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The price of gold keeps going up and has now well and truly breached the $1,000 per ounce 'barrier'. Gold is one of the few safe havens for wealth and asset protection. In these times of global economic, climatic and political crisis and uncertainty, it may be that nothing is "as good as gold". When the price is still in the $900's you should BUY GOLD!

The gold price has been rising against the Dollar, Euro and Pound Sterling for three months running; in March gold has been trading at well over $1,000 per ounce.

Last year gold rose from $600 to $840, an increase of 40% in 2007. On 2008's first January trading day it went over $850, the highest price since 1980. March saw gold hit $1,000 for the first time, and it went over $1,030 before correcting. However it's on the rise again and is likely to stay over $1,000. In just five years gold has gone from $300 to $1,000 and has risen by nearly 15% in 2008 already. See the chart below.

More and more 'ordinary people' are seeing the sense of owning gold bullion as world economies, currencies and financial markets become less and less stable. The gold price rose rapidly above $840 during the last week of 2007 – usually a time of low market activity, probably due to the Bhutto assassination in Pakistan. 2008 has already seen further major upheavals in the banking and financial sectors, with talk of recession as the 'credit crunch' extends to more consumers.

There have been significant profits for those who owned or bought gold since September 2007. Those owners of one kilo of gold bullion now worth over $32,000 have made over 40% gains. While these sort of quick profits may not continue, what was almost certain was that gold would reach $1,000 an ounce, and it happened first in New York on March 13. Some are forecasting $2,000 or more in the not too distant future.

Buying gold bullion is safe as the five, ten and twenty year trends all continue strongly upward as the overall global situation worsens in spite of rapid economic growth in some regions, especially Asia, and India and China in particular.

Temporary 'corrections' or downturns triggered by various economic factors periodically occur; these are ideal times to start or increase your gold holding; you will profit in the medium to long term. Just a few months ago gold was $700. The time to open an account and buy gold is TODAY, and it's really easy as well as secure.

Prior to 1971 the gold price was pegged at $35 per ounce. US citizens were once again allowed to buy gold in 1975. By early 1980 gold had peaked briefly at $835 before settling in the $3-400's. However, steadily rising prices have trebled the value of gold in 5 years.  Predictions are that the US dollar will continue to fall and that the value of gold will rise further to possibly $1,500 or even $2,000. Gold has also risen against all major currencies such as the Euro, Pound, Swiss Franc and Yen. This chart shows the substantial dollar price movement of gold for the first quarter of 2008 including the recent 'correction' which is seen by many as temporary making this an ideal time to increase personal gold holdings. Look at the 5 year chart below and the movement after the mid-2006 price jump from $600 to $700. Is today's scenario poised for a repeat?

Wise investors include up to 10% gold in their portfolios
People in modern societies tend to rely primarily on banks to protect their wealth by holding their money in accounts and safe deposits for other valuables. Often their assets are mostly tied up in real estate in the form of the family house or other property investments. Some speculate in foreign currencies, others in securities like shares and bonds via brokerage accounts.

Buying gold and silver has been going on for about 5,000 years. Today, it's about as far as you can get from the complex global debt markets which have been making dramatic headlines recently. Bank stocks plummet, mortgage bonds go into default and losses are piling up at hedge funds. On the other hand, gold is showing three-decade highs, and it doesn't 'owe' anything to anyone! Some expect the gold price to reach $2,000 an ounce.

Unlike currencies, gold has maintained its value in terms of what it can buy and for at least 500 years gold has kept pace with inflation. In 16th century England under King Henry VIII, a man's suit cost an ounce of gold, comparable to prices today at Brooks Bros or on London's Savile Row. Not that I'd know or care; Retired in Asia, I have no need for a new suit and right now, I'd rather buy more gold stored safely in an overseas vault!

Apart from acting as a hedge against inflation, gold adds diversity to a financial portfolio, protecting it like an insurance policy from the economic forces that affect stocks and bonds. The factors that determine the gold price are different from, independent of, and quite often in direct opposition to those which influence the other markets.

Gold has long been considered a hedge against inflation and insurance in the case of major economic turmoil such as when nations are at war, and where a country's paper currency might become worthless. Also, when financial or real estate markets go awry or crash, many people can lose their tangible assets very quickly. Safer alternatives are sought by those with forethought, and holding precious metals as insurance or security is growing rapidly in popularity. Throughout history, gold has always been seen as the safest choice for various reasons.

Gold although a soft metal, is extremely dense and does not rust or tarnish; it cannot be destroyed easily. One cubic foot of pure gold is worth over 10 million US dollars! So gold is 'compact' – heavy in quantity, but movable in bars of 12.4 kg (30lbs) or less. Depending on legislation, gold bullion can be exchanged globally, and tends to be more stable than any volatile or fluctuating currency including the once-mighty US dollar which continues to lose its value against other currencies as well as other precious metals.

Showing off gold by wearing or using it
In most parts of Asia and the Far East, gold was and is worn by both men and women as jewellery in the form of necklaces, wrist bands, heavy chains and medallions. For some, wearing gold in public demonstrates that the owner is 'rich' and has tangible assets, even though that gold may be their sole valuable possession; it's often the case, especially in lower levels of Asian society. Gold items are also given as gifts and used as marriage dowry, in India more than anywhere else in the world.

In the West, gold while of course valued highly, is seen less on ostentatious display amongst 'ordinary' people. Security is now an issue. Most of those that own gold in any quantity keep it locked away in a vault or safe deposit somewhere; they may borrow money against it for purchasing something more useful, like a house or car or as loan collateral. According to some, gold has no 'real' or intrinsic value. Henry Ford is probably best known for his Model T Ford, offered in "any colour you want, so long as it's black" also called "gold the most useless thing in the world. You can't eat it, drink it or even smell it!". True enough, but that doesn't deter people from wanting to own it!

When is the best time to buy gold? RIGHT NOW!
That used to be a general rule for buying real estate, but times have changed. Thousands are 'upside down' (owing more than the property is worth) and defaulting on their mortgages, losing homes and property investments, especially in the USA. Caution needs to be exercised now when buying real estate, but not so with gold, as it is far less prone to mid-term economic ups and downs.

The price of gold is usually expressed as a currency value per troy ounce or troy oz (31.10 grams). The gold price per kilo (32.15 oz) is also quoted. The gold price has risen over the past seven years and gold experts suggest that it will continue to increase. Owning gold now makes perfect sense both for investors looking for longer-term gain and traders seeking short term profits from price swings caused by current global events.

Recent gold price trend and the outlook
Below you can see real time charts showing the current gold price, movement over the past 30 days and the trend over the past 5 years, during which the gold price has more than doubled.

In September 2007 gold was at $672; it then rose over $30 an ounce to $704. By 2nd November it was above $807 per troy ounce, ($26,000 per kg). It continued to climb to a 27 year high of $845. A drop was followed by another rapid climb to $830, although by the end of the month it had lost almost 5% to settle at just under $785.

For the first three weeks of December gold was trading mostly between $790 and $815. Reacting to the turmoil in Pakistan after the Bhutto assassination on the 27th, gold quickly reached $840 per ounce on the last trading day, ending 2007 at $836. The basic factor that keeps driving the gold price higher against major currencies is global political and economic uncertainty.

2008 trading began on 2nd January with a gold price of $838; it then rose $20 in UK and European trading, hitting an all-time high of $858 per ounce and by the end of the first week of 2008 gold was above $860.

The third week of January saw serious market meltdowns in Asia, the US and Europe. Gold reacted by dropping briefly to $850. With traders in confusion, many took refuge in gold, pushing prices all the way to $924. Gold ended the week around $912 and was also at record highs against the Euro and Pound. During the last few days of January gold was at $920 an ounce or more.

February saw many new all-time highs from $936 ($30,000 per kilo) to over $975. ($31,000) as the dollar continues its demise against other major currencies. The same month also saw oil selling above $100 a barrel.

Topsy-turvy markets together with bank and other financial 'disasters' in March finally drove the gold price above $1,000 an ounce on the 13th. It rose above $1,025 ($33,000 per kg) when the Asia Pacific markets opened on Monday 17th. Since then it has fallen, making this an ideal time to begin or increase personal gold holdings before gold rises again, as it almost certainly will.

