Investing in Gold Bullion
Introduction – Why Gold?
For the past 5000 years, ever since gold was first discovered, there has been no other metal that can match its beauty, luster and its true value, thus making gold investments such an attractive proposition and wise decision. This has applied throughout the ages and certainly still applies today.
Not only is gold recognized internationally as an important financial powerhouse, but it is also stored in reserve banks by major countries worldwide, such is its importance and significance.
Gold is also a beautiful rarity and perhaps this makes investing in it even more attractive for investors looking to diversify and safeguard their wealth during times of economic instability and crisis.
Why Investing in Gold Bullion Makes Sense
Investing in gold bullion coins or bars is a profitable and a wise decision – not only for the long term but also as a hedge against soaring inflation. Since gold can be bought and sold independently without having to actually invest in bonds and stocks, gold investing is considered by many to be safer and less risky.
Purchasing gold bullion coins is practical too since they are easy to store and also pretty affordable for the regular investor. American Eagle Gold bullion coins are the country’s most valued and sought after, whilst the South African Krugerrand is one of the most popular types of gold coins worldwide.
Before actually making an investment in gold bullion, you must understand what bullion coins are. Unlike normal currency, bullion coins are actually made by melting and shaping up precious metals like gold, silver, platinum or palladium. Bullion coins are unlike regular currency. These are solely used for investment purposes and are stored over years as an asset.
It is simple and straightforward to Invest in gold bullion coins, as they are priced according to their actual weight. Also, they are minted in sizes ranging from 1 ounce to 1/10th of an ounce and are therefore easy to handle.
About Gold Bullion
Despite popular belief, buying gold bullion doesn’t mean you have to purchase ‘biscuit’ type gold bars. With smaller bullion coins, not only has it become affordable for the common investor, but it is also easy to store and sell them when you so desire.
Gold bullion investing acts as a basic hedge fund that will not only protect you and your wealth from economic instability, but also offer you an easy way to own gold and profit from it. Gold bullion’s easy liquidity, portability and standardized weights, sizes and pure form make it extremely tradable in the global market.
How To Invest In Gold Bullion Coins
It is important to learn exactly how to invest in gold bullion coins before going ahead. You also need to choose which type of bullion coins you want.
The most popular and commonly purchased are the Krugerrand which are the oldest and the first bullion coins to be introduced in the world marketplace, the American Eagle and the Canadian Maple Leaf. Most of these start from sizes of 1/10th of an ounce and are pretty easy to buy over the internet.
You could start your gold investment with U.S Eagles which are 22-karat gold bullion coins with a tiny bit of copper mixed in to ensure durability and to prevent corrosion or denting. The Canadian Maple leaf is also a popular choice, however they are only 99.99% gold, unlike the U.S Eagles or the Krugerrand. The Maple leaf comes in sizes starting from 1/20th of an ounce, while the Krugerrand starts from 1 ounce denominations. You could also consider extending your gold investments to bullion from Australia by investing in the Kookaburra.
Investing In Gold Bullion To Protect Your Wealth
Many people wonder why it is so important to invest in gold. For starters, even though market prices rise and fall, the value of gold hardly ever changes, and if it does, it rises upwards. The World Gold Council analyzed and estimated in 2005 that the current demand for gold worldwide was 3754 tons whilst its supply was 3859 tons. This meant that a surplus of 105 tons was apparent, making gold a highly liquid commodity.
Buying gold bullion has been one of the safest forms of investment since the financial crisis of 2008 that left many investors mistrustful of risky alternatives. Of late, with banks failing, countries unable to pay their debts and government spending spiralling out of control people are more wary and concerned than ever.
It is fact that billionaires worldwide are abandoning other varieties of hedge funds and mutual funds, and are instead turning to gold to protect their wealth and assure themselves a much more secure future.
A good starting point for investing in gold bullion is to purchase American Eagle bullion coins. These coins are affordable and charge you a small premium over the cost of the coins themselves. The premium is charged to cover shipping and handling, while the coin is priced according to the current gold price and the amount of gold it contains. The coin’s front face displays the famous design by Augustus Saint-Gauden that was minted between 1907 and1933 and the reverse side features Miley Busiek’s art work.
Savvy investors take advantage of US Mint gold bullion for their US IRAs (Individual Retirement Accounts). Not only are the 22-karat US Eagles eligible for these, but also the newer American Buffalo gold bullion coins. These coins are 24-karat gold, and are known to be one of purest items of gold available anywhere in the world on the basis of how much gold they contain.
Another reason for investing in bullion like the US Eagle or American Buffalo is that these coins are the only ones that receive backing and legitimate support from the US Mint. Gold IRAs are an excellent choice for investors looking for a long-term saving and most of the gold coins mentioned above are eligible for this process. You can easily track the value of these coins by checking the up to date gold market price.
Conclusion – Gold Bullion Investing
Investing in gold bullion is simple and straightforward and it offers everyday folk a way to safeguard their wealth and future prosperity. With Government spending spiraling out of control and the prospect of not merely inflation but stagflation looming now is the right time to take control of your future and that of your family rather than leaving it to chance and hoping for the best. To get started on safeguarding your future click here now.
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Filed under: Investment Information