Archive for the ‘Investing’ Category

Investing In Gold - Part Six

Tuesday, December 22nd, 2009

Welcome back to part six of Investing In Gold. Covering the basic reason why gold makes sense as a stable investment has opened up some new questions.

Basically, if gold is no longer a measure of currency, then how does one approach buying gold? What are the number of ways in which to invest in this material, to own it and have it represent your wealth?

Gold - A Solid Investment

Investing In GoldFirst of all, one of the most important things to realise about gold is that it’s no longer the standard for currency. Because of this, it’s not the “bottom line” when it comes to judging money. Having moved from that position, it’s now one of the many options you can take to invest your money.

Among so many things to choose from however, gold remains a valuable commodity that maintains considerable strength and resiliency in times of economic uncertainty.

Even though gold is strong, it should not become an exclusive investment. Rather, it should be treated as a means of adding strength to your portfolio. In order words, gold makes a great asset when used as part of your investment diversification.

Despite the changes the world experiences, and the troubles the global economy is facing today, gold remains one of those things that can protect value as a “bottom line” investment.

If you’re wondering about Investing In Gold, then it’s practically guaranteed to maintain value. In a portfolio, it provides solidity as a no-risk investment. However, it’s not something that goes up in value considerably on its own, so it shouldn’t be treated as a way of increasing wealth. Instead, it ensures that the wealth you do possess retains its significance when other properties change in value, such as stocks, bonds, real estate, and more.

Now that you now why gold makes for a good investment, you also know that it’s not something that should be invested in by itself. This is why some individuals don’t bother with it, and consider it an outdated model of gaining strength in an economy with fluctuating prices. Nonetheless, it’s a solid asset for conservative investors that appreciate consistency and minimal risk in their investment portfolios.

For the next and final chapter on gold, find how how you can start Investing In Gold, and where advantages exist in making this material your ally in preserving your wealth. Until then, happy investing!

Sean Rasmussen
The Bullhunters Guide
Universal Wealth Creation © 2004 - 2009

Investing In Gold - Part Five

Tuesday, December 15th, 2009

Hello, and welcome back to this next chapter on the subject of Investing In Gold. After having covered the basic nature of the substance and what it has meant in the history of economics, we’re going to address how and why it matters to your investments, and even explore some options regarding investment options and advantages.

Investing In GoldThe Consistent Value Of Gold

Since gold has a value that stays consistent, it’s a tremendous player in wealth creation and also for preserving that wealth. Even if it no longer determines the value of money, it still has a value all on its own that keeps money safe when money can no longer be counted on to stay the same.

If you take your money and personally choose to use it for Investing In Gold, you’re making the decision to preserve the value it represents when the money can’t represent it anymore.

Furthermore, gold is priced globally by U.S. dollars. If the dollar weakens, it only makes gold cheaper in terms of competing currencies. Also, when someone gets out of the American dollar and invests in gold, it makes the dollar weaker.

This only further strengths the first point, and creates stronger demand by investors who work with currencies that appreciate in value relative to the American dollar.

Gold Protects Wealth

In order to really get an idea of how gold protects wealth, you have to look at the world at large. There are numerous currencies and countries out there, all of which contribute to a situation of political and economic uncertainty.

Warring factions in the Middle East and Africa, competing European countries, the industrialization of third world countries - all of these things and more make the global economy a volatile landscape fraught with danger and risk. But if there is one thing that remains the same, then it is the value of gold.

Well, that’s all for now. We’ll come back shortly to discuss how you should approach Investing In Gold and how it can protect wealth through diversification. Stick around and tune in for the next chapter of gold as an investment.

Sean Rasmussen
The Bullhunters Guide
Universal Wealth Creation © 2004 - 2009

Investing In Gold - Part Four

Tuesday, December 8th, 2009

Now that we’re back, dealing with the subject of Investing In Gold and how it once represented money, we’re going to continue by discussing what it means in terms of wealth creation in relation to cash, and how it represents investment potential in today’s global economy, with all aspects considered.

Gold has come and gone in many different counties, and today it no longer holds a presence as the backbone of any currency.

Money Vs Gold

Investing In GoldThe value of money is relative to the amount that is produced, and gold sits on the sidelines while inflation and deflation create changes in the prices of goods. However, gold is gold, and this is exactly why it is still important today.

Gold has preserved wealth throughout thousands of years. This is due to the fact that largely, gold maintains a static value while paper money changes.

