Gold Trading Company: Types of Gold Opportunities

Investment expert Jonathan Yates of the Small Cap Network wrote in his article entitled, ‘Profit from Mining Stocks as Gold Rises’ that as gold prices continue to rise ($1837.20/oz) gold mining and exploration stocks become compelling investment opportunities. In the Wall Street Journal, BHP Billiton’s chief Executive Marius Kloppers explained that because of production shortfalls at mines gold prices and profits for investors will remain high. Nick Santiago of IntheMoneyStocks.com agrees, stating, “Gold and gold mining stocks are taking off to the upside.”

Procuring shares in gold mining companies is one investment option but if you want to increase your gold, approach a gold trading company and they will be able to help you include more gold in your investment portfolio.

Some Gold Options:

From time to time gold has been touted as a ‘solid’ investment. As the economy goes through the turbulence it is currently experiencing, even as gold is on a meteoric rise, one should gain a thorough understanding of the options before spending any savings.

Bullion: bullion bars and coins is done with the hopes of trading at the right moment when gold prices are high to gain from the situation. But it is much more complex than it looks. Firstly, the gold market is highly dynamic and as there is constant shift one must be able to predict its movement before buying or selling so as to not incur a loss. This takes a lot of study and research to understand and yet there are risks, such as in every investment opportunity. These risks can be mitigated by holding for the long-term and not treating physical gold as a trade.

Numismatics: these are coins that have been minted as currency or proof coins or even artifacts that have historical significance. This may also help you gain profit and these values are guided by rarity, historical significance, circulation, condition etc.

Certificates: Rather than storing physical gold and incurring the cost of storage and the risk of theft, some people invest in gold certificates. These are certificates of ownership that the bank gives for allocated and unallocated gold. The unallocated ones are a type of fractional reserve banking practice.

Mutual Funds: Mining companies that are involved in the mining and exploration of gold offer shares to investors and pay them dividend. The preference in such scenarios is senior stock gold as a senior is a company that is well established for a number of years. The share prices are dependent on gold prices, the company’s performance and fluctuations in the market per se.

Futures: This is a complex and high risk investment that experts indulge in. It allows them to speculate, but the gains and losses involved are high. The terms of the deal are set but the amount is not paid completely and the gold is not delivered, so the speculation can allow for larger investments and bigger risks.

ETFs: Just like ordinary stock, this gold investment option can be traded on a stock exchange. The portfolio is fixed and that makes exchange easy and at low cost. These are highly liquid, passively managed mutual funds that are designed to give similar results as physical gold. But are more expensive in the long run than physical gold so therefore are usually treated as a short-term trade vehicle.

The smallest fluctuations in the gold market can impact investment portfolios that contain gold, immensely. Evaluate the opportunity shrewdly before making any investment. There are risks and hazards as in any other investment option. Decide beforehand based on your understanding and expertise, the amount you are willing to invest, a reliable gold trading company to help you along the way and your establish your goals and objectives. Be wary of opportunities that seem too lucrative to be true, remember all that glitters is not gold.