys a piece of metal that is in the bank at market price. In this case, the commission and fees are charged. Moreover, if you want you can get gold in the form of coins or bars, but in this case would have to pay a small premium and pay the bank charges associated with delivery.

Transaction metal accounts in many cases can be made via the Internet - it's easy and convenient. Also a big advantage is the absence of storage costs from the account holder. But in this case, you must take responsibility for choosing the bank - because in case of bankruptcy the investor runs the risk of the investment.

For those wishing to buy at least 1000 ounces of gold offered "gold" certificates. They serve as proof of purchase precious metal which is deposited on the personal or impersonal account and ownership of it. Such certificates are implemented network of international dealers who have received proper accreditation.

There are various ways to reduce the risks of investing in metals. One of them - the accumulation of gold. The essence of the method in the monthly investing certain amounts within a certain time, in practice one year. Money within a month deducted from the account and sent daily to purchase gold at a price of the respective trading day. Thus, the investor protects your assets from excessive price reduction, while increasing the price of the precious metal has the ability to make a profit.

Reduce the risks of investing in stocks of companies allow mutual funds. "Golden" funds specialize in investing in securities investors refining and mining companies. Profitability of investment in the organization of this type in the last two years averaged 63%. However, we must consider the fact that the profitability of the various "gold" funds varies considerably, and to reduce risks, to treat the choice of financial structure is very responsible.

In Russia, you can invest in gold, using a variety of ways: buying bullion certain weight, purchasing gold coins or opening a bank impersonal "metal accounts. To invest in bullion or coins are not very effective due to taxes, as well as due to the presence of trade margins and the large difference between the bid and ask prices.

The most profitable option - to open a metal account at a Russian bank. The investor buys when opening an account the precious metal on the current world price or the rate of the Central Bank. Closing the account, "sells" the bank gold price prevailing on the closing day. In addition, the account holder for a period of 1-12 months can expect to pay at a rate depending on the bank and expiry date, usually 1-5% per annum.

Investing in gold, we must remember that the market of the precious metal may be periods of both short-term ups and long stagnation. By investing in gold is most commonly sought in times of crisis, the fall of other world markets, high inflation. It is at such times the purchase of gold allows you to protect your funds and large investors a balanced portfolio. Investing in gold is usually not used for quick capital gains.