Back to basic : investment on gold

Gold ingots
Photo source from http://www.riksbank.se/templates/Page.aspx?id=12935

Perhaps our grandparent are wiser than us when come to investment : buying golds. A fund manager will convince you that gold will not give you high lucrative return income. But wisdom of the old people always show the truth : No investment tools are able to beat gold on retaining your capital or wealth, especially during economy bubbles.

Whether in good or bad time, the price of gold rarely suffer a huge plunge as compare to other investment tools. During Inflation, gold will protect you life time saving against the ever shrinking value of your cash money. When the inflation goes bad, gold will eventually increase your purchase power.

Today, investor no longer to buy gold from the goldsmith/jewelry shop, and take the hassle to keep it inside Bank safe deposit. Many banks has offer gold deposit as saving and investment tools. Just go to google, key in you local bank name and the keyword “gold deposit”, you can immediately check whether you favorite bank offer gold saving deposit account. Most bank will only offer pure gold (999.9) saving deposit.

The deposit is pretty simple :

  1. Check the minimum gold need to open the account ,e.g. 5 grams
  2. When you open the account, you are actually buying the golds.
  3. In subsequent bank in, you can keep buying(by deposit you money) minimum denomination of gold amount allowed by the bank (e.g. 5grams each

To withdraw the gold, some bank allow you to choose any of the following method to withdraw you gold saving deposits

  • Physical gold in wafer
  • Gift Gold Certificate
  • Cash

With the convenience of online banking, you can even do the gold deposit online.

Besides investment tools, gold high electricity conductivity and anti-corrosive characteristic, make it an essential part for valuable electrical parts(such as computer CPU,circuit board components) and other industry applications.

With the increasing demand on gold, it is obvious move for company such as General Metals Corporation to acquire General Gold Corporation as the company entry into metals exploration and mining sector. General Metals Corporation strengthen their position in gold exploration and mining with the following press release.

Press Release:

Gold Expected to Dominate the Investment Horizon, Experts Advise Early Stock Purchases (Reno, NV – March 5, 2007) Traditionally, gold has had an inverse relationship with the stock market. When stocks go up, the price of gold usually falls; when stocks flounder, the price of gold usually skyrockets. Some experts believe it could mean a lot for investors in 2007, because gold is once again catching the eye of the investor. For General Metals Corporation, the news couldn’t come at a better time. “With our plans to begin drilling at Independence Mine, we’re more than thrilled to hear gold is making a comeback,” states company CEO Stephen Parent. “We’re even more excited with our location; it’s a proven producer.” General Metals acquired the Independence Mine in northern Nevada and became a public company last year, trading under the symbol GNLM. Predominantly a silver mine from 1938 to 1987, the Independence Mine is estimated to contain over two million ounces of gold, as well as over two million ounces of additional un-mined silver. As the Independence Mine is essentially an island within Newmont Mining’s Phoenix Mine, the area is already a proven producer. According to Parent, they plan to remove the precious metals in two phases. “Phase one includes our ‘shallow’ targets,” says Parent. “The shallow targets contain less gold, but they’re easily and quickly accessible, which will encourage early cash flow. Phase two is where the majority of our gold will come from. It’s deep mining, but we expect it to produce 1.4 to 2 million ounces of gold.” They expect to produce 20,000 ounces of gold in the first year, 60,000 ounces in the second year and 70,000 ounces in the third year — approximately $101 million from early estimates. The company also anticipates an additional $1.36 billion to be gained from phase two production. In an effort to increase their mining production, General Metals has recently acquired the Nyinahin Mining Concession in Ghana. Located in one of the most active exploratory areas in the world, this concession shares borders with several major mining companies, including Newmont Mining, Napoli Gold and Dunkwa Continental Goldfields. “Financial experts are predicting gold to play a key role in investor’s profiles during 2007,” adds Parent. “But due to the timely nature, potential investors will need to act quickly in order to maximize their gains.”


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One Response to “Back to basic : investment on gold”

  1. Steve

    The back to basics; “Investment in Gold” was very informative and helpful. I appreciate good reliable information. I agree very much with the article.
    Thank You Very Much…Steve

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