Im looking into buying gold or investing in gold. Would Silver or gold etf’s be a good idea? Im not sure how they work or if there going to be a good longterm investment. If anyone can explain how they work and if there worth the investment. Mabe some websites or companys that would be good to look into.Ans would investing in gold or silver mining companies be a good idea? how would I do that? through stocks? thanks

Bear in mind im stupid, but what websites would i use (im in the UK)? What sort of tax and charges would there be? What, realistically is the minimum i would have to invest? Thanks.

Do you remember your history lessons in school? Were you paying attention? You may recall lessons that discussed the weight of gold or the history of gold in the world. Gold has been used for purchasing, bartering and collecting throughout history. Gold has even been a hedge against inflation and helps to preserve and protect future earnings of Americans.

Today, we can purchase, trade or make a gold investment in a variety of ways. Gold comes generally in two forms, also called bullion, these forms are coins or bars made of gold. With trading, most investors trade in gold futures on the market. Gold Investments are often made in refining or mining companies.

If you take a look at history, you will begin to notice that gold was very helpful all through the changing times. It provided a safe avenue during times when the world’s economy was unstable. For major gold investors, gold can improve a portfolio and decrease the amount of risk.

There is a variety of avenues when it comes to gold investing. The options for invest are; gold coins, bars, statement accounts, accumulative plans, mine shares and mutual funds.

Possibly the most popular avenue of gold investment is in coins and bars. There are different sizes and weights available to invest in. Some of the weights include 1 gram, 1 kilobar and the international bar. But that’s not all.

An investment in gold bars is one way to produce cost efficient methods of investing in gold. This is because broker commissions are minimal for selling and purchasing gold bars. Gold coins are as popular among small and medium investors. The reason for this is that in the issuing country, gold coins are considered legal tender and guaranteed for their face value even through economic changes.

Some of the leading gold coins include:

*The American eagle- It is available in weights of 1/10, ¼, ½ and 1 troy ounce *Canadian Maple Leaf- It is available in weights of 1/10, ¼, ½ and 1 troy ounce *South African Kruggerand- It is available in weights of 1/10, ¼, ½, and 1 troy ounce *English Britannia- It is available in weights of 1/10, ¼, ½ and 1 troy ounce *Australian Kangaroo- It is available in weights of 1/20, 1/10, ¼, ½ and 1 troy ounce *Chinese Panda- It is available in weights of 1/20, 1/10, ¼, ½ and 1 troy ounce *Austrian Philharmonic- It is available in weights of 1/10, ¼ and 1 troy ounce *Mexican Centenario Family- It is available in the following; 2, 2.5, 5, 10, 20 and 50 pesos. *Mexican Onza- It is available in weights of, ¼, ½ and 1 troy ounce

As you see above, gold coins are a popular form of gold investing and good planning for the future. Gold will be a good investment through changing times because it will keep its value.

Summary:

Gold Investing has been the best form of investment throughout history. Today, gold can be purchased in two types of bullion. You can also invest in “gold statement accounts”, “accumulation plans”, “mining shares”, “options” and “mutual funds”.

Gold investing assures that your future is secure.

Investment advice in times of global economic turmoil.

Gold, Platinum and Palladium together with Silver have been the major metals investors have looked into when running from the equity market.

Platinum and prognoses in the short and long term.

South African platinum mining industry is expanding rapidly, making it likely that platinum and rhodium would go into “significant oversupply” in the medium to long term, and negatively impacting prices of these metals.

The oversupply driving forces are projected growth of South African mines, lower global vehicle production and increased auto catalyst recycling.

The analysts estimate that South Africa will produce 5.9 million ounces of platinum by 2010. Then continue increasing to 6.4 million ounces by 2012 and 7.6 million ounces by 2015.

The forecast takes into account expected production from an additional 19 projects that were due to be commissioned in South Africa between 2008 and 2015, as well as power-shortage and project-delay constraints.

This will lower prices, shorten the company margins, minimize cash flows and earnings.

The 2010-to-2014 platinum oversupply would potentially reduce platinum prices with 30% and the 2009-2011 rhodium over supply could make the rhodium price to be half.

In 2008 there was already expected that the platinum price would drop to between $1,200/oz and $2,000/oz and the rhodium price to between $4,600/oz and $8,000/oz.