Gold and other precious metals are definitely seen as a 'refuge' and alternative to switching between currencies and securities. The spot gold price has risen by 15% in 2008 already.

Gold is a relatively safe investment
Investors of all sizes, from nations and institutions down to the private individual are buying gold bullion for the future, as a hedge against further currency devaluation and inflation., let alone a major financial crisis where precious metals like silver and gold may become direct trading currencies again. Volatility and confusion on currency and share markets is reflected in price swings of these metals too, but the overall trend for silver and gold is still upwards. In the case of silver, this is due to demand for its use in industry outstripping world supply.  

The charts below show the current spot price for gold and the trend; reload this page for up-to-the-minute data. See gold price and movement charts from 10 minutes to 20 years at BullionVault.com, our recommended international gold bullion dealer.

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Gold price movement in US$
for the past 10 years:
$300 to over $800.

How much gold should you hold?
Even for the smaller investor, opening a gold bullion trading account with even a few hundred dollars, euros or pounds is a reliable way to build up a secure investment and a hedge against inflation. Gold is expected to continue to increase in value against the US dollar and other currencies. While there can never be guarantees, that's the opinion of many fund managers and professional commentators.

Whether you prefer a low or higher risk portfolio, accepted market theory suggests a typical asset portfolio should contain 5 – 10% gold.

By opening a gold bullion account, then choosing when to fund it or sell part of it off by trading gold online, private investors have an effective hedge against crisis and also an easy-to-use tool to increase their net worth. It's also fun 'playing the market' with relatively low risk. See below how you can trade gold bullion easily.

Become a free R-A Member and download this report: In GOLD We Trust! and more. You can also use the drop down form at the top of the page to join.

WHAT ARE THE VARIOUS WAYS OF OWNING GOLD?

Gold bullion storage and trading
While it was once difficult for private individuals to own or trade gold bullion, an alternative to holding or trading currencies, this has changed in recent years. Now there are effective ways of holding gold as an asset for added financial security as well as get access to your gold bullion account in order to buy or sell gold securely without high commissions or charges.  See real examples. You can easily learn how to do it with a free gram of gold.

One of the problems for an individual private investor wanting to own or trade gold or other precious metal like silver, platinum or palladium was not only the amount of money needed to buy it, but the inability to buy or sell it at the real market price.

Apart from the small trading 'spreads' (the difference between the buying and selling price) of the traditional bullion markets, gold bullion transactions had to be settled in 'London Good Delivery Bars' of usually 400 troy oz, about 12.4 kg. That means with a gold price of $1,000 a good delivery gold (big) bar is worth around $400,000 or £200,000.

Another obstacle to holding gold securely is that big bars can only be kept in recognised bullion vaults in say London, New York or Zurich, Switzerland. Consequently bullion trading at the real market price was restricted to professional traders and institutions who deal in 15 or more bars at a time.

Gold and precious metals trading accounts
One easy way of trading gold is through a foreign currency (forex) and precious metals broker (see more below). Here you enter into an option to buy or sell currency pairs or currency against a precious metal. You never actually take possession of it. If you simply want to speculate on the gold price moving up or down against the dollar then you can profit by short term buying and selling; this is known as day trading. Here's an interesting video of recent 'spot' gold price trading on the foreign exchange market.

Gold-related stocks and exchange-traded funds (ETFs)
An investor needs to decide whether or not to actually own gold, or simply have shares in it through gold mining stocks (very risky) or perhaps a silver or gold ETF (exchange-traded fund).

There's a big difference between owning physical gold, either in your hand or held in a bank or other secure vault, properly audited with your account showing ownership of actual physical gold and merely having shares in a mine, investment syndicate or a gold fund over which you have little or no control. Both silver and gold ETFs are seen as promising, but bullion in your own name is perhaps a better way to go.

Learn more about Exchange-Traded Funds which work very well for certain market sectors, and can be very lucrative, providing you have studied that market well. For Americans they can be used for IRA funding too.

