Why Buy Gold?
Gold is perhaps the most valuable precious metal that does not fluctuate in worth with the economy and retains its value when paper currency loses value. Gold is accepted anywhere as a mode of financial transactions and hence it is an investment or a representation of assets. Investors buy gold to safeguard the worth of their assets by avoiding effects of inflation and economic crisis and deterioration.
Unlike other forms of investment like stocks, bonds, liquid cash, or physical assets which are susceptible to collapsing, currency crisis or physical destruction, gold is unaffected by value and liquidity failures. Gold does not offer returns such as dividends or price spikes but it offers long-term security in terms of asset stability and diversity.
How to Buy Gold:
There are several ways of buying the various forms of gold. One can buy gold from any one of these:
1. Auctioneers, gold dealers, or collectors – To avoid buying stolen or fake gold, confirm their registration by the relevant international and local authorities.
2. Refineries – It is best to buy gold from established gold refineries such as The Perth Mint in Australia, Midwest Refineries in US or Produits Artistiques de Metaux Preieux (PAMP) in Switzerland among others. One can choose the size and weight of the gold that is worth the amount he/she wants to invest when buying from a refinery.
3. Escrow – The gold in an escrow is an entitlement expressed in an account holding and one does not hold the physical gold but can acquire it when he/she wants. The actual gold is in different gold banks and safes and the account holder owns just a share of it depending on the size of the holding. The owner of the gold does not bother with safety issues. Some reliable escrows include BullionVault.
4. Exchange Traded Funds (EFT) – One buys certificates that represent an amount of gold held in a bank.
The Various Forms One Can Buy Gold In Include:
Gold bullions – ingots or bars and coins
One can buy gold bars and coins from escrows, gold dealers, or refineries at the price cited for gold at that time and date. The price of the gold differs from one dealer to another and is dependent on factors such as.
Type of coin – These include Chinese Panda, American Eagle, British Sovereign or South African Krugerrand among others.
Size and weight of gold content in Grams or troy ounces contained per bullion.
Fineness – This is the amount of gold contained in gold bullion compared to other metals added to bullion to make them stronger and easier to mint.
These forms of gold demand extra costs for shipping, secure storage, and insurance.
This involves buying and storing gold items and ornaments such as old necklaces, jewelry, and rings from respective owners like friends and relatives. One buys the damaged items and ornaments, keeps and monitors the market values, then sells at a profit to refiners and pawnshops.
Gold Accounts, EFTs and Futures
This is a way of buying gold bullion and avoiding the trouble of security and insurance. Some banks offer gold accounts but the gold is in secure vaults somewhere else. EFTs offers one a chance to own shares of gold just like in shares in a stock exchange. The account holders can convert the gold to money easily without having to sell the gold personally.