How to Buy and Invest in Gold
"Gold / Always believe in your soul / You've got the power to know / You're indestructible / Always believe in because you are / Gold" - so goes the hit song by the defunct pop/rock group Spandau Ballet which compares the strength and beauty of the human spirit to gold.
The appeal of gold is no secret.
It remains a highly-sought after precious metal that is widely used in jewelry, coins, dentistry, and in some gourmet foods.
Pure gold has a metallic yellow color and is valued for its malleability and ductility - terms that denote a material's ability to deform under stress.
This is true for gold which can be stretched into a wire or formed into a thin sheet by hammering.
One gram of gold can be beaten into a one-square meter sheet while an ounce can expand to 300 square feet.
No wonder a lot of people want to invest in gold.
Unfortunately, this is not a foolproof investment.
While the thought of having a chest full of gold coins or a safe full of gold bars sounds appealing, that won't necessarily protect you from the hard times ahead since the value of gold changes on a daily basis.
"There's no question that gold has value: it's dazzling to look at, useful in electronic components and still imbued with a nearly magical aura from ancient mythology.
Its monetary value, however, is determined by the laws of supply and demand, just like that of any other commodity (such as diamonds or fertilizer)," according to Mahalo.
Com.
Knowing this, what kind of gold should you buy? Should you invest in gold jewelry, coins, bars or bullion? Here's a rundown of the advantages and disadvantages of each: Jewelry - this is easy to buy, readily available and is good for one's personal enjoyment.
But gold jewelry makes a poor investment.
It is usually sold 300 percent higher or more than its acquired price.
However, you can't sell it at the same price you bought it.
Its real value lies in the gemstones and design but this is often subjective and the buyer may not share your taste in jewelry.
Coins - may refer to numismatic coins or bullion coins.
The former are old, collectible coins that are valuable mainly for their history and not their actual gold content.
Bullion coins are recently minted coins whose quality and gold content are guaranteed.
For small investments, bullion coins are better since they are recognized by the government and their value is assured.
Bars - are made of pure gold and are the target of Hollywood bank robbers.
Their value is determined by their weight.
These are usually marked for easy identification and authentication.
Still, they can be easily faked and what you have may not be a solid gold bar but a hollow one filled with lead or other heavy metals.
You're less likely to have problems if you buy gold from a reliable institution rather than an individual.
Be sure to choose one that has been in business for years and has a track record for stability and professionalism.
The appeal of gold is no secret.
It remains a highly-sought after precious metal that is widely used in jewelry, coins, dentistry, and in some gourmet foods.
Pure gold has a metallic yellow color and is valued for its malleability and ductility - terms that denote a material's ability to deform under stress.
This is true for gold which can be stretched into a wire or formed into a thin sheet by hammering.
One gram of gold can be beaten into a one-square meter sheet while an ounce can expand to 300 square feet.
No wonder a lot of people want to invest in gold.
Unfortunately, this is not a foolproof investment.
While the thought of having a chest full of gold coins or a safe full of gold bars sounds appealing, that won't necessarily protect you from the hard times ahead since the value of gold changes on a daily basis.
"There's no question that gold has value: it's dazzling to look at, useful in electronic components and still imbued with a nearly magical aura from ancient mythology.
Its monetary value, however, is determined by the laws of supply and demand, just like that of any other commodity (such as diamonds or fertilizer)," according to Mahalo.
Com.
Knowing this, what kind of gold should you buy? Should you invest in gold jewelry, coins, bars or bullion? Here's a rundown of the advantages and disadvantages of each: Jewelry - this is easy to buy, readily available and is good for one's personal enjoyment.
But gold jewelry makes a poor investment.
It is usually sold 300 percent higher or more than its acquired price.
However, you can't sell it at the same price you bought it.
Its real value lies in the gemstones and design but this is often subjective and the buyer may not share your taste in jewelry.
Coins - may refer to numismatic coins or bullion coins.
The former are old, collectible coins that are valuable mainly for their history and not their actual gold content.
Bullion coins are recently minted coins whose quality and gold content are guaranteed.
For small investments, bullion coins are better since they are recognized by the government and their value is assured.
Bars - are made of pure gold and are the target of Hollywood bank robbers.
Their value is determined by their weight.
These are usually marked for easy identification and authentication.
Still, they can be easily faked and what you have may not be a solid gold bar but a hollow one filled with lead or other heavy metals.
You're less likely to have problems if you buy gold from a reliable institution rather than an individual.
Be sure to choose one that has been in business for years and has a track record for stability and professionalism.
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