Twelve Reasons to Invest in Gold Today

By Mark Aucamp

   

     Today gold coins are primarily collected by investors to hedge against inflation. In 1967 South Africa introduced the Kruger rand to cater for small investors; hence the reason that they manufactured Krugerrands in 1oz, 1/2oz, 1/4oz, 1/10 and 1/20 oz

The main gold coins in circulation today in order of their popularity are the Krugerrand, American Gold Eagle, Canadian Gold Maple Leaf, British Britannia or Sovereign, Chinese Panda, Gold Dinar, Russian Chervonets and the Swiss Vreneli.

    

Twelve Reasons to invest in Gold today!

1. During the last run on gold in the 70's and 80's the price of gold increased by 20 times.

2. There is a fall in gold production worldwide that is adding to its scarcity.

3. India and China have a veracious appetite for gold and as their economy powers forward they   will drive up the gold price through demand and the limited supply globally.

4. There have been no new discoveries of gold deposits recently and it can take up to ten years to bring a new mine to full production.

5. When ever the world is on the verge of a recession people turn to gold as it is provides security.

6. It does not deteriorate and will last forever.

7. It is sought after for jewellery and electronic manufacture.

8. Governments can print paper money quickly, but they cannot just produce gold.

9. No other investment has the wealth preserving power of gold.

10. The Gold price will continue to be pushed by the current American debt and trade crisis.

11. Gold is an inflation-proof investment.

12. Gold is the only truly international currency.

Contributing author Mark Aucamp has been providing Money Saving Expert with regular money saving expert posts and comments. Mark is recognised as an authority in the field of Debt Management. Mark has extensive experience in providing Advice & Solutions. To see if your Mortgage or Loan is invalid and unenforceable go LoanCheck for a free appraisal. Article Source: http://EzineArticles.com/?expert=Mark_Aucamp

Why Invest in Gold - Why You Should Buy Gold

By Fred Peters

Why invest In gold is a common question that more and more people are asking today. With interest rates at all time lows and the United States economy in a recession, people are looking at alternative stores of value other than paper currency.

However, prior to going out and buying gold, or shares in gold mining companies or in gold ETF funds, it is important to understand the reasons to own gold. Gold is not an investment like buying shares of stock. It is a storer of value. It will not be worth more tomorrow than it is today. What? The value of gold is constant. Instead, it is the value of the dollar and inflation that makes the price of gold go up and down. Fundamentally it offers a way to protect the value of your savings.

As the value of the dollar goes down, it takes more dollars to buy one ounce of gold. The value of gold is not going up. Instead, the value of the dollar is going down. This means that a gold dealer will want more dollars to buy the same ounce of gold because the dollar is worth less.

Two Reasons To Buy Gold

1. Gold serves as a protection against the collapse of financial markets and the stability of paper currency. This collapse can be caused by economic problems like recessions and depression or due to government instability.

2. It offers protection from inflation. Inflation occurs when it costs more paper money to buy a product. Owning gold protects against inflation.

There are multiple ways to buy gold. Some investors buy gold ETF funds, gold mining companies or gold bullion. Other investors like rare gold coins as collectibles with the hope that such coins go up in price as their numismatic value increases.

For more information about investing in gold coins, check out my coin collecting blog. You will find great information amount gold bullion coins and rare gold coins.

For investors who don't want to buy physical gold bullion, here is an excellent article on gold ETF funds.

Article Source: http://EzineArticles.com/?expert=Fred_Peters

Gold And Silver Long Term Investments

By Cedric Welsch

If you want to protect your financial prospects, buying gold can be the very first step. However, the trade gold investment requires more than cash. When you invest in any type of market, it can turn itself in a very risky business and you should have a serious cash backup. Nevertheless, buying gold as an investment would be different, because we all have the right to own gold and to be a part of the market.

One of the attractiveness of buying gold as a long term investment is that the gold is valuable in itself; it reflects the value of markets, governments and so on. There are gold stockbrokers who are willing to aid you for a fee. Gold is good for very fast earnings and even fortune to the owner. There are many modalities to incorporate into your own portfolio. However, you should not forget that gold market is like any other market, it has its ups, downs, ins and outs.

