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-- Posted Wednesday, 6 January 2010 | Digg This Article | | Source: GoldSeek.com
ArabianMoney has done a great deal of due diligence in gold and silver investment over the past couple of years. You do need to be careful. It is only too easy for somebody to take your money and claim to have invested it in gold and silver – perhaps pointing you to a few bars in a vault as yours – while actually running off with the money. Gold and silver trading is actually a very low margin business, so you can see why even the most honest operators could get lured into something decidedly dodgy. But the good side of a low-margin business is it means that you can afford to shop around. Perth Mint What about finding a gold depository which is triple-A rated, government owned and operated, and located in a very stable country outside the USA? That is why we like the Perth Mint, and if you choose to trust its unallocated precious metal scheme there are no storage charges above $250,000 invested, and for a fee this bullion can be converted into allocated bars at any time. ArabianMoney dislikes the idea of buying bullion and burying it in the garden or hiding it up a drainpipe. Gardeners and plumbers might become rich this way. It is just not safe. You could use a safe deposit box of course. But where would it be located and how will you transport your gold to the box securely? The Perth Mint is cheaper and safer. Other major investors, including big hedge funds, seem happier with the gold and silver exchange traded funds, GLD and SLV, for example. This can be done through a simple online brokerage account and the charges are very reasonable. ETFs Purists argue that the small print of the ETF means that your money might not be immediately invested in gold but for funds now equivalent to sovereign reserves in size this is frankly pedantry. If Mars attacks you might have a problem, otherwise your gold is far safer than buried in your garden. There is also a good argument to hold some precious metal stocks. These equities have actually lagged well behind the gold price, and are priced to reflect the gold price in 2003. Clearly they ought to catch-up at some stage but equities will also be subject to the ups and downs of the stock market, although again they can outperform other stocks. Juniors ETF Last year saw the launch of the first ETF covering junior mining stocks (GDXJ) and for a longer term play on the gold price with maximum leverage to the upside this looks a good choice. The ETF is highly diversified, avoiding the risk of picking a dud among the many junior firms, while still exposed to the precious metals sub-class with the highest upside in a boom, and is also very liquid unlike the small stocks themselves. A diversified gold and silver portfolio for 2010 should therefore include the physical metals, selected major stocks and some exposure to the smaller companies. This will put investors in a position to capitalize on the big upswing in precious metal prices which is coming this year.
-- Posted Wednesday, 6 January 2010 | Digg This Article | Source: GoldSeek.com
Previous Articles by Peter Cooper
About Peter Cooper:
Oxford University educated financial journalist Peter Cooper found himself made redundant by Emap plc in London in the mid-1990s and decided to rebuild his career in Dubai as launch editor of the pioneering magazine Gulf Business. He returned briefly to London in
1999 to complete his first book, a history of the Bovis construction group.
Then in 2000 he went back to Dubai to become an Internet entrepreneur, just as the dot-com market crashed. But he stumbled across the opportunity to become a partner in www.ameinfo.com, which later became the Middle East's leading English language business news website.
 Over the course of the next seven years he had a ringside seat as editor-in-chief writing about the remarkable transformation of Dubai into a global business and financial hub city. At the same time www.ameinfo.com prospered and was sold in 2006 to Emap plc for $27 million, completing the career circle back to where it began a decade earlier.
He remains a lively commentator and columnist as a freelance journalist based in Dubai and travels extensively each summer with his wife Svetlana. His financial blog www.arabianmoney.net is attracting increasing attention with its focus on investment in gold and silver as a means of prospering during a time of great consumer price inflation and asset price deflation.
Order my book online from this link
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How Best To Invest In Gold and Silver In 2010
