In various parts of the world, particularly in developing countries, gold is considered to be of traditional value and an excellent gift. Frank Holmes, CEO of US Global Investors, says, “People in China and India give gold as a gift of love, and we don’t see that changing.” It is also considered as a protector of wealth and this drives many people to buy more gold, pushing up the demand.

Another reason, as stated by experts, for the rising demand for gold is the decline in the value of paper currency. John Waggoner, reporter at USA TODAY, says, “Investors tend to buy gold coins when they’re worried about the value of paper assets. And paper assets were plenty worrisome in 2010.” Therefore, the hopes are high that the economy will witness a greater surge in gold investment in 2011.

Gold Trading Company: Tips for Safe Gold Investment

Given that gold prices have seen a strong uptrend for the past few years, the concept of gold investment is constantly gaining popularity. There are many gold trading companies online that can guide you through the basics. Here are a few tips laid down by experts in the field of gold regarding safe investing.

Several gold trading companies recommend buying real gold coins and bars instead of gold stocks. The reason behind this is steadier and high potential returns in the long run. Many people are also drawn to gold coins because of the feeling of owning a piece of history. In Asian countries, such as India and China, gold still holds cultural significance and owning a large amount of gold is considered both an investment as well as a symbol of heritage. Gold investment experts recommend investing in real quality gold coins and bars to expect handsome yield in future.

• American Gold Eagle: This has been one of the most popular options in gold in the US for many years now. Made of almost half an ounce of gold, this ten dollar denomination coin was first minted in 1986. However, due to the Gold Recall order of 1933, this coin is very rare these days and owning a single piece of it is considered a great asset.
• American Double Eagle: First designed by James Longacre, after the government ordered the minting of gold coins in large denomination, this twenty dollar gold coin is the only one of its kinds. This coin contains an ounce of gold and, therefore, holds great value from the point of view of serious investors. This coin remained in circulation during 1850-1933.
• American Quarter Eagle: As implied by the name, the face value of this coin is $2.50. It remained in circulation from 1840 to 1907, and is favored by numismatics and serious collectors.

Yet, another advantageous method of gold trading, as suggested by experts, is online trading. You do not need to find a safe place to store your gold, as all your transactions are made virtually. However, this demands a lot of expertise and knowledge of price trends to make wise purchasing and selling decisions.

Another safe medium is portfolio diversification. This means that if one investment is not yielding good returns, you can rely on others. One example can be to invest in gold stocks with 20% of your portfolio, 40% in gold coins and bars, and the rest in cash liquidity.

Joe Foster, portfolio manager of Van Eck International Investors Gold Fund, expects gold prices to reach a new high in 2011. Therefore, this year might provide an opportunity to invest in gold please visit our e-commerce store where you can buy gold and silver online.