Gold is one of the most popular investment vehicles of all times, with many first time users investing in gold bullions worldwide. This precious metal can act as a hedge against economic, political or social crises and still hold its own. The ebb or flow of the investment market would not adversely affect its intrinsic value. Neither can inflation, economic downturn, war or social unrest make it less appreciated. No one can deny that like all other markets, the gold market is also subject to some form of speculation. However, the price of this precious metal does not change with a change in the prices of other commodities; it tends to act more like a currency than a commodity. It is used as reserves by the largest banks of the world and plays an invaluable role in stabilizing the economies of most countries today.
No wonder, first time gold investors are growing by the day. Recent reports suggest that upper income professionals in the age group of 40 to 65 years are investing in gold bullions. In 2011, investors from Gen X and Gen Y have also shown what might be considered a surprising interest in this precious commodity viz. a viz. other long term investment options such as real estate, stocks, bonds and savings accounts.
Gold bullion is gold in its purest form, valued by quality and weight. It is not like gold jewelry, where factors such as aesthetics play a part in defining value. When someone pays for bullion, the person is paying for just the market value of gold plus some small percentage costs incurred in refining, fabricating and shipping the same.
Bullion coins are smaller than bars and are produced by different entities including the United States and the Canadian governments. The American Eagle Gold Bullion Coins and the Canadian Maple Leaf Gold Bullion coins are some of the options that first time investors in gold can look into as the bullion coins are easier to liquidate than bars.
Where to buy gold bullion?
There are some reputable online bullion brokers for precious metal that provides the personnel, resources, capital and product required for different levels of bullion investing. They have bullion trading desks in different countries that monitor the metal market conditions giving them insights into how the market performs. This helps them in providing clients with the latest information so as to maximize profits and minimize risks when trading in precious metals bullion. The clients could be first time investors, coin dealers, investment brokers and financial institutions.
These brokers also help the gold investment market by providing liquidity for precious metals. Clients can approach them to efficiently transform bullion into currency or currency into bullion.
What are the factors one should keep in mind while buying gold bullions online?
Gold has a fluctuating base price, called the spot price. While buying gold, an investor would need to look into two things; purity of gold and the price over the spot price. The actual printing of the gold coins can add to the price over the spot price.
When buying gold bullions, you will want to make sure that the gold is 99.99% pure. You must ascertain the purity of the gold you are buying from the gold dealer or broker. Also, it is better to buy gold bars instead of coins; this way, you would be getting more gold for your money.
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