Gold Bullion Investing

While some may worry when new gold enters the market, this is rarely as major an influence on gold prices as the value of global currencies. Of course, as you also know, gold bullion investing is about the long-term investment, and not about the short term.

An ounce of solid gold will still buy the same value now as it did 100 years ago. Shares will not. Probably the best choice by far is to buy actual gold. This can be in the form of gold coins or gold bars. They are easy to obtain from reputable dealers and mints online and also have an appealing aesthetic quality admired by most collectors. In addition the gold content is usually clearly labeled and guaranteed.

Bullion coins and small bars offer private investors an attractive way of investing in relatively small amounts of gold and they are exempt from VAT. Bullion coins and small bullion bars contain a minimum of 99.5 per cent fine gold. Gold bars start at around pounds 39 for a 2.5g bar, rising to pounds 11,957 for a 1kg bar.

Investment professionals agree that an investment portfolio should be diversified. Of all the options that investors are faced with today, gold stands out as the ultimate portfolio diversifier. Including gold in a portfolio of stocks, bonds and cash can actually help offset market fluctuations and reduce the volatility of the overall portfolio. That’s why many financial advisers recommend that investors keep 5% to 10% of their total assets in gold.

Whenever we do see a small dip in prices thanks to new gold entering the market it’s a sure thing that those dips tend to be short lived. When it comes to gold bullion investing, the idea is not to cash it in within a couple of weeks but to hold it as collateral against the uncertain dollar and other more high risk investments. No matter what happens to the dollar the tendency is for gold bullion investments to always hold some value.

The best way to do some gold bullion investment transactions is through the purchase of nationally minted coins from major nations’ own mints. These are guaranteed to have the amount of Au in them advertised on the coin’s obverse. These coins can come in different sizes, although the standard is the one ounce size. Countries producing these coins that are perfect for beginners who want to have a bullion investment include the United States with its American Eagle Collection, Canada with its Maple Leaf, South Africa with its Krugerrand, Austria with its Philharmonic and Australia’s Kangaroo. America’s Eagles can be purchased in Au coins with one ounce, a half ounce, a quarter ounce and a tenth ounce metal in them.

Being aware that there are people out there hoping to take advantage of people with no experience in the gold market is your first important lesson of gold bullion investment. Use your instinct when dealing with a trader, this can be your most powerful tool in sussing out whether they are legitimate or not.

No matter where you are in life or how well your other investments are going it’s always a good idea to keep some gold as the backbone of your financial security. Does growth in gold tend to be slow? At times certainly, but that’s only because it’s steady and safe. Where the stock market and realty have always had rapid fire ups and downs, the times in history when gold has had sudden major surges and crashes have been few and far between and the tendency has always been for gold to go up.