Ideas for gold investment – Make the most of golden opportunities

by khalid on 30/11/2012 · 0 comments

Gold Investment

Making an investment in the yellowish metal is a good means to add to one’s finance portfolio. Such investment is perceived as a wise decision due to the four highly important reasons as follows:

  • Gold is known to be the last resort for our financial needs.

  • This glittering asset has a store value for a long span of time.

  • Gold can be easily converted into cash which implies that it is highly liquid.

  • Gold investment is a wise idea to diversify your hard-accumulated asset.


Gold investment – A brief look

Gold and money share some common features. Both of them have liquidity (though money is the most liquid), good store value, are easy to carry, can be easily recognized and above all, are accepted as a medium of exchange. Gold is a durable material whereas paper currencies and coins can’t withstand the wear and tear of time. Furthermore, gold is immune to ups and downs in the market. Let us now dig out some great ideas for gold investment.


Zooming in on golden opportunity

The price of gold is determined by the interaction of its demand and supply side, currency exchange rate in terms of US dollar, inflation and rate of interest. The gold price as well as value of stocks and bonds has an inverse intimacy with each other. When the market hits the bottom, gold price tends to shoot up and this opposite movement acts as a stabilizer for the investment portfolio. You may have heard the adage,”make the hay when it shines”. Just do the same while making gold investment. Make a buy when the price is low. If you want to sell it, lay in wait for the right opportunity when the market will hit a high.

Some say, anytime is a golden time to buy the yellowish glitter. However, buying it cheap and selling it at high price means churning of greater profit for you. Gold comes in different shapes and sizes. The first type is gold bullion which generally comes in different shapes and weights of bars. Gold bar can be of one troy ounce i.e. 1.09714 regular ounces and goes up to 400 troy ounces. Due to minimal expenses for brokers’ commission, buying of gold bars is one of the most cost-efficient ideas for gold investment.

Some bars come with ‘logo’ of the refiner and so are easily saleable. These bars contain pure gold as high as 99.5%. Sometimes, the percentage is much higher. Commercial banks, dealers of the valuable metals, brokerage houses are some of the most reliable sources to buy gold bars from.

Gold coins are another great choice for gold investment. The true value of gold coin is much more than its face value. These are minted in 1/20, 1/10, 1/4, 1/2 and every one ounce increment. The price of the coin is determined by the bullion price plus 4-8%. Some of the most popular gold coins are American Eagle, South African Krugerrand, Canadian Maple etc.

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