Really a gold investment is many things.
It can be shares in various gold mining, refining, or manufacturing.
It can be the purchase of gold futures.
It can be the purchase of gold deposited somewhere, (not a good idea).
It can be the purchase of 24 kt gold jewellery.
It can also be the purchase of gold bullion coins or collectable bullion coins.
Why do people purchase gold in any form?
It has been a safe house for money for a long time. Will it raise enough to cover your buy in or purchase costs over the spot price? Is your outlook short term or long term? Do you need liquidity and ease of transportation?
Gold is always a liquid comoditity. Transportation solely depends on the amount as it is very dense and heavy in quantities
If you believe that the social sentiment of the world is in retreat gold is likely a good buy.
If you think that the world’s economies are charging on and there are no major world governments in financial trouble then gold is likely not to rise.
That holds true for the banking sector as well when they are ill, gold rises and when they are really strong, really difficult to ascertain, gold settles to its support level.
rise or fall of the commodity is really based on the social mood of all
people. These are the people who may do or think very differently
than the government who pretend to be in control.
I have read for many years that a 10% gold investment to asset value is smart business.
Certainly looking back there were many points anyone could have jumped into the market and made money on today’s economy.
If you are able to look beyond the rhetoric put out from the government propaganda machines and see what are the people feeling you will have a much better insight to what the market is going to do. The collective mood of the people is what drives the market nothing more.
Smart people do not react to the market. Smart people react to the public social sentiment to know the future of the markets.
What is the best way to make a gold investment?
It depends solely on your personal circumstances but always take physical possession of it!
With a lot of money to invest you can purchase at a lower mark up percentage. A small investor can purchase bullion coins like the British sovereign which is just short of a quarter ounce of gold or Krugerands, maple leafs, or gold eagles. Large investments can be made into gold bars, hallmarked by major refineries.
Don’t be sold, only you know your comfort zone.
Many investors like the thought of having common date US gold coins purchased just above the bullion value of the coin because it has not only the bullion value to help it rise or maintain its price by it also has collectability which helps to stabilize its fluctuations a little. Also being a coin it is historical.
Remember also that all through history gold has been valuable and there have been those who will take it from you and those that will cheat you with counterfeits.
The nice thing about gold is that it is the heavyset element commonly available and weighs more than lead. A little knowledge and a good scale will keep you out of trouble.
Do remember that the fineness of gold and its other introduced elements to make it hard for example will mean that the weight of a one oz Krugerand at 900 fine will weigh more than a one ounce maple leaf at 24 kt or 99.99 fine.
Both coins will contain one oz of gold but one weighs more because of the added material to make it harder.
will add a page on the weights and fineness of various gold coins in
the future for your reference. Either of the coins is a good gold
investment but one may be favoured more in the US and one more in Europe
making a small miner difference in cost for small quantities.