Tuesday, 28 July 2015

How to Make Money from Gold

We used to operate in a gold standard system in the past, it is common knowledge that we presently operate in a dollar based system.  A system where each country measures the value of its currency against the dollar for the dollar based system and the gold for the gold standard system. The gold used to be a yardstick for measuring the value of a currency, although it is no longer used to measure the value of currencies these days, it has maintained it's prestigious value.

Gold a very valuable metal, its prices depreciates at times and appreciates other times, but looking at its trend over 100 years, the prices have always appreciated over 10 years or above. From 2006 to 2015, the gold price per ounce appreciated by 200%, while from 2002 to 2015 it appreciated by 300%. So Long term investors go ahead and purchase gold. You must always pay zakat on the value of your gold. Gold can also be transferred from one generation to another.  I have always said store away save some money in a halal account for unexpected expenses first before making other forms of investments. Apart from these savings helping you when you need to pay for an unexpected expense, it will also prevent you from converting your investments before they have yielded you some profits. After having some good cash in your halal bank account, instead of continously saving your money buy gold. For short term investors, you want profit immediately, the gold price like every other commodity is influenced by the level of demand and supply in the market as well as speculations on demand. My tip to you will be to watch the market, even if the price depreciates, it will still appreciate eventually during short term, so wait for it to appreciate and sell it then. Buy in large quantities so a lot of gains can be made cause it normally appreciates between 5% to 20% in short periods. It was observed that the gold market performed better than the stock market in 2014 in the UK.

While carrying out my research, I was informed that a lot of scrap items have gold in them, some people make $1000 per week selling the gold in scrap items. It requires little to start the business, personally I think the business is for men. However, do not just throw away scrap items (laptops, desktops, cell phones, microwave e.t.c), sell them, yes even if they do not work anymore. Gold is generally are normally purchased to serve as a form of security during volatile periods and yes it serves the purpose.

Make sure your gold business is halal

Halal means anything lawful Islamically.

Keep checking my blog regularly. Cheers!

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