Gold Investments

Gold is used as an investment in order to reduce the overall risk on an investment portfolio. The precious metal has in the past—and continues to do so—provided investors with safety against currency devaluation; it acts as one of the best hedges against inflation and provides safety in times of uncertainty. Gold is not only used by investors to diversify their risks; central banks around the world also use the yellow metal to reduce the volatility in their foreign exchange reserves.

There are many different kinds of gold investments investors can use to protect their portfolios. They may consider buying gold bullion—in the form of bars and coins (with this, they will have to keep storage costs in mind). Investors may choose to buy gold certificates, futures contracts, or exchange-traded products (with this, they will have to keep the expiry date and other specifications in mind). They can also buy gold mining stocks to diversify their risk in their portfolio. By buying mining shares, investors have to become very knowledgeable about where the mining is being done and how much does it cost to extract one ounce of gold from the ground.

Since early 2013, gold investments haven’t performed well. This is mainly due to the lower precious metal prices. However, the fundamentals suggest that gold prices will head higher. As a result, gold-related investments will see a rise as well.


Here’s One Reason Why Gold Prices Could Soar If you are wondering where gold prices are going next, then just look at what central banks are doing. Their actions suggest the yellow precious metal could soar big-time—a move like the…

Despite being abandoned by the mainstream financial world, one country has been quietly stockpiling massive quantities of gold—China. In June, Chinese gold imports from Hong Kong rose 58%, indicating strong demand in the world’s top bullion consumer. Net gold imports…

With many of our experts here at Profit Confidential touting gold as a wise investment at this time, readers are wondering exactly how to invest in gold. To offer some general information on this topic, here are three key ways…

Regarding gold, there’s a daunting question going around these days: is the yellow metal worth buying? If you listen to the mainstream, you will hear them say it’s the worst investment possible for your portfolio. According to them, instead of…

I’ve been singing the same song to my readers all year: look at dips in the price of gold bullion as an opportunity to buy more of the metal. When gold fell below $1,150-an-ounce in early November and so many…

Gold prices rising for 10 years straight…the money supply greatly expanded…the printing press for dollars running overtime…am I the only one concerned about rapid inflation? I rarely read or hear a report talking about today’s rising prices or the hyperinflation…

It’s a bird. No, it’s a plane. Maybe it’s Superman! Sorry, it’s none of these things; it’s your friendly central banker to the rescue again! Couldn’t believe the news yesterday morning… To calm banking concerns in Europe, mostly centered around…

Loyal and long-term readers know I’m a contrarian investor at heart. When investors are selling in droves, I want to buy. Similarly, when investors are buying stocks as a herd, I’m selling. And this brings me to today’s very important…

I know this is a financial e-letter. But I can’t pass on the opportunity to comment on President Obama’s speech to Congress and the nation this past Thursday night. Maybe I’m the only one who doesn’t get it. Maybe these…

The simple question: why haven’t jobs been created in the U.S. despite the trillions of dollars the government has thrown at the economy? There are several answers to this question. There is also a new theory I have been working…

I’ve learned many things about investing over a career that has spanned 30 years. One of the biggest lessons is that not a single investment goes either straight up or straight down. When an investment is rising in price (bull…

You’ve got to love this guy, Hugo Chavez. The President of Venezuela had already nationalized the banks and the oil industry. Now he’s going after the gold. Chavez took to state television yesterday to tell his people that the gold…

The stock market is facing some strong headwinds over the short term and all the wrangling is a real shame considering that we’re still getting great earnings results from large-caps. It’s no wonder the spot price of gold keeps ticking…