There are no hard fast rules as to how to buy gold, because some decisions are going to come down to the goals and objectives of the buyer. There are a variety of options when it comes to investing in gold, these options include ETFs (Exchange Traded Funds), options contracts, government certificates, precious metals futures, mining shares, and the purchase of physical gold. Whatever one you decide on may just come down to personal preference. There are those that choose physical gold because they like that it is not a liability of some outside entity, like a bond or stock. Because some of these investment options seem very complex or make you have to rely on others, owning physical gold seems very appealing to many. Having ownership of the actual commodity is very different from owning a share of a company that produces it.
Precious metals do not rely very strongly on related assets and investments because of their inherent worth. As the dollar continues to depreciate in value owning gold is a great way for one to preserve their assets and increase their savings.
What form of gold you choose to purchase will determine how easy it will be to liquidate. Gold coins provide more division within a portfolio than gold bars. With gold bars you cannot decide to sell only a portion of the metal where with gold coins they are already produced in smaller more tradable sizes. When people are deciding upon what to include in their portfolio a lot of people go after those that are more available and supply and demand play a big role in the going price. Even though a coin may have been produced in the masses, which would lower the value of the coin, there might only be a few quality coins that survived. Bullion coins on the other hand do not have any factors like rarity or history driving its prices up. Coins are often times sold between fellow collectors and investors and bullion coins are not the type of coin people would purchase to round out a collection.
Some people come into the precious metal market looking to expand their coin collection, while others are attempting to create a top performing portfolio. Often time’s novices have no sense of direction or even don’t know where to begin, fortunately there are many experts available who can help guide you in a direction that will move your portfolio in a direction where it can reap capital gain.
Knowledgeable investors know that the best portfolio is a diverse one, which will protect your investments and provide more selling opportunities in the future.
Investing in Gold Coins and Bars
The discovery of gold occurred in 1848 in Sacramento Valley, which is what started America’s interest in investing in gold for all these years. Today there are many options to choose from when buying this alluring metal and experts would say that buying gold is a great investment decision. Unlike credit and paper bills whose value is set by government whim, gold is a fixed asset with a tangible value that provides a great hedge of protection against inflation as well as the depreciating dollar. One of the reasons gold is a favorite among investors is that more than 80% of the gold supply is not accessible to buyers, more than half of its supply is made of jewelry, there is around 16% of the gold supply in government reserves, 12% is in dental implants, and 2% that is missing or unaccounted for. Because there is a finite amount of gold and therefore a limited amount available for investment purposes, those that do own gold have a powerful tool in the world-wide economic system.
There are several ways that one can begin participating in the precious metal market. One of the most popular ways that people participate in the precious metal market is through purchasing bullion bars. One of the perks to purchasing bullion bars over bullion coins is that they carry a lower premium over the spot price than coins do. Bullion bars come in a variety of sizes such as the 1oz, 10oz, 1 kilogram, and 12 kilograms. Because bullion bars do not have a set standard they are the easiest form of gold to counterfeit. Another way to own gold is through an Exchange-traded fund. Exchange-traded funds are much like stocks in that they are bought and traded and come with no hassles of having to store the metal, however there are some risks that come with this type of gold ownership. Some of the other ways you can go about owning gold is through certificates, shares of gold mining companies, or speculating in the futures market.
Another popular way to invest in gold is through bullion coins. Bullion coins receive their value based on their metal content, they are made to an exact standard, and there are several bullion coins produced from government mints throughout the world. The bullion coin that is the most widely held is the African Krugerrand, with more than 1,400 tons of this coin in circulation. Some other popular bullion coins that are known for being very reliable and easy to obtain is the American Eagle, American Buffalo, and the Canadian Maple Leaf. Other bullion coins include the Mexican 50 Peso, the British Sovereign, the Chinese Panda, the Malaysian Kijan Emas, the Austrian 100 Corona and the Austrian Philharmonic, the French Napoleon, and the Australian Kangaroo. You can store your coins at home or in a safety deposit box, which ever you prefer. Coins are much easier to transport and sell than bullion bars.
Source by William Russell Scott Jr
Different Ways to Buy Physical Gold
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