Ideas on How to Become Rich- Investing in Gold - Part III

Ideas on How to Become Rich - Investing in Gold - Part III

In this section, I will be sharing with you tips on the buying and selling of gold with a view to profit in the long run.

I have over the past 20 years invested in both gold ornaments (jewellery) and gold bullions because as a conservative person, I have faith in gold more than in currency or other financial instruments.

The secret is that I managed to sell off some of my obsolete gold pieces for prices higher than I bought them for, after using them on several occasions for self adornment such as attending important meetings and functions. The prices of gold kept going up over the years due to the weakening of the US Dollar that I am reluctant to part with my gold collection in anticipation of further rise of price of this precious metal.

Well, how to buy and sell gold? First, there are several ways to buy gold. As mentioned already, you can keep gold in its physical form, either as ornamental gold, which comes in various purity standards; or as gold bars normally done by rich individuals who love to see the colour of money in gold or you can invest in gold as a financial instrument very much similar to any of the instruments used in the trading by the interbanks which can be spot, forwards or options. This is because allocated gold can be traded by central banks and other financial institutions via the commodity market, just like any commodity trading. Then you can also use this method to sell your gold.

Let me just explained a little further about how the market for gold is traded. Trading would be a series of deposits and loans taking place. A central bank for example, sells gold to a bank, which lends the gold to a gold producer who hedges gold that it has yet to produce (or mine) etc.. So transcripts very much in form like the shares or stocks, would move from one institution to another . This complex trading system is to enable the gold to have a smooth transaction from the buyer to the seller via a financial institution. The difference between the buying price and the selling price would then be calculated very much like the bank's interest rate, which in this case is the gold interest rate. Well, the main idea is for you to be able to get a good rate when you sell your gold through the financial institution.

Another way to sell gold is through the Gold Option market which functions very much the same way as the currency market. There is one more way which is to use fold as hedge funds but this method is not really exciting as the gold will be bundled with other assets as a total package by fund managers of the various financial institutions.

As a final note to all of you, gold as an inflation buster is still valid because governments and world economic conditions may change, so holding on to some form of gold investment will enable us to keep our traditional and conservative view that it is better to be safe with some gold than to be sorry.

Gold is still a barometer of global financial health. Although gold may have lost some of its lustre over the years, it is still very much a part of the human sentiment or confidence to have this precious metal in their portfolio for wealth and riches.

Before I end , some of the questions you should ask yourself are:

a) what is your motivation for investing in gold?

b) what is your view of the USDollar?

c) what is the market sentiment or trends in the financial markets?

d) Why silver is not a real good investment?

With the above, I hope that you can think about possibility of investing in gold for the long run. Gold investment is not really for speculators but for people who want to have something to hold on to whatever the future beholds..

Cheers and go for the golden opportunity!

Sally Klaus

Ideas on How to Become Rich

PS These are just investment and finance ideas and do not constitute actual investment advice or professional advice by trained professionals. 

Ideas on How to Become Rich -Investing in Gold- Part II

Ideas on How to Become Rich - Investing in Gold Part II

Hi, I will now discuss about the potential of gold as a long term investment as this commodity does not wear out through time. Also its value is well recognised by everyone and by every country. Earlier I mentioned the reasons why gold is so sought after.

During the last few years, governments of the world have been buying and hoarding gold and have a hefty gold reserves in their national treasury. This is especially so of Asian economies like China and Japan who value gold as their alternative strategy of diversification in the monetary administration.

They do so because of their strategy for national security as well.

The governments of most countries including the United States argued that keeping reserves in gold enabled them to control the fluctuations in currency and other financial instruments as part of their macro view of economic development and growth.

Due to the intrinsic value of gold and the desire of the people all over the world to own gold either in the form of jewellery ornaments or in the physical form, gold investment should be part of our getting rich strategy for the future. Moreover gold is a barometer of one's wealth in the eyes of other people so it is a good financial asset to have.

Let me also share with you another very important reason for investing in this metal. It is because in times of crisis, gold is still the best form of investment because currency and other precious metals cannot provide the mental and spiritual wonders of gold. Gold does not tarnish unlike other metals. Also the world after the banking crisis in 2009, the environment for gold investment has gained prominence due to the lessening of confidence in the banks and other financial instruments coupled with the weakening of the US Dollar.

