LAQT – Gold Investing, Finance & Retirement Planning

Happy Monday! Here's today's round-up of news from our sponsors #gold #silver #lithium #copper #mining #MiningStocks #CommodityMarket #investingnewsnetwork #investingnews
https://t.co/D4FrEjVIQj pic.twitter.com/YcVUrdCpwD

— Gold Investing News (@INN_Gold) July 5, 2021

Gold has played a central role in human history for thousands of years, deeply embedded in the traditions and economies of civilizations across the globe. While coins containing traces of gold date back to around 50 B.C., it was King Croesus of Lydia who, approximately a century later, introduced the first coins made from pure gold. Over time, gold has earned widespread respect—not only for its visual appeal and historical significance—but also for its enduring value as a medium of exchange. Societies across eras have consistently valued gold, reinforcing its status as a store of wealth.

Today, gold remains a compelling investment, especially during periods of inflation. Its ability to preserve purchasing power makes it a popular hedge when the value of paper currency declines. For a deeper understanding of how gold protects against inflation, consider exploring resources that explain its economic role more fully.

Even during deflationary periods—when economic activity slows, prices fall, and debt burdens rise—gold often maintains or increases its value. In times when fiat currencies lose credibility, investors frequently turn to gold as a safe-haven asset, offering a measure of stability and protection during financial uncertainty.

Here are 8 top reasons to consider purchasing gold as an investment in today’s world:

1. A Good History of Holding its Value

Unlike currencies like paper money and other assets, throughout the ages gold has maintained its value and people have seen it as a way to preserve and pass on wealth to the next generation.  In modern times a good way of getting access to quality gold investments is by using one of the many reputable gold IRA companies.

Since ancient times, the unique properties and beautiful color of gold have been valued as an asset. This precious metal does not corrode and can be processed over high heat to be transformed into objects such as coins, jewelry, and a myriad of consumer products. According to Einstein’s theory of relativity, gold atoms are heavier than those in most other metals and because the electrons in gold move faster, it creates some absorption of light which accounts for its unique glow.

2. A Weakened US Dollar

As the world’s most important reserve currency, when the value of the US Dollar weakens against other currencies as happened between 1998 and 2008, it prompts a shift to the security of gold which results in an increase in gold prices. When the US dollar falls it is almost always followed by a rise in the price of gold. There are a number of reasons why the decline in the US dollar occurred but primarily due to a large increase in the supply of money and the country’s large trade and budget deficits. Between 1998 and 2008 the price of gold almost tripled reaching a milestone high of $1,000 per ounce in early 2008. Between 2008 and 2012 it once again doubled to above $2,000.

3. As a Hedge Against Inflation

Gold has always been seen as an excellent hedge against rising inflation due to an increase in the cost of living caused by higher prices.
In the last 50 years, we have seen how gold prices have soared while the stocks plunged due to high inflation. This happens as a result of fiat currency losing its purchasing power due to inflation and as gold tends to be included in those currency units, the price of gold automatically increases as well. Because gold is considered a good way to store value, when people perceive that the local currency is losing value, they are encouraged to invest in gold.

4. Protection Against Deflation

Deflation occurs during a period when prices decrease, business activity has slowed down, and the economy of a country is burdened with excess debt. This has not been experienced since the 1930s during the Great Depression, although a small degree of deflation was experienced in certain parts of the world after the 2008 financial crash. During the Great Depression when prices dropped sharply, the purchasing power of gold soared. This was because people chose to hoard wealth and the safest way to do that at the time was to hold onto gold and gold coin.

5. Crisis Commodity During times of Geopolitical Uncertainty

Gold is often called the ‘crisis commodity’ as it not only retains value in times of financial uncertainty but also during periods of geopolitical uncertainty. In times when world tensions are high people often flock to the relative safety of gold because historically it has always outperformed other investments during such times. As an example, there were some major price movements in gold in response to the European Union crisis experienced this year. This is an indication that when confidence in the government is low, the price of gold often rises.

6. Constraints in Supply

While most of the gold supplied since the 1990s has come from gold bullion sales directly from the vaults of the central bank, global central bank selling has been on the decline since 2008. In addition, there has been a decline in gold mining production (you can read more about the decline here) since 2000. A a general rule, a reduction in the supply of gold causes an increase in the price of gold and it will take at least 5 to 10 years for a new mine to be put into production. The annual gold mining production fell from 2,573 metric tons in 2000 to 2,400 in 2007 according to BullionVault.com. However, according to the US Geological Survey, in 2011 gold experienced a production rebound to nearly 2,700 metric tons.

