The Hartford Gold Group has been in business since 2015. It is a new entrant into the gold IRA business, but it has attracted a lot of people. There are several benefits investors enjoy in buying gold and have them in their gold IRA plans. Tax-deferred and the hedge against inflation are among the benefits. The Hartford Gold Group makes investing in physical gold possible through their gold IRA kit. Continue reading
Gold investing risk is a factor many investors ignore. But, just like any other investment, there are several risks involved when investing in gold. Gold and other precious metals such as palladium, silver, and platinum have risks associated with them. The main aim of investing in gold IRA is to protect your wealth against inflation, global currency uncertainty, and money corruption. Here are some of the ways you can lose money while investing in gold or other precious metals:
Risk of gold investing
Gold fluctuates in price
If you will buy gold when it has high rates to the US dollar, and you sell it later when the price of gold is down in the world markets, then you will lose money. The best ways for you to go about it include investing for an extended period. In average, gold appreciates in value over a long time. For example, you should think of letting gold stay in your IRA account for more than two years for you to make a profit. If you will buy it and later liquidate within two weeks, there are high chances you will lose money.
Opportunity cost of gold
There are several alternative assets such as stocks, bonds, and other investments. Gold will just sit in your account and wait for the value to increase so that you can sell it and earn more. In simple terms, gold is a store of value. Other investments will make you money as time goes. It is unlike gold which can sit in your account for several years before it can make any gains.
Storage fees as part of Gold investing Risk
After you buy gold, you will have to turn attention to the storage costs. You can end up storing the precious metals for several years to come. The cost of storing the precious metals can become expensive in the long run. The venture can end up being uneconomical if you will store the gold for an extended period before you can liquidate it. There are several gold IRA companies which offer the storage services. Take your time and locate the best company where you can access the storage services.
Supply And Demand Affects Gold Price
Just like any other commodity, the supply and demand influence the price of gold. Gold does not expire; some of the precious metals which were mined several centuries ago are still available in different reserves. When the demand rises, the owners can avail it to the market for them to access the high prices. You should venture into the gold investment with an open mind knowing the demand and supply can affect its price. From reliable sources such as World Gold Council, there is approximately 2500 tons of gold mined annually. About 2,000 tons go to jewelry production while the rest is used in gold funds and traded exchanges.
Central banks affect Gold Price
Most banks hold precious metals especially gold as reserves. In the year 2004, the International Monetary Fund and other international banks held more than 19% of mined gold as reserves. Other banks which have a lot of gold reserves include Bank of England, Swiss National Bank among others. The Washington Agreement on Gold signed in 1999 limits the amount of gold which can be kept by banks as reserves to less than 500 tons. The members of Washington Agreement on Gold include Japan, United States, Europe and Australia.
Gold investing Risk driven by state policies
Some states such as Russia have expressed interest in increasing their gold reserves. China announced in 2005 that it would increase its reserve of gold from 1.3 to a higher value. It made most Chinese investors shift to gold as an investment instead of the Euro. India is another country which is buying a lot of gold. Since The Euro Zone Crisis, India has bought more than 200 tons of gold. The financial decisions made by world banks affect the price of gold.
Gold Hedge against financial stress
Most countries are in the deficit of currency. The more the money is pumped into printing currencies, the less the value the paper currency it attains. It makes it necessary to invest in gold bullion bars and coins. Investment alternatives such as equities, bonds, and real estate don’t compensate for the risk involved due to the devaluation of currency. Many experts recommend gold as a portfolio insurance. The more the alternative investments are affected by inflation, the less the gold and other precious metals are affected by the inflation.
Jewelry and industrial demand affects the price of gold
About 70% of annual gold production goes to jewelry. India is the largest consumer of gold used in jewelry. It consumes more than 27% of the gold used in making jewelry. China and the USA also consume a lot of gold jewelry.
Also read: Benefits of investing in gold
About 12% of the gold produced goes to medical and dental uses. Gold has high electrical conductivity and thermal properties. It is also very resistant to corrosion and any form of bacterial colonization. Middle East economies are increasing their gold consumption. This is due to their aspiration to adopt western lifestyles.
