Throughout history, gold has been seen as a valuable form of investment. Converting your savings to gold can shield them from the volatility of the financial market; making them an excellent commodity for one’s financial security and well-being. Cash and money can depreciate over time, and are not profitable; especially in the long run. Investing in gold has many benefits- gold is at its all-time high value at the moment, and economists expect it to keep up its upward trajectory in the next year. Even if the value of gold diminishes over short term, it has the ability to catapult itself back to its original worth in long term. Gold prices are typically immune to geopolitical and regional turmoil; since it is a global form of investment. However, it is important to regularly check gold prices to keep yourself updated on your investments. Here is an elaborate guide that will take you through the ins and outs of gold investment, and how to remain updated on the gold prices in your area.
Why You Should Invest in Good Gold Prices
Gold, in its various forms, is a stable commodity. There are many advantages of investing in gold. A few of which are listed below:
- It has been in circulation for centuries and is one of the oldest known forms of investment.
- Unlike any state-backed currency, gold cannot be “made out of thin air”. There is a limited amount of gold in circulation, and it is not under the control of any single authority; rendering it immune to ever-changing state policies and economic recessions.
- Gold is fungible- this means that it has a known value across all countries. It is not restricted by boundaries, it can be used or traded anywhere.
- Gold can be prevented from corrosion using many techniques such as electroplating.
Buy Pure Gold at Good Gold Prices for Investment
Many people think of buying gold jewelry for investment purposes. This does not usually bode well, since jewelry is not 100% pure; it is mixed with several other alloys to make it strong and shiny. Not all gold is 100% pure. The purity of a gold sample is determined by a system of “caratage”. Caratage refers to the amount of alloy mixed with a sample of pure gold. Jewelry and ornaments have usually 14 karat gold which is 58.1% pure. Jewelry made of 10-14 karats of gold is resistant against daily wear and tear, and does not lose its sheen due to friction. Impure gold is best suited for those who wear gold daily; but for those who are in it for investment purposes- not so much. The purest form of gold is the 24-karat gold- this essentially means that a gold sample having this level of purity does not include any other alloy. 24K gold is not suitable for jewelry since it is soft and can be bent easily. However, it is best to invest in 24k gold. 24 Karat gold is the most expensive form of gold, but on the bright side, you will get a high resale value on it; unlike other purities, whose value diminishes over time.
Which form of gold should you buy?
Once you’ve decided to invest in gold, the next logical question is which form of gold to invest in. Gold is available in various forms and shapes. You can even buy gold ‘virtually’; that means you will get a document saying you hold this much gold. However, sellers and economists usually classify gold in four major forms that are listed below:
- Gold coins and gold bars
- Gold ETF
- Sovereign Gold Bonds (SGB)
- Gold Stocks
As mentioned before, jewelry is not the best form of investment. Jewelry is made with the aesthetic factor in mind, and not the financial one. Therefore, you will usually find gold jewelry losing its value over time. This makes gold jewelry a poor form of investment.
Gold coins and gold bars
Owning gold bars is the way to go if you are looking for investing in gold. However, it is expensive. A 400 try ounces gold bar will cost you a whopping $560,000. Gold bars are sold by banks and high-end market traders, making them highly sought after. Due to their worth, and to make a foolproof system of security for them, investors usually keep them at a secure third-party depositories.
Gold coins are another good form of investment; especially if you cannot afford the hefty prices of the gold bars. These small coins come as collectibles and are very popular among investors. Along with the value of gold, these coins also boast a ‘collectible’ value. For example, if you buy a gold coin with $2000 worth of gold, it might sell for $2200. The additional 200 dollars is due to the collectible value of the coin. Although difficult and expensive to buy, these forms of gold offer higher resistance to economic instability, and are the best forms for gold investment. As a plus, they can be bought from multiple sources with relative ease.
Physical, tangible form of a non-ferrous metal (gold in this case) is known as bullions. This refers to gold, silver, or any precious metal that has been refined to attain the maximum level of purity. People buy and sell gold bullions in the form of coins and bars, among others. Essentially, they are the same as gold coins and bars, but they are most investment savvy. They hedge their value against the market fluctuations, and is a good form of gold investment.
Exchange Trade Fund, or ETF for short is a way of investing in gold on paper. These transactions occur in the stock market with gold being the underlying asset. Gold ETFs are low-cost investments; you won’t be able to buy a gold bar without having massive financial capital, but these exchange funds can be bought just like stocks. Their prices correlate with the actual gold price, and therefore are immune to market setbacks like other forms of gold.
