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Monday, July 6, 2009

Golden Opportunities For Small Companies - Gold Investment.

By Klaus Moeh

The price of gold, in the past few months has definitely taken the world by surprise; gold is now priced at $1000 per ounce, if not more. Such a stupendous increase in the price of gold is due to varied contributing factors of which the demand of gold in certain countries like India, Pakistan, China and Bangladesh is a primary factor. Gold is widely used in all these countries as an investment vehicle and also as a metal for enhancing beauty in the form of jewelries and ornaments. In both ways, the demand for gold in thee counties is unlikely to decline and people will always end up making profits when they buy gold at low prices and sell gold at high prices.

The price of gold and oil are ever-rising today. The price of oil is almost $100 now and is likely to rise even more; $150 mark is expected by ace economists. During the economic crisis that prevails in the global market today has further led to the astonishing fall in the price of US dollar, which is expected to dip down further in the coming days.

And, all these condition have defiantly brought in golden opportunities for investors trading gold.

Because of the recent volatility in the market and the energy crisis and inflation, gold will additionally be hedge.

Along with all the precious metals like platinum and sliver, the value of gold is expected to rise and gain value, which in turn would lead to the increase in demand for gold due to its international adequacy and limited supply.

As all these probable factors are likely to remain the same without any respite, the value of gold will increase continuously. Therefore, gold investments made as stocks will always be profited. Investment in undervalued gold stocks can fetch better returns.

As the market price of gold has had a sudden increase recently, some points can be brought to your notice. A value of 900$ would allow lot many people to enter this market. Nonetheless buying of gold bullions would be wiser than buying jewellery. A purchase can be also made through ETFs and mutual funds. With a variety of investment vehicles available in the market, the investors have lots of options to choose from, suiting their requirements.

There are chances that the US economy would raise once again and the value of dollar would go up. However, that will not affect the value of gold to a large extent. As such, the investment amount in gold or in any other kind of investment tool needs to be moderate. There are small companies having gold projects at the final stages of completion as well. These can also provide brilliant investment opportunities. However, proper research must be done before investing and to trade gold. - 23212

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