In our turbulent financial world, investing properly to earn money in such a volatile arena of stock market fluctuations and the value of the dollar dropping all the time. Even such things as real estate are no longer automatic money-making investments, so the knowledge and a realistic approach to the uncertainty is a key element to navigating the sea of finance. Be sure you do your homework, talk with as many professionals as you can to get an informed opinion on the matter, and don’t get sucked into get rich quick schemes or other “too good to be true” sounding investment plans.

Some people will tell you that the right investments are in commodities, while others give you the perfect stock tips, according to their broker, and others will explain to you how to leverage bonds or precious metals against inflation. While all of these people mean well and may have used their own advice to earn money for themselves, you should think twice about every bit of information thrown at you from family, friends, and average people on the street. Talking with industry professionals and financial consultants will give you a better handle on your investment potential. You still may want to dabble in purchasing hogs or gold coins, but as part of a comprehensive investment portfolio, not just on a whim.

The biggest key to investment success and the way to earn money as you choose to put faith in a company, a specific item, and its future global demands, or even a currency of a specific nation, knowledge and investing in moderation would be the wise decision. Unless you have risk capital, or in plain terms money you can afford to lose, and want to take a big risk on speculating the short-term increase in a particular commodity or want to take a risk on a start up company’s stock, you should always invest in moderation.

Overall, investing is basically gambling, and it is merely the ability to earn money by hedging your bets to balance your odds and win more than you lose over the long haul. If you want the big kill, put more money in higher risk stuff while still maintaining some conservative investments so you don’t end up broke in the end.

Lately, there is another trend in the savings products market – investment in gold. Despite the crisis, the value of gold has increased in the last period and the tendency continues. Investments in gold bullion bars seem to be the most recommended ones in difficult economical periods.

Nowadays is risky to invest, you need to consider when you make big investments that the political and economical situation can affect the value of your goods. Financial analysts conclude that in a crisis the best way to protect your money is by buying gold bullion bars. Their value is increasing year after year, so you will have benefits. Specialized companies are offering for selling sovereign gold coins, pooled gold bullion bars, and classic gold bullion bars, products suitable for all clients and all pockets.

Gold is the best protection against economical recession and inflation, according to finance experts, by investing in gold you are reducing your losses and obtaining profit when everybody is losing due to difficult economical situations, present all over the world. Investing in currencies is like gambling, today you can win the Jackpot, but tomorrow you can lose everything.

On the market you will find a variety of gold savings products, starting with gold coins and ending with gold bullion bars. Their purity is 24 ct and fineness is 999.9, having different weights and presentations. Some of these products are affordable for all clients and some are for those with good financial means. Be careful when you are buying gold from where you are buying and from whom. Appeal to a specialist for avoiding unpleasant situations. Consider some aspects when you decide to buy gold: the reputation of the supplier, the weight, purity, and fineness. Some companies are offering extra services for their clients, such as buyback services, free storage, insurance, and delivery in the safest conditions. Some gold products are cheaper some are more expensive, but all have exceptional quality.

For those with financial potency, the best option is to buy classic gold bullion bars, with 24ct purity and fineness of 999.9. These gold bars are available in various weights: 100 grams, 250 grams, 500 grams, and 1000 grams. As special details, these gold bars are engraved in an elegant manner. They can be delivered to the clients or deposited in the vault of the company, in maximum security conditions. Often these companies are offering free storage.

If you don’t dispose of a big sum for investing in gold, but you want any way to save some money, the solution for you is buying pooled gold bullion bars. You will buy as much as you afford to and share the property of bullion with other clients. Due to their nature, these gold bars can’t be delivered, but the investment is safe and guarantees your profit.

Gold and silver have been a store of value and a medium of exchange for literally thousands of years. As assets, these two precious metals have certainly had their ups and downs in recent decades. But why consider them today? Are they better or worse than other asset classes (such as stocks or bonds) in today’s uncertain economy?

There are always advantages and disadvantages to acquiring any given asset or security when the goal is wealth-building (or wealth preservation). We know that when times are good, and the economy is roaring along, stocks tend to do very well. When times are bad and the economy seems to be hitting a rough patch, conventional wisdom has been to keep more money in safer venues such as government bonds or bank certificates of deposit (CDs).

Every asset has strengths and weaknesses and it is up to the investor (and/or their advisor) to figure out which asset is preferable at a given. For 2010, and beyond, there is a solid reason why gold and silver are strong considerations for investors concerned about today’s economy and financial markets.

Although the typical reasons given for investors to consider owning gold and silver are that they are traditionally good hedges against inflation and market turmoil, there is another reason that is often missed… even by financial planners and experienced investment pros. In today’s market environment, this may very well be the most important reason of all to consider precious metals.

Counter-party risk. It sounds odd but it is probably the most important reason why investors should add gold and silver to their portfolios. Specifically, I am referring to gold and silver physical BULLION. In other words, gold and silver physical coins and bars are purchased from reputable dealers. Why?

One of the most desirable benefits of owning gold and silver physical coins and/or bars is that these two metals do not have “counter-party risk”. Counterparty risk is the risk that the counter-party in particular security will be not able to live up to its’ promise or performance. Virtually all paper assets (stocks, bonds, mutual funds, and even bank investments and currencies) have counter-party risk. If you are still a little unsure of the concept, let me give you some examples.

• When you own a stock, there is counter-party risk. The stock is only as valuable (or desirable) as how well the company involved is performing. If the company is doing well, the stock will continue to have value. However, if the company is in trouble (financial or otherwise), or it is in danger of bankruptcy, then the stock will lose value. Ultimately, if the company goes bankrupt, the stock becomes worthless. Example: Enron or Bear Stearns.
• When you own a bond, it has counter-party risk. What happens if the bond issuer goes out of business or refuses to pay back the principal and/or interest? Then the bond loses value and it could become worthless should the bond issuer not make good on the promise to pay the bond (and interest) in full. Example: Bonds created from sub-prime mortgage securities.
• When you have money in a mutual fund, hedge fund, or some third-party manager, there is counter-party-risk. What if that fund goes out of business? What if their portfolio is loaded with bad Securities? What about fraud? Example: Bernard Madoff.

I think that you are getting the picture. “Paper assets” have counter-party risk. That risk is not limited to just stocks, bonds, or funds. In recent years we have learned that sometimes your money is not safe in a bank. In addition, even cash itself can have counter-party risk because of inflation. When governments crank up the printing press to unleash hyperinflation (as in Yugoslavia in 1989-94 or Zimbabwe 2006-09), the currency becomes worthless overnight.

Gold and silver do not have counter-party risk. They have their intrinsic value and that value is not dependent on another party’s promise or performance. Remember… physical bullion since owning stock in gold and silver mining companies has many of the same counter-party risks that any other stocks would have.

Part of the reason that precious metals have this unique quality is that gold and silver can not be created out of thin air by any government. Both are finite in supply and it is not easy to extract them from the earth. Annual mining only adds about two percent to the world’s above-ground supplies.

Next time you hear the word “diversification”, think “outside the… uh… paper box”. Don’t just diversify among paper assets since the portfolio would still be exposed to counter-party risk. Add non-paper assets like gold and silver for more assured diversification.