Why,How and Where to Invest in Gold


Published: 12/17/2011

by Mohd Zulkifli


In short, my presentation is about gold. Almost all of us know that gold is rising in it price over years. Since 2001 to 2011, gold have reached to highest price at roughly USD1900/ounce in September 2011 which we can said a jump of USD1650/ounce in 10 years time (source: http://www.kitco.com/charts/popup/au3650nyb.html.


 From that we know that, gold can be a very good saving medium as it has appreciation value rather than almost things out there which facing their depreciation value over years. That is including fiat money, the one that we currently use nowadays. That makes one good reason why gold should be diversification portfolio to investors " The POWER of SAVING". 


 Gold also has one important criteria that is currency hedge. As people knows that gold price is inversely proportional to USD, gold can be a very good shield to keep your wealth during USD weaknesses. Gold also has robust and it is less volatile so that one can easy manage the risk of investment.


 Now, according to World Gold Council, there a lot of ways to invest in gold that are through mining stocks, ETF, gold account, live tradings etc. We have so many options if we are interested in investing in gold. 


 What I am sharing now is not just about gold price and its criteria. Instead we are just landed on the basis of how one can invest in gold, be a trader and a shareholder using one platform.


 I believe that being a businessman help us to clearly understand of how to create a system that works for us. But be an investor is much more interesting since we are 'creating' money to work for us. Initial Public Offering (IPO) is one of the famous investment that one should not just close their eyes, but of course after looking back at their company's profile. What makes it better is an IPO in company that dealing in mining and gold exploration. 


 There is a pre IPO company based in Panama founded in 1999 which currently open an equal opportunity to investors to be their shareholders. They are targeting to reach IPO level by 2015 and that's how they make it. Through issuing new Convertible Preferred Stock they aims to gain more capital so that the company can engage in bigger and more profitable operations. Higher turnover and liquidity will help the company to reach IPO level even faster. As an additional, the company has full rights to manage short, medium and long term goals as shareholder will not interfere with the company's operation and decision.


But that's on company's view. What about investors then? 


 As an investor, we are subscribing Convertible Preferred Stock that can be converted to Common Stocks during IPO. Unit price during IPO is estimated to be USD30 while now is just USD1.30 per unit. As converting to Common Stocks is a very good choice, another option which I can see is selling the units to those interested at current price during IPO. Wouldn't it be huge profits margin then?


 Investors also are given capital and interests free account in which to hold their paper gold. In this account, shareholders are entitle to run their trading based on world gold price. 


 Investors also entitled for fixed monthly dividends which paid in ounces of gold and freely convertible to monetary value at spot gold price. All of these dividends only paid before IPO as after that, CPS will be converted to Common Stocks.


 As this is global business, there is no border and everyone have the same and equal opportunity to invest in. Thus, as mentioned I just share how to invest, be a trader and at the same time holding company portfolio as stockholders. 


To have a full view on the company, please follow the link given.