Why Invest in Gold?
Published on Jun 25th, 2008 by Coins Appraiser in Coins, Gold, Information, Investment, Platinum, Precious Metals, Silver, cash, currency, dollar, economy, education, evaluation, gold bullion, gold coins, gold prices, invest, investing, markets, prices, silver bullion, silver coins, silver prices with
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Other than for beauty, seduction or prestige, accumulating gold has very little allure for the general public. However, wise investors have always looked to investing in gold and silver for the promise of profit, stability and liquidity. Today we shall examine the various factors that make investing in gold coins or gold bullion such an attractive proposition.
Investing on gold coins and gold bullion can be a fun and intensely interesting activity. Gold coins and gold bullion have been an alluring attraction for man throughout the ages. Wars have been fought over it, love has been won (or encouraged) by it’s use, and merchants have enriched by it. It has been said that gold attracts people to itself almost as if it has a life of its own!
Gold is a precious metal and the first recorded use of it is in Varna, Bulgaria around 5,000 BC. It’s melting point is 1,063° C, it is a bright shiny, soft and malleable metal primarily used in coatings for electrical connections. Pure fine gold is 24 Karat (abbreviated K). Alloys of gold are calculated on a basis of 24 parts. 14K is 14 parts gold and 10 parts other metals. Gold colors are created by alloying it with other metals that impart their color characteristics to the gold.
It is not difficult to see why gold has been such a favorite choice over the years. It does not tarnish or rust and it holds its value relative to the value of goods and services (precious metals like gold and silver are inflation-proof assets).
With the advent of the internet, the buying and selling of gold coins and gold bullion has become big business. Tons of gold are now moved around the planet literally at the speed of light.
Here are 5 good reasons for owning and investing in gold coins and gold bullion:
- INDEPENDENCE. The security offered by gold is provided by its very independence. Gold is independent of states, currencies, productivity and credit worthiness. Some economic or political influences may affect the price of gold, but its value and its acceptability remain independent of them.
- RESERVE ASSET. Many experts advise private investors to hold between 5 and 10 percent of their wealth, in the long term in precious metals. Experience has shown that the regular purchase of gold coins helps to protect the smaller investor against price fluctuations.
- SECURITY. Gold has always been prized as precious and valuable. Over the years gold has proven itself to be one of the most reliable stores of value.
- STABILITY. Despite possible price fluctuations on the open market, the value of gold has remained remarkably stable and has shown repeatedly the tendency to rise.
- LIQUIDITY. Gold is traded around the globe 24 hours a day. With gold you possess an international currency which can always be sold around the world at any time.
In these uncertain times investing in gold coins and gold bullion can be a truly worthwhile investment for the future.
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One Response to “Why Invest in Gold?”
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One good way to hold long-term is to go with an unallocated gold account such as The Perth Mint Certificate Programme since their are no storage or insurance costs.
For those who are afraid of total meltdown, you can convert it into an allocated account and get it delivered as and when you please.