Gold Bullish: What Are You Waiting For?

By: Mai Fadzilah

There are actually many ways to invest in gold to takeadvantage of its bullish fundamental activations.? You could buy gold itself, buy gold stocks,or buy gold derivatives.? Just as anyother sector, there are gold investments possibilities out there to meet theunique risk tolerance and capital development of a potential goldinvestor.? Before you invest in gold, youshould carefully consider what percentage of your overall portfolio you arewilling to risk in gold- related investments.?If you are totally new to gold and you are just getting your feet wet,protect allocations of under 5% of your capital will be great plenty.? Later as you investigate gold become morefamiliar with the gold world, you can increase your capital allocation to gold investments.

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Gold is a proven way to preserve wealth when your localcurrency may be loosing its value.? Goldis also valuable for things beyond investments and this is demonstrated by theever growing demand for gold.? In fact,over the last decade, consumption of gold has actually exceeded production. Andsince the production of gold is controlled by relatively few companies,whenever the price of gold dips below current production cost, these companiesceases operations.? Also gold is a goodway to diversify or hedge an investment portfolio since the price of gold doesnot necessarily move with stock prices.

For example, investing in jewelry can be profitable.? The purchases and holding of gold jewelry forinvestment purposes is much more common outside of the United States.? This is an expensive way to collect goldsince a premium will be paid for the craftsmanship associated with making goldjewelry.? Along with higher inflation andglobal instability, important driver of the gold prices this year is expectedto be increasing demand for jewelry in developing countries.? Jewelry accounts for 70% of total demand ofgold. Specifically, women see gold jewelry as both a fashion item to enhanceemotional well- being and as an intrinsically valuable investment.?

Now a combination of factors, including a weakeningdollar are aligning to drive gold prices higher as gold had been loosinginvestment.? Meanwhile, the demand issurging.? Markets such as Indian and China with goldownership have largely been confined to jewelry.? Gold was in use as a form of moneyHealth Fitness Articles, in oneform or the other.? Golds are assets thatare both tangible and liquid too.?

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