ojuola.com

You can subscribe to this blog feed by clicking here. I want to present you the opportunity to learn how you can invest in gold online and earn a return on your investment. It is easy to invest in gold online by simply buying gold stocks, buying gold funds, goldmine stocks,  gold coins, bullion or even bars directly. Gold is known to be an excellent long term investment. You cannot expect to turn a huge profit overnight with most of these gold investments, but you can make quick money on gold stocks and goldmine stocks. Instructions On How To Invest In Gold online:

Open a stock market trading account online and then practice trading stocks with the tools offered by the website. Once you are confident in your trading, look up and research stocks related to gold, precious metals and mining. You will find plenty of stocks to research and buy or sell. If your stock broker offers any training or help, you should definitely take it until you are comfortable buying and trading stocks yourself.

3. SOLID GOLD – Buy gold directly in the solid form. You can buy gold coins, gold bullion and gold bars. There is nothing better than holding the gold coins directly in your hands. There are many companies that can help you invest directly in gold. It is your choice whether you keep possession of the gold directly or not. Always research every investment thoroughly before you invest your money. Make sure that you are dealing with a legitimate company. If you are suspecting in anyway, move on to another company. Trust your instincts. Gold is an excellent investment in a volatile market but it is not normally a quick return on your investment. If you are looking for a quick return invest in gold stocks or goldmine stocks. ISA allowance 2011 BARB

Gold has really shot up in price over the past few years, with many commentators believing that this upward trend is showing no end in sight.

One common way of investing in gold is via the purchase of gold based equities like gold mining companies and gold funds. While this is possibly the hassle free way of doing it, some people believe that these funds are not “backed” by real gold. For example, with gold mining companies, you’re often paying for the belief that the company will find and mine gold successfully in the future. You need to do a lot of maths and analysis to figure out if your money is actually backed by any actual gold.

So, the other option is to buy actual gold. This can be done in a variety of ways – but you must be careful to know what the value of the gold you are buying is, and that it is what the seller claims!
Here are a couple of other ways of buying physical gold that many people may not have thought about:

- Buying gold bars – Yes, you can walk into a reputable shop and come away with gold bars. For example, in the UK you can use a reputed company called Bairds and buy the amount of gold you require. Some companies will also store your gold securely, for a fee. The problem with buying physical gold is (a) the risk of storing it (if you are keeping it at home, you risk your gold being stolen) and (b) the gold cannot earn any “interest”. The only appreciation is from the value of the gold commodity itself rising in price. When you hold securities , for example stocks, some companies may pay out a dividend which can be a useful source of income.

- Buying Gold Jewelry – Yes, you may not have thought it but you can invest in gold by purchasing gold jewelry. However, the jewelry needs to be pure, and must be in very good condition to retain its value.

Of course, the other obvious way of buying gold is buy purchasing gold bullion coins. Do remember, gold bullion and rare gold coins are NOT the same. Some unscrupulous dealers may try to trick you into believing that rare gold coins are a good investment due to the appreciation in gold – in fact, rare gold coins are often NOT good gold investments, you should only buy minted bullion for this purpose. Rare gold coins may be an acceptable investment in its own right, but not for the purpose of gold investment is the point to keep in mind.


Civil engineering jobs

When you purchase gold as an investment, the experts seem to suggest the same tips. Here are some of the biggest gold purchase tips around:

1. Buy “Good Delivery Gold Bullion” – Ironically, this type of gold can save you over 5% when compared to other gold formats like coins. This type of gold must be assessed as 99.5%+ purity. This form of gold is also the easiest to resell when the time comes – there is a huge, liquid market for it and it is the form of gold that professionals most seek to buy.

2. Be Careful Where You Store Your Gold – It is unfortunate, but some people have chosen to hold their own gold and have had their gold stolen as a result. Thefts can happen, so it is best to store your gold professionally. If you choose to store your gold professionally, you can opt for a bank or wholesale storage. While a bank may seem the preferred choice to amateurs, in fact it is far cheaper to store it at a wholesale storage company. You normally pay a nominal value of the gold for the service.

3. Avoid certified gold – the problem with certifying gold is that you become the owner of the certificate and not the gold behind it. There are additional issues, like agents or trusts to go through when you wish to liquidate your gold holdings.

4. Make sure your gold is audited independently – make sure that a proper auditor checks the validity and ownership of your gold.

