A gold and silver bullion account is a secure way to invest in or trade precious metals; gold and silver prices continue to rise in 2011 and 2012

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In 2010, gold rose by 30% and silver over 70%. 2011 has seen rises and fallbacks; with the US and European debt crises, gold has risen to all-time highs. Prices have risen annually for both gold and silver over each of the past 15 years. Long term 'gold bulls' took advantage of the September correction and bought more gold. December sees prices rising again.

See today's US dollar spot price on the right and the gold price rise over the past five years below. Click to see more charts.

More private investors are now seeing the advantages of including gold and silver bullion in their portfolio to help protect their long term assets.

Gold is known as a 'safe haven' for wealth and asset protection, especially among astute investors, both large and small in growing numbers; also as a hedge against inflation. In these times of unprecedented global economic, climatic and political crisis, it is sensible to own both gold and silver in some physical form.

ONE OF THE BEST AND SAFEST WAYS TO OWN GOLD:

Your Own Silver and Gold Bullion Held in a VIA MAT 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 or silver bullion registered in your own name and held in a choice of international VIA MAT secure vaults.

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 switch between bullion and 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 goes down.

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. You can trade your gold and silver easily and instantly at BullionVault. Proceeds from a sale remain in your account in the currency you funded it with and you can leave it there safely until you are ready to buy bullion again, presetting an order price if you wish, or withdraw proceeds to your bank account.

So there are short trends, medium term trends and long trends depending on the time scale, which may 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.

See real examples. You can learn how to trade with a free gram of gold or if you prefer, silver.

How can a personal small investor benefit from buying gold?

More and more 'ordinary people' are seeing the sense of owning or trading silver and gold as world economies, currencies and financial markets become less and less stable. 2008 saw major bankruptcies, bailouts and mergers in banking and financial sectors worldwide, especially in Europe and the USA. With the 'credit crunch' still affecting business, takeovers and government rescue packages are the order of the day. But will they work in the longer term?

There have been significant profits for those who owned or bought gold since September 2007. Some owners of one kilo of gold bullion have made over 50% on their investment.

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 a personal gold holding; you will profit in the medium to long term. Not long ago, gold was $700 an ounce. Now it's been over $1,960 and although below that in early July and September (an ideal time to purchase) prices are expected to continue rising in 2011 and beyond for both gold and silver. Some talk of $5,000 for gold and $100 for silver.

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The best time to open an online bullion account and buy gold is TODAY; it's both easy and secure. A single gram of gold is worth over $50 – and you get one free gram of gold or silver when you open an account at BullionVault – no initial deposit required.

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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 quadrupled 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 several thousand dollars. Gold and silver have also risen against all major currencies such as the Euro, Pound, Swiss Franc and Yen.

During 2007 gold rose from $600 to $840, an increase of 40%. In January 2008 it went over $850, the highest price for 20 years. March 2008 saw gold hit $1,000 for the first time, and it went over $1,030 before correcting. Since then it has fluctuated but the longer term trend is easy to see; by September $1,000 an oz was common place and by October 8, 2009, gold was at its highest-ever price – over $1,060. Almost exactly a month later gold breached the $1,100 per ounce 'barrier' during the Asian trading session and has continued rising until on December 2 it surpassed $1,225. During 2010, it drifted between $1,100 and $1,460. In 2011 it has been over $1,960. When it drops back temporarily as it did in late September, this makes an ideal time to increase one's holding before it rises again.

Silver prices have also increased significantly

Silver is not usually seen as an investment in the same way as gold, although we believe it should be; the spot silver price tends to follow gold, but is much more volatile in the short term. It reached a high of $20 in 2008 before dropping to as low as $9.00. Since then, silver has made a steady recovery, reaching $19.00 by June 2010, dropping, then recovering between August and November to over $28. By December it passed $31 and by early May, silver was at $45 per ounce.

Silver is now being seen by many analysts as an even better investment than gold in the long term. One reason given is that it is also a valuable industrial commodity with limited availability. BullionVault now sells vault-secured London silver bullion to the public as well as gold.

Due to the difference in value per kilo between gold and silver (about 50 times) storage fees are different too. In the case of BullionVault these are nominal: $4 per month for gold and $8 for silver for up to a $40,000 account.