If we look at the statistics for the period from 1999 up till today, we can see that this prediction was not far off, it was even too optimistic. In 2008, the price of Platinum stabilized on a level of around 8-900 USD/Oz., see figure below.



Figure 1; the trend for Platinum in 2008, with the downfall in June 2008 down to a base level at the end of the year, and the slowly upward trend in the first quarter of 2009.

Platinum and palladium prices were down on demand concerns after the top three auto manufacturers in the United States, General Motors, Toyota and Ford Motor all reported that sales were down in June already that year.

Both platinum and palladium are used in the manufacture of pollution control devices for motor vehicles.

U.S. auto sales remained at the lowest annual rate in 15 years, in July 2008. That fueled concerns that demand will decline for platinum and palladium for auto-emissions control parts. Production in South Africa is the source of 78 % of the world’s supply.

General Motors, Ford Motor and Toyota Motor Corp.’s U.S. reported declined sales, record gasoline prices depressed demand, for trucks and large vehicles, and a slowing economy kept consumers away from dealer lots. Ford Motor reported a 15 % drop from a year earlier, Toyota’s sales fell 12 %, and GM posted a 27 % decline.





Figure 2; Palladium price development from 1992 to 2009. Both platinum and palladium are used in both diesel and gas catalytic converters. Rhodium is often a third component. And gold might come into use in some diesel catalytic converters. Throughout most of the mid 1990s palladium was trading in the $150 per ounce range. Beginning in 1997, a rise in palladium’s price was seen, no doubt due to rising demand stemming from use in auto catalysts. In 1998, some spikes occurred to above $350 per ounce. In 1999, it continued to trade in the $350 range, but began rising at year’s end.

As the year 2000 began, palladium was trading at $433. By February 24, it had shot up to $1080, due in part to delivery interruptions from Russia causing a shortage. Automakers, whose manufacturing of catalytic converters depended on reliable stocks of PGMs, had concerns of their own. After reaching the peak in February 2000, palladium retreated during the March to May period, perhaps raising hopes that the Russian metal would be available the rest of the year.

A significant 2010-2014 platinum-rhodium price downturn will “shock” the industry as it can slash industry earnings by between 40% and 90% by 2012.

If mining inflation were not checked, the impact of lower prices would be compounded.

There is expected a cost increases compared to previous years, which will be a price driving factor as well.

The investment case for the South African platinum industry would, however, remain strong in the immediate term, as calculations show both platinum and rhodium in short-term deficit.

The 2008 platinum deficit would be 600,000 oz and 2008 rhodium deficit 80,000 oz, putting upward short-term pressure on prices.

The automobile manufacturer’s reports and a brighter supply outlook out of South Africa continue to present a hurdle to price advances.

The Platinum group metals have been hit the strongest as investors believe they have hit their top and want to be in the more liquid gold, where they can get in and get out quickly. With platinum below $1,200 an ounce, it is expected that good industrial buying in South American countries will occur.

Platinum reached a record $2,308.80 on March 4, 2008 partly because of output cuts in South Africa. But, by May 2008, precious metal output, except for gold, rose at a 2.6 % annual pace, according to Statistics in South Africa.

Platinum fell as the dollar rose against the Euro.

Over the past year, platinum prices have fallen from a high around $2,250/ounce to about $955/ounce.

The gold prices development is not good news for the platinum miners.

Platinum deposits are primarily located in a small handful of countries: South Africa, Russia, Canada, and, just barely, the US. Stillwater Mining Company closed one of its two Montana platinum/palladium mines in November. Stillwater attributed the closure to the severe drop in platinum and palladium prices.

Prognosis for Palladium and Platinum

The prices of Platinum and Palladium have also been climbing in anticipation for the possible demand for fuel cell use. Cheaper alternatives for platinum for both catalytic converters and for fuel cells are being developed and may soon reduce that demand also.

It is about the most useful metal in chemistry and jewelry and should have a relatively high intrinsic value. But now the metals values mainly as a safe haven investment, but not a quite so speculatively useful metal as f.inst Gold.

Hedge funds are still unwinding selling assets like platinum which lowers the price. Also industrial demand is drying up as deflation sets in with people buying less and companies producing less. At least that’s one reason for the drop in prices of platinum.

Not saying it’s not good to hold platinum or that platinum will continue it’s downward slide into the abyss. When commodities start to climb due to inflation - after this deflation bit - platinum will climb with them.

