Category Archives: Gold

Ideas on Where to Buy Gold

Gold is considered to be a good investment. It has been so popular since the ancient times. But even though there has been a great demand for gold, it has always given decent income return for a long term. Investing your money to this will definitely give you a remarkable income in the near future. There are many reasons why people would invest their money to buying gold. Some would just want to be glamorous with their gold jewelry. Some would even buy it to start a new business. Before you even start investing for gold, you should know where to buy cheap gold.

Gold has always been charming the eyes of anyone. But you also have to be sure about the quality of the material you buy. Just like the eye of the eagle, you eyes should be sharp and clear when you shop for gold. The reason for this is because some sellers would tend to deceive some new buyers on the quality of gold. Buying gold in its physical form is a challenge that is why many would spend money just to gain knowledge about the quality of the gold in its physical form so that when they get to the point that they will buy it, they will not be deceived by fake ones.

There are many places where you can buy gold. There are the gold dealers. These are business men who are selling gold in a large scale. You should again be guided on how to deal with these people. There are kinds of gold dealers who play dirty games just to profit more. There are Americans who have been established gold dealers and they are the ones where you can buy pure gold for investment purposes. It is up to you whether you are paying through credit card or cash. The jewelry shops are the place where you can buy gold in jewelry form. If you plan on selling gold jewelry, then these shops are the place to go to. It is really important that you also have knowledge on how to choose a sellable jewelry in order for you to purchase the right jewelry for your potential buyers.

The online shops are also good source of authentic and good quality gold items. Be guided that there is a particular way on how to determine whether an online gold store is not a scam. You just have to use your skill on knowing the background of a particular shop.

These are just some of the places where you can buy gold. You just have to be so investigative on how to know about the places which are good source of gold items which are suitable for your business. It would be very useful if you use the internet as your way of knowing things about the person or the shop you are dealing with. The reason for this is for you to avoid illegal transactions. Gold is a good investment. You just have to know how to look for the good quality ones.

Good and Bad Ways to Buy Gold

Gold is going higher! The Dollar will soon be worthless! Every other television commercial seems to scream that gold – and gold alone – will secure your financial future. Maybe the warnings are sound. At the very least, gold represents a diversification from the stock, bond and real estate holdings found in a typical portfolio.

But what’s a would-be gold owner to do? Buy a gold coin on eBay? Open a commodity account to trade gold futures? Or call one of the TV pitchmen? Is counterfeiting a possibility?

What could possibly go wrong?

Unfortunately, the benefits of buying gold sometimes drown out the potential pitfalls for an inexperienced buyer. Gold can be purchased in a number of forms – some of which are more or less affordable and appropriate for a given investor. Brokers and salespeople tend to push whatever they have and gloss over alternative forms of ownership. Before you jump into gold or any other precious metal, be sure you understand your alternatives.

Gold Ingots or Coins

Good: Coins are widely recognized as being valuable because people are used to non-gold coins. Ingots – little bars of gold – are also somewhat familiar and therefore, freely exchangeable. Pure gold doesn’t corrode and is easily stored/concealed. And possession is key compared to gold ownership represented by a piece of paper.

Bad: When buying physical gold, you’re charged more than the exact, current market price. How much more depends on how much you buy and who you buy it from – so shop. And when some TV commercials and their salespeople tell you there is “no counterparty risk”, ask them about counterfeiting and clipping – shaving away tiny quantities of metal. As gold becomes more valuable, the incentive to defraud grows.

Collectible Coins

Good: Advocates claim that collectible or numismatic gold coins are less likely to be confiscated by the government in times of economic emergency. After all, they were exempted from President Roosevelt’s 1933 gold nationalization.

Bad: Collectible value can be difficult to determine. Condition and rarity are key to collectibles, unlike non-collectible coins and ingots. If a coin is “unique” its value lies completely in the eye of the beholder. You may be sold on the idea that a coin is rare, shell out big bucks, and then learn that it is neither rare nor in demand. Oh, and collectibles can be counterfeited and clipped, too.

Gold Stocks

Good: If a company mines or refines gold, it must own gold. As the price of gold rises, the stock in a gold company should rise along with it. Gold stocks are easy to buy and presumably run by managers who are experienced in their business. Let them worry about costs and storage.

Bad: Owning a stock certificate doesn’t mean that you own any gold. Company managers may or may not be capable of getting gold out of the ground profitably. And while you can presume professional honesty and competence, consider the alternative possibility: Enron. Madoff. WorldCom.

Futures

Good: Commodity futures permit the use of leverage: you only have to put up about 10 percent of gold’s value to “own” it. Thus, you can own more gold, faster – and profit more if the price goes higher. Storage, transport and counterparty risk are all someone else’s problem. Futures prices track the cash market almost perfectly.

Bad: The futures markets are designed as price risk management tools for owners of commodities, not vehicles for taking delivery of physical gold. Therefore they constitute another form of “paper” and very temporary ownership. And the same leverage that permits quick profits exposes you to losses that are just as quick. You possess no metal – and are subject to margin calls.

And there are other forms of paper gold. A gold Exchange Traded Fund (ETF) can be purchased like a stock, without the dangerous leverage of futures – but also without possession of the metal. Or you can purchase physical gold, receive a certificate of ownership and pay to have it stored in a secure location. Similarly, you can purchase bullion in an IRA account to shelter any profit from taxes. Again, you pay for storage and don’t possess the gold.

Bottom line: Leave leverage and collectibles to the pros. Possession, price and any ongoing storage costs are key. There are always costs over and above the cost of the metal itself and no form of ownership is best for everyone. Buy gold – but only from a trusted seller.