Trading in futures of gold has led to market manipulations. People believe gold prices have been suppressed. The traded futures of the commodities especially in precious metals leads to short selling which affects the price of gold in one way or another.
Gold can be stolen
It depends on where you have kept your precious metals. Some people will buy gold and store it in their safes. But, you should be careful, if someone will notice you have the precious metals, he can steal from you. You should have it in a custodian who has fully insured it. You will have to pay for the insurance services as well as the cost of storing it.
Even if there are some risks associated with gold investing, the overall risk cannot outweigh the benefits you will enjoy out of gold investing. Take for example what has happened in the Brexit and the ever-changing government administration. You never know whether Trumps administration can affect the value of the dollar, if it will be affected, then those with gold IRA will be protected.
A contract for difference (CFD) is among trading platforms which you can adopt and make money. Just like any other form of trade, if you are new in the field. Always take time to learn what Contracts for Difference trade is and what it takes for you to earn from the platform. You should avoid rush. There are some people who will hear good reviews which other people offer about how they were able to make huge profits online and they rush to open an account in the broker where the profit was made. To their surprise they end up registering losses which they will fear sharing online. You need a well-defined strategy which will protect you from making unnecessary loses when trading online.
Planning a Strategy for Trading CFD’s
In your strategy you should have a well-defined time frame when you will trade. There are times when commodities will rise in value and after which they will start dropping. In order to avoid losses, you need to have a time frame where you will trade during the period of time when you will experience profits. After the time frame, you should have a clear plan on how to exit the market. In order to come up with the best time frame for your CFD trade, you need to take time and study the charts so that you will know the direction of trade before you make your final decision.
- Trade Selection
There are different types of trades in CFD. For instance, a company such as CMC Markets will offer you an opportunity to compare different CFDs before you decide on one. There are some trades which will be easier for you to buy and sell. If you will like to enter a trade where you will easily convert your assets into quick cash, then you need to look for the ease of buying and selling CFD. The amount of profit you will earn also varies. There are others which will restrict you on the maximum profit you can make if the trade will go as you have planned. Always take your time and compare different CFDs available before you decide on the most suitable.
As a wise trader, never invest all your capital in CFD at a time. CFD will earn you money if you are a wise trader. In order to avoid shock, you should dedicate at most 10% of your capital to CFD and use the rest in lower risk investments. The secret to making more money in CFD is to allocate a reasonable capital to the trade and have the rest to do other trades. Most brokers who offer CFD will have other types of trade. You can invest in such traders as well so that you will diversify your portfolio.
- Entry Techniques
You need to study the market before you enter it. If the direction of CFD is according to your plan, then take some time and establish the trend before you enter the market. It will be a great lose if you will enter a market without carrying out enough research, you may end up making blind decisions which will later lead you to losing more money. Try to assess the market and know the stop point.
- Exiting the Trade
After you enter the business, you should immediately place a protective stop. Stops are very necessary because they will set you free if things will not go well. Carry out prior research about the market so that you will know where to put initial stop. This is necessary because the initial stop will protect you from making more loses. When the trade goes well, you can as well raise your protective stop. This will protect you from making losses but increase your chances of making more money. From watching the trends, you should know when to exit the market. You should avoid forcing things, if you see the trade will take a different direction in the near future, and then it will be wise for you to exit the trade in time before you are affected adversely. Capital preservation is very necessary in Contracts for Difference trade. Always stay informed about the current market so that you will take advantage of each situation.
If you will like to achieve the best in your binary option trading, you should consider trading online. There are many platforms where you can sign up and start trading. You need to take your time and decide on the best platform which will enable you trade comfortably. Continue reading
Before start trading stocks, you should carry out enough background checks so that you will be well-informed about the field. Just like any other trade, you will increase chances of performing better if you will be fully informed before you enter the field.
There are many sources of information which you can use to stay updated on the stock market. There are several authors who have published books to make things easier for you. The books cover different areas of stock so that you will know what it takes for you to be a successful stock broker or trader. The list of books available is long, but you should take time and read at least the best which will offer you reliable information.