Another reason for uncertainty to pricing of Palladium is a product recently developed by Litex, Inc., which is currently being exhibited this week at the Society of Automotive Engineers (SAE) World Congress, could help auto manufacturers save hundreds of millions of dollars by reducing the amount of palladium needed in a car’s catalytic converter.

The Corona Discharge Device is a low-cost, low-power (25 W) product, which boosts the performance of a catalytic converter. It alters the chemical composition of exhaust gases, enabling the converter to operate more efficiently and making it more fuel sulfur tolerant. In addition, the CDD provides auto manufacturers the ability to meet increasingly more stringent emission standards, such as Tier 2 and Euro IV, with less precious metal. This is particularly important given the skyrocketing price of palladium, platinum and rhodium prices, potentially providing net savings of up to $150 per vehicle!

Gold and its future for the investors and why

Gold has fluctuated the last months between about $1,000/ounce to just below $900/ounce. That’s not good news for platinum miners.

Farm bill passing in June of 2008 which tightened the rules regarding speculation in several markets at the same time is responsible.

The reason for platinum near-parity with gold is that gold is holding up better, with its history as a store of wealth during economic hardships.

Look at any stock or commodity and their recent declines (due to deleveraging) and compare their losses to gold’s.

Gold is not really a commodity – where as in Switzerland you are able to go to any one of the local banks and trade Euros, Dollars, etc by gold bullion and vice versa.

Gold has shown continued strength at present day price levels amid the volatility in the economy around us.



Figure 3; Gold prices have risen steadily during the last few years. However in th end of 2008 we saw a dip in this trend, as Gold price went down. Since that moment, the prices have fluctuated between the max price and a price around 900 USD/Oz. Predictions from various experts are a price level of 2000 USD/Oz within 24 months time. This would make Gold a very healthy investment.

Gold has experienced a shift in fundamentals when compared to 1980’s speculative high.

Five fundamentals that drive the gold prices

- Supply and demand,

- Dollar weakness,

- Institutional buying,

- The price relationship between gold and oil, and global economic uncertainty

Donald W. Doyle, Jr. Chairman and CEO of Blanchard said early in 2008 that we should expect some gold price consolidations, which would be healthy for the market, and view these as buying opportunities, because we see the price ultimately going significantly higher than levels at that time in the long-term. This tip came through as we see price has consolidated in early start of 2009.

The demand for gold is driven by several factors

- Global supply shrinks,

- Emerging markets begin to play a more significant role in the world’s economy,

- Former sellers of gold - notably central banks and hedge books - reverse their selling trends and become buyers again themselves.

We would expect these conditions to be present at least during 2009, as there are no signals of the opposite.

Present day economic situation and why it makes sense to invest in Gold

The Global economy is slowing to a crawl, and the U.S. Fed is continuing to infuse liquidity through rate cuts that further weaken the dollar. Large institutions and central banks continue to move out of dollar-based assets and into quality alternative tangible assets such as gold.

Differences between today’s economic collapse and that of 1987 where a near global implosion featured a U.S. economy that was in solid shape. Today the underlying cause of the crisis is the U.S. economy and domestic housing deflation. Real consumer spending is declining, unemployment raising, and industrial production in the U.S. is losing traction, triggering a flight to quality alternative investments.

Gold is not just a luxury item - it was the foundation of the global currency system for eons and, as the current global economic crisis continues to unwind, the precious metal has reasserted itself as the fourth currency. There is a belief that widespread increased investment demand will offset any decline in luxury goods manufactured with gold as investors seek to secure assets that will retain their value.

Of all the different ways that we choose to buy gold, gold bullion is probably the best of the lot. You can also buy gold online either in the form of gold coins or gold bars or even purchase your share from a pool of people purchasing gold. Buying from the Mint or dealers is an easy option, provided you know the people who are genuine. Purchasing gold has its pros and cons as you can see.

Why Gold bullion

Purchasing gold coins and bars does attract a premium and this generally depends on the amount you want to purchase. The smaller the quantity the higher the premium per troy ounce is the tip for all who wish to make their purchases. Of course, the premium is one criterion that remains stable in most cases.

Gold bullion in general terms is an honest way to make money, perhaps the best form of money known to man. Because gold is rare and durable, it does not wear out at the same rate as other metals do. Thus buying and selling of gold is truly a profitable venture. Gold bullion is available through various means.