It is a good time to go into gold investment whether it is in the physical form of gold jewellery/bars or ingots or in the form of ETF (Exchange Traded Funds) or in the form of structured notes similar to those instruments traded in the markets. Structured notes are usually capital guaranteed where the returns of investment is based on the performance of gold.

As gold is a quasi currency, gold prices tend to rise when US dollar falls. This is evident during the past few years when prices of gold kept going up and the US dollar kept falling.

However if you wish to invest in gold, you have to first examine your own profile with regard to risks and your circumstances in such a way that you are able to take whatever outcomes of the market. In investment you have to take whatever outcomes of the market which is very volatile especially these few years due to the decrease in confidence of the financial systems in many parts of the world.

Another point you have to take note is the market sentiments which could be changed very quickly due to bad news or could rise very much due to some positive sentiments of the general world economic conditions.

Well, to be rich, one has to take certain calculated risks. Investing in gold has certain advantages. It is definitely up to us to weigh the pros and cons of jumping into this volatile gold market today. Do think about it, and have a thought about this idea. 

Think about it but it is worth its weight in gold!

Cheers

Sally Klaus

Ideas on How to Become Rich

PS These are contributed ideas and thoughts, and by their nature do not constitute investment advice. 

Ideas on How to Become Rich - Learning from the best in business and entrepreneurship - Part I

Ideas on How to Become Rich

Hi good morning
As promised earlier, I would like to share the insights of the rich and powerful people with you so that you can learn from the best in business and entrepreneurship - Part I (real estate investment)

I will start with how to become rich by investing in real estate. The rich business leaders who managed to use this area of enhancing their wealth include tycoons like Donald Trump. I will share some insights about this "no-nonsense" man who believes that there is no beating about the bush if you want to succeed.

Yes, when you are decisive and determined to do something, you have to go headlong and do it. Do not beat round the bush and become wimpy. Donald Trump became successful when he started to invest in real estate because land is a scarce resource and it is only when you are able to buy the right plot of real estate or land(natural resource) that you will make it big. In fact his father commented that he was able to have the "Midas touch" - meaning everything he touches turns to gold like the fairy tale story of King Midas.

Well, he acquired land and properties in growth areas in Manhattan and city areas and then went on to build hotels and magnificent skyscrapers.
His shrewd acquisition of good properties gave Donald Trump two very important aspects of success.

The first aspect was the prestige because those areas he purchased are in very prestiguous areas and the second aspect of his success and riches came from his smart use of branding technique. He was able to use Trump brand very well because the BIG "T" was prominent and denoted power and wealth.

What we can learn from this successful, rich and powerful tycoon,Donald Trump are:
a) you need to be gutsy and decisive in making important decisions of your life;

b) you need to be alert to opportunities around you and jump into the right area at the right time; any delays in property investment can mean great loss. So to ensure good returns in real estate investment, you must be able to buy at the right time the places which can command premium. This also applies to other kinds of investment where timing and locations are vital issues for acquiring wealth and riches.

c) you must have passion in whatever you do. Without passion and enthusiasm in your pursuits, you are only a "work-slave" and not a leader.
To be a leader in business or in entrepreneurial efforts, you have to have lots of passion and love for what you are doing. This will ensure success and riches at the end of the day.

So, I believe we can learn a lot from this rich and powerful man, Donald Trump who makes the branding of Trump look so simple. It is the clear directional pursuit of wealth with passion and decisiveness that push this man to heights of wealth and status. He is every woman's dream man because he has "everything" - looks, wealth, power, status and prestige. Even the financial crisis of 2009 did not affect him as much as all other Americans!

In conclusion, real estate investment is an excellent form of using money wisely. As you know, land and natural resources are very limited in supply in this world. Buy the right real estate in the good locations (not about how cheap the acquisition but how well you invest ) will give you the monetary eturns you are looking for in future.

Be wise, be timely and invest in good real estate for future wealth enhancement of your life.

Cheers and happy reading
Sally Klaus
Ideas on How to Become Rich