QUOTE AND NEWS
SeekingAlpha  4 hrs ago  Comment 
By Hebba Investments: Russia's latest report on its sovereign gold reserves show that the country added to its gold reserves significantly in August by purchasing another 300,000 ounces (a little under 10 tonnes). (click to enlarge) Source:...
Commodity Online  Sep 21  Comment 
The gold market has started to forecast a faster rate hike, and prices dipped below $1220/oz. The EUR/USD remains below 1.30 and US 10y Treasuries above 2.6%. and nbsp;
The Hindu Business Line  Sep 20  Comment 
The upward movement in dollar and end of the quantitative easing are negative for gold
The Hindu Business Line  Sep 20  Comment 
The officers of Customs at Mangalore International Airport seized gold, totally weighing 878 gms valued at ₹23.48 lakh, in two separate cases on Saturday. A press release by the C...
The Times of India  Sep 20  Comment 
Gold prices slipped to its lowest level in more than 14 months as intense selling remained unabated at the domestic bullion market amid fears of global meltdown in the aftermath of Fed policy backlash.
The Times of India  Sep 20  Comment 
Sentiments remained bearish as gold tumbled to an eight-month low in global markets as equities surged to a record, dampening demand for the precious metal as an alternative asset, traders said.
The Hindu Business Line  Sep 20  Comment 
China won the first gold medal in the 2014 Asian Games today when its women shooters — Olympic champions Guo Wenjun, Zhang Mengyuan and Zhou Qingyuan — clinched the 10m Air Pistol team title. ...
The Hindu Business Line  Sep 20  Comment 
SeekingAlpha  Sep 19  Comment 
By Apus Investments: Image Source. Gold continues to digest the implications of this week's FOMC meeting and is likely to remain under pressure as interest rate hikes become more of an eventuality for 2015. News of the Fed and FOMC interest rate...
Bloomberg  Sep 19  Comment 
Canadian stocks fell the most since February, sending the benchmark gauge to a third weekly decline, after metals miners sank as gold dropped to an eight-month low.
Commodity Online  Sep 19  Comment 
The point is that just about everything we believe about our state of economy and money is a fragile fiction. Silver and gold always lead the way for other commodity sectors - as the inflation signal for the investment/speculative trading world.




 
TOP CONTRIBUTORS

This article is about investing in the commodity gold. For the article on the company with ticker GOLD, see Randgold Resources (GOLD). For other uses, see Gold (Disambiguation).

Gold is one of the most highly-sought after precious metals in the world. It is used in jewelry, electronics, and coinage. Gold is widely considered to be an effective hedge against inflation, which means that when the dollar depreciates, demand for gold increases. In addition, during times of economic and political uncertainty, the demand for Gold rises due to its high intrinsic value and relative stability. Moreover, the introduction of gold ETFs and the increasing wealth in emerging markets, such as China, India, and Latin America have contributed to rising demand for gold. While demand for gold has been rising, supply has been dropping as many of the top gold producing countries have had decreasing production over the past few years.

Gold has been used as money for more than 3,500 years as it doubles as a currency and a store of value. Gold is one of very few assets that is not the obligation of someone else. It has also proven to be a good hedge as inflation since the experiments with unbacked fiat money began in Europe and the USA in the 18th century.

Prices

Gold futures contracts are traded on the COMEX under ticker symbol GC and are delivered in January, February, April, June, August, October, and December of every year. (For more information on commodity tickers, check out the commodity ticker construction page.)

Investors Gold

A soft metal with a characteristic deep lustrous yellow or yellow-brown color. Au chemical symbol, [1] with the chemical element of atomic number 79, valued for use in jewelry and decoration, and to guarantee the value of currencies. The purest form of money, and the oldest, most durable. Gold, Aurum was already legal tender before the first coins. The oldest gold coins derive from the seventh century BC.

Investors use Gold as a store of value. Gold metal offers the appearance of capital appreciation compared to depreciating currencies. Gold has always had favorable liquidity, but Gold is sterile, it does not provide any current income. [1] Gold does not provide positive cash flow to the owner. Gold owners must pay to maintain, store, and insure Gold, which is an expense. On a cash flow basis Gold a liability, Gold costs you to own it. [2]

As an example, if returns were adjusted for inflation from 1802 to 2001. $1.00 invested in stocks would have returned $599,605.00 while bonds and bills would have returned $952.00 and $304.00. The results for investments in gold and the US dollar would have resulted in losses, since that $1.00 investment in gold would have been reduced to 98 cents and the US dollar only seven cents. [3]

Companies Who Benefit from Rising Gold Prices

Gold Companies

  • DRDGOLD (DROOY) is the fourth largest gold miner in South Africa. South Africa is the world's top gold producer after India.
  • Goldcorp (GG) is a gold mining company based in Canada that has the lowest cash costs of any tier 1 mining company. It is the 5th biggest gold producer.
  • Harmony Gold Mining (HMY) is the 5th largest gold producer in the world, is the largest gold producer in South Africa and also has mines in Papua New Guinea.

For a complete list of companies involved in the gold industry, see Gold Industry

Gold Exchange Traded Funds

Most gold ETFs buy gold as backing for the fund. [4]

Other Gold Exchange Traded Funds

High End Jewelry Companies

High end jewelers actually benefits from rising gold prices because as prices rise, gold jewelry becomes a more valuable and coveted option.[9]

Companies Who are Hurt by Rising Gold Prices

Low to Mid End Jewelry Companies

Low to mid end jewelry companies tend to suffer from increasing gold prices because the company's lower income clientel are less flexible to price changes.

Individual Consumers

In addition, individual consumers are hurt by the rise in gold prices as they are no longer able afford it. This is particularly true for cultures which rely on gold articles as a symbol or key aspect to ceremonies.

Historical Gold Prices

Whether as the basis for the monetary unit of a country, or in its role in comparison to the currency price of silver, the history of gold price has long been a subject of great interest to both the scholar and the general public.

Below are five series for determining the value of gold price historically:

Gold Futures

References

  1. A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing by Burton Gordon Malkiel ISBN-10: 0393062457 pg359
  2. Rich Dad Poor Dad by Robert T. Kiyosaki ISBN-10: 0446677450 pg61
  3. Equities: An Introduction to the Core Concepts (Mark Mobius Masterclass Series) ISBN-10: 0470821442 pg 16
  4. Have gold ETFs bottomed
  5. Wikipedia:Gold Exchange-Traded Fund
  6. Wikipedia:Gold Exchange-Traded Fund
  7. Wikipedia:Gold Exchange-Traded Fund
  8. Wikipedia:Gold Exchange-Traded Fund
  9. High Prices as Good as Gold in Jewelry Market
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki