Sunday, December 26, 2010

Gold investment tips

Throughout the global market since 2008, the stock market crash, the property market downturn, the dollar unrest, crude oil, nonferrous metals, agricultural products and other commodities suffered to fall, while gold was "thriving", up 9 consecutive years, from 2001's $ 250 / ounces, up to $ 1,200 / ounce, the price nearly doubled 5 times, with other markets to form a great contrast. Recently, gold has remained at a high of more than $ 1,000, many investors want to invest, but have doubts about: the suitability of current price investment in gold? In fact, investing in gold is not too late at any time.
Gold is a hedge varieties of the past, most of us focus on fund assets, stocks, real estate, bonds, financial products and deposits, etc., but in a bear market, the rate of loss of assets or shrink will be faster.
In fact, in our portfolio need to configure some "hedge species", these varieties in terms of market downturn or boom, are likely to have good performance. If properly configured a number of "hedge species", the assets will enable us to reduce losses in a bear market, once the economy stabilizes, it can be recovered more quickly than others, or profit. In about 20% of assets in the allocation of gold, will make our portfolio more reasonable.
For long-term investment in physical gold and gold account for different products suitable for long-term investment in physical gold. From the historical data, physical gold can better preserve and increase its assets and value.

How to purchase and investment the paper gold

For the "paper gold" investment approach, the experts recommended to investors in two ways. First, grasp the overall point of view, the best paper gold investors have some investment experience, if experience of some stocks will be more favorable. When investing, the overall trend of the gold market to have accurate judgments, such as the current situation is the unilateral increase, decrease, or unilateral or ranges. This trend will decide the investment strategy. If short-term operations, investors must pay attention to the basic metals (such as copper, aluminum, etc.) the price, from a certain extent, reflects the trend of gold. The geopolitical, oil prices, the dollar exchange rate is always to pay attention. = From the operating level, in the choice of paper gold products should be compared on the following areas, then a choice.
Trading Hours
For investors, the bank may be open longer, the better deal. So that investors can change at any time to trade gold.
Dealing spreads
Paper gold investment is spread through the gold to get the benefits, so the gold trading spreads charged by banks minus the spread is the return on investment. So, choose the low trading spreads can hold their own rate of return higher.
Investment threshold
If the investment threshold is low, for the capital on hand was not good, or lack of experience, want to get involved in the field of gold investment for investors is a important factor.
Trading Channel
Compared to physical gold and paper gold trading channels is very important. Gold in a changing, more extensive trading channels, options to buy and sell more efficient.
Delegate functions
Investors need to always pay attention to changes in the price of gold, it takes more time and effort. Less time for those investors who pay attention in the choice of products to provide commissioning services of the product.

Zoellick: international monetary system should be reference gold factors

World Bank President Robert Zoellick, 22, Paris, France stressed that the international monetary system must be reformed, he suggested as a basic reference factor of gold to measure the relationship between different world currencies.
Earlier, Zoellick worked in the British "Financial Times" wrote that, should establish a new international monetary system, the system including the dollar, euro, Japanese yen, British pound and other currencies, should consider gold as an inflation, deflation, and the future expected monetary value of the global reference point.
He claims much of the media will read as "return to the gold standard." Zoellick met the French President Nicolas Sarkozy said he was not advocating return to the gold standard, but recommended as a basic reference factor of gold to measure the relationship between different world currencies. Important difference with the return of the gold standard, the gold standard monetary system is linked directly with the gold.
Zoellick noted that the current trend of gold reflects the international market for large developed economies and their currencies strength concerns. He said: "Gold is now regarded as an alternative monetary asset, gold has become a frame of reference."
France currently holds the Group of Twenty (G20) rotating presidency. Sarkozy said the French presidency during one of the key goals is to reform the international monetary system. But some analysts have pointed out, and now reform the international financial system is not a good time, really important is to create a more collaborative mechanisms.

The gold market participants

Participants in the international gold market can be divided into international gold dealers, banks, hedge funds and other financial institutions, various legal institutions, private investors and plays a significant role in the gold futures trading brokerage firms.
(1) international gold dealers (market makers): The most typical is the London gold market on the five gold, their own gold trading for all market makers, as with many of the world's major gold and gold dealers have extensive contacts, and its affiliated companies and with many different shops and gold customer contact, therefore, the five gold Chamber of Commerce in accordance with their understanding of the situation constantly quoted bid and offer price of gold. Of course, the gold market maker is responsible for the risk of price fluctuations.
(2) Bank: they can be divided into two categories, one is only acting for clients trading and settlement, can not participate in its sale of gold, to Zurich, represented by three major banks, who act as brokers between producers and investors , play an intermediary role in the market. There are also some self-made business, such as the Gold Exchange of Singapore (UOB), the members have a number of dealers.
(3) Hedge funds: In recent years, international hedge funds, especially hedge funds active in the United States, international financial markets everywhere. In the gold market, down nearly every large company with the Fund to borrow short-term gold in the spot gold market sell-off and in the New York Mercantile Exchange Gold Exchange to build a large number of loan-to-light (empty) position related. Some large hedge funds use and the political, business is often inextricably linked to the financial sector relative to the earlier capture changes in economic fundamentals, the use of management funds to buy a huge space and short selling to accelerate changes in the price of gold market and profit.