Gold coins and jewellery
An alternative for the smaller, retail gold investor who actually wants to see and touch precious metal is to buy cast or minted 'small bars' including gold coins. These can also be traded, but not so easily. The buy and sell 'spreads' are 4-6% compared to 'Good Delivery Bars' at the main market price with a spread of less than 0.5%, making deals expensive for the small investor or trader (see more under Bullion Account below).

These small bars and coins range upwards from a few grams or fractions of a troy ounce which is about 31g. In China, the tael has been in use for centuries and was 37.5 oz; differences exist between the mainland and Taiwan and Hong Kong. The official Chinese tael is now metricated and weighs 50g.

In Thailand, gold jewellery is very popular, particularly chains for the neck or wrist, and medallions. Gold can be 99.9% pure (24 carat) or mixed with other metals and sold cheaper as 18k or even 9k gold. Thai gold shops are usually owned by Thai Chinese and are in every town and city in the country. In Thailand gold is sold by the 'baht'. The Thai gold baht is different from the Thai unit of currency also called baht (THB). A Thai gold baht weighs about 15 grams or half a troy ounce. The picture shows a 'one baht' medallion on a gold chain (bought separately and charged by its weight). With the Thai baht at 30 to the US dollar and a spot gold price of $1000, 1 gold baht costs around 15,000 Thai baht, about US$500.

ONE OF THE BEST AND SAFEST WAYS TO OWN GOLD:

Your Own Gold Bullion Held in a Secure Vault
While jewellery and coins are attractive and tangible, and will always be popular, nothing beats a bullion vault for security. There is also the intrinsic value of the coin or jewellery to add to the cost of purchase, and valuation can be difficult.

If your intention is to build a safety net against devaluing currencies, then it's best to own gold bullion registered in your own name and held in a choice of international secure vaults.

If you are a non resident of the USA and would like a bank account for checks and international transfers, learn how to open a Free US bank account with Visa ATM card.

The gold in your BullionVault account remains in 'good delivery bar' form, so you have the same trust status as a professional market trader and can buy from and sell to other account holders securely, knowing that the gold never actually leaves the ViaMat vault. This also saves shipping charges for both buyer and seller, and cuts out any 'middle men'. Trades can be settled instantly without going through an outside dealer or trader.

What happens when you want to sell your gold or currency?
You may think that in times of crisis, that everyone is either trying to buy or sell gold at the same time, so it would be difficult to trade against the historically upward trend. However as with gold itself, individual gold and currency investors have different goals. Some are looking for long term gains, and will buy more when the gold price is temporarily falling. This is when smaller investors fearing losses they cannot afford may 'cash in'. Some are speculators trying to benefit from short term swings. Others liquidate their holdings to use the money for something else. So there are short trends, medium term trends and long trends depending on the time scale which may sometimes be minutes, hours, months or years. This is much the same as happens in the foreign currency (forex) market and other 'trading instruments' too. Even minute movements in the gold price can result in trading profits if entries and exits are made at the right times.

Obviously there is more to know about owning a gold bullion or foreign currency account and you can get full information on the www.BullionVault.com website.

Digital E-Currency and E-Gold Accounts, GoldExchange
An alternative way to own foreign currency, gold and precious metals like silver, platinum and palladium is as electronic or digital currency, known as e-Gold and e-Currency. This is also backed by bullion physically lodged in a secure vault.

This type of 'electronic gold or currency' holding is used mainly as an alternate means of money transfer for those who cannot have international bank accounts or cannot use PayPal and other payment processors due to limitations imposed either by their own country or the international community. E-gold account holders can make and receive online payments between other e-gold account holders, avoiding other currency exchange or bank fees. However, it can be expensive to fund one of these accounts and also convert the gold or other precious metal or 'digital currency' back into cash at a later date.

E-gold can be converted and banked as cash at best market rates and 0.9% commission. Sell e-gold or e-bullion and have the proceeds sent to a bank account anywhere. Get further information from GoldExchange. Beware of e-bullion.com. You are likely to lose money.

Warning: E-currency transaction trading became popular a couple of years ago with Mazu, DX and others but is no longer profitable; systems like Gary Jezorski's Currency Exchange Profits Video Training System are scams designed to steal your money.

Forex (broker) trading for Beginners

Automated Forex Trading?

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