Tuesday, May 1, 2012

Public Bank Gold Investment and The Hotel California

Crystaline Gold
Crystaline Gold (Photo credit: Wikipedia)
Among the different gold storage programs out there, the Public Bank gold investment, also called the Gold Investment Account, is hugely popular. The Public Bank gold investment was started when the Malaysian bank began this program in April 2008 in order to satisfy the increasing interest in the individual to use gold to ward off inflation, and it was promptly well-received by folks all over India and China who were already displaying an insatiable appetite for tangible assets.

In the nutshell, the Public Bank gold investment operates like a passbook, and it's designed to track gold purchases. To start an account, you make a 20 gram purchase, although you can make additions in smaller increments after the initial investment. Keep in mind that the account will not pay interest, since the purpose is to actually piggy-back on the increases in the price of gold instead, and you are ultimately intended to eventually cash out in the native currency. You can infer this from the reality that taking physical delivery of actual gold through the Public Bank gold investment requires settlements of 100, 500, and d1,000 grams, which reminds me of that Eagles song called Hotel California which went "you can check out any time you like, but you can never leave [with your precious metal]!".

In any event, one of the main things to ponder is what might occur if folks with the Public Bank gold investment want to claim their gold. Interestingly, in the Spring of 2010 an advisory was released stating that physical delivery with the program suspended for a time. Physical delivery was eventually reinstituted, but the temporary ban on getting your gold causes one to pause and wonder how tough it would be to get gold in your hands if you wanted it.

All of this points to what I see as a very clear solution. I believe that, if you want to own precious metals, there's simply no safer way to do so than to actually get it in your possession. If you ever want to have, there is truly no time like the present. If you really want the actual bullion, the only way to know you own it is to put your eyeballs on it. On the flip side, if you see no end to the funny money system governments around the world fund by slaying forests and firing up the printing presses, then you may simply see precious metals as the next great investment sector and therefore may not really care about holding the stuff in your hands.

In any case, there are some things to keep in mind to help things go well for you. See, note that there will always be an implicit trust you place in any institution supposedly holding onto your precious metal for you as custodian. As a result, I would recommend using a series of different custodians, and selecting among various countries as well. So, what am I getting at? Frankly, if you have a Public Bank gold investment, consider putting any potential future additions to that account into other options. That way, if Public Bank puts redemption on pause again, you'll have some goodies elsewhere you might be able to access. In the extreme, if a given custodian goes out of business, or simply absconds with your gold and silver, you won't lose your entire pile.

You have some different options to choose from, none of which compare to owning shares of the mining companies, but at least give choices to those who insist on custodial arrangements. With most of them, keep in mind that you'll often be able to decide on either a pooled account or allocated account. With a pooled account, your bullion is warehoused in a conglomerate pile. There is no actual batch of metal with your first and last name on it. Oppositely, as you might guess, the allocated accounts operate by having your bullion set aside and accounted for precisely according to your purchase.

Want more useful information on the Public Bank Gold Investment and how to protect yourself? J. Scott Talbert is an Estate & Financial Planning attorney and precious metals investing aficionado. Visit his Resource Investing website at http://www.miningstockdepot.com today to take a sneak peek at his portfolio and get your $440 Unadvertised Bonus and Consumer Briefing Advisory Report free!

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Are We Returning To Gold Standard?

Gold Key, weighing one kilogram is used to acc...
Gold Key, weighing one kilogram is used to access a ten digit account number which is known only to the bearer of the Gold Key. (Photo credit: Wikipedia)
No one knows whether we are returning to gold standard or not. Some say that we should, that this is the only way we can end the world economic crisis. Others are totally against it, or simply suggest that it would be a mistake. No matter the opinions of the financial specialists, going back to gold standard definitely has its positive points, but also its drawbacks.

Some governments encourage gold standard indirectly. Among these, the Chinese government has had the most striking shift of heart when after a long period of interdiction, allowed and even promoted purchasing the precious metal. Nowadays even those Chinese who are not very wealthy invest in gold, because they know that this is the only solution to forget about the economical problems and the financial crisis.

Russia is another country which strongly encourages a return to gold standard. Officials from Kremlin suggested a few years ago that there is a stringent need for an alternative to the powerful Dollar, that might not be so strong forever. They were right and the decline of the American currency led to the economic instability in all countries that had economic relationships with the US and not only.

