Planning to Invest in Gold? Look for These Alternatives

Invest in Gold

Investments into gold have been increasing steadily over the last few decades quite steadily as economies falter and paper currencies steadily lose value. This has created new gold investment markets which have risen rapidly despite the fact that the mining output has been on a continuous downward trend and in most instances has failed to meet the demands of global gold consumption.

This demand can be attributed to the fact that investing in gold has simply provided better returns than investing in currencies as since the advent of 2008 those who purchased the Euro as a defensive manoeuvre against the dollar’s decline managed a margin of 47 % in returns whilst at the same time the return on gold investments during the same period (2008 – present) the returns have been slightly over 130 %.

Those who were investing in gold prior to 2008 made even bigger returns when the value of gold sky rocketed in the 2007. The reason why investors big and small are looking into gold investments rather than property or currency is simply due to the growing lack of confidence in the financial institutions.

There are numerous ways through which people could invest in gold and they can range from simple acts of buying gold coins and gold bars, ETFs or even more complex methods involving mining stocks and features and there are readily available gold traders on the internet who are legit and provide the services for a would be investor. Buying gold at the right price is one thing and choosing the right time to sell gold at the right price is a totally different ball game and it is critical towards making good margins.

When you look for the best place to sell gold, in order to ensure that your gold fetches the highest margins, is usually much easier if you have purchased gold and kept it with you physically. When the time comes to sell, holding well known bars such as PAMP or Perth Mint, will often result in an easier sale, as unknown bars will be subjected to assaying costs.

In comparison, most people are confused with the fact that when they buy gold bars or ‘good delivery bars’ through a company which holds gold for them, they practically never see or have access to the gold physically, as they are kept elsewhere with a little tag that says that the gold belongs to you, and sometimes the gold itself doesn’t even exist apart from in paper contract form.

A typical ‘good delivery’ gold bar weighs 12.4 Kg in weigh (400 troy ounces) and the price is based on the market price which currently would easily cost more than half a million dollars. These gold bars are actually stored in vaults around the world and the owners of these bars are given certificates of ownership. However it is crucial to remember that many of these types of ‘gold ownership’ is regarded as ‘paper gold’ and in most instances they do not mean that when you want your gold, you will be given gold, as commonly you will be given a sum of money equivalent to the value of the gold you are said to own, which have raised concerns about the amount of gold owned by people and the actual amount of physical gold in existence which is far below what people own. Therefore making sure you are dealing with the right company is critical when it comes to dealing with gold investments.