Investment in precious metals
Buying jewelry is a popular means of investing the money in developing countries. However, in countries with a developed market economy the population prefers to other methods of Investment in precious metals, which are capable to bring more substantial income.
One of the most common ways of an investment of free funds is the purchase of gold bullion. In different countries have their own legislative norms, regulating the market. For example, in the USA the implementation of ingots and coins are engaged in «Golden» dealers who specialize in this type of activity. Market players are also brokerage firms and most large banks. For the investor are available ingots of different size, which can vary from 1 gram to several kilograms. The buyer shall have the right to make use of the various ways of purchase of metal and its subsequent storage. However, this type of investment there are also disadvantages, which include the regulation of large banks, the minimum amount of the purchase, which often amounts to 1000 ounces, or more than 25 kg. This circumstance makes the market inaccessible to investors with smaller capital.
As an alternative to Investment in precious metals, you can select investment coins, which is also called ñëèòêîâûìè. The value of such coins depends on the prices used for the minting of gold and the amount of the compensation for the expenses for their manufacturing and sales. This amount called a premium, depending on the weight of the coin and not exceed 4-8 per cent of the price of the gold content.
On the market of Investment in precious metals are presented investment coins of different countries, and they are all available to the private investor. Among the most popular of the «Eagles» from the United States, «United Kingdom» from the same country, the canadian «Maple leaves», as well as many others. The undeniable advantage of the coins is the stability of prices and high liquidity - they can be bought and sold at any time. Moreover, in a number of countries, the purchase of coins is not subject to value added tax.
As an object for investment or properties are often considered numismatic or memorable precious coins. Their price is determined first of all by factors such as historical value, the quality of coinage and rarity. These coins are higher, in this case the collector premium than investment. The weight of the precious metal, although it has an impact on the price, all the same is not here prevail. Accordingly, a decline in gold prices does not entail the depreciation of collection coins. A place for the treatment of rare certified coins is a specialized exchange, where auctions are held in electronic form. This method of purchase and sale provides high liquidity of numismatic coins. Among the ways of treatment is also open auctions and sales directly to the dealer. Properly assembled collection is an asset, guaranteed growing in price.
Futures and options are popular among the manufacturers of gold, which seek to minimize the risks in the event of adverse changes in the market situation. These futures contracts traded on the commodity and options exchanges, and the precious metal in this case is the underlying asset for derivative financial instruments. To receive the income from changes in the price of contracts and strive to speculators playing on the spot market. Among the negative aspects of futures and options - the high risks.
To the effective ways of Investment in precious metals can be attributed purchase of securities backed by gold. Organization of trading in such instruments on the London stock exchange is managed by the world gold Council - The World Gold Council (the Council said). He organized a number of large companies on extraction of gold. This valuable paper gives a right to purchase 1/10 Troy ounce, or 3.11 grammes of gold. Himself the precious metal is stored in London, HSBC Bank PLC and provides traded on the exchange of paper.
Among the advantages of this type of investment or properties - no Commission for the purchase of gold as such, which in some cases constitute 7% of the value of the metal. In addition, the trading of these instruments can be via the Internet, by opening an account on the site of one of the brokerage firms, which makes the market of affordable private investor in any point of the planet.
Buying the shares of the mining and gold-mining companies in the period of growth of prices on metals, the investor has all the chances to multiply their means of Investment in precious metals. These companies ëèñòèíãîâàíû on the largest exchanges in the world. For example, in new York-traded shares of the American Newmont Mining, the British-Australian BHP Billiton, canadian Barrick Gold, the Russian «Norilsk Nickel». It is important that when investing in the stock market income can be received not only from the growth of the securities, but also as a result of payment of dividends on them.
However, investments in the stock market is quite risky. In case of reduction of quotations is a risk of the loss of a substantial part of the funds invested. Shares best be regarded as speculative means of making a large profit, and not as a kind of financial insurance. In the stock market it is important to properly assess the risks and relate them to the potential yield. Take into account that the price growth depends not only on the increase in gold prices, but also on the financial performance of issuers. In periods of rising prices for gold companies often begin to renewal of fixed assets and the development of less profitable mines, which leads to the fall of indicators of profitability and reduction of the growth dynamics of the shares.
Popular this kind of Investment in precious metals, as the opening «metal» accounts. If the expense of responsible storage, coins or bars are physically located in the Bank, and for their storage the investor pays a certain amount. Defaced, or joint accounts are a form of Deposit. At the opening of such account each investor buys a certain part of the metal, which is in the Bank at the market price. The fees and charges shall not be collected. Moreover, if you want you can get the gold in the form of coins or bullion, but in this case you'll have to pay a small premium and to repay the costs associated with delivery.
Transactions on the card account in many cases can be made through Internet is easy and convenient. Also a great advantage is the lack of storage costs by the account holder. But in this case, should take a responsible approach to the choice of the Bank - as in the case of its bankruptcy investor risks invested money.
For those wishing to buy less than 1000 ounces of gold star «Golden» certificate. They serve as a confirmation of the purchase of the precious metal, which is deposited on the personal or impersonal account, and the right of ownership to it. Such certificates are implemented network of international dealers who have received the appropriate accreditation.
There are various ways to reduce risks while investing in metals. One of them is to accumulate gold. The essence of the method in the monthly investing a certain amount within a certain time, the practice of one year. Money within a month are written off from the account and on a daily basis are used to buy gold at the price of the relevant trading day. Thus, the investor is protecting your assets against excessive cheaper, and with the growth of prices for the precious metal has the opportunity to make a profit.
Reduce the risks of Investment in precious metals in the shares of companies allow mutual funds. «Gold» of funds specialize in investments of investors in securities of the refining and gold mining companies. The profitability of investments in the organization of this type in the last two years to an average of 63%. However, the need to take into account the fact that the yield of various «Golden» Fund differ significantly, and, to reduce the risks relate to the choice of financial structure is very responsibly.
