Gold is considered the most reliable investment instrument. Low risk, guaranteed return. When investing $ 5 thousand for a deposit account in gold - 15% return for the year.
Investing in gold occupy the sixth position in the ranking of the contracts. It is considered the most reliable investment instrument: precious metals is steadily increasing in price, the stock upheavals, political and economic turmoil but urged on rise in gold prices. Last year, the cost of an ounce (31.1grams) rose by 32% (according to National Bank), the world markets bullion reached a record $ 900 an ounce. In 2008, the growth rate value of the yellow metal a little bit slow - up to 20-25%, analysts said.
The advantage of investing in gold - the cost of the instrument stability over the long term. Prices of precious metals change dramatically about every 7-10 years - no more. "The gold is in constant demand, stabilizing the price of precious metals at the possible market fluctuations. It is not inflated asset such as options or futures, gold at any moment can be realized, "- explains Vladimir Pischany, head of operations with precious metals VAB Bank. About 50% of all mined gold is used in the jewelry industry, the remaining 50% - in electronics, dentistry, finance.
The main reason for rise in price of precious metals in 2007 - the instability of the Western stock markets. In 2007, the company launched the world bank and the stock crises, caused by problems in the mortgage market in the U.S.. Investors began to transfer funds into reliable tools - gold, government bonds of European countries and America. There were funds that invest in yellow metal.
Rising value of gold in 2008
Analysts predict a slight slowdown in the price of gold in 2008 - to about 25-30% per year. At the market will continue to affect the stock, financial and economic crisis in the U.S.. Will play an important role speculators. In 2001, the change in the price of gold at 1-2% per day was a phenomenon out of the ordinary. Now the daily fluctuations in the range of $ 25-30 per ounce (2.3% of value) - the norm. According to Vladimir Pischanogo if speculators continue to actively trade gold on world markets, the value of bullion for the year grow by 20-30%, while prices will fluctuate wildly. Speculators leave the market to remain investors with long-term strategy - in 2008 the precious metal will rise in price up to 10%.
The risk of investing in gold - a dramatic slowdown in growth (to 2-5% per annum) or completely fall in market prices. Average cost of an ounce in 1980. was $ 750, the historical maximum - $ 800. In the 1990s, gold was worth $ 500-600, above $ 700 per ounce price of the precious metal does not rise. Threshold of $ 800 gold just broke in 2007, now stand at $ ingots 900-950 per ounce. It is not excluded that, in 2009-2010. growth rate will slow down the precious metal. If an investor expect to earn on an instrument to invest in gold in mid-to late 2008, a two-digit rate of return he can in 10 years, warns Vladimir Pischany.
However, to earn 20-30% of the Ukrainian gold deposits is unrealistic. The difference between the buying and selling bullion in domestic banks is 10%, but because the real income of Ukrainian investors in precious metals in 2007 was only 18-20%. If this year the price of gold on the world market will rise by 10% and return on investment in gold would be zero.
The rankings of investment instruments to assess the attractiveness Contracts 10 tools available to Ukrainian investors.
Note: the difference between buying and selling of large ingots at the best prices, purchases and sales of 2-3%.