Buy Gold – A Guide To Buying Gold
For A quick summary on Where To Buy Gold Read: Where Can I Buy Gold Online
If you want to buy gold, the first choice to make is whether you are going to buy physical gold or non-physical gold. Physical gold is where you buy the actual metal in some form which you then personally own. Non-physical gold is where you invest in a fund or ETF that trades in gold. With this second type of investment you don’t actually own any physical gold. Since we believe that buying physical gold is the best and safest way to invest in gold, the majority of this website is about how to buy physical gold. Below is a quick summary of how to buy gold – both physical and non-physical gold with links to pages where you can find more information on each topic.
Buy Gold Bullion: If you are interested in buying gold bullion then having done lots of research we would recommend one of the following two companies, BullionVault or GoldMoney. Both operate well regulated and secure online companies where you can buy and sell gold and silver bullion. In our opinion, if you are interested in wealth preservation then the only course of action is to acquire physical Gold. This gold should be owned in your own name and stored outside the banking system. Both Bullionvault and GoldMoney offer such a service. For more information on these two companies read our Bullionvault review and our GoldMoney review. For more general information on buying gold bullion read our page How To Buy Gold Bullion.
Buy Gold Coins: If you want to buy Gold coins then the first thing you need to do is find a trustworthy dealer. Read our guide on how to buy gold coins , for more information on where to buy gold coins and which gold coins you should be looking for. We have also written a quick guide on how to spot fake gold coins.
2. Invest in Non-physical Gold. There are several ways to get non-physical exposure to gold. These include Gold funds, Gold ETFs (exchange traded funds) and stocks in mining companies. Investing in shares carries greater risk than investing in physical gold and gold mining shares have not performed as well as gold bullion over previous years. All of these methods of non physical investment are probably for the long term investors out there. Short term investors are becoming more and more interested in trading gold futures and options as well as placing spread bets on the price of gold. This is a risky way of trading gold if you don’t know what you are doing. Since the bets are often leveraged you can lose a lot more money than you invested if the price of gold goes ‘the wrong way’.
Why Buy Gold
Gold is the most popular precious metal investment and is often bought as a hedge or safe haven against economic, political, or social fiat currency crises. A fiat currency is a currency that has no intrinsic value but are is only worth something because the government has decreed it. Unlike fiat currencies, gold does have an intrinsic value and has been around as a currency for thousands of years. The price of gold has been rising gradually for years and but with the worlds governments in so much debt and the economic climate only likely to get worse, the long-term outlook for gold is sound and the price of gold is likely to rise even higher. Experts often call gold a “foundation” asset because its unique properties can enhance any portfolio. Investors buy gold to preserve wealth because over the long term its value has been very stable. The value of modern paper based currencies has fallen over the last few decades unlike the value of gold. Buying Gold is therefore essential for any diverse investment portfolio. Investors buy gold to help protect themselves against the problems with paper based currencies. Research shows portfolios containing even a small amount of gold have been proven both to produce better returns, and to be better able to cope with market uncertainty.
For more information read: Why you should buy gold in 2012
The Price of Gold
The price of gold has hit several new highs over the course of 2011 and finished 2011 9.6% higher than it started 2011. Experts are divided on what will happen to the price of gold during 2012. However, there are plenty of experts who expect the price of gold to pass the $2000 per troy ounce mark. Gold does experience some periods of volatility but overall the price of gold has gradually been rising giving very good returns for investors.
It is believed by many that Governments and central banks have been suppressing the price of gold since 1995 by lending and selling their gold. They won’t be able to keep this manipulation of the gold price up forever and when they stop it is likely that the price of gold and silver will soar. For more information on the manipulation of the price of gold have a look at http://www.gata.org/.
Five Myths of the Gold Market
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- What is behind the ongoing bull-run in gold?
- Why are the majority of investors INCORRECT about gold and inflation
- How to buy gold with low cost prices
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