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  1. 1. Nagoya Corp takes a look at the gold industry and how to invest in it. There are two mainreasons for investing in Gold, firstly because it is a traditional way of preserving wealthduring 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. 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 Individualshave used gold as a store of wealth and as insurance against the fluctuationsand depreciation of paper money and to protect against other macroeconomicand geopolitical risks
  3. 3. Apart from the buying of gold bullion itself, the shortest route into gold areExchange Traded Commodities, or ETCs Similar to Exchange Traded Funds,which track a particular market sector, ETCs will track a commodity or a selectbasket of commodities
  4. 4. Like an index fund they are unmanaged passive investments, simply trackingthe price of gold Successful investing is about the diversification andmanagement of risk
  5. 5. In layman's terms this means not having all your eggs in one basket Weknow from history that markets can and do crash and if you are not properlydiversified your nest egg can be severely affected
  6. 6. Nagoya Corp also often recommends buying into a mutual or exchangetraded fund to gain a diversified portfolio of gold and mining stocks, offering therequired exposure to the gold industry while protecting the investor from therisks of holding only a handful of stocks Derivatives, such as ETFs, forwards,futures, options and spread betting are normally short term speculations on thefuture price of gold and other markets such as commodities, shares or bonds,interest rates, exchange rates, or indices
  7. 7. They are financial instruments which derive their value from or whose price isdependent on the underlying asset One does not directly own the underlyingasset and one does not have a right to take possession of the underlying asset
  8. 8. Leverage or borrowing substantially may increase investment gains but alsoincreases risk as if the price goes against the purchaser they silver miningstocks may be subject to a margin call There is significant leverage involvedwith derivatives and they are thus considered risky for non professionals as thepotential positive or negative outcome is greatly magnified
  9. 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 canpurchase a share of a gold bar However the Nagoya Corp more oftenrecommends to investors that they look to gold coin sovereigns, despite theslightly higher price, as the historical element and aesthetics of a coin can addto the value, especially over time
  10. 10. silver mining stocks