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Ways to Invest in Gold

March 11, 2018 By buygold Leave a Comment

Investing in Gold

Due to struggling economies all around the world smart investors are looking for the best options to place their money. One of the most popular investment vehicles over the last 10 years has been gold.

Many people have witnessed substantial gains in their gold holdings and continue to see a nice profit. There are several ways to invest in gold for the beginner and experienced investor.

Unlike stocks and bonds, buying gold is a physical purchase. Once you have bought it you actually own a portion of gold. Here are some of the more common ways to own and invest in gold and their advantages.

What are Gold Sovereigns?

Sovereigns are small coins originally created in 1489 under the orders of Henry VII of England. They were originally made of 23 carat gold. As they became an accepted form of currency they began to be produced in other locations. Melbourne, Sydney, Perth, Bombay, and Ottawa all produced various versions of the coins at different points in time.

Because of their historical importance, the sovereigns are considered some of the most valuable forms of gold coins still available. The British sovereign has a depiction of the Queen’s head. In addition there is a dragon and horse pictured on the coin.

About Krugerrands

The Krugerrand is more populous than the sovereign but it does not have the historical value. Krugerrands were first made by the South African Mint Company in 1967. They are one ounce in size and can be found at a number of locations since they have not been available for very long.

Since the krugerrand has a uniform one ounce size it is quite simple to compare different coins and their relative price. The famous leader of South Africa, Paul Kruger, is featured on the coin, hence the name.

Investing in Gold Bars

It would seem that having pure gold in the shape of a bar would be the best way to invest in gold. However, the one ounce gold bars have not shown any significant price differences in comparison to the krugerrand. Furthermore, a bar does not have any history behind it like the sovereign. Therefore the sovereign may increase in value at a faster rate.

Finally, gold specific dealers are the most likely places to purchase gold bars and these types of businesses are not as plentiful. On the contrary many dealers exist that purchase and sell collector gold coins. In addition there is a worldwide market of private coin investors that frequently buy and sell coins to other investors.

Exchange Traded Fund

Using an Exchange Traded Fund (ETF) is very similar to buying stock. The EFT is a portfolio that represents a collection of different gold holdings. In this manner, investors track the price of gold and buy on the low side and conversely sell on the high side.

Buying gold has been reported as a sound investment for many years. When the overall economic climate is withering most people like to have their money placed in a spot that they know will not only hold its value but increase as time marches on.

Why Buy Gold Investments

January 27, 2018 By buygold Leave a Comment

Gold Investments

Gold has found a very unique place in the world. It is in demand almost anywhere you go. Its beauty, along with durable make-up, has made it valuable and much sought after by kings, paupers, nations and outcasts.

For many years gold was a standard of currency across international borders. It has also been a source of wealth for those able to accumulate it and hold onto it through time.

With the general economy of the world in great turmoil many people have turned more to gold than any other item. But why has it been the source of so much attention?

Basic Investing Principles

Successful investors are keenly aware that a diversified portfolio is one of the principal keys of continued success. Placing too much of one’s assets into any specific investment choice opens up the risk to loss. People will spread their money around different investment vehicles such as cash, property holdings, large corporation stocks, small mutual funds, options and bonds. When one or more of these investments takes a turn for the worse the investor simply pulls the funds from that source and places it temporarily in another source.

Up until the recent recession many people had chosen to move money from bonds and options to place them in land deals. Real estate was climbing to an all time high and investors could see the potential profit in land. Now that home prices have decreased many people are staying away from those types of investments and leaning towards gold.

The High Performer Gets More Funds

Along with diversification is the principle of putting more funds in an area with higher potential return. Using the earlier example, most people would usually invest more heavily in stocks than bonds or options. While bonds are very stable, they do not typically have a high rate of return. In contrast, stocks, although they do come with risk, typically outperform bonds on a regular basis.

Over the last 10 years the price of gold has literally skyrocketed from a price of $750 per ounce to over $1,400 per ounce. That is a 100% return. During this same time period many people have seen stagnation and even a loss in many of their stock holdings. Therefore, people have turned to gold as the new high achieving investment choice.

Various Methods Available

Purchasing gold is becoming easier due to the higher demand. Most shrewd investors still keep an eye out for British sovereign coins and krugerrands since these coins hold value well. The sovereign in particular has an intrinsic historical value. There are also ways of purchasing bullion without actually possessing the coins.

Perth Mint offers their certificate programme which allows people to purchase the bullion in unallocated accounts. The customary charges of shipping, holding, insurance, and custodial related fees are not necessary since the actual bullion is not delivered to the owner. This makes the purchase and investment into gold a much easier transaction and safer.

Gold has proven to be one of the most stable investments available for centuries. Its ability to hold up to the test of time and retain its appeal makes it a fine choice for any investor.