7. Increase in Demand

In recent years the increased wealth of emerging economies has boosted the demand for gold. Gold is intertwined in the culture of many of these counties and in China, for example, where gold bars are seen as a traditional form of saving, the demand has been steadfast. The second-largest gold-consuming country in the world is India. The nation of India has many uses for gold but primarily for jewelry and in October, the traditional month of the year for weddings, the global demand for gold reaches its highest peak.
Among investors, the demand for gold has also grown steadily as they are beginning to see the value of commodities, particularly that of gold, as an investment class in which to allocate funds. In fact, as of 2019, SPDR Gold Trust has become one of the largest ETFs in the United States and is the largest gold bullion holder in the world.

8. Portfolio Diversification

The key to portfolio diversification is to invest in products that are not closely correlated. For example, historically gold has had a negative correlation with financial instruments such as stocks and therefore it is the perfect choice for portfolio diversification. In a properly diversified portfolio, investors often combine gold, stocks, and bonds to ensure the overall volatility and risk in a portfolio are reduced. This can be reflected in recent history as:

– The 1970s when it was a great year for gold but a terrible year for stocks
– The 1980s to 1990s were great years for stocks but awful for gold
– During 2008 stocks dropped substantially due to a substantial migration by consumers to gold.

The Bottom Line

Gold should form an important part of any diversified investment portfolio as the price of gold increases in response to negative events that may cause the value of investments like stocks and bonds to decline. Although in the short term the price of gold could be volatile, over the long term it has always retained its value. Historically gold has served as a hedge against the erosion of major currencies and inflation which makes it an investment worth considering for a well-balanced portfolio.

Wаnt tо make life beautiful? It’ѕ easier nоw аnd уоu саn invest уоur cash buying cold coins thаt wоuld еvеn hеlр уоu tо earn ѕоmе good assets. Nowadays, gold iѕ increasingly regarded аѕ аn important asset аnd investing in gold саn bе a nice wау tо earn ѕоmе profits in future.

However, bеfоrе purchasing уоu ѕhоuld bе wеll aware оf ѕоmе important facts thаt wоuld hеlр уоu tо avoid wasting уоur hard-earned money. Onсе уоu gеt familiar with thеѕе features уоu саn relax with thе concept оf investing in gold.

Tips tо Fоllоw

Hеrе аrе ѕоmе uѕеful tips уоu nееd tо know:

• Yоu ѕhоuld stay аwау frоm purchasing rare coins
• Purchase 1-ounce coins аѕ thеу tеnd tо offer bеѕt vаluе реr gram
• Compare thе prices оf еасh individual dealer bеfоrе making a final decision
• Gо thrоugh thе dealers’ policies аnd terms in advance
• So, thеѕе аrе thе features thаt wоuld givе уоu thе confidence thаt уоu аrе оn thе right track tо ensuring a fruitful outcome.

Common Options

Onсе уоu decide tо invest in gold уоu саn hаvе thе fоllоwing options:

• Gold ETF
• Gold Fund оf Funds
• Investing in gold coins оr bars
• Jewelry buying
• Equity-Based Gold Funds

Yоu саn choose thе оnе whiсh уоu think wоuld bе thе bеѕt оnе fоr уоu аnd уоu саn еvеn consult with аn expert whо саn suggest whiсh type саn bе suitable fоr you. Wе wоuld recommend thе purchase оf physical gold оr silver in thе fоrm оf bars оr coins.

Comprehend thе benefits аlоng with thе negative impacts аnd finally уоu gо fоr a decision аftеr analyzing thе еntirе situation. Also, уоu nееd tо understand thе trading opportunities depending оn whiсh option уоu choose. Investing in Gold ETF саn bе carried оut online аnd уоu саn buy thе gold funds online in a similar wау аѕ investing in mutual funds.

Knоw thе Duties

Whilе purchasing уоu nееd tо bе familiar with thе taxes аnd VAT thаt wоuld bе levied, calculating thе еxасt amount. Thе Gold Britannia аnd Sovereign Coins аvаilаblе in thе UK аrе nоt included fоr thе capitals gаinѕ tax оr VAT аѕ thеу аrе recognized аѕ legal tender. Eасh product wоuld соmе оut with thе individual fashion charges thаt thе manufacturer issues tо cover thе production cost, packaging etc. First, уоu ѕhоuld plan еxасtlу whаt уоu wаnt tо dо аnd ahead ассоrdinglу knоw уоur money iѕ uѕеd in thе proper way.

Cоnѕidеr thе Risk Factors

Hеrе iѕ thе mоѕt important fact. Gold dоеѕn’t include mаnу risk factors оthеr thаn thе movement оf thе market аnd thuѕ уоu саn invest with peace оf mind.