6 Books about Stockbroking You Should Read
1. How to Make Money in Stocks
The author of the book is William O’Neil. The book describes the ins and outs of the system CANSLIM. The book describes all strategies you need to apply for you to find future big gains. It offers a clear guide on how to time your entry into the market and a clear plan on how to exit. The book combines fundamental and technical analysis. It is a great guide for new investors. If you are a beginner and you will like to know the ins and outs of the business before you enter, then the book will offer you all necessary information you need to make informed decisions when handling your money different trades.
2. One Up On Wall St
The book was written by Peter Lynch. It is an investment classic which will give an individual investor great hope. If you will like to invest in CMC Markets, you will learn helpful lessons. The book explains all the difficulties a beginner investor will face when trading in Wall Street as well as tactics which can be applied to get rid of the challenges in the trade. As a trader, you will learn several things you never knew about trading in Wall Street after you read the book. It has summarized all concerns in investors in a clear way. It is among top books you need to read before you take part of your money and invest in stocks.
3. Buffett: The Making of an American Capitalist
The book outlines ways of Oracle of Omaha. It has clear methods which an investor can utilize to make big money. The book teaches on patience which is required to make money on Wall Street. The book has been written in such a way so that it will expose investors to challenges and teach them on how to overcome them. Investors are provided with an opportunity to learn tactics explained in the book and apply them correctly so that they will take advantage of the market. The book was written by Roger Lowenstein.
4. Reminiscences of a Stock Operator
The Author is Edwin Lefèvre. The book narrates how a young boy was able to make great fortunes. It outlines how the boy went broke at some times but through patience he was able to amass a lot of wealth. The book is among motivational books which all time speculating investors can use to make a lot of money. Sometimes investors make losses. They can end up being discouraged, but through reading the book, you will get an encouragement for you to continue pursuing your dream as an investor.
5. Market Wizards
The Author is Jack Schwager. The book contains interviews of several successful traders in the 1970s and 80s. The book offers modern-day traders opportunity to know the experiences of the traders. The traders offer inspirational and fascinating and lessons which modern-day traders need to learn. The stories offered by the traders have a lot of lessons for investors of all time to learn. Since the launch of the book, the author has published four more books. They include books such as The New Market Wizards in (1994), the Stock Market Wizards in (2003), the Hedge Fund Market Wizards in (2012), and The Little Book of Market Wizards (2014) which is a summary of essential lessons from nearly 50 interviews.
6. Trade Your Way to Financial Freedom
The author is Van Tharp. The book encompasses investor psychology and trading system construction. The book offers basics traders need to employ so that they will make profits. It covers useful topics for investors in different levels. Also check out gold investment strategies.
A gold IRA account is just another form of IRA account, but in gold IRA you will store your value in gold or other precious metals. If you will decide to rollover your current IRA account to gold backed IRA account, you will have the current value of your account converted to gold. In short, the amount of money you have saved in your account will be used to buy gold in the market value. After you set up the account, the gold IRA Company will store physical gold in safes till the time you will like to withdraw the amount. Anytime you will like to withdraw funds from your gold IRA account, the gold will be sold at the current market value and you will be offered an equivalent in money. This is a great step you will take.
History of gold investing
For example, from history the price of gold and other precious metals keep on rising. Each time the dollar will experience inflation, the value of gold will rise. This will imply that the amount you will receive after some years of maintaining a gold backed IRA account will be high when compared to paper currency. Take necessary steps and convert all if not part of your IRA savings.
Gold IRA account benefits
- Hedge against inflation and deflation
If you will like your investment to keep increasing in value during inflation period as well as during deflation, you need to convert your IRA account into gold backed IRA. Just remember, in the periods when America was facing financial constraints, the value of the dollar went down but gold prices kept on rising. Remember with gold, you can go and sell it anywhere. It is a commodity which is accepted all over the world. In all gold IRA accounts you will have physical gold, not paper gold. This means you will have something tangible to convert to any currency in case of an emergency.