Taking a 10-ounce gold bullion bar of.995 fine purity as the standard, gold bars can be used for trading and storage, as well as for personal usage. With each gold bar hallmarked by leading refiners, manufacturers can easily use this as bullion after imprinting their own significant hallmark or stamp.

Benefits

Similar to stocks, gold bullion can be en-cashed at the prevailing market rates. Besides this, gold bullion bars are tangible assets, and have been the ideal investment in terms of value, security against inflation and in times of political uncertainty. They are superlative liquid investments with respect to financial security. Gold is easy to store and transport and is a good way to preserve one’s private wealth. As an investor, you need to be well versed with the bullion market trends so that you can get the added advantage of the best pricing. Experts observe that you should consider gold or gold-related investments as portfolio diversifiers for a rainy day. Placing hard-earned money in a fund that invests in gold directly allows you to be away from fluctuations in gold prices. You have a right to choose from several gold options for trading as regards monetary transactions and yet maximize profits.

So why gold bullion? That’s because cheap money and inflation makes gold bullion an attractive asset. Gold futures give you the leverage to the gold price, super-charging you with gains if you can call the short-term direction accurately. Think about it, your thought may be worth its weight in gold after all!



You can buy gold bullion coins at Capita Gold Group. Pintoo Albert is a writer for finance industry and writes articles for blogs, and magazines.

Hoboken, NJ (June 2008)—Sure, you’d like to “go green” in your investments. If you could find some financially sound options, why not? As environmental issues have heated up and gained more and more press, you’ve embraced the concept of saving the planet. You’ve changed your light bulbs, strived to live the “reduce, reuse, and recycle” mantra, and even traded in your gas-guzzling SUV for a hybrid. (Well, at least you’ve considered it!) Problem is, you need to feel secure about your retirement years—and the concept of green investing just seems a little too, well, trendy for comfort.

Jim Mellon and Al Chalabi say such fears are unfounded. In fact, the opposite is true. As our planet’s dwindling resources become ever more scarce, and the need to find alternate energy sources becomes more pressing, green investing will start paying off in a big way. Getting in the right markets now can help you create a prosperous future—and in an age where traditional retirement avenues are failing, that’s no small feat.

“As baby boomers age and retire and modern medicine keeps us all alive longer, the pension plans set up by corporations and governments are becoming ever more strained,” says Mellon, coauthor along with Al Chalabi of the new book The Top 10 Investments for the Next 10 Years: BigIdeas, MoneyFountains and Your Path to Prosperity (Wiley, February 2008, ISBN: 978-1-84112-802-3, $29.95). “You simply can’t rely on those sources to keep you going when it’s time for you to retire. That’s why it is so important to be a savvy investor now. And going green with at least some of your investments is a sure moneymaker.”

The authors explain that, in investment terms, the biggest theme of all over the next ten years will be the broadly defined “green” movement. New methods of generating power, conservation measures, and changing fiscal regimes in relation to the use of power will create some of the biggest global investment opportunities.

“Significant amounts of capital in almost every part of the world are already being deployed to take advantage of these trends,” says Mellon. “New plants are being built to manufacture photovoltaic cells for solar power projects. Hydrogen fuel cells are being developed at a rapid rate to a point near commercialization. And nuclear power stations are being planned or built in quantity. In addition, wind farms now dot many landscapes. The whole ‘renewables and new energy’ industry is on the cusp of a breathtaking advance.”

Wondering how you can take advantage of these growing green opportunities? Here are just a few tips that could help you prosper:



Put your money in renewables. Most developed nations are racing to figure out how to make the move to green energy. From wind farms to tidal and wave projects; from waste-to-heat projects to more extensive nuclear generation; with, of course, solar power coming up on the rails—the race is on to transform the electrical energy generating landscape of the world.



“Perhaps the most visible of these initiatives occurs in the form of wind power,” says Mellon. “All across Europe, wind farms are sprouting like mushrooms. An industry once derided as a novelty is now a multi-billion euro/dollar sector all on its own. But beware: If you choose to invest in the wind farm sector, do your research first. This is a capital-intensive business, subject to a lot of government interference and scrutiny, and some sophisticated investors have already gotten there first and creamed off some of the good potential returns.”



