Monday, December 5, 2011

Invest in Bullion to Earn Consistent Profits Over Time

Gold has attracted folks for decades and it’s been the foundation of many currencies up to 20′th century. Gold has been stable in its price due to its enormous desirability and eternal worth amongst people of all classes and it has proved very lucrative investment for the people in the past, and with some luck will continue to be so in the future as well.

Investment in gold is a kind of saving that may be redeemed in case of emergency when money is needed. Here we're discussing few tips on investing in gold bullion and how it's possible for you to make money doing so.

First you ought to have data on the type of investment that you intend making in gold, so that you are aware about the kind of gold that you should purchase. Suppose, if you are keen on shielding your investment then investing in the gold coins is the best shot for you. Nevertheless if you are interested in fast returns on the cash invested by you, then investment in ETFs and gold stocks is a far better option.

Second, if you have plans of making an investment in gold, you shouldn't wait for any price fall. Historically, it's been showed that gold prices carry on rising with time. if you may wait for prices to come down then there are possibilities that you could have to buy gold at even higher prices. London Gold Fixing Index is a trustworthy source for pricing of the gold and you can know of its daily price by making reference to it.

Direct investment in gold bullion by buying it from banks or expert gold investment websites is also a nice choice. If you purchase your gold at once, then you must keep it safely in your house or in a safe deposit box in the bank.

If you are interested in buying bullion coins, you need to only buy credible coins,eg Sovereigns, American Gold Eagle or Canadian Gold Maple Leaf as they're produced by the govt and are sold at their market price. If you have plans for investing in gold, you should take some time in doing research on all the available options and then choose the most promising ones according to your wishes and finance circumstances.

Major institution’s 2012 Gold Price Predictions

Many of the world’s major financial institutions are now calling for the price of gold to reach $2,000 an ounce and higher in 2012.

Barclays Capital
“We expect prices to average $1,875 per ounce in the fourth quarter 2011 and $2,000 per ounce on an annual average basis in 2012 as the macro insecurity persists, investor appetite remains positive and central banks are set to remain net buyers while the physical market continues to provide support at increasingly higher levels,” said Barclays Capital analyst, Suki Cooper.

If sovereign debt woes explode, gold may “briefly spike” to between $2,000 and $2,500 an ounce over the next year, remaining above an average $1,200 in the long-term, said Citigroup Inc.

“I believe gold will still be a very heavily demanded safe-haven trade,” says Axel Rudolph, Commerzbank technical strategist, who believes gold may reach $2,000 in October on “another crisis.”

According to the most recent Thomson Reuters GFMS Gold Survey 2011 update, gold could “easily” reach above $2,000 an ounce by the end of this year on continuing sovereign debt concerns and volatility in the currency markets. “We expect a major increase in world investment in the second half of this year.”

HSBC is forecasting a gold price of $2,025 an ounce for 2012 and $1,850 an ounce for 2013. “We believe gold’s 10-year bull market remains firmly intact, despite high volatility, with prices up 29 percent already this year,” said the global banking and financial services company. “The euro zone debt crisis, currency wars, and deep uncertainty among investors are among the factors driving prices higher.”

Morgan Stanley
According to Morgan Stanley analysts, gold has about an 85 percent chance of trading between $1,819 an ounce and $2,085 an ounce in 2012.

Societe Generale
“We expect investor momentum to take gold through $2,000 an ounce before the end of 2011,” says Societe Generale. The bank sees the price of gold reaching $2,275 an ounce in 2012. “The gold market is underpinned by the ‘grass roots’ demand and this appears to be remarkably resilient.”

TD Securities
TD Securities expects gold “to hit highs of well above $2,000/oz. in the coming months on lower bond yields, expectations of poor risky assets returns and general risk aversion owing to uncertain global economic conditions.” Its gold forecast puts the yellow metal at $1,975 in 2012 and $1,750 in 2013.

“Our expectations for gold in 2012 and beyond are governed to a large extent by our expectations for US interest rates and the health of the global economy,” said UBS, which has pinned its 2012 average gold price at $2,075 an ounce with a forecast of $1,725 for 2013.
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