Over the past five years, the silver price has more than quadrupled; by April 2011 it had spiked to above $49 per ounce before falling back to below $30 in September but recovering to $35. 'Bulls' continue to invest or hold both silver and gold.

Wise investors include up to 10% gold and silver 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 silver and gold 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 and all-time highs, and it doesn't 'owe' anything to anyone! While many did not believe gold could go over even $1,000. It didn't seem possible, but those that forecast gold reaching $2,000 or more and silver at $50 per ounce have been vindicated – in spite of the current price drops. You can trade both silver and gold bullion with a single account at BullionVault.

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; for the past few years I've been buying gold and silver, safely stored in secure vaults in the UK, USA and Switzerland. With BullionVault I can sell it (see some of my orders) and convert it back into cash at any time, such as when the price reaches new highs, then drops temporarily. With correct timing, I increase my holding by selling high, then re-buying gold at a lower price.

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 and to a lesser degree silver have 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 and silver?
"Now!" – this also 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 and silver, as it is far less prone to mid-term economic ups and downs.

The price of gold and silver are usually expressed as a currency value per troy ounce or troy oz (31.10 grams). The price per kilo (32.15 oz) is also quoted. Although it seems expensive, owning gold and silver 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.

Gold and silver are a relatively safe investment
Investors of all sizes, from nations and institutions down to the private individual are buying gold and silver bullion for the future, as a hedge against further currency devaluation and inflation and perhaps hyperinflation, 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.  

See gold price and movement charts from 10 minutes to 20 years at BullionVault.com, for gold and silver bullion trading and international safe storage.

 

How much gold should an investor hold?
Even for the smaller investor, opening a gold bullion trading account with 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 up to 10% invested in gold and silver.

By opening a gold and/or silver 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 silver and gold bullion easily.

WHAT ARE THE VARIOUS WAYS OF OWNING GOLD AND SILVER?

Gold and silver bullion storage and trading
While it was once difficult for private individuals to own or trade silver or 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 or silver bullion account in order to buy or sell securely without high commissions or charges.  See examples of actual orders. You can easily learn how to do it using your a free gram of gold from BullionVault.

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 approximately 400 troy oz, about 12.4 kg.

That means with a gold price of $1,500 a good delivery gold (big) bar is worth $600,000, about £375,000 at 1.60, the GBP/USD rate in July 2011. Prices rose dramatically then fell, but are still above July.

Another obstacle to holding gold securely is that big bars can only be kept in recognised bullion vaults in places like London, New York or Zurich. 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. Nowadays you can buy gold coins and bullion 'over-the-counter' – the famous Harrods luxury department store in London now offers gold to its customers.

Gold, silver and precious metals trading accounts
One easy way of trading gold is through a foreign currency (forex) stocks and precious metals dealer. Here you enter into an option to buy or sell currency pairs or currency against a precious metal or even oil. You never actually take possession of it. If you simply want to speculate on the price moving up or down against the dollar then you can profit by short term buying and selling; this is known as day trading. You can also begin with a free practice or demo account.

Gold- and silver-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 (quite risky) or perhaps a silver or gold ETF (exchange-traded fund) which can be included in IRA and pension funds in many countries.

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 well for certain market sectors, and can be very lucrative, providing you have studied that market well.

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The best time to open an online bullion account and buy gold is TODAY. Wait for a dip to save some money, but don't get left behind in the new 'gold rush'!

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Gold and silver 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.

The spot price of gold is the current market price as quoted on commodities exchanges. Items that are manufactured have an intrinsic value somewhat higher than that, due to the workmanship involved. The price may be quoted as an amount 'over spot' e.g. $10 per ounce above the spot price or 5% over spot. The gold is weighed and the calculation made.

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 has been 'metricated' and weighs 50g, worth about $2,000.

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 $1500, 1 gold baht costs over 22,500 Thai baht around US$750.

Foreign currency trading (forex) can be profitable, providing you have learned the basics and not just rushed into it, believing all the hype about instant profits from forex trading by unscrupulous marketers.

Start off on the right foot by getting a copy of Bill Poulos' excellent starter guide, Forex Nitty Gritty.

Less than $40.

 

Retire-Asia remains "long on gold" – and silver too!

NOW is the time to buy and hold precious metals like
gold, platinum and silver in some form.

 

Forex (broker) trading for Beginners

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