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Buying Gold As An Investment

Posted On : Aug-22-2011 | seen (313) times | Article Word Count : 626 |

When money markets begin to shake and stock exchanges, including N Y Gold show a downward trend, investors start to look at investing in gold as an alternative means to protect their assets. Now, gold is on a high and the demand for bullion in all the various forms and denominations sought.
When money markets begin to shake and stock exchanges, including N Y Gold show a downward trend, investors start to look at investing in gold as an alternative means to protect their assets. Now, gold is on a high and the demand for bullion in all the various forms and denominations sought.

People in general, wanting to hedge their investments, buy either gold bars, coins or, gold jewelry to add to their assets. There is much choice in the jewelry trade for all the various content of the gold, combined with other alloys for the manufacture of gold jewelry. Whether the demand is for the popular nine, fourteen or eighteen carat gold is immaterial as at present they are all doing well in the trade. This may be as bracelets, neckpieces, earrings or settings for rings and other items that are fashionable in gold.

There is a big market for jewelry dealers to buy used gold chains and other items for their gold content and then have refiners melt it down for them to make new pieces for sale. Many members of the public see this as a way of obtaining spare or extra cash, and ridding themselves of pieces of jewelry that they have had lying in their drawers unworn for ages, or pieces of jewelry that they do not like and which probably came their way through inheritance or as gifts.

However, the professional market only deals in gold bars and therefore can be competitive with their pricing. If they do not deal in gold bars, there is exclusion to theses dealers trading in this competitive pricing form. These consist of gold dealers, the refiners, government agencies, bullion banks and on a smaller scale, the big organizations that only deal with blue chip investment.

The price of N Y Gold published in the newspapers and other media, including the Internet, are the most competitive prices in the world and generally reviewed by those participating professionally in the bullion market. This market type deals only in the commodity known as “Good Delivery Bars”. Gold has evolved into a successor to the yen carry trade, as this has been falling in recent times. There is a demand for gold coins, especially the one-ounce ones that are of twenty-four carat gold, such as the American eagle and the South African Kruger Rand.

Less than ten in number, there is a relatively small inner circle of blue chip institutions, which forms the bullion banker community. It controls the flow of leased Gold Coins onto the marketplace and their strong credit ratings, have qualified them as counter parties for central banks gold leasing. The nature of this particular trading originates as a short sale. Therefore, bankers are inclined to promote a “bearish” image regarding gold.

Since the time of “shorting gold”, the monetary world has changed emphatically. However, this does not stop the bankers from rumor mongering, or peddling to promote their business. An observation by one such hedger, that when rumors of this nature appear at the top of a gold rally, it is impossible to formulate a reliable story. It may not be an improbability, that such selling aspects represent proprietary trades by bankers defending their short positions.

It makes no difference whether a professional dealer is an industrial manufacturer, jeweler or investor in N Y Gold; it is worth them researching the market place for a source that will provide security and the flexibility to trade with confidence. The official market price will be consistent with the processing of the order. It is a consideration whether the gold is directly from the market or through intermediaries, which could add to margins or trading fees.

Article Source : http://www.articleseen.com/Article_Buying Gold As An Investment_75597.aspx

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For the best online deals in NY Gold visit bulliontradingllc.com

Keywords : NY Gold, Gold Coins,

Category : Business : Business

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