Friday, May 31, 2013

A Guide To Investing In Gold - Panda America

A Guide To Investing In Gold - Panda AmericaA Guide to Investing in Gold Gold HISTORIC ROLE OF GOLD 2 GOLD SUPPLY 3 GOLD DEMAND 5 THE PRICE OF GOLD 6 WHY INVEST IN GOLD 6 Long-Term Store of Value 6 Asset of Last Resort 8 Highly Liquid 8 Asset Diversifier 9 WHEN AND WHERE TO BUY GOLD BULLION 11 INVESTMENT FORMS 12 Gold Bullion 12 Gold Bullion Coins 13 Delivery or Storage 14 OTHER GOLD-RELATED INVESTMENTS 16 Numismatic Coins 16 Gold Futures Contracts 16 Gold Options 17 Gold Mining Stocks 17 GLOSSARY OF GOLD AND INVESTMENT TERMS 18 A Guide to Investing in Gold’s unique physical properties, its luster, easy workability, and virtual indestructibility have given it a special place in the history of the world. Over

centuries, gold has been prized for its rarity and beauty. One of the earliest records of gold used as money dates from 560 BC, when King Croesus of Lydia, today’s western Turkey, created a coin emblazoned with his own image. Before coinage, many commodities were used as a medi- um of exchange — cattle, cocoa beans, shells and hides, to name but a few. As the idea of the guaranteed gold coin gained gradual acceptance, gold became the formalized basis of economic life. Like ancient cultures, our modern society still recognizes the value and beauty of gold. Gold jewelry continues to adorn us; gold is used as an industrial metal in electronics, dentistry and other applications as well as an investment vehicle in the form of coins and bars. Gold is an internationally recognized monetary and financial asset. Significantly, governments hold one quarter of all the gold in existence. HISTORIC ROLE OF GOLD industrial metal in electronics, dentistry and other applications as well as an investment vehicle in the form of coins and bars. Gold is an internation ally recognized monetary and financial asset. Significantly, governments hold one quarter of all the gold in existence. • 3 • The supply of gold is limited by nature itself: thou- sands of pounds of ore are required to produce just one precious ounce. Gold is so scarce that all the gold that has ever been mined (approximately 135,000 metric tons) would fit into a cube measur- ing just 20 yards on each side. What’s more, the amount of new gold mined each year is relatively small despite the use of advanced mining technology. New supplies generally add less than 2% per year to the world’s total stock of gold. Around three quarters of annual mine production comes from the top ten gold-producing nations. Top Ten Gold-Producing Countries 1. SOUTH AFRICA 2. UNITED STATES 3. AUSTRALIA 4. CANADA 5. CHINA 6. INDONESIA 7. RUSSIA 8. PERU 9. UZBEKISTAN 10. GHANA Source: Gold Fields Mineral Services, 1999 There are four major components which make up the available supply of gold each year: 1) new mine production; 2) reclaimed scrap, or gold reclaimed from jewelry and other industries such as electronics and dentistry; 3) official, or central-bank sales; and 4) gold loans made to the market from official gold re- serves for borrowing and lending purposes (chart 1). GOLD SUPPLY The past decade has seen...

Website: www.pandaamerica.com | Filesize: 605kb
No of Page(s): 24
Download A Guide To Investing In Gold - Panda America.pdf

No comments:

Post a Comment