A good guide will constantly counsel you in how to keep the gold market at a safer level. This part of marketing is not only for famous and rich people, it is available for all, and can offer a solid foundation and a true engine in the developing of a business. You can also make this type of trading on the internet. There are some dedicated sites, which are professional and work as a true market. The gold reached its maximum value in the last mounts. If you think you have the ability to foresee the market changes then you should try to enter in the business of marketing, you could be one of the lucky ones.

You can also invest in silver too. Silver, known in history as the white metal is considered the most fashionable metal used in accessories or rings. If you have gold, there are strong chances to have silver too; but in reverse, the chances are smaller. Anyway, gold is seen as the ultimate wealth in the human consciousness.

The silver and gold prices are interconnected. Silver prices are greatly influenced by the prices of gold, rising alongside and declining likewise. Silver has a greater utility than gold in practical life. It is used in plastic industry, electronic industry, photography, refrigerator, coin minting, laptops, digital cameras and even in the dishwasher industry. Here you can observe why the white metal is compared to gold.

Feed yourself with exciting news and information from the Currency Trading News website. This is the place where you can also learn about the tips and tricks done by fellow traders online. You should also take time to check out some Forex Trading Reviews online.
Article Source: http://EzineArticles.com/?expert=Cedric_Welsch

Problems of the Paper Money in the Socio-Economic Reality and the Shari’ah Response

by: Prof. Dr. Mohd. Ma’sum Billah

• The introduction of paper money has led to the problem of instability of currency that did not exist with the usage of the gold standard. The production of gold was quite stable and it then automatically guaranteed stability.

• Paper money unfortunately can be created anytime based on the decision of the government. This is what makes it so unstable unreliable as a medium of exchange. With an ounce of gold could buy the same amount of goods over an extended period of time whereas with a twenty dollar note may not be able to enjoy the same privilege.

• The government decides the money matters of a country and is also responsible for increasing or decreasing the value of its currency. For example, a country may require more money to finance all of its programs. On the other hand, the country might be spiraling into a depression which will result in reduced public spending.

Advantages of the Gold Standard: A Shari’ah Perspective

Prof. Dr. Mohd. Ma’sum Billah

Most Islamic scholars asserted that, the usage of fiat money as a medium of exchange should be replaced by another medium that would be fair and just; preferably gold. One advantage would be that the government will not be able to exercise total control over it as is the case of paper money. The government will no longer be able to issue more gold than is available as was the case with the paper currency where the government can print as much currency as it wishes. After all, how much will it cost to print a piece of paper? The value of gold will only change when a new gold mine is found but that too will not be a severe change. Moreover; the value of gold will eventually stabilize after a period of time.

A second advantage of gold is that, there will be no Riba al- Fadhuly (interest with extra commodity) as the government will no longer be able to fully influence the circulation of gold or its creation. However, the chance of exploitation will still occur because the gold coin may be debased. Debasement of a gold coin would mean that, it will have less gold in it than is stated on the coin.

This form of exploitation was quite common during the days when the gold coin was in use. The prince or king of a place would reduce the amount of gold in the coin and cheat his people. He would then keep the extra amount in the royal treasury for his own personal use and comfort. Hence; if a coin stated that, it was a 1.00 ounce coin, in reality it may have contained about 0.8 of an ounce.

This issue must be resolved before we decide to use the gold Dinar again as it is not much different from the exploitation that one suffers at the hands of paper money. Moreover; the whole purpose of Dinar or gold coin would then be destroyed.

A solution to this could be an auditing body that would inspect the gold coins to check whether they have the stated amount of gold in them or not. This is just like the quality control department in some firms, which check whether the quality of their goods is up to the standard or not.

What is the role of the Gold Dinar?

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The proposed Gold Dinar will not replace the domestic currencies. The
domestic currencies (e.g. Ringgit) will continue to be used for domestic
transactions in the respective countries. The Gold Dinar will be used only for
external trade among the participating countries.


The Gold Dinar will not exist in physical form. It will merely be defined in
terms of gold. For example, if one Islamic Dinar is equivalent to one ounce of
gold, and the price of one ounce of gold is today at US $290, then the value of
one Islamic Dinar will be US$290 or equivalent in other currencies, on the basis
of the prevailing exchange rates.

The actual settlement for trade can be by way of the transfer of
equivalent amount of gold or the payment of an equivalent amount in US dollar,
Euro, Yen or any other currency. Where the transfer of gold is used, it will not
be a physical transfer of gold from one country to another, but a transfer of
beneficial ownership in the gold custodian’s account.