These are important tips that you will want to consider when buying and holding gold as an investment.

Gold Funds

Some commentators believe that gold can top $2,000 an ounce. While this website in no way speculates on what prices gold may achieve, it is clear proof of the huge run that gold has been enjoying.

For those looking to increase their exposure to gold, but where purchase of bullion may not be possible, consider looking into buying gold funds.

What gold funds do is invest in gold companies (usually gold miners) – this means that if you believe in the future of gold, but are unable or unwilling to do the deep analysis that goes with picking gold mining companies, you can have the best of both worlds. Investing in single gold companies is quite difficult, because miners are traditionally notorious to analyze and have many risks for investment.

A gold fund will invest in a large number of these companies which reduces your risk – this means the value of the funds is quite closely tagged to the fundamental value of gold…not always the case with single companies (where the value of the shares can go down if the latest gold exploration venture has gone bust!)

You will of course need a broker to buy gold through. One fund that deals exclusively in gold is the Blackrock Gold & General Fund.

There are also other metal funds where a large portion of your money will be held in Gold stocks.
Exchange Traded Commodities (ETCs)

ETCs (exchange traded commodities) are basically an index that tracks something – so another option is to buy into a gold linked ETC. They are a reflection of the underlying “thing” that the ETC is tracking – so if you buy into a gold ETC, the value will reflect the price of gold.

You will need a broker that offers ETC’s if you wish to trade them. There are fees including management fees that you will need to pay when investing in ETCs.

Evaluating gold mining stocks takes a somewhat different approach to picking other types of stocks such as growth ones.

Commodities like gold are largely cyclical – that is, they experience highs and lows in cycles. Getting your timing right can be as equally important as picking the right mining stock. It brings to mind the old adage “all ships rise with the tide” – in a booming gold market, where gold prices are sky high, almost all stocks will benefit from the cycle (often even those that are not particularly sound). Equally, when gold prices are low and heading south even quality gold miners may suffer in terms of their stock price. This is why getting the timing right is important with mining stocks.

Here are some important factors when evaluating a mining stock:

1. What Is The Actual Value Of The Gold Stock? “Market Cap” is the mainstream way of valuing a company. But with miners dig a little deeper and figure out what the net asset value of the stock is. If it went bust tomorrow, what would the company be sold at? How much would it’s assets minus liabilities actually fetch?

Market Cap can be calculated by multiplying the number of shares by the market price per share. But, if the net asset value of the company is a fraction of market cap, then it could be a risky investment – particularly if things turn sour for the company.

By making sure that the net value of the company is close to the market cap value, you’re getting more value and reducing your risk with your investment.

2. The Management Is Key – We know that management is a crucial element of success within any company. However, it could be argued this is even more so for companies like miners, where industry specific knowhow is key.

If the management team within your potential gold mining investment is a proven winner – and they have created success stories with other miners, there is an element of security in that. If however your management team is unproven, or worse have failed in other companies then that is something to be wary of. Do research on the people at the very top – it can be a sign of the direction your mining stock could go.

3. Look For Cash Reserves – Mining in any industry is a cash intensive operation. Exploration, obtaining permits and the physical extraction process swallow huge sums of cash. Is the miner well placed for cash or will it have to run to the bank or other shareholders to raise money for future projects. If it’s the latter, there could be negative pressure on the stock price.

4. Analyze Annual Reports & Broker Research – Arguably, you should do this for any stock you potentially buy, but within the context of mining stocks, the tone of the annual reports (is it very bullish with lots of ambition and clearly defined strategy?) as well as what brokers believe the stock will achieve. Brokers are paid to be able to estimate future earnings and in turn they are best likely to be able to judge what levels of metal (etc) the company may be able to mine.

5. Low PE Ratio – Companies with Low PE ratios typically have lower to fall in case anything goes wrong (and with Mining stocks, they often do) – sound fundamentals should also be sought, including low debt, and good cashflow.

6. Exploration In Low Risk Areas – Many mining companies have lost value in their stock price because they try to extract their commodity from a politically unstable location. Such locations can be difficult to obtain permits from, and the fragile nature of their politics means the company can be subject to sudden changes that can lead to it abandoning projects at huge losses.

7. Good Prospects In The Pipeline – The company should have some exciting projects in the pipeline.

If you stick with these basic rules, then you will improve your chances of adding only the best gold mining stock prospects to your portfolio.