Strategic view gold investment opportunities

First of all, to have some gold to hedge against inflation. Inflation expectations in the market when the price of gold rose in advance. Currently, the currency depreciation in the global context of high inflation seems inevitable.
Second, gold investment risk in a diversified portfolio has a very good role. Over the past four decades, the major stock market crash, gold is often a very good performance. In addition to the fourth quarter of 2008, when the stock market crash, a little bit of gold declines, the other are positive gains. Gold prices in the best times of economic crisis, the 1980s oil crisis, which is the highest point. From a risk perspective, the last three years, ten years the volatility of gold relative to other major asset classes is low.
The long view, the current U.S. economy and the Federal Reserve under the action of quantitative easing, the dollar's weakening trend will be a high probability events, while inflation expectations are still lingering. Inflation expectations and the weak dollar is the continued support of gold, and gold prices rose overall is expected to present difficult or easy to pattern. In addition, the vast majority of investors believe the debt crisis is far from over in Europe, which will support gold prices. Therefore, the gold is for investors with a very important strategic significance.
The development of private gold investment are very fierce. Many people with the gold by buying stocks and funds related to investment in gold.
Domestic gold funds still in its infancy, only Lion gold fund a follow-up will also have similar funds appear. China's gold fund is designed to support physical gold investment gold ETF. This is a similar physical gold held by the nearest way of pure gold investment, the investment strategy is to buy and hold investors can clearly track the movement of gold to invest in operations.

Use gold "war" inflation opportunely

We all know that part of the investment has risks, gold investment also need to have a certain strategy. According to the Agricultural Bank of wealth management center in Yunnan Province Mr. Yang described financial experts: Gold prices continued to rise for a reason and power, because the gold is closely related to the international price of gold and the dollar, the dollar long-term trend weakness and inflation continued to There are fully illustrated with great prospects for gold investment. But this does not rule out short-term fluctuations in gold, because no product can only rise and not fall. Yang suggested: the use of long-term investment of idle funds can invest in gold, as long-term asset allocation against inflation, so as not to short-term fluctuations in gold prices too sensitive.
As ordinary investors, we often confuse the jewelry of gold and gold investment, gold jewelry as an investment will be, the result is disappointing. Production of gold jewelry and taxes as the reason the price is often higher than the 20% investment in gold, combined with hard cash gold jewelry, it does not have a hedge against inflation, gold essence function.
Ordinary families must pay attention to investing in gold is not blind conformity, to follow suit to buy. Rated vote could be taken small batches the way approach. Such as: the Agricultural Bank launched the "treasure handed down," Practice of gold, size from 3 grams, 10 grams, 20 grams ... ranging from 1,000 grams and 3 grams or more varieties are available to repurchase, the investor in full consideration of the basis of the financial situation of the family can be reasonably select the appropriate investment specifications.

Gold retrospect and prospect

Today is Christmas Eve, tonight's American plate will stop trading during the Christmas holidays approaching, I recommend investors to wait and see the action and not to select the entry better. Relatively easy in the trading day, it may take us a look back at the Golden City in 2010.
2010 is the first ever to keep gold prices in the year 1000 U.S. dollars / oz running high, the price of gold since September is created to keep a record high in 2009, $ 1,225.80 / ounce above the gold price breakthrough in 2010 subversive, totally let gold embark on a new level. Gold in 2008, the theme of adjustment is a rising start in 2009, then the full price of gold starting in 2010 is the year, a full year of operation has given the high price of gold has been at a high enough recognition.
2011 Gold is standing firm on the basis of a start, the global economic crisis will affect all countries in 2011, and the way countries deal with economic crisis, a lot of money is usually released to stimulate the economy, so investors have currency depreciation options to buy gold hedge, gold as investors quantitative easing and inflation against the best weapon. QE2 to the implementation of the U.S. dollar index fell sharply once the new year, the Fed's monetary policy will no doubt be about the most important weight in gold prices, because inflation has not become the mainstream economy issues, preserving and increasing the role of the main gold is reflected in here.