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Wednesday, June 17, 2009

Gold Trading For Small Business - Why Is Gold The Best Option?

By James Goldman

Gold has captivated us over centuries now and is known to be a powerhouse of true value. People often perceive gold as the only real form of money. In many cases though we usually get challenged by the fact that gold cannot yield interest at all and thus it is not a wise place for investment. However, it should be noted that gold investments capitulate more interest in the form of real storage of the intrinsic value. But the main question here is why should small companies trade in gold and allocate smaller portions of their wealth in gold always? Youll be answered in the next few paragraphs

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.

Considering the investment figures of 2006, it can be seen that investors wanted to invest primarily in commodities funds; they have realized that only gold bullion is a unique class of investment that was potentially underweighted in their own portfolios. Consequently it was realized that gold bullion, one of the natural resources, is undoubtedly the best tool for investment, especially for the small companies.

During the year 1999-2000, internet companies came in with negligible earnings, while gold was trading fairly well with USD 200-300/oz. However, people who trade gold have benefited more than the ones who have invested in internet companies.

Gold was not really loved as a class of investments then; it only opened an opportunity for all those small companies who had faith in the value of gold. But companies who had accumulated gold bullion then are richer now. Also, accumulating gold can really do wonders for you and your company " it helps your company get richer fast.

You can try it out. Try investing on a certain amount of gold every month " suppose you buy gold worth $A. Now hold this value of gold as wealth management. Although many people would consider this to be a weird proposition, but its up to you whether you want to accept it or discard it.

If your decision is affirmative, measure the value of gold every month and you would see your net income flow every month " you would be amazed to see that your monthly income flow would track the value of your gold and your net worth would increase steadily.

You can trade gold anytime you want to as the value of gold appreciates always. - 23218

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