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Friday, July 3, 2009

Golden Opportunities For Small Companies - Gold Investment.

By Klaus Moeh

Taking the world by surprise, in the past few months the price of gold per ounce has increased to 1000$ and above. The rise in the price of gold is due to various reasons and the primary being the high demand in countries like China, India, Pakistan, and Bangladesh where people buy gold regularly. Gold in these countries is extensively used as jewellery and is believed to be a brides true asset during marriages. Golds demand as an investment vehicle is also high and people end up making profits when they sell gold.

The price of oil and gold seems to be ever rising these days. So much so that the price of oil is nearly 100$ now and is expected to even touch the 150$ mark by some experienced economist. This economic crisis is as a whole prevalent in the world market and has led to a shocking dip in the price of the dollar, and its expected to decrease even more in the near future.

The Golden Opportunities.

As the global market is highly volatile and there is inflation and energy crisis everywhere, gold is likely to be a hedge.

Along with other precious metals like platinum, silver, the price of gold is also expected to rise to a great extent. This will in turn lead to a high demand.

As there isnt any probable respite in the factors mentioned above, the price of gold will continuously rise. Hence, investments made in gold and gold stocks will definitely be profitable. It would be wiser to invest in undervalued gold stocks for better returns.

As the price of gold has risen dramatically in the recent past, some modifications will definitely be made. If gold costs about $900 per oz. it would open up doors for more investors to enter the gold market and trade gold. However, if you buy gold jewelry for investment, that wouldnt be sensible; rather invest in gold bullions. You can also buy gold through ETFs and mutual funds. There are many instruments for gold investment today and investors are now being offered wider choices.

The US economy will defiantly rise up and so would the value of US dollar, but that will not make much of a difference to the value of dollar. Therefore, you must make moderate investments, be it in gold or other assets. There are many small companies who have gold projects that are on the verge of completion. These projects also offer great investment opportunities. Nevertheless, every investment demands proper research. - 23200

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