1. Nagoya Corp takes a look at the gold industry
and how to invest in it. There are two main
reasons for investing in Gold, firstly because
it is a traditional way of preserving wealth
during volatile economic times, and secondly
it is often utilized as a hedge against the US
dollar. On top of that gold is a very liquid
commodity, being easy to buy and sell.
silver mining stocks

2. Nations have sought to possess gold as a medium of international exchange,
as a store of wealth and in order to increase and preserve power Individuals
have used gold as a store of wealth and as insurance against the fluctuations
and depreciation of paper money and to protect against other macroeconomic
and geopolitical risks

3. Apart from the buying of gold bullion itself, the shortest route into gold are
Exchange Traded Commodities, or ETCs Similar to Exchange Traded Funds,
which track a particular market sector, ETCs will track a commodity or a select
basket of commodities

4. Like an index fund they are unmanaged passive investments, simply tracking
the price of gold Successful investing is about the diversification and
management of risk

5. In layman's terms this means not having all your eggs in one basket We
know from history that markets can and do crash and if you are not properly
diversified your nest egg can be severely affected

6. Nagoya Corp also often recommends buying into a mutual or exchange
traded fund to gain a diversified portfolio of gold and mining stocks, offering the
required exposure to the gold industry while protecting the investor from the
risks of holding only a handful of stocks Derivatives, such as ETFs, forwards,
futures, options and spread betting are normally short term speculations on the
future price of gold and other markets such as commodities, shares or bonds,
interest rates, exchange rates, or indices

7. They are financial instruments which derive their value from or whose price is
dependent on the underlying asset One does not directly own the underlying
asset and one does not have a right to take possession of the underlying asset

8. Leverage or borrowing substantially may increase investment gains but also
increases risk as if the price goes against the purchaser they silver mining
stocks may be subject to a margin call There is significant leverage involved
with derivatives and they are thus considered risky for non professionals as the
potential positive or negative outcome is greatly magnified

9. There are a number of companies that offer the ability to buy gold bullion,
even some that allow the pooling of funds so that smaller investors can
purchase a share of a gold bar However the Nagoya Corp more often
recommends to investors that they look to gold coin sovereigns, despite the
slightly higher price, as the historical element and aesthetics of a coin can add
to the value, especially over time

11. silver mining stocks