Invest in these conservation companies. Companies involved in conservation, wind power, and nuclear power are likely to see significant growth in coming years, and that’s good news for the environment and their investors. One company worth looking into in those areas is Fuel Tech, a US company that is working to cut a substantial percentage of carbon emissions from fuel combustion units. Or check out Clean Air Power, which is a London-listed company working to get trucks to use natural gas. And, of course, there is nuclear. In this area investors might want to look at Niger Uranium, a London-listed company exploring for uranium in Africa.



“Like any realm of investing, it’s one thing to know the options are out there, and a completely different story knowing exactly which companies to look into,” says Mellon. “These are all great green options.”



G is for Green…and Germany. Germany is the world’s biggest consumer of PV cells—which are used to make solar panels—because of the favorable fiscal and monetary regime for solar power in that country. Today, the country accounts for half of all the solar PVs installed in the world. The reason that the German market is growing so fast is because of the so-called Feed-in-Tariff. This means that anyone connected to the grid (and that includes private homes) gets a guaranteed payment for putting green electricity into the grid of about four times the market rate—and that goes for solar PV, wind, or hydroelectricity.



“Germany has been so aggressive in promoting solar power that several world-beating companies have grown up to satisfy the local—and subsidized—domestic demand,” says Mellon. “Q-Cells is one example—the company started making PV cells in Germany in 2000 with 19 staff members. Today, it has over 1,500. It exports half of its product and is the world’s second largest maker of PV cells, after Sharp of Japan. And if you’re looking to invest, the company might be good place to start.”



Invest in the elements. Big money is in investing in the extractive industries, which mine the key components of solar panels. Gallium, indium, germanium, and other materials are vital to the PV story, and the companies that mine and extract these components are a great place to invest your money.



“Jellon Limited is doing it,” says Mellon. “Other promising options include: Recyclex, a French company producing gallium amongst other metals; New Jersey Mining Company, which produces gallium from mining operations in Idaho; Gold Canyon Resources, which has prospective gallium deposits in Nevada; Bluglass, an Australian producer of gallium; Dowa Mining, listed in Japan, it is the world’s largest producer of Gallium; and AXT INC, a NASDAQ-listed maker of satellite solar panels, mainly producing semiconductor substrates for electronic and optoelectronic uses.”



“Carbon” trading in the European Union shows promise. Countries that are part of the Kyoto Protocol have been forced to figure out how to limit their carbon emissions without damaging the economies in their countries. One way many European countries are doing this is through an Emissions Trading Scheme in which each country can emit one ton of carbon dioxide. The country then assigns permits to their biggest emitters allowing them certain amounts of emissions. Any company not needing its whole allocation is then free to sell the surplus in the ETS market where the buyers are typically companies that need more than their allocations.



“The idea is that, because there is value to these permits, companies will be encouraged to invest in green technologies, especially as the ‘cap’ on total allowable emissions gets progressively lower, making fewer of the permits available in future years,” says Mellon. “The ETS market is becoming a large and interesting one. Investors may wish to consider looking at funds that offer an entry to investing in such permits—one such is Climate Change Capital, listed on the London Stock Exchange.”



Learn more about camelina. Although most “bio fuels”—crop-based fuels—make very little ecological or financial sense, there is one crop that would be worth investors’ keeping an eye on. “This crop is ‘camelina,’ which is an interesting low-cost feedstock for biodiesel,” says Mellon. “It has high energy, is non-food (so that food production is being diverted into energy), uses marginal land that requires no irrigation, is sustainable, and has a very low cost per liter. There are no publicly available companies in this space as of yet, but if you’re interested, keep an eye out for some of them to pop up. Check out www.camelinacompany.com.”



A move away from landfills will be profitable. Another area of potential interest is waste-to-energy systems. Here, the problems from using landfill sites in many industrialized countries—including the space constraints and the by-production of dangerous methane gas—are opening the doors for a new industry to develop.



“The waste-to-energy industry is one that seeks to turn waste into energy by burning it, or by using the by-product methane gas, which results from disposal of any organic waste, to generate heat and electricity,” says Mellon. “Companies involved in the waste industry worldwide include UK companies Shanks and Biffa, both listed on the London Stock Exchange. These companies are already involved in landfill site management, waste collection, recycling, and disposal. Another is the Japanese company Daiseki, which is that country’s only nationwide industrial waste operator. Other promising opportunities are with Séché Environnement in France and Lasila Tikanoja of Finland, both involved in new recycling technologies.”



