Buying Gold Is A Great Idea

Buying gold is not just a good idea. It is the best investment move that you can make right now. This precious metal has performed spectacularly over the last decade and more.

Gold BuffaloWhy Is Buying Gold Such a Good Investment?

A lot of people have looked on the rush to buy gold with a certain amount of disdain. They may think that gold is just a shiny piece of metal. For years, while gold prices were skyrocketing, skeptical investors made reference to a gold bubble. They were certain that gold would suffer the same fate as the dot com businesses that crumbled at the beginning of the last decade.

More than a decade later, gold is still holding its ground. Even though it has suffered some setbacks since its 2011 highs, the voices of dissent have gone completely quiet. Any idea that gold was going to give up a significant part of its historic gains has lost its luster. It is obvious to everyone that this asset is going to form the base of many strong portfolios as the next year unfolds.

Imitation is one of the highest forms of flattery. It is also wise when you are imitating some of the most brilliant investment minds in the market. If you look around at investments, you will see that many major players in the investment world are making big moves into gold. Nations are buying up big supplies.

George SorosEven George Soros, who once decried gold investment as a form of foolishness, has admitted publicly that he is buying gold. With examples like these before you, there is no reason to hold back from buying gold.

How Can You Invest in Gold?

Buying gold is not restricted to purchases of big gold bars like the ones that you see in films. These assets are certainly available if you want them. However, gold can be purchased in many sizes and shapes.

The most important thing to seek when you start buying gold is bullion-quality investments. Do not make the mistake of buying those so-called coins that you see for sale on television. These products are rarely real gold. Instead, they are gold-plated or are severely alloyed. Instead, look to national mints and international companies that are known for their reputations and the quality of their assets.

If you live near a gold dealer, then you have an advantage over most buyers. However, even if you live next door to a reputable and highly qualified gold dealer, it would be worth your while to consider some of the vendors that you can find on the Internet. These brokers can often provide even better deals than your local provider because this business has become so profitable. You can even arrange for inexpensive shipment directly to your residence so that you can quickly enjoy the feel of real wealth in your hands.

Types of Gold Assets

If you are ready to start buying gold, then it is time to consider the possible assets. You can easily divide gold purchases into two categories: bars and coins. However, there are many different varieties of each of these assets as well.

Canadian Maple LeafsGold Coins

There are advantages and disadvantages to buying gold coins. One thing that gold buyers immediately dislike about buying gold coins is the wide discrepancy between the price of a specific gold coin and the current spot price.

When you go to buy gold coins online, you will almost never see a flat price for a coin. Instead, these coins are advertised as selling for spot price plus a certain amount.

This is not a real cause for concern. It is a simple fact that gold coins are a product and their production requires expenses, which must be recouped by manufacturers. As a result of the efforts put into the design and production of these assets, they are actually worth more than the spot price.

The key thing to remember about buying gold coins is that you will have to take care of them if they are to retain their value. Gold is a particularly soft metal that is prone to wear. Your legal tender gold coin is more valuable than the spot price of gold and always will be because it contains gold that is virtually pure, without any mixture of base metals. However, if you let the faces of a coin become marred, then it could become less valuable than the price that you paid for it. This is why serious gold coin buyers must make provision for the safekeeping of their wealth.

American EaglesThere are many fine examples of gold coins for sale on the international market today. If you are an American buyer, your first interests might be the two lines of gold coins that the US mint currently produces every year. The American Gold Eagle is world-renowned for its value. Minted in four sizes ranging from one-quarter of an ounce to a full ounce, this coin stands out among the rest because it is alloyed with copper and silver.

While such an alloy usually turns away serious investors, this coin uses minimal amounts of these metals to preserve the integrity of the coin’s appearance. You can count on the American Gold Eagle to retain its original value because it will not wear as easily as some of the purer coins out there.

The American Gold Buffalo is marketed to buyers who are willing to sacrifice the integrity of the American Eagle in exchange for a high level of fineness. This coin is rated at a .999 fineness, making it the equal of many other nations’ gold coins. In fact, the US Mint also issues some special runs of this coin, which possess a purity of .9999 in fineness.

The Royal Canadian Mint is keen on fineness in their gold products. That is why they annually strike the Canadian Gold Maple Leafs that have a fineness rating of .9999. This is as high as the scale for fineness goes. These coins are essentially pure gold with absolutely nothing else intermixed. The Canadians issue this coin in several sizes.

The Chinese Gold Panda is also a major contender on the world market for gold coins. The coin meets the .999 benchmark for fineness but it is known for its changing design as well. The design of the Panda, as well as certain additional details about the coin, changes every year. This slight alteration lends numismatic value to the Gold Panda as the years pass. Obviously, the coin is also desirable because the authority of the Chinese government also backs this coin entirely.

PAMP Suisse Gold BarGold Bars

Gold bars are often considered preferable to gold coins because they do not cost as much per ounce. Bars require less effort to produce so they sell for a marginal amount over spot price. As such, they are seen as much more efficient investments.

You can acquire bars from some national mints but they are usually purchased through a variety of brokers online. You do not have to possess unusual means to buy them, either, because these assets are available in sizes ranging from less than one ounce to several kilograms. They stack very neatly in your safe or safe deposit box at a bank.

Whether you buy coins, bars or both, buying gold is a smart move. This asset will form a firm foundation for your wealth. It will certainly help you overcome any of the adversities that might be coming your way in the next year, as a variety of financial concerns and economic problems play out on the international stage.

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