Investing in Gold for a Secure Future

Since the recession, there have been many people who have lost everything that they have worked for and saved for years at a time. Many of these people believed that the stock market was a fool prop way to invest and in the end lost everything. This does not mean they should not have saved for retirement. What they should have done though is saved in a much safer form.

What these people who have lost everything should have invested in was gold. Gold is one of the most secure investments in the world, because it is one of the only physical investments that you can touch. Gold does not go bad and gold does not become worthless over time. Even during the worst stock market crashes, gold will retain its value.

Gold is normally priced by the ounce. The hefty price that gold bars have can be cut down for those looking to invest less money. One of the most popular ways people buy gold is in the form of coins. US Eagles have become the most common forms of investing in gold along side gold bars, because they come in a wide variation of sizes. The sizes of coins include 1/2 oz, 1/5 oz, 1/10 oz, and 1/20 oz. These fractions of gold go all the way down to the $200 range.

For larger amounts that are being invested, gold bars are the way to go. These bars all weigh 1 ounce and are all.999% gold. Buying these gold bars allows one to have the most secure investment, while it still has growth potential. Gold bars have been used as a popular investment for years. This has and always will be a form of investing that will be found amongst different countries.

If investing in gold bars does not seem like the right investment, then buying silver coins comes in the next choice. These coins are made of the same quality as the gold bars were made, just with silver. The silver market has proven to be a tad more aggressive than the gold market, which has many investors considering that as their investment instead. Silver coins have stood to the side of gold bars for years. Investing in silver is much more affordable and may prove to have a larger payback when retirement comes around.

Investing is the best choice that a person can make. It is literally the definition of building self value. When retirement comes around, having money safely stored away in an investment that never crashed will be the best feeling in the world. Gold is and always will be the best way to invest money for the long run. Gold bars are secure and come in many forms to fit anyone’s income.

Collect And Invest In Gold Coins

With the security that precious metals provide from the recent economic and political instability, most investors understand that it is a wise idea to invest in gold or silver. But many can’t decide what the best way to invest in gold or silver is. The way you choose depends on your reasons for investing in gold, and how much you are looking to spend.

One of the best way for the average person to invest in gold is with gold coins. Gold coins have several benefits over large gold bars. With the exception of the smaller gold bars (say, an ounce or less), gold bars come in large denominations that are somewhat illiquid. For example, if you have a 10 ounce gold bar and you want to sell a half-ounce of it, you can’t slice off a piece of the bar. You have to sell the whole thing. On the other hand, if you have 20 half-ounce coins (or small bars, which are available), you can sell just one coin and keep the rest of your investment intact. This liquidity would also be useful in times of severe crisis. Imagine a time of total war and hyper-inflation. Let’s say you wanted to exchange some gold for an escape option, or for some necessities such as food or clothing. Smaller denominations would be more useful for buying such necessities. Otherwise you could easily be exploited by people who demanded the entire gold bar. Like being stuck with taxi driver who pretends he doesn’t have change for a twenty, you could get taken.

Gold coins are durable and last hundreds of years. Alloys (gold with another metal added) can last for thousands of years. They don’t tarnish and don’t scratch easily. They’re also easily stored because of their small size. Many investors prefer to store their gold coins in their homes, stashed in some secret place, unlikely to ever be found because of their small size. Large gold bullion bars require professional storage and security services, which costs you money. And obviously the reputability of the storage provider needs to be confirmed.

Coins and small bars are also easy to buy, with reputable vendors existing in basically every major city and also online. So how do you choose which gold coins to invest in? There are two things to keep in mind:

1) Some gold coins are pure (999/1000 is considered pure gold, also known as 24 carat gold), but others are only 917/1000 parts gold (aka 22 carat gold). Both are reasonable investments, and as long as the real weight of gold contained is printed on the coin then two one-ounce gold coins will contain the same amount of gold. But pure gold does have slightly higher prestige and may be more easily sellable because they can be melted down easily. In a time of crisis that ability to be melted down may be worth something to someone.

How to Invest in Gold, Right Now

In the current financial crisis, many people are concerned that their paper dollars are no longer safe. They are turning to physical assets which have stood the test of time, namely precious metals. How to invest in gold then becomes a practical issue – how to you actually do it.

Gold is currently available at a fairly low price in historical terms; but in the medium to long term, it is expected to rise in value. Many financial advisers now say that about 10% of your assets should be held in precious metals like gold.

But for some people, potential high returns from gold investment are not really the issue – they simply want to preserve their wealth. Traditional investments like shares and property are falling in dollar value currently, and they would be happy to have some of their wealth in a commodity which is less likely to erode this way.

If you are one of the people whose thoughts are turning to precious metal investment, whether it is for small or high dollar sums, then you need to know about the easiest way to do it. You need to know specifically how to invest in gold, and where to do it.

As you would expect, there are now many services which offer the ability to buy gold bullion online.

One of the best and most popular of these online services allows you to buy gold bullion (in amounts from as low as one gram upwards), store it safely in a vault (in New York, London, or Zurich), and sell it again whenever you wish. It should take you less than fifteen minutes to register, fund your account, and buy the gold bullion you want.

What about the price of gold on offer there? This service bases its gold price on the current world spot price for gold, plus a small fraction. Thus, you are getting your gold much closer to the ‘wholesale’ cost. This compares very favorably with other ways of acquiring physical gold, such as bidding for bullion coins on eBay or similar auctions, or buying gold sovereigns from a coin dealer.

Currently, the online service I recommend is offering a free gram of gold (worth approximately $20) for those who register a new account.

I have investigated other gold buying services online, and can say that this is the easiest and most secure way to own and store physical gold. This service already has 40,000 customers, and has extensive online help available for those who are buying gold for the first time.

Any gold you buy is held in a safe and very secure vault of your choosing. It is also insured for you.