Daily Investment Tips

In a Reuters interview George Soros says the Johnnies come lately buying into gold now might end up in tears. The famous investor thinks the gold rush underway is the ultimate bubble.

The yellow precious metal has been in a super bull trend for the last ten years. The great gold party begun in 2004.George Soros now thinks many are late for the party of decade.

The following is a chronicle of the rise and rise of Gold.

2004 Gold broke beyond $400

2005 Gold Hits $500

2006 Gold hits $730

2007 Gold Hits $845

2008 Gold hits $1000

2009 Gold hits $1230

2010 Gold hits $1275

Listen to the Video at Reuters Finance.

They say whatever goes up must come down.

written by Constantine Njeru \\ tags: Buying Gold, Decade, George Soros, Gold Hits, Gold Party, Gold Rush, Investing In Gold, Investor, Johnnies, Last Ten Years, Precious Metal, Reuters Finance

Eldorado Gold is a Canadian gold mining company. It has operations around the world.The company stock is listed in NYSE.

Eldorado Gold Competitive advantages

The only North American mineral operator with mines in China. Which places it at a strategic position to take advantage of the booming Chinese economy.

The company has low cost strategy, Eldorado aims to keep the costs of mining, processing, transport, and selling around $375 an ounce.

When you think about that low cost strategy, gold could fall dramatically from its current heights around $1200, and Eldorado would remain profitable.

written by Constantine Njeru \\ tags: Canadian Gold, China, Chinese Economy, Company Stock, Competitive Advantages, Eldorado, Gold Investing, Gold Mining Company, Gold Stock, Investing In Gold, Nyse, Ounce, Stock Analysis, Stock Investing

Its never easy for a small investor to invest in Gold. There are practical problems with owning gold. It’s heavy, and not easy for the average investor to buy, sell, ship, and store. Gold involves a lot of transactional costs.

Invest in Gold ETF

One easier way for retail investors or small investor can get exposure to gold is through exchange-traded funds. The exchange traded fund is a trading platform where investors can invest in funds that track a particular investment eg. gold, oil, emerging markets etc. Instead of directly buying a commodity, you buy piece of the fund which in turns invests directly into the commodity.

For example, the SPDR Gold Trust holds actual gold bullion. The PowerShares DB Gold Fund holds futures contracts linked to the price of gold, and the Market Vectors Gold Miners ETF holds stock in gold mining companies.

written by Constantine Njeru \\ tags: Commodity, Emerging Markets, Exchange Traded Fund, Exchange Traded Funds, Futures Contracts, Gold Bullion, Gold Etf, Gold Fund, Gold Futures, Gold Mining Companies, Invest In Gold, Investing In Gold, Market Vectors Gold Miners, Powershares, Price Of Gold, Retail Investors, Small Investor, Trading Platform, Transactional Costs, Vectors Gold Miners

Gold is hot at the moment. Gold is up a whooping 84% in the last 3 years. The gold investors who so it coming have made some serious money.

There are many reasons as to why gold has risen this high, one is the idea that gold is a safe haven. There is belief that the bailouts of the last 2 years will lead to inflation which causes devaluation of currencies and the only protection against all this is gold.

The idea gold is a safe investment goes back to medieval times. A safe investment means you cant lose your money. But the truth is you can lose your money in gold. What is needed is a change in sentiment and people who bought gold start taking their profit. The gold price trend will be in a reverse gear.

Risks of Investing in Gold

In a Business week interview Susan C. Elser, of Elser Financial Planning Indianapolis gave a good detailed analysis on the risk of gold investment,

Unlike other commodities, gold has few industrial uses. Unlike businesses owned through the stock market, gold earns no profits and doesn’t pay out dividends. Unlike bonds, no one pays interest to holders of gold. And, unlike insured bank deposits, there is no guarantee of your principal investment.

“There is no downside protection on investing in gold,” Elser says.

written by Constantine Njeru \\ tags: Bank Deposits, Business Week, Devaluation, Dividends, Downside Protection, Financial Planners, Gold Commodities, Gold Investment, Gold Investors, Gold Price, Inflation, Investing In Gold, Medieval Times, Price Trend, Principal Investment, Safe Haven, Sentiment, Serious Money, Stock Market, Susan C