Everybody nowadays talk about investments.
And why should not it be, there are so many investment options that it has become a necessity to put your money in a place where it will get some rewards.
However, after the great recession, people have become more conscious about their investments than earlier.
It is indeed a good sign for the future of investment world.
Recently, there's been some good news regarding investment in gold, silver and other precious metals.
Many large economies have started buying gold; some are still to join the run but are on their way straight.
In such a situation, it is a matter of fascination to forecast its future.
If you are planning to enter this investment option into your portfolio, then instead of asking the dollar value of gold, you better ask yourself-how many ounce of gold do you have? Investing in Gold- But what to buy? The first method to buy gold is the bullion type gold coins.
Bullion coins are the coins sold on the basis of the gold content and not for the rarity, date or any other cases.
Generally they weigh one ounce per coin.
The mostly traded gold coins are- U.
S.
Gold Eagle, Canadian Maple Leaf and South African Krugerrand.
You can consider this enduring form of money as a very good investment option and invest around 25% of your portfolio in physical gold.
You need to give some efforts while deciding how much to invest, however you can't spend a lot of time for this.
The monetary system is very precarious, if you buy today, the price will fall tomorrow; and if you don't buy today, it will rise tomorrow.
So, you better stop thinking and take the necessary actions.
There are some other options in bullion products like the smaller coins and the bullion bars.
However, the one ounce coins are the most preferable ones.
The market of gold While buying or selling gold in the market, you will have to deal with the various components of its price.
The man components are- spot price, premium, spread, commission etc.
Here is a brief description of each of the terms: a) Spot price.
This is the price of a commodity of standard quality and quantity at the time of exchange.
They fluctuate continuously, so you should ask for the spot price each time you make some quotes for this.
b) Premiums The cost of minting, marketing and distribution of gold is referred as the premiums, and is generally a few percent of the gold price.
c) Spreads As in the currency and stock market, gold and other precious metals are also traded in the market on the basis of bid-ask spreads.
The spread is the difference between the bid prices and ask prices for gold.
d) Commission This is the amount charged by a broker or dealer for selling or buying the metal pieces on your behalf.
The commission is a few percent of the total price of gold.
There are mainly two places where you can buy gold-the brokerages of precious metals and the coin shops.
A broker is actually more preferable for many reasons.
They enter the market and buy and sell on your instructions and with your money.
So, you need to make some good research to find the best brokerage firm for you.