10 Reasons Why the Gold Price Will Rise Rapidly

By Anna P Best

There have been some incredibly interesting and provocative statements on the subject of Gold in the last few weeks. But the message is simple. Gold will continue to rise. The question is how far and how fast.

The manager of the USAA Precious Metals and Minerals Fund - the number one precious metals mutual fund over the last 10 years - believes gold stocks will gain 2% to 3% for every 1% move in gold. As our target for gold is at least 100% from here - in excess of $2000 an ounce - this would mean gold stocks could rise 200-300%. And the more speculative stocks are likely to far exceed these targets.

1. Selling of Gold by the Gold Cartel - the Gold cartel is made up of the US Government and a collection of bullion and central banks. Central banks have long been sources of gold bullion used to manipulate the market and suppress the price of gold - but they are running out. Gold has been sold in such large quantities to control the price, there is not sufficient production to reverse, or even slow down the depletion of gold bullion stocks. The only way of slowing down demand is to let the price rise. However hard they try to manipulate the market, classic supply and demand will win.

2. Shortage of Supply - the current economic conditions combined with the increase in production costs have slowed down gold exploration and production. In addition, the infrastructural problems of South Africa have significantly effected their output.

3. Transfer of Gold Depositories - Hong Kong has recently completed a high tech security vault at the city Airport. The Hong Kong Authorities are, as we speak, transferring its gold holdings from London to its new secure depository. A move like this sends a message - we will be accumulating gold, and we want it safely stored where we can see and control it, where we can access it instantly, and where its out of harms way.

4. Increasing war and social unrest - war and social insurrection can escalate rapidly. The world is already engaged in more conflict than at any time since the second world war. The Chinese are long term thinkers and are undoubtedly taking this in to account as they accumulate gold and silver to store it close to home.

5. China is adding to its gold reserves - China is making no secret of the fact that it intends to increase its gold reserves, and now holds in excess of 1050 metric tons.

6. China is encouraging its citizens to buy gold - with the world's largest population, and one of the fastest growing economies China has made it legal for their citizens to buy gold and silver, and are actively encouraging them to invest in these precious metals.

7. India, which has been the largest buyer of gold until now, is expected to continue purchasing for jewelery, and increasingly for investment. India already eats up the bulk of the annual mine output, leaving limited quantity for ever competing and ever larger demand.

8. GLD, the SPDR Gold Trust buys gold to back its shares. - They are currently supposed to hold over 1000 tons of gold (almost the same quantity.as China). If this is indeed the case, Their demand on gold output is a major push on the gold price. There is more on this subject in our 

9. Inflation vs. deflation - the argument persists. After a deflationary period, the billions of dollars being pumped in to the markets will become inflationary. Inflation causes gold to rise. When gold last peaked at $887 in 1980, inflation was averaging 14% and peaked at over 20%. Mortgages had risen in excess of 17%. This could happen again.

10. Paper currency devaluation - the steep decline of the dollar has effected the rise in the gold price, but currencies will at some stage be competing against each other for devaluation. All currencies become unreliable, they no longer provide security, and gold becomes the new money. When this stage is reached we've gone full circle, the bulk of assets will be owned by Asian interests and the new world order will prevail.

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

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More And More People Invest In Gold

 By Jack Wogan

      Nowadays, gold has become a popular form of investment. In the times of geopolitical and economic instability that we are going through, more and more people choose to keep their economies safe by investing in the precious metal. Some precautionary measures should be taken when purchasing gold; it is important to check out the market price and choose reputable dealers to avoid scams.

     According to all financial forecasts, buying gold bullion seems to be the safest investing option to face economic crisis. Unlike stocks or bonds, it is a tangible investment, which offers more credibility in insecure times. As gold is a rare, limited resource, its price is unlikely to drop in the near future. Besides, if we look back in time, we will see that even in times of war or recession, the price of gold remained steady. Inflation can even cause the price of gold to go even higher.

     If you have decided to become a gold investor, start buying Gold Bullion or gold coins. If many years ago you could only buy 400 ounce gold bars, today, you can choose among bars and coins of various sizes and weights. When you invest in gold, the best thing to do is buy the largest gold bars you can afford, to reduce the margin that needs to be paid to minimum. If small coins can be stored at home, the big gold bars are usually kept in bank vaults; you will also have to pay a storage tax. If you want to resell the gold bullion later, you will need a certificate of ownership.

     Even in modern times, the gold metal holds a special place in people's mentality; a perfect proof for that is the abundance of gold-related sayings existent in all languages. Silence is golden, the age of wisdom is the golden age, the 50th wedding anniversary is golden; the best clients receive "gold cards". Today, think of Gold Bullion as the perfect way to protect yourself from inflation and currency collapse.

When deciding to invest in gold have into consideration buying Gold Bullion coins, which have 99.9% purity. Article Source: http://EzineArticles.com/?expert=Jack_Wogan

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.