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Lancelot Tucker
Lancelot Tucker
Articles (104) 

Is Gold the Future for Investors Today?

March 06, 2015

As investors try to find lucrative markets to invest in, some persons are turning their attention to putting aside money in gold investment for future needs such as retirement and other reasons. While the need for future financial preparation becomes more evident, making the right investment move is important if one wants to secure his or her future.

One type of investment that some investors are eyeing is the gold IRA.

What is a gold IRA?

A gold IRA is stored up in precious metals that individuals put aside for later use during retirement. While it might have some similarities as a regular IRA does, a gold IRA is put aside in bars or bullion coins. It is no wonder some people say that it is worth its weight in gold.

The value of gold today

In the past and even today, gold stood strong against many setbacks that other type of investments experienced in the past. Since Thursday, the price of gold went down for the first time within two months and caused investor confidence to lower. Gold futures for the month of April stood at a low closing price of $1,196.20 or 4%, putting it at its lowest since January 2.

As information concerning the US economy is about to surface, investors are watching to see if the precious metal will make any improvement. Meanwhile, they are also watching to see if the feds will increase interest rates and in doing so, improve the likelihood of the value of gold above other yield-bearing investments. Presently, gold is barely keeping its head above water and although there are still many challenges ahead for the precious commodity, still, many investors will keep on putting confidence in the heavy metal. The decline of the value of gold caused other precious metals to lower their value as well. The future of gold might still be bleak, according to some experts. Yet, history has proven over the years that although the value of gold might lessen, it always finds its way back on top.

Two gold stocks to watch:

Newmont Mining Corp (NEM): Although gold might currently be in decline, investors are still placing much confidence in gold stocks. One gold stock to watch in 2015 and 2016 is Newmont Mining Corp. As a powerful performing stock on the market, Newmont Mining Corp stock intends to remain one of investor’s favorite stocks. It has a strong marketable security in its grasp and owns a cash value of approximately $5 billion.

Although Newmont is a top stock to watch, still investors are paid a small dividend and not a big one that would go with the company’s image. So far, the company is paying a meager 0.4% dividend to shareholders on record.

Royal Gold Inc (RGLD): As a top gold stock operating on the exchange, Royal Gold Inc. has a portfolio of 202 properties that are functional in six different continents. In addition to the company’s portfolio, it has an additional 36 mines that are strongly producing. As proof of how well the company is doing, it increased its annual dividend by 5%. The company ended up paying to investors $0.88, which is an increase from that of $0.84. For the remainder of 2015 and going into 2016, Royal Gold will prove to be a good stock to own.

The price of gold might be spiraling now, but like any other times it will pick up and when that happens, investors will be among the winners. Until then, investors will have to continue riding out the bad times and hope that the good times will catch up.

About the author:

Lancelot Tucker
Lancelot Tucker is a freelance writer living in Jamaica. He often writes about finances and other business based articles.

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