Gold has always been popular with investors. Investors turn to gold when the economy sours as a defensive play. Investors find refuge in gold investment in the times of inflation, because it retains its value much better than the currency backed assets. You can take physical possession of gold by either buying gold coins or gold bullion. One can also invest in stocks of gold mining and producing companies.
Investing in gold is quite a complicated decision and should not be taken at once. If you buy actual gold in some physical form, make sure that the dealer is a trusted one. Gold is available in many different forms like coins, bricks, bars, ornaments and jewels etc. Owning gold coins and bullions is one choice, but it should be kept in mind that gold coins and bullion are often sold at premium and bought at discount, so you may not get the market price when you sell it.
The second option is that you buy gold bars to secure your capital, like the emperors in old days used to do. You can easily get gold bars or gold bricks from any of the gold dealers. The advantage of buying larger bars or ingots is that the premium is considerably lower per ounce and usually a fraction above the spot price of gold for the day of the sale. The disadvantages of course are the shipping and storing considerations and the theft concerns. Gold bars and bricks are much more difficult to move around and store due to their weight and size. And, for larger sized bars, these considerations become more serious.
There are many advantages of coins over bars and ingots. Coins are portable and can be sold or exchanged easily, but gold bars can only be sold to the some specialized gold dealers. In addition to their utilitarian use as money, some coins are regarded as beautiful works of art, which are much sought after and bought, sold and traded world-wide.
Some people also like to keep gold in the form of jewels and ornaments, which is also a good idea. But, it should be noted that while keeping gold, as the trends and fashion changes, the price of gold jewellery of old designs can also go down a little bit. But, jewellers usually pay for the weight of the gold and not for the design.
Buying solid gold is your own choice, but before deciding, you should consider the market trends. Buying precious metals is not an investment. With such commodities like gold and silver, you just convert your cash into metal form to preserve your buying power.
Source by Jack Wogan
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