- Hedge against the declining dollar and money printing policies
When the value of the dollar goes down, the value of many assets will follow suit. That is not the case with gold. Anytime the value of the dollar will go down, the value of gold will raise. You will have offered your portfolio great protection after you decide to diversify and include gold. You can as well have part of your portfolio in silver or have some part of it in paper currency. This will avoid you losses if by any means the dollar value decrease in the world market. Remember nowadays the world is a global village; you can sell your gold anywhere and invest anywhere.This is a great Gold IRA account benefit.
Safe haven in times of economic, geopolitical and financial turmoil
Gold is sometimes referred to as a crisis commodity. This is simply because people turn to the safety of gold when storing their assets. Even if the paper currency will be hit hard, gold will still rise in value. Central banks can respond during crises and print more money, which can have negative implications on the side of paper currency value. Gold cannot be produced in plenty at a given period of time. The supply of gold is limited and it will regulate itself without depending on powers of political leaders. This will assure you great safety of your portfolio.
- Supply and demand fundamentals
Gold has real life commercial uses. It is not just a shiny or attractive metal. For example, it is applied in the manufacture of many electronics. Fields of medicine, high technology and architecture apply gold. There are very few gold mines in the world and very few of them are being discovered each year. The amount of gold produced from the mines is limited. This makes gold among the commodities which responds to the laws of supply and demand.
Store of value as Gold IRA account benefit
The main point of investing in physical gold is to store value. There is no day gold will have zero value. You will reduce your risk of investing in other ventures such as bonds and stocks which can reduce in value. Gold has a long history of appreciating in value. This makes it easy for any investor to achieve peace of mind knowing his assets are safe and appreciating in value. You may feel like the rate of declining in the dollar is very slow to an extent it cannot affect your investments, but you will discover it otherwise if you will compare the amount you have lost in the past ten years if you were running an ordinary IRA account when compared to gold backed IRA.
- Portfolio Diversification and Protection
If you have a portfolio which relies heavily on stocks, then you are running on a wrong decision which you made. All wise investors will not put all their eggs in one basket. Try to diversify and among the best ways of diversifying your portfolio is to open a gold backed IRA account.
Assures you peace of mind during turbulence times
It can reach a time when the country will declare war on another superpower. The dollar will be on the decline. With massive amounts of gold in your home storage gold IRA, you will have something to carry out a trade. Many gold IRA reviews will advise you to have some portfolio in your IRA as gold or other precious metals.
Economic instabilities make stocks weaker over time. With gold IRA investing you will always have something to rely on. It has been proved over time gold will increase in value as the rest of investment portfolios fall in value. When global economies face problems; the value of gold keeps on rising. You can decide and have gold IRA rollover anytime so that you will stay at peace if the country faces any economic or political challenges.
There are many tax benefits which come with gold IRA. The benefits come in the form of deferred tax. What is gold IRA? Let’s us start here; it is an individual retirement account where gold and other precious metals are stored as the measure of value. For example, if you have $10,000 and you will like to open a physical gold IRA account. The custodians will buy for you gold worth $10,000 at the marker price and store it in your account. The gold will be measured physically. You can wait for 30 years to come and claim your physical gold. If you had bought 2 pounds of gold, in the coming 30 years, you would have the solid 30 pounds of gold. The value of the physical amount will have appreciated. This is the way people who invest in gold IRA make money or safeguard their wealth.
Yes, even if you will store it for three decades, the custodians have stored it safely. You will even have insurance cover for your precious metals. The fact that you will withdraw physical metals of a specific amount makes you stand a better chance of safeguarding your wealth over time.
Regal Assets is a well-known company based in Burbank, CA. The company started after the great recession. They offer quality services which have made them get featured in major publications such as Forbes and INC. Continue reading
Rosland capital review
From trust link Rosland capital review you will discover the company has been rated 3 stars out of the possible 5 stars. There are a total of 8 Business Alliance Consumer complaints that have been filed by customers so far. In BBB the company has a total of 6 complaints. IRA transfer process in the company takes a total of 14 business days. Continue reading
Republic monetary exchange review
After checking Republic monetary exchange review on Better Business Bureau website, I discovered that the company has about 2 complaints. Continue reading
Provident trust review
Provident trust review is the first document you need to check while trying to invest in gold IRA. The set up fees of an account in Provident trust is $75. Continue reading