Sunday, August 11, 2013



When talking about commodities Gold always stands out, not only at an outer level but it also creates a lot of opportunities for investors to profit and expand their portfolio in a stable way especially when the stock markets turn dry. An interesting relation between gold prices and the dollar is that gold tends to rise when the latter is weak. Therefore it presents a possibility to hedge a risk created by the downside in the dollar. Gold mining has turned into one big industry. In order to benefit from it individuals can invest in stocks of gold mining and exploration securities or Equity traded funds that have the ability to instantly provide exposure to a basket of  gold mining or exploration companies in one single transaction.

Such ETFS track companies in this industry, while some track the price of gold and its related indexes and consist of futures and derivative contracts and others consist of gold assets held in trust. The commodity ETF is not physically backed by the metal. On redemption of the ETF the individual will receive cash not gold.

Gold explorer funds come with advantages such as tax benefits over other products like mutual funds. Also one doesn’t incur extra costs in form of commissions as investors will purchase at a given price. Investing in physical gold will be liable to higher taxes compared to equities; also such investments do not provide income in the form of dividends something that is most needed in a low interest rate setting.

Investments in gold exploration are witnessing a cash receiving trend via the broader markets route. The primary attraction with the market traded products is a global asset kitty which includes the most strategic Gold explorers equity listed around the world.

A Uniform and global spectrum is attained as being Index attuned, the product are pure play on their benchmark and the asset class.

For example buying a Gold Explorer ETF that tracks the NYSE listed Solactive Global Gold Explorers Index will give you assets in the form of twenty most liquid and traded explorer stocks from around the world, with an equal weight age close to 5% each. Thus apart from the exposure to major explorers like Torex gold resources and rubicon minerals corporation, australian equity like the gold canyon reserves is also acquired with much ease. The exploration stocks can prove to be extraordinarily fruitful as most of them are not even in the process of producing the actual metal yet and a news based market speculation is best harnessed when bought at lower levels. These companies have mine properties that may not be developed and producing gold. These businesses are in early stages of exploration and trying to determine whether there is a workable mine in the ground that can be eventually developed. Such companies have lesser costs compared to the ones engaged in production and mining.

Gold explorers have always shared inverse relationship with dollar, which makes it a perfect hedging weapon against the American currency and the actual ore finders are even enjoying healthy cash inflows from the institutional investors who are now terming this strategy as venture capital gold where the basic logic is to buy into selective equity at lower levels so as to create multi bagger gains.




HOW A $17,537 CASH INVESTMENT BECAME A $4 MILLION PROPERTY GENERATING A YEARLY NET INCOME OF $315,000!
(AND THE STEP-BY-STEP DETAILS OF OTHER OUTRAGEOUSLY PROFITABLE REAL-LIFE PROPERTY DEALS)

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