A very diversified investment portfolio has a minor opening for a position in gold. Some people think that investing in gold means buying gold coins, usually South African Kruger Rands, which are one troy ounce in weight. Other speculators buy gold futures on the commodity exchange.
However, futures contracts are extremely risky because you are betting that the value of gold will rise or fall in the future. The contract itself requires a relatively small up front payment, but you will have to put up guarantees called margin to take care of daily changes in cost.
The reason investors are attracted to gold at the moment is because often in the past, when the stock market is down, the gold market is up. Weakness in the dollar frequently brings a surge in the price of gold too.
Another route to investing in gold is through stocks and precious metal funds, which can be purchased through a stock broker. However, you will need to select your stockbroker very carefully, because this area of investing takes highly expert knowledge.
The following tips are meant as examples only as you will need up-to-the-minute information, if you are considering investing in stocks, shares and funds. One of the names that will come up in any search is Agnico-Eagle Mines, which trades on the NYSE and the Toronto Stock Exchange under the ticker AEM. They have 30+ year history in the production of gold and In that time, they have produced 4,000,000+ ounces of gold.
Gold has made massive profits for investors in gold since the late 1970’s. However, the key to making profits from gold is knowledge of the different resistance points in the price and the evaluation of the global market for the use of gold. It is used primarily in jewellery and electronics and some other types of manufacturing.
The biggest markets for gold jewellery is India and other Eastern countries. China’s new-found prosperity is also having an effect on the markets, although manufacturing is still of prime significance there.
You will need a good stockbroker or adviser, because the gold market is so complex. If you are investing in gold as a hedge against a weak dollar, you are taking huge risks and you will need to watch for any strengthening in the dollar like a hawk. A pretty sensible tactic is to set yourself realistic goals. For example, are you content with a 10% profit or are you going to hang out for a 25% gain?
Gold can be affected by seasonal events. Check out when people in India get married. It is seasonal and around Christmas time. Then St. Valentine’s Day is a realistic stimulus too, but you or your adviser will have to study the trends and the graphs.
You can invest in gold mining stocks for quite small money, but it is not the cost of the share certificate that is important, it is the return on those shares. Be on your guard with small mining companies, because the overheads of exploration are ruinous. Likewise, profits on hitting a big seam would be wonderful for a small company.
Owen Jones, the author of this piece, writes on many topics, but is currently involved with Clogau Welsh gold. If you have an interest in wedding rings too, please go to our website now at White Gold Claddagh Ring
The Ancient Chinese Lunar Calendar
Prior to their adoption of the Western solar calendar scheme, the Chinese almost wholly followed their own lunar calendar for determining the times of planting and harvesting and festival holidays. Although people in China today use the Western calendar for almost all business, governmental and practical matters of daily life, the old method still serves as the basis for working out numerous seasonal holidays. This coexistence of two calendar systems has long been acknowledged by the people of China.
However, this does not only happen in China, it also happens in most other Eastern countries, like Thailand, and most Arabic countries.
A lunar month is determined by measuring the period of time needed for the moon to complete its full cycle of 29 and a half days, a standard that makes the lunar year a whole eleven days shorter than its solar counterpart. This difference is made up every 19 years by the addition of seven lunar months.
The 12 lunar months are further divided into 24 solar divisions characterized by the four seasons and times of heat and cold, all of which bear a close relationship to the annual cycle of agricultural work.
The Chinese calendar – very much like the Hebrew calendar- is a mixture of the solar and lunar calendars in that it attempts to have its years coincide with the tropical year and its months agree with the synodic months. It is not surprising that a few similarities exist between the Chinese and the Hebrew calendar.
For example, an average year has 12 months, a leap year has 13 months. An ordinary year has 353, 354, or 355 days, a leap year has 383, 384, or 385 days. When determining what a Chinese year will be like, one must make a number of astronomical calculations.
First of all, you have to work out the dates for the new moons. In these instances, a new Moon is the completely black Moon (that is to say, when the Moon is in conjunction with the Sun), not the first visible crescent, as is used by the Islamic and Hebrew calendars. The date of a new moon is then the first day of a new month.
The reason why the majority of countries which had their own calendars had to dump them in favour of the Western, Julian calendar that we use today, is business. First the British and then the Americans ran international business and they used the Gregorian calendar. Anyone who sought to work with them had to follow suit. This is why national policy often differs from local custom in Third World countries.
The government desires to deal on the International markets, but the ordinary family in the country can not. So, the government took up the Gregorian calendar but the people only pay lip service to it. I live in Thailand and people here do not even use the 24 hour day divided into two halves. Their day has four sections of six hours each and the first part starts at 6AM, not midnight. Therefore, they have four 4 o’clocks a day, for instance but no 7 o’clocks. They are also 543 years ahead of us, although this is more common, for instance in Muslim countries.
Owen Jones, the writer of this piece, writes on many subjects, but is currently involved with researching Franklin planner pages. If you have an interest in calendars, organizers or promotional calendars, please go over to our website now at Promotional Desk Calendars