Let’s say for instance that 30 years ago you had a twenty dollar bill, and twenty dollars worth of gold. If you held on to that twenty until today, you’ll find that it can be spent purchasing considerably less than it did three decades ago. As for the gold, paper money scales to match its value still, meaning the gold would be worth far more than twenty dollars when traded today.

That means a lot for your money. With that said, gold works as protection against inflation. When the dollar weakens, gold only grows stronger in terms of worth. It stays the same while the paper money changes around it. This gives it the property of acting as a hedge against declining currency values and inflation.

For investors such as yourself, what this means for your money is that when it loses value, you can position your investments in gold to maintain the value of your finances. As a hard asset, it protects your money by having something to show for it objectively.

Even though people feel differently about it, Investing In Gold maintains a considerable presence in the world of investments. For the next article, we’re going deep into how this affects your money and why you should consider investing in gold as your next source of safety when it comes to preserving your wealth.

See you next week for part five of Investing In Gold.

Sean Rasmussen
The Bullhunters Guide
Universal Wealth Creation © 2004 - 2009

Investing In Gold - Part Three

Tuesday, December 1st, 2009

Greetings, and thanks for coming back to part three of Investing In Gold. We’ve covered the situation it faces today regarding investor opinion and even some brief history of how it manifested as currency.

From there, we lead into its establishment as a backup for money-based systems and how especially the United States government used it as the basis for monetary exchange with its bimetallic standard. Now, we’re going to discuss what happened to change this fact and how the economy has developed as a result.

The Gold Standard

Investing In GoldThe gold standard that once backed every dollar in America was abolished in favor of a credit system. During the early 20th century, several events occurred that caused gold to be moved away from a central role in the economy’s structure.

One of the key factors in making this happen was the establishment of the Federal Reserve, which was put in place in 1913. From there, this government-based banking system issued promissory notes which are now what we use as paper money.

Fast forward with this system to 1971, when the government totally abandoned the gold standard. From here, you can see how this action established gold as a material separate from money, which removed some of its outstanding value as a product of investment. This is where today’s skepticism lies towards the nature of gold stocks, and why people have different attitudes towards it.

Knowing that gold is no longer the representation of money in America, or any other country today - how is it still an important factor?

The Value Of Gold

What does gold do for investors, and how does it work to maintain wealth and build it when it is no longer an asset that defines the value of a currency? These are the questions facing investors today, such as yourself. The basic answer to this pressing issue is that, regardless of how it is applied to money, the value of gold stays the same due to maintaining a consistent presence in terms of material. Paper currency changes based on the nature of inflation and deflation, which is a measure of its propagation.

This is an important subject to cover, but we’re out of time for now. However, it must be discussed, and investment strategies for your finances will be addressed with future entries.

Hang tight - we’ll be back next week with Investing In Gold part four, with more gold information and investment considerations!

Sean Rasmussen
The Bullhunters Guide
Universal Wealth Creation © 2004 - 2009

Investing in Gold - Part Two

Monday, November 23rd, 2009

Hi there, and welcome back to our discussion on Investing In Gold. After having covered the basic nature of gold and the two camps surrounding it, we’re going to get a little into the history of this coveted royal metal and why it has been so important in developing modern systems of trade.

In order for us to really understand the nature of gold and why it serves a purpose in economies, we need to look at the start of the market surrounding it.

Gold As A Form Of Currency

Investing In GoldThe history of gold in its earliest form can be traced as far back as 3000 B.C, when it was being incorporated into jewelry by the Egyptians. From there, it took around another two millenniums before merchants incorporated it into their trading as a means of representing value.

Burdened with the effort of carrying goods to trade, they wanted a simple and dependable material valued by many as a basis for representing the goods that they dealt with. In other words, they took gold and turned it into money.

Following this, one can see gold’s importance grow throughout recent centuries. From the Roman empire to Medieval Britain, gold represented the basis for every new form of currency being developed. New metals representing currency were based on the value of gold. Because of gold’s basis as the cornerstone of economic development, it has come to be viewed as the symbol of wealth for countries throughout the world.

For the United States, gold represented the basis for currency. The nation developed a bimetallic standard that was put into place in 1792. Basically speaking, this system meant that every unit of money in the country had to be backed by one of the two precious metals: gold or silver. This was the gold standard, but it didn’t last forever.

Because of its waning nature, there are various factors today that allow gold to mean different things to different investors. In terms of your money, how does this effect you? What happened to the value of gold, and how is it handled today?

Stay sharp and show up next time when we discuss these things and more in part three of Investing In Gold.

Sean Rasmussen
The Bullhunters Guide
Universal Wealth Creation © 2004 - 2009