Energy-saving will help you save in more ways than one. Within the next few years, energy-saving gadgets could be commonplace in all households. Already people are switching to low-energy lightbulbs, and other products are sure to follow. “Imagine all the computers that are turned on in the world right now,” says Mellon. “How much energy would be saved globally if each new PC sold came with a fan or cooling device that was just 5 percent more efficient? The same goes for TVs, fridges, heaters, air conditioners, etc. With energy-savings, it’s a numbers game—historically, we haven’t bothered to fine-tune energy consumption of devices because energy supply has not been an issue. But now there are just so many devices in every household that it’s really adding to the problem. Look for more companies to pop up that will provide energy-saving solutions for the household appliances we use every day.”



Overwhelmed? Invest in an ETF. The sheer volume of opportunities in the green market can be overwhelming for any investor. Luckily, investors can take advantage of this market by investing in alternative energy in a more general sense through the Market Vectors Global Alternative Energy ETF, which trades in the US under the symbol GEX. The holdings of the fund range between 1 and 11 percent. Before the fund invests, companies must meet the following requirements: 1) Represent the 30 stocks in the Ardour Global IndexSM (composite) with the highest average trading volume and market capitalization, 2) Have a market cap exceeding $100 million, 3) Have a three-month trading price greater than $1.00, 4) Be involved in the business of the alternative energy industry (i.e., derive over 50 percent of total revenues from the industry).You can read more about this ETF by visiting www.vaneck.com.



“It is not for us to judge whether or not we may all be burnt to cinders by the sun in 30 years or so, unless these developments are successful,” says Mellon. “It is enough for us to say only that these green opportunities are a gold rush at its very earliest stages, and it’s a gold rush that every serious investor should consider.

“That said, investors should remember to always diversify their investments,” he continues. “The green realm is full of promise, but having too many eggs in one basket always carries risks. There are other great opportunities out there with real estate, commodities, and more. To ensure your investments have made the most for you over the next ten years, you’ll want to check those out as well.”

# # #

About the Book:



The Top 10 Investments for the Next 10 Years: BigIdeas, MoneyFountains and Your Path to Prosperity (Wiley, February 2008, ISBN: 978-1-84112-802-3, $29.95) is available at bookstores nationwide, from major online booksellers, and direct from the publisher by calling 800-225-5945. In Canada, call 800-567-4797.

Despite massive Government spending on the stimulus and rescue program, the economy seems in no mood to rise even an inch above the level of collapse. The Federal Government expected to change the scenario of the financial industry by passing its $787 billion stimulus package. The size of the plan conveniently blinded the observers that the damage to the economy has already been done.

The latest spending signed by President Obama included $300 billion committed to Citigroup, $700 billion for TARP 1, $300 billion for the FHA, $200 billion for TAF and around $300 billion for Fannie and Freddy. The Government spending has reached a whopping $5 trillion to save the financial industry from collapsing. But prior to this spending, the Federal Government had committed $4 trillion to keep the banks from failing and help them in restructuring. That is 9 trillion dollars!!!

With an additional $787 billion into the rescue and stimulus spending package, there still is no guarantee confidence can be restored or certainty of economic growth. This can be said given the worst recession that has hit the world economy in a century. If the rescue package is unable to save the banking system in this deepening deflation, then who can guarantee that the Government will be enabled to reduce inflation when it starts to hit.

Senator McCain has highly criticized the splurging in Obama’s Government and unprecedented spending towards the rescue package. He describes the scheme as “generational theft”. He feels that if this spending on financial restructuring does not yield the desired results then it is going to encumber many future generations with this gigantic debt which is further going to halt restructuring and unveil the suppressed hyperinflation to the surface.

Rational investors have also condemned the act of rescue and stimulus spending, by stating that the government is only throwing money at the problem. It’s all the more threatening when the government has no idea on how to proceed in the given financial situation and is over zealous spending like throwing fuel on fire.

Looking at this unsure and intangible move of the Government, practical investors have decided to store wealth for the future downfall in the economy. They are doing this by stock piling gold coins, bars and stocks. This has obviously resulted in high demand of gold which has shot up the gold prices to an all time high.

Congress is failing to understand the implications of further debts, especially in this intensified recession scenario. The notion of funding the financial industry to help in their restructuring is doing nothing but adding to the already overwhelming debt. They are forgetting the most important point here that with the current inflation rate, banks will not be able to recover from their debtors which is only going to threaten the credit industry.

