Gold investment. Where to buy gold on the Internet and how to make money on it?

When choosing where to invest money we very often go over all the possible options including the most complicated ones that are hard to implement and very risky ones such as HYIPs. However for some reasons people forget that the gold investment is an excellent possibility not only to store money but to earn on as well.

Surprisingly enough but today many people go to forex and try to play there within a range of just a few tenths of a percent to make profits whereas a gold price changes every day with a high amplitude of several percents and hence one can earn here easier and even more than on other options.  

So, for example in the picture below you can see that during any day jumps in gold rates can be very high:  



From this picture even a common user can see that that day one could earn 10 dollars from each ounce. If you had a leverage or a big capital your profit could be high. Another pleasant fact is that jumps in prices within one day can be even several tens of dollars per ounce.  

Though to invest in gold one need to be aware of at least the minimum of factors which affect gold. And since this article targets those who are just amateurs in investment business we will describe those factors as simple as it is only possible. 

Actually there is a great number of factors that influence gold price and sometimes even the most insignificant one can affect the whole world market. However there are still some factors which make a basis of supply and demand for gold in the world. One of them is a global factor of alternative: either real gold or hard currency. Probably you have noticed that when the price of raw materials starts growing the rates of world currencies on the contrary decrease. It is natural since there are some periods in economic cycles when people need more currency to develop their businesses, to invest in projects, to support some financial structures. Though there are other times when people start realizing that all those dollars, euros, yeans and other currencies at the currency basket are nothing but pieces of paper depicting some digits in bank accounts. And here gold reserves become a subject of the general demand. And the only wise decision in this situation is to follow the development of the world markets, to read forecasts and to draw conclusions from them.

So, for example today the Obama administration and the U.S. Federal Reserve System use all the possible means to decrease gold prices to keep dollar as the main currency of the world. China has not started increasing the value of resources since the major part of its export is sold in dollars, hence the inflation of US dollar will be unfavorable for this country. Though this situation cannot last long and as soon as the second wave of crisis comes (that could be caused by the second wave of bankruptcies in the USA ) the gold price will go up and people will buy this metal to save their money.

Besides currency and political factors there is also a production factor. The thing is that there are main gold suppliers in the world. And if they decrease quotas for gold mining the supply of gold automatically decreases as well. And if they increase, the supply also increases.

Below you can see the chart reflecting the main gold producers in the world:



So, we should expect news about the mining and production of gold particularly from these countries. 

In addition to all those factors gold also depends on the world industry. One shouldn’t forget that gold is not only an investment tool but it is also the metal used in industry as well. So, if the world economy goes through recession the industry suffers as well that results in decline in production and hence influences the demand for the yellow metal.

 

 

 

 

Nobody doubts that there are many factors affecting gold price though if you consider a long term investment you will likely get profits. The fact that during the whole history of humanity the price for gold only grew is a good mark. This can be seen from the chart reflecting the gold prices from 1975 to 2009:

Where and how to buy gold? 
 
There are a lot of ways to purchase gold today. This can be done through special companies dealing with the sale of gold bars or rights for gold kept in banks. Besides those special financial companies there are also banks and electronic payment systems. To purchase gold from banks one need to learn first whether they deal with investments in gold or sell gold bullions. If such services are provided you need just to go to bank and buy a bullion. You may keep your bullions with a bank in a special safety deposit box or at your place. If you make an investment in the bank’s gold you get a contract with the bank which assigns you a right for some definite amount of gold kept in the bank’s vault. When you decide to get profits you again come to the bank and sell your rights for the gold you owned to the bank itself and get profit from it.

There is one more method that is even simpler: electronic payment systems. Those systems enable people to deposit gold in their accounts with comfort using just a bank wire transfer. If you have money with electronic payment systems you can use them to pay for goods or to invest in gold. The majority of payment systems allow purchasing gold by a few clicks with computer mouse that takes only a one minute. The sale of gold can be performed the same way and with the same speed. Having sold your gold you can withdraw your money with banks wire transfer. Here are some popular payment systems of such kind: PerfectMoney.com, GoldMoney.com, Wmtransfer.com 

Usually people make a decision to invest in gold after they decide to follow the rate of this precious metal at least during one week. Seeing those surges of the rate people usually make up their mind to invest a part of their funds in gold. Though, it is necessary to be careful when you choose the moment to enter the market. You should keep in mind that during the last years the average low mark for price was at range from 650 to 700 US dollars per oz, and the average high mark was at range of 900 - 950 dollars. When you buy or sell gold you shouldn’t jerk or rush to conclusions regarding metal price judging only by the analytics you heard from dome person. You should keep in mind that the major information you obtain from TV is aimed at changing of demand for gold. Think, analyze, and do your business on sale/purchase of the gold.