Thursday May 23rd 2013

Safe,High Yield, Gold Investing

investing gold
Safe,High Yield, Gold Investing

Looking for a safe high yielding place to invest money can be a challenge. So many aspects of the market being volatile or flat-lining right now we look again at why gold investing could be the choice for you.

After the 2008 crash many investors have chosen to opt out of the stock market, or at the very least have decided to dilute their share holdings significantly.

Gold Investing Is Back In Fashion

Commodities such as gold are often a forms of investment that can be overlooked. Many commodities have a restricted supply, and this can definitely be said of gold. In investment terms this will always mean that demand remains high.

With an average 25% yield every year for the past decade gold is a resilient investment with a high yield return. Even during a recession the gold price held good.

Gold Prices Set To Rise

Strangely on the international markets government gold reserves remain quite low. In China, despite its huge buying power within global markets, keeps only 1,054 metric tonnes in reserve. In comparison the USA holds 8,133 metric tonnes. In reality what this means that it is highly probable that more central banks will seek to add to their gold reserves. Inevitably it will also then lead to the movement of gold prices upwards.

Remember too that it has a lower initial outlay cost because of  its exemption from VAT and Capital Gains Tax in the UK.

Gold investing remains a liquid investment because it can be turned back to cash quickly. This makes it possible to dip in and out of the gold markets for those needing more flexibility.

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