Even the most optimistic observers have serious doubts in the Federal government strategy after the release of the latest minutes of spending an extra $787 billion on banking systems. The American economy had declined by 3.8% in the last quarter of 2008. And with this massive spending of the government, it is forecasted to dip even further to around 5.5% in the first quarter of this year.

Despite the substantial spending on the rescue and stimulus bill, the average American consumer is threatened by inflation and is nervous about the further downfall in the economy. With this being said, the credit market is definitely going to show minimal signs of recovery.

As if this is not bad enough, investors are taking huge hits given the further worsening markets. The Dow Jones Average is stumbling to new lows and the commodities market seems to be at the dead end. In such situations, people would expect the prices of gold to fall along with the prices of other assets and commodities. But surprisingly, it has been the complete opposite of the expectations.

Gold prices have peaked in the last couple of moths. The price-depressant activities like the official gold-sales by the IMF and official approval for the massive naked short positions to be operated by the new bullion banks have not influenced in anyway to control the rise in the price of gold.

Gold spot prices have reached new heights and the price of physical gold is around $40-$50 high per ounce than the spot price. This has caused panic amongst investors they are insisting on taking physical delivery.

It does not seem like the economy is going to improve in the near future. This is obviously going to adversely affect the recovery. Government is trying to replace the spending normally done by the consumers which make up 70% of the economy, but at this rate, the dollar’s influence will continue to diminish as countries look toward other currencies to store their wealth. Gold is expected to reach minimum $2500.00 which factored for inflation is where it reached in the early 80’s ($850.00). We have a long way to go! Buy Gold!

Not the physical stuff itself…
Some sort of an ETF that tracks the price of gold.

When stocks and real estate are flat, Chris Vermeulen succeeds investing in gold, silver and oil

Collingwood, ON — Often the conventional wisdom is to stay invested in the stock market and in real estate. But millions of investors following that often-touted strategy have seen their portfolios drop by half or more. “Investors everywhere have had it with staying the course only to see their life savings disappear. That’s one of the key reasons highly profitable gold and oil are becoming the investor’s choice for the 21st Century,”said Chris Vermeulen.

Vermeulen is a veteran trader of gold and oil who makes his methods and insights available to others via his website at http://www.TheGoldAndOilGuy.com . He provides traders with unparalleled gold and oil trading analysis, signals and 24/7 trading email support.

Unlike other sites, Vermeulen is a one man operation. He personally develops all his information, and then makes himself available to individually assist subscribers. “I don’t want an employee handing out advice while I’m traveling Europe,” Vermeulen said with a smile.

The service is designed for active traders who insist on a conservative approach to investing. He uses the GLD Gold exchange which allows for very accurate signals when used along with the price of gold, HUI, USD and gold stocks price action. “Over the years I’ve found these factors used with expert analysis deliver extremely impressive yields,” Vermeulen said.

But perhaps best of all, Vermeulen’s strategy is clear and simple to learn and use. “My strategy makes your trades extremely accurate with very little downside risk,” he said.

In the current business climate where investors are quite enthusiastic about trading gold and oil, it is easy for trading advisory services to advance very risky recommendations.Unfortunately many of their subscribers lose big.

“I insist on moving conservatively. My subscribers make 8 to 12 trades per year with very little downside risk. But the potential is tremendous,” Vermeulen pointed out.

Vermeulen began trading gold and oil a decade ago, gradually refining his trading methods to achieve remarkable results. “Now that gold and oil are the hottest investment available, traders have to be careful they aren’t getting advice from someone who just recently got into the game. Gold and oil is not a get rich quick path for those who aren’t willing to use a sound method and analysis,” he said.

As an added bonus, new subscribers who sign up for a full year receive $300 in free gas. Traders can subscribe for as little as $25 per month.

I’m often asked if Gold is a good investment and I invariably answer that gold may well be a good long term investment for an investor but I am a wealth creator and the very word “investment” is simply not part of my wealth creation vocabulary.

This statement usually results in a very perplexed look on my questioner’s face.

And so it was with Walter. Walter is a financially struggling bank employee and came to me to learn about wealth creation. (Yes I assure you, there are tens of thousands of financially struggling bank employees out there.)