Sovereign Gold Bonds (SGB)
SGB or Sovereign Gold Bonds are offered by the government. Unlike other forms of gold, these are not available on demand. The government opens a short window for these bonds, during which any interested buyer can get a hold of these bonds. These windows usually open for a week every three months. So, if you want to invest in gold bonds, be on the lookout. Once you miss the window, your only shot at getting a hold of Sovereign Gold Bonds is via a third-party source.
Where Can You Buy Gold from?
Once you’ve decided which gold form you are going to invest in, the next question that warrants answering is where to buy it from. There are many places you can buy gold from; but before buying we strongly suggest you to investigate the credibility of the website or the broker. We’ve looked at some and we suggest Goldbroker.com
Depending upon the type of gold you are buying, you will need to contact a vendor, broker, online gold retailer, or a bank.
Online gold retailers such as goldbroker are one of the safest places for buying gold. Investing in digital gold is a decent way of securing your investments; considering that you choose the right company. Many gold retailers offer financial security and monthly savings on gold purchases. Your best bet in buying gold online is to find a credible website that offers the best customer service. There are several other factors such as a good track record, reputation, payment options, absence of commission and fee, among others that need to be kept in mind before buying gold from online retailers.
eBay is another good option to buy gold bars. You can simply visit their site, and after due verification, you can buy or sell gold as much gold as you like. However, it is important to buy from verified and credible sellers. The buyer’s feedback of the seller can be a good indicator about the authenticity and professionalism of the seller you are planning on buying gold from.
Banks is another place you can get gold from. Banks offer some of the best buying values on gold, and provide us with a trusted system of investment. If you are a regular customer, all you need to do is walk into their branch, ask for gold bullions, and after some paperwork, you will be provided with gold. Some reputable banks are offering online gold transactions as well, a method that is gaining widespread popularity nowadays. Some governments such as that of the US also offer government minted gold coins. These can be bought from banks and offer a good form of investment since their prices are guaranteed by the government. Gold coins offer more flexibility than other forms of gold, primarily because they are not expensive, and can be traded easily.
Which Gold Prices are Good To Sell gold?
Gold, like other forms of investments have a precarious financial nature. They do not have a constant value and their prices constantly undergo fluctuations. Therefore, it can be sometimes difficult to know when to sell gold. Unfortunately, there isn’t a definitive answer to that. At this time, gold is enjoying new heights, it is at an all-time high value. Due to the recent covid-19 pandemic, and the sudden depreciation in the values of international currencies, investors are moving back to the conventional ways i.e., gold investments. In the year 2020 alone, gold saw a massive rise of 24% in its value- an unprecedented feat.
Before selling gold, we strongly suggest you to see and monitor its price. A graph showing the recent rise and fall in the price of gold is a good way to gauge whether it is a good time to sell gold or not.
How to Check Gold Prices
Recently, gold prices saw a steady fall in its prices after enjoying an all-time-high value. If you are a gold investor, being aware of these fluctuating gold prices is a must. It would allow you to decide whether to hold gold or to sell it. There are many ways of checking the gold prices in your area. Here are a few ways to do so:
Check the Gold Price now with our free widget from our friends at Goldbrokers.com
One of the best ways of regularly checking the prices of gold is via a gold widget. Goldbroker.com is offering one of the simplest and the most modern methods of staying updated about the value of gold. All you need is to create an account, and you will be regularly updated about the prices of gold in your area. This site offers a safe and reliable method of buying, selling, storing and checking the price of gold.
Offering credible and up to date values of gold, this website is a must have for every gold investor. The transactions are on time, the gold prices are regularly updated, and the management has your best interests in line. Goldbroker also offers the best storage services in town, and is an accredited firm.
What’s more? This firm boasts the feature of checking gold prices using a simplified widget. We have our free widget you can check here. You can also get your own widget by opening an account with them.
Relishing the thought of gold investment? Do you want to be free from the agony of having to check gold prices multiple times a day? Don’t worry anymore. With Goldbroker’s modern widget, the gold prices will be on your phone screen- 24/7. Save yourself from the anxiety and misery of having to visit websites every day. We will keep you updated on the authentic gold prices.
Here are some additional articles I think you will enjoy.
This article is intended for informational purposes only. Please consult with a financial advisor before any financial decisions.
Babyboomers Attic is an affiliate of goldbrokers.com and will receive a fee when you purchase from them.
Thank you for reading our article. Please leave a like or a comment.