For as long as mankind has gathered in groups, gold has been thought of as a valuable mineral. For centuries it was a universal form of money and some argue it still is today. This is because the cost and value of gold is not affected by changes in the political and economic landscape of a state. If a country enters a stage of uncertainty, many investors move their assets into bullion in order to protect it from being affected by political and economic crises. By investing in gold, people can simply transfer their riches from a failed state into another state without affecting the cost of the asset.
Gold has been sought after for its unique blend of near indestructibility, beauty, rarity as well as its status as a medium of exchange.
Empires and nations have sought to possess gold as a medium of international exchange, as a store of wealth and in order to increase and preserve power. Individuals have used gold as a store of wealth and as insurance against the fluctuations and depreciation of paper money and to protect against other macroeconomic and geopolitical risks.
Just as in every other market sector, the gold arena can be quite complex and intimidating for investors who have not yet found the time to research the market in depth.
Having a large quantity of precious metals is a goal of any smart investor. Gold is, and always will be, the most desirable form of money and the ultimate representation of wealth.
Buying gold on the internet is not only the most cost effective method to add to your portfolio, but also the most convenient. You will certainly want to purchase at a reputable dealer who will provide you with the highest quality and the best prices to get the most out of your money.
Buying gold online is not nearly as difficult or intimidating as it may seem, Bank of Silver aims to make the process as simple as possible.
The most important concept for new precious metal investors to understand is the difference between bullion coins and numismatic coins.
Bullion coins are those that derive their value almost entirely from their metal content.
If a bullion gold coin is priced at $1700/oz, it's because it contains close to $1700/oz worth of gold.
Numismatic coins derive some or all of their value from being "rare" or "collectable."
If a gold numismatic gold coin is priced at $4800/oz, it probably still contains only $1700 worth of gold, and the rest is a premium for the coin's aesthetic qualities.
If you want to invest in precious metals, you want bullion coins or bars. If you want to build a coin collection for sentimental or historical purposes, you want numismatic coins. A buyer should always know which is which, and purchase accordingly.
When most people think of gold, they envision an assortment of massive gold bars. While major world powers and countries may stockpile their reserves of gold in this manner, it is hardly what most people will ever own in their private investments or collections when they buy gold bullion. Gold bars are not as sizable as you might think. The truth is that most are actually quite small, measuring just a few inches long, a few inches wide, and much less in thickness. You could literally fit $50,000 in gold in your pocket. There are many different sizes to choose from when you buy gold bars, ranging from 1 gram all the way to 12.4 Kilograms.
1 gram, 2 gram, and fractional ounce bars are most popular among gold buyers. They can be obtained for a fraction of the price of gold and will not take up much space at all when it comes to storage. Though there are no set standard sizes or weights for bars, the general weights that you will tend to find include 1 through 10 gram size, 1/10 oz., 1/4 oz., 1/2 oz., and 1 oz. It is important to note that these sizes do not remain the same when you buy silver bars online. After you exceed 1 oz. in size, the availability will begin to diminish more and more. Unlike other precious metals, gold is not generally bought and sold in pieces that weigh a lot due to the exceptionally high value found in just a single ounce.
Gold coins are owned by collectors and investors alike. Where a collector will not generally have a whole lot of interest in bars or generic rounds, they continually flock to coins of all different types. A coin is an item that is produced exclusively by a government run mint. The difference between a coin and a round is that they cannot be privately created and are issued in only limited quantities. Because of this, coins are both in high demand and limited supply. The more basic and common coins from around the world can be obtained for a relatively small mark up over the spot price of gold, but rarer versions can cost "a pretty penny".
Gold is much more like a currency than a commodity. It is seen as universally valuable and because of this it was originally used to back the currency of the United States government.
Purchasing power represents the amount of goods and services you can buy with a currency. The value of gold, in terms of the real goods and services it can buy, has remained largely stable for decades, if not centuries. Gold’s real price has endured a century characterised by sweeping change, inflation and repeated geopolitical shocks. Despite all challenges, it has always retained its purchasing power.
New Investors Guide