Mar
Buying Gold – The Logic
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Humans have been fascinated by gold for thousands of years, by the way it never tarnishes and by its unique color.
Sadly, gold is useless in engineering terms, except for plating electrical contacts, to ensure they never tarnish and lose their conductivity. The metal is too soft, with too low a tensile strength to be used for much besides necklaces and rings.
As an investment though, gold is a different story altogether. Why do people buy gold? It has zero intrinsic value.
Gold prices fall and rise, according largely to the degree of fear that people have about the future. When war is imminent gold prices soar.
When economic conditions are good, inflation low and employment rate high, gold prices fall. Under these conditions there are investments that are probably going to produce a better return than holding gold bars.
People buy gold because they fear the inflation and catastrophic share price collapse that normally accompanies war and political uncertainty. They buy gold because they think gold will hold its value.
Historically gold holds some value, whereas shares can lose all of their value overnight. However, anyone who buys gold at the high price associated with war will almost certainly lose money, when they sell at a lower price.
Conclusion – buy gold when everyone is saying to invest in the stock market. Sell gold when things are looking grim and there are lots of buyers out there.
If you do buy gold you need to appreciate that this investment has risk. The price of gold may fall. It may be years before you can sell your gold at a profit.
Until recently many countries made it illegal for individuals to hold gold bars or bullion. Individuals could buy gold coins and other items however. The South African Krugerrand was minted to exploit this opportunity and to earn much needed foreign exchange for that country during the years of economic sanctions.
Nowadays you can buy gold, silver and platinum coins in many denominations, including Canadian and US pounds, sterling crowns and sovereigns.
Cash for Gold Tags: Conductivity, Denominations, Different Story, Economic Conditions, Economic Sanctions, Electrical Contacts, Employment Rate, Engineering Terms, Gold Bars, Gold Bullion, Gold Coins, Gold Prices, Gold Silver, Intrinsic Value, Platinum Coins, Political Uncertainty, Price Of Gold, Share Price, South African Krugerrand, Tensile StrengthRelated posts
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Nov
Gold is the most precious metal that people collectively believe in owning. Individuals all over the world feel a sense of security when they can own a substantial amount of gold. Be it in the form of intricately made gold jewellery, or gold bars and pendants, gold has a unique value in the lives of human beings.
Women love making gold jewellery, and wearing them on various occasions, and events. Not only is gold a status symbol, but it also shows how stable you are. Women spend a lot of time deciding what sort of jewellery they want to buy, and whether it would sit well with them. A lot of effort is put in the making of jewellery. It has also been a trend to present jewellery to your loved ones as a gift. Gold is widely appreciated, and is valued among people.
It should be kept in mind that unlike other investments, gold is very stable. In fact, it is the most stable investment that we can make. Whenever the international or local economy undergoes any depreciation, gold prices either stay the same, or shoot up. If you are deciding to sell your gold, it depends on how much gold you have. Most ordinary consumers do not have a lot of gold sitting in their house, so they can only send a small amount of gold. Even that on its own can fetch quite a lot of money.
The price of gold has an inverse relationship with the dollar. This means that whenever the price of dollar goes down, the price of gold shoots up. For gold owners, this is a positive phenomenon.
Another positive point is that whenever gold prices rise, they do not drop suddenly if the dollar price goes up. Gold prices are not at all alike the stock market, which can crash any day if some calamity were to happen. Unlike the stock market gold prices are extremely stable, and do not record any significant change on a daily basis.
If you are under pressure to produce money for some urgent need, it is best to sell your gold for hefty cash, depending on the amount of gold you own. You can even go through your old gold jewellery that you may no longer wear, and sell it for significant cash.
You can sell off your old earrings, rings that have gone out of style and pendants that you no longer like. There is no need to lock them up in your drawer, as you can gather all the unused jewellery, and take it to a jeweller close by.
Sometimes, circumstances make it impossible for you to hold on to your prized jewellery. However, other needs come first. If the college tuition of your child cannot be paid any other way, or if some important bill has been left unpaid due to shortage of cash, it is time you sell your gold jewellery. Money comes, and goes. You can always treat yourself to a new to buy gold bracelet or a nice pair of gold earrings the next time you have enough cash in your hands.
Jack Wagon is a gold investment consultant. Learn how to buy gold in the times of recession
Cash for Gold Tags: Calamity, Daily Basis, Depreciation, Dollar Price, Gift Gold, Gold Bars, Gold Jewellery, Gold Prices, Human Beings, Inverse Relationship, Investments, Jewellery Gold, Occasions, Phenomenon, Precious Metal, Price Of Gold, Sense Of Security, Stable Investment, Status Symbol, Stock MarketRelated posts
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Aug
How to Buy Gold?
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Whenever you plan to buy gold, it is important that you keep in mind certain things like a credible seller, the quality and purity of gold, the current rates of gold and the fluctuating trends of market. Buying gold should not be an impulsive decision because one has to be careful while buying it and consider the above mentioned characteristics.
People either buy gold for personal use like jewellery; gifts etc. or they buy it for investment purposes. Whatever the purpose of buying gold is, it should only be bought from an authentic and credible source. You can easily be fooled by frauds who may sell you fake pieces as gold.
Gold occurs in its natural and purest form when extracted from its ores. Pure gold is rated as 24 karat gold and it is priced against the US Dollar on daily basis. This form of pure gold is converted into bars, coins or bricks of different weights ranging from a few grams to kilograms.
This type of gold is sold and bought for investment purposes, and each gold bar, coin or brick is engraved with ‘999′ symbol or stamp, indicating its purity. Only licensed companies can engrave this on gold bars and this is the main sign that you should look for when buying gold for investment purpose.
Gold for investment purpose is also sold in the form of 22k and 18k in the market. Their prices are relatively lesser than 24k gold. The daily fixed prices of 22k and 18k are also rated and when you buy gold, make sure that you are aware of the actual prices. Usually there is no bargaining when you buy pure gold, but if you have done your homework well, you can avoid buying overpriced gold.
You should also keep an eye on the market trend of gold. Sometimes the price of bullion remains steady over a long period of time; sometimes the price is going up all the time; and sometimes the price of gold is declining. You should study the market trend and buy wisely and accordingly. One can get real benefit from bullion investment if it is done for a fairly long period of time.
Ideally, you should buy gold when the price of bullion is falling against the US dollar. Later when the prices get stable, or go higher you can sell it to get immediate profit. Being a small investor, you should not risk buying or selling bullion too often because instead of reaping profits, you might suffer heavy losses.
If you are a big investor, you can contact the London Bullion Exchange and buy gold directly from there. Gold stocks and bullion funds are also available for better and secure investment. You should choose a reliable investment company who deals in bullion funds, bullion futures and bullion stocks. According to some experts, bullion funds and stocks are more reliable, safer and more profitable than buying solid bullion.
Learn how to buy gold by taking help of professionals and reduce risks of loss for investment
Cash for Gold Tags: Bricks, Bullion, Credible Source, Current Rates, Daily Basis, Fake Pieces, Frauds, Gold Bar, Gold Bars, Gold Gold, Grams To Kilograms, Impulsive Decision, Investment Purposes, Jewellery Gifts, Karat Gold, Market Trend, Personal Use, Price Of Gold, Pure Gold, Purest FormRelated posts
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