‘Charles, so you are saying that if you had a spare $25,000.00 you would not even consider exchanging it for gold bullion?’

‘My dear chap, why would a wealth creator swap one asset (money) valued at $25,000.00 for another asset (gold) also valued at $25,000.00? Rather pointless exercise don’t you think?’

‘But gold may rise in value and your money might devalue - isn’t gold a hedge against such occurrences?’

‘Yet equally, gold could go down in price and the currency strengthen - surely what you are contemplating is just a form of gambling, is it not?’

‘On that logic all investment is a form of gambling, as prices of any share or commodity can go down as well as up. That is why one needs to weigh the risks.’

‘Exactly so - and that is why I am a wealth creator and not an investor or speculator. Investors and speculators hope and pray for some future event to occur, whereas a wealth creator insists on increasing one’s wealth at the point of purchase.’

‘But Charles you can’t buy gold bullion at wholesale rates - as you well know the spot price is fixed daily.’

‘Who said anything about paying wholesale price for it - I would prefer to be an alchemist and turn dross into gold.’

Walter’s young moon face went red with frustration. ‘Oh come Charles, please be serious with me and stop toying. I truly want to be wealthy one day and on a bank teller’s salary alone, I can’t see that happening.’

‘Oh but I am being serious. Turning dross into gold is a very enjoyable hobby - the challenge is not whether one can accomplish the task - merely how quickly one can accomplish each stage of the goal one sets for one’s self.’

‘An enjoyable hobby! … But how on earth do you do that?’

‘Simply by making the conscious decision to become a wealth creator - develop your own part time wealth program and stick to it. Besides my book The Secrets Of Wealth Creation Revealed, I’ve written many free articles that are now all over the web. Study them and then begin your wealth program ASAP! There are a thousand and one ways to accomplish the task of turning dross into gold. It’s a matter of first knowing the principles, secondly establishing an easily managed workable plan – then thirdly, having the fortitude to stick at it.’

‘You mentioned setting “goal stages” could you give me an abbreviated example of how one goes about the process?’

‘Well if your desire is to amass gold then if I were you, I would have a clean out boot or yard sale of all superfluous items in my possession (dross) to raise some initial capital. I would take that small amount of money and taking my time (because time is virtually immaterial to the success of this endeavor) haunt charity shops, other peoples yard and boot sales, auctions etc and buy items that I know I can resell at several times the price I paid.

I would keep a list of the expected realizable value of such items (wealth total) and keep buying and selling till that list total becomes about $9,000.00 in value. Now I know to you that may sound difficult to achieve right now but please understand, if you are working on 200% minimum mark up, this can be accomplished so quickly. That is $150.00 in sales becomes $450.00 which becomes $1,350.00 which becomes $4,050.00 which becomes over $12,140.00 and so on.

Now as I said, once that total of goods on hand passes $9,000.00, stage 2 of my wealth plan would come into effect. That is, I would then save the proceeds of the next approx $3,000.00 of sales (depending on current spot price) and purchase a 5 ounce gold bar.

The realizable value of the remainder of stock would still be a minimum of $6,000.00. My next task would be to quickly increase this total back up to $9,000.00 and then repeat the gold purchase. You can continue this process until you feel you have amassed enough gold.

You will find as you learn and gain experience, wealth creating will become your second nature. Opportunities will materialize all around you. Soon you will be running in and buying gold bars at least twice a month. People will think you have the Midas touch and you will be able to say ‘No it isn’t that at all - It is all the result of Alchemy and my dear old friend Charles Goodwin!’

Do not worry about the spot price fluctuating. Merely stay detached and consider that you are simply turning dross into gold and of course that is exactly what you are doing. If you have any doubts in your own abilities divide all the figures by 5 and initially buy an ounce of gold at a time. I can assure you the journey is both exciting and interesting. You will learn so much upon this journey and then one day the penny will drop and you will suddenly realize that the world is now your oyster. You can create as much wealth as you desire.’

‘Charles, forgive me - but may I ask the obvious question. You have shown me a fool proof way to amass great wealth, what do I do about taxation?’

‘I am a wealth guru as well as a mystic! Would I leave you floundering without a tax plan equally as simple and equally as effective? No of course I wouldn’t. But at some stage you will simply have to beg, borrow or steal a copy of (or dare I say it - even buy a copy!) The Secret Of Wealth Creation Revealed and truly - all will be revealed!’

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