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Wednesday, June 24, 2009

Why Small Businesses Should Trade In Gold?

By James Goldman

We humans have always been fascinated by gold for centuries now. Gold is regarded as the store of true value. People have now a different perception of gold " it is the actual form of money. However, we can easily feel challenged by one fact- gold doesnt yield interest and is hence not regarded as a wise investment asset. But it needs to be noted that if you trade gold or invest in gold, you can actually capitulate fair interests in the form of real storage of the intrinsic values. Still there is a question here " why should the small companies trade gold always? Why should these companies get a smaller portion of their wealth allocated as gold bullion? The answer is here

With different forms of investments vehicles available today such as properties, equities and bonds, one common class of investment asset often neglected are all the precious metals like gold, silver, platinum etc.

If you consider the figures of investment in the year 2006 during which investors rushed into various commodities funds, you can see how people realized that gold, which is a class of investment, has been potentially underweighted in the portfolios. But finally it was found that gold bullion, a natural resource, is known to be the best investment tools for small companies.

In 1999-2000, many internet investment companies were introduced. These companies generated little earnings, but the gold trade was quite impressive with USD 200-300/oz. people trading gold have benefited during that time and later as well than people investing in the small companies.

Gold wasnt really the preferred investment class earlier on; it is only now that gold is regarded as an excellent opportunity for small companies who want to trade gold. Also some of the small companies that invested in gold earlier have actually become richer now. Additionally, gold accumulation can help your company become richer and steadier very quickly.

As you buy gold, you will note the difference it makes. Try investing in gold every moth- spend $X on gold each month. Hold the value as the wealth management of the company to see the results when you sell gold. While some people consider this to be a silly proposition, but it has paid off.

If you decided to go for it, then measure golds value each month and you will be surprised to see the net flow of income each month " it would track the present value of gold while your net income would show a steady rise.

Anytime is the best time for gold investment as the value of gold always increases. - 23200

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