Choosing the Right Gold Investment Form
Figuring Out Which Gold to Buy
There have been lots of options of physical gold over the centuries, and even today the precious metal can be easily found in multiple shapes, uses and styles. Everything from basic bullion bars to intricate jewellery represents how gold is used today. However, for the private investor, the real question is which form is the best to hold for the purposes of value protection and investment as well as being easy to liquidate when it’s time to sell those assets.
1. Jewellery
Jewellery is often thought of as a good form because it incorporates both art and the vivid presence of gold. It also looks attractive and is often held close and available. Unfortunately, jewellery is not the easiest format to liquidate or exchange. While one dealer might mark up a jewellery set at one price level, there is no guarantee another buyer will pay the gold price paid or even honour the spot price value with an unknown shape and substance.
2. Gold Bars
Gold bars can be a viable form. It’s measured in set amounts, and the form is standardized and recognized by all experts and buyers. However, bullion bars are often larger in size, hard to handle due to weight, and always need to be kept secure due to how much they are individually worth. This makes their form hard to work with at a practical level.
3. Gold Coins
Gold coins are the third form. They come with a government issuance on size, value, composite and weight. The information is stamped on the coin, making it easy to read and value without any expert review needed. They easily trade on multiple markets ranging from private exchanges to formal transactions. They can be sold individually or in bulk as one sees fit. In short, gold bullion coins issued by the government are very much the closest to an ideal form of gold to invest with and price guide against. Secure your gold via an online channel at MyGold’s website or visit us in Auckland’s business district just 200 meters from Sky Casino and the Auckland Sky Tower.
What Makes Gold So Important?
The value of gold as a precious metal has been as old as history, dating back centuries. From being worn to decorating temples to being worn as ceremonial armour, gold has been deemed one of the most desirable metals to have no matter what one’s background or country. In its natural form, gold comes out of the earth warbled, mashed and solidified, often in its last form before it hardened as the liquid metal cooled between hot rocks and geological movement. Further, the natural form has to be refined to reach its most valuable state, the gold we know that can be melted and reformed into jewellery, coins, detailed technology and bullion. However, the demand for gold generates today from varied sources. Jewellery continues today to be half of the want commercially for the yellow metal. Ten percent of the remaining demand consistently emanates from the industry because gold is a highly efficient and effective conduit for circuits. Investment in gold bullion makes up the remaining 40 percent of market consumption. But none of this explains again why gold smart portfolios are so important. The answer is in what gold provides – a safe haven. Where paper money and other currencies hinge on the strength of the government that issues them, gold has no strings attached. Gold is accepted everywhere, even better than the most famous credit card. And when technology completely fails, gold smart holdings will still buy what matters without questions. That makes it extremely important in any portfolio. When you decide it’s time to add gold to your investments, learn how on MyGold’s website or visit us in person right in the heart of Auckland’s business district. We’re just 200 meters from the Auckland Sky Tower and Sky Casino and ready to teach you a store of wealth about gold investing.
Not Every Gold Form is the Best Investment Choice
Gold bullion, gold coins, jewellery, gold holdings and EFTs and more all make up the different investment options available for gold positions today. However, some options are far better than others in terms of liquidity as well as practical buying and selling when needed. What seems like the easiest and most obvious to invest in, gold bars isn’t the most compatible with private investing. Bars are bulky, heavy and often need to be kept secured because they can represent significant value compacted in one bar. They also require heavy security, often making the owner place them in a bank or at least purchase a sizable safe or vault. Jewellery is the most common form of gold consumers have, but it doesn’t liquidate well. That’s because there are no identifying features on jewellery to provide the weight, consistency and quality of the physical gold involved. And many jewellery buyers wants a significant discount to give them a profit margin on jewellery that may not sell very fast. EFTs and gold mutual funds might seem like an easier set of options, but an investor isn’t really buying gold with these tools. Instead, one is buying an agreement on paper. The actual gold is retained by the issuer in exchange for cash; in a sense, it’s a loan with the investor being the lender. If the borrower goes belly-up, however, the lender has no claim to the actual gold, just useless paper. This leaves gold coins as the next choice. The beauty of official bullion coins remains the fact that all the hard work has been done by the issuing government. The coin has its measurement, weight, gold quality, a guarantee of fabrication and quality provided by the government. No surprise then, government-issued coins trade extremely well and widely. And that makes them the best choice for the private investor. MyGold online can help, or you can talk with us in person, right in the heart of Auckland’s business district. Our store is just 200 meters from the Auckland Sky Tower and the Sky Casino.