The advantages of gold standard are obvious. The long term stability of the prices the impossibility of having hyperinflation are welcomed after times of instability, when nothing seems to be sure anymore. This impossibility of increasing the prices is caused by the fact that the gold supply used for monetary purposes is limited. The quantity of precious metal used to mint gold bullion coins is limited, therefore only two special situations can change the prices: finding a new source of yellow metal or in case of wars, when goods are destroyed.

Those who support the most going back to gold standard are the Austrian School of Economics followers and some politicians around the world. In what concerns the US monetary system that had the most to suffer lately, specialists say that it was in fact created retaining the same properties as the gold standard. So in their opinion there is no need to going back to the real gold standard, as the current monetary policy is a healthy one.

Malaysia was the only nation that had a concrete initiative in what concerns reintroducing the precious metal as a universal currency. The Malaysian prime minister had this initiative with the purpose of having a currency all over the Muslim nations, but also to give the Islamic world a sense of unity. In spite of his good intentions, the Islamic gold dinar was not adopted as a currency, even though it meant independency from the US Dollar.

When deciding to invest in gold have into consideration buying gold bullion coins, which have 99.9% purity.
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Gold - The Safest Investment

With the World economy doomed in Recession, growing uncertainty and weakening of major currencies like Dollar and Euro, increasing Greek debt, defaulting banks, almost negligible bank interest and extremely volatile stock markets, one question comes into everyone's mind - What is the safest mean of investment? Where should we invest where the value will increase and not decrease? The answer lies in the four magic letters G O L D.

Gold is traditionally viewed as the ultimate safe haven during times of economic volatility and therefore seen as a wealth preserver. In addition it is used as a hedge against the US dollar and also is liquid, so therefore easy to sell and buy. Given that stock markets have endured some of their worst falls on record as the financial crisis hit, that the response to this was to print unprecedented amounts of money and that the dollar has been floundering, it should come as no surprise that the precious metal has been booming. The Gold prices have rocketed in last few years rising from an average of $858.69 per ounce in January 2009 to a high of $1895 per ounce in September 2011. The most traditional way of investing in gold is by buying bullion gold bars and sovereign coins.

In some countries, like Canada, Argentina, Austria, Liechtenstein and Switzerland, the Gold bars can easily be bought or sold at the major banks. In United Kingdom they are readily available at the Bullion Dealers. Bars are available in various sizes. For example in Europe, Good Delivery bars are approximately 400 troy ounces (12 kg). 1 kilogram (32 oz) are also popular, although many other weights exist, such as the 10oz, 1oz, 10 g, and 100g. For the serious and large scale investor, gold bars are a simple and efficient way to invest in gold. The larger bars are usually available at the lowest premiums.

Gold coins are the other common way of owning gold. Bullion coins are priced according to their fine weight, plus a small premium based on supply and demand.The one ounce gold bullion coins such as Krugerrands or Britannias are by far the most popular for both small investors and high net worth individuals who see the advantages of owning legal tender bullion coins, either in their possession or in depositories, and recognise the advantages of the divisibility afforded by them. Other common gold bullion coins include the Australian Gold Nugget (Kangaroo), Austrian Philharmoniker (Philharmonic), Austrian 100 Corona, Canadian Gold Maple Leaf, Chinese Gold Panda, Malaysian Kijang Emas, French Napoleon or Louis d'Or, Mexican Gold 50 Peso, British Sovereign, American Gold Eagle, and American Buffalo. Coins may be purchased from a variety of dealers both large and small.

The value of bullion coins and bars is determined almost solely by the price of gold and thus follows the bullion price. Choosing to invest in a Gold Bar against a Gold coin depends entirely upon the individuals need. Larger Gold bars have a smaller premium, however they require a lot of funding and can be more restrictive in re-selling whereas it is easier to invest in smaller gold coins as they can be bought with fewer funds and can be resold easily but then the premium is higher.
Medha Kumar runs a jewellery business which specialises in manufacturing jewellery from your old unwanted silver, gold, platinum or broken jewellery. Alternatively he will come to you and pay you the top cash price in London. http://www.silvergoldintocash.com

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