The gold market pamp and other gold-related products are growing rapidly. If you’re looking to buy or sell gold pamp, it is an excellent time to begin. Gold is one of the oldest forms of currency in the world. While paper currency is the driving force of today’s markets, gold bullion, gold pamp and other gold products are still worth a great deal, and many people are buying, selling, and trading gold. In hard economic times, people buy up gold to back themselves up monetarily. While gold prices pamp and other gold products may fluctuate slightly by the day, its true value will never decrease, keeping its worth high. Gold is a precious metal, rare and old, and many people today are making a small fortune buying and selling gold pamp.

Gold pamp is becoming a more popular choice amongst investors as they tend to have much lower premiums than gold bullion coins. People buy more gold pamp because they sell at smaller markups than gold coins as well. Gold pamp are available in various sizes and weights. Currently, gold pamp barns dominate the market. While gold pamp bars are generally thought of as the better investment, in some rarer cases such as the gold market failing, coins would have more value due to rarity and age. The smart investor would have a mixture of gold pamp, coins, and other gold products.

Precious metals like gold pamp are an excellent item to invest in as they retain their value consistently. With currencies ever-changing, gold is a steadfast investment. Gold pamp is manufactured throughout the world by various minting companies. Each of these manufacturers must adhere to standards of weight and purity, and engrave the gold pamp and gold bullion with stamps that correspond with matching certificates. The price of your gold pamp will vary according to these factors: where it was manufactured, its age, its weight, and size, etc.

Knowing which type of gold pamp is popular in the current market is a good idea. Check with investors in your area, local trading agents and online to find out the types of gold pamp that are being sold at a high price. Depending on the size of the gold pamp that you purchase it may be harder to sell later, so check with local agents to make sure you will be able to sell the gold pamp with them at a later date.

There are many different types of gold pamp and gold bullion bars being sold and traded on the market today. Pamp Suisse is the most common and popular gold pamp. It is a 10 oz gold pamp bar of exceptional purity and is very popular amongst investors. Another popular gold bar is the London Good Delivery bar. It is of 99.5% purity and ranges in weight. Countries such as China, Thailand, and others also produce their own gold pamp in various forms, weights, and sizes that fetch a good price. Each manufacturer must adhere to strict guidelines when manufacturing their gold pamp.

If you’re looking to get into the market, you’ll want to educate yourself on gold pamp and other types of gold so that you have a wealth of knowledge on the topic. Check a gold site daily to see the gold prices and how they fluctuate and to track market trends. Learn the formulas to find out weight, purity, and the karat of gold so that you can determine what kind of price your gold pamp can yield. Also, be sure to only deal with reputable agents and traders with a wealth of history and knowledge about gold pamp and other gold products. Click here to view current gold pamp prices.

It may not be very exciting but silver and gold trading prices have gone up consistently and to somewhere which you think is too high. If you look at last year, you will be able to see the substantial gains. What is driving the gold trading price to such high levels and what is the alternative to buying gold, which is expensive at the current price?

Gold trading price has just gone over $1,400 an ounce and the silver trading price is over $29 an ounce. When you compare where it used to be (with gold as low as $250 and silver as low as $8 or $9), it is rather spectacular returns.

The markets think that there is a good chance that the financial recovery can gain traction and everything will go well and that explains the long period of consolidation. Then when the news showed a huge amount of fear and uncertainty, the worries about the U.S. stimulation and the world’s foreign exchanges came back. But there is more than that is happening in the gold trading market. It is a combination of all these factors that has driven the price of gold to the current levels.

When the gold price is consolidating between $1,050 and $1,250, many people believe gold price may retreat from record highs as the jewelry sector and retail demand out of India. Then the high prices came to be accepted as prices failed to retreat. Jewelry demand has started to return steadily. We expect it to remain as it is or improve at these high levels unless there is a very large jump upwards in the gold price.

So will the price of gold trading highs or lows from now onwards?

The analyst and commentators in the market are focusing on whether the price of gold will rise or fall right now. This is being the reason that developed world markets are focused on making money. Likewise, from the technical point of view, the chart of the gold price is important to investors as they are looking to make profits from the market. However, they are not the major force in the gold market anymore.

For the first time in so many Asian people’s lives, they now have a good amount of disposable income. As people who know the downside of life only too well they have a propensity to save, almost naturally. Up to 40% of the disposable income they have goes into bank deposits or gold. As China grows, a larger and larger number of people enter the gold market for the first time. These buyers simply want to save in gold.

Even though there is lots of talk about gold and bullish on gold, you have to remember there are other ways besides buying gold. In the first place, gold may be quite expensive for most middle-class investors. They can’t afford to buy even one ounce of gold, let alone several. It’s just too expensive.

An alternative but riskier way to invest in gold is to look at gold prospects generator companies. Once a good prospect site is identified, they farm out these projects to willing partners but retain some equity stacks of the project.

In this way, these prospects generator companies can retain good potential upside for investors while at little capital outlay. If you want to invest in such companies, don’t place all your bets on one company but rather invest in a few of these companies.