Throughout history gold has widely been considered the most investable precious metal and gold continues to be a popular investment to this day. Gold was originally used as a form of currency, dating back to before Roman times; however the direct relationship between currency and gold no longer exists. Gold as a standalone investment continues to increase in value and as with all investments can fluctuate. I’m sure many of us have seen the cash for Gold style television adverts, that offer money in exchange for old gold jewellery, this is a reflection of how buoyant the gold bullion market is at the moment. The two main avenues for investing in gold bullion are either gold bars or gold coins, here’s a look at the different investment opportunities.
Probably the most popular way to invest in gold is to purchase gold bullion bars. As well as the most popular it’s arguably the most famous, thanks to films such as Gold Finger, starring Sean Connery as James Bond and Three Kings with George Clooney. In many countries gold bars can be purchased directly from the countries banks although many countries also have gold bullion dealers. Some people can be wary of purchasing gold bars however as unlike the coins they can be convincingly forged.
Gold bars can be faked by having the middle hollowed and filled with an inexpensive but similarly weighted metal such as tungsten. Without the proper equipment this can be hard to identify. You can be assured of genuine gold bullion if you purchase directly from the LBMA, who only store their gold bars in LBMA accredited vaults, If a bar is taken away from the reserves and stored else ware it has to go through stringent testing before it’s considered legitimate again and added back into the gold store.
Gold Bullions Coins
Not as famous as there bar shaped counter parts, gold coins are also an excellent investment. Again an iconic shape and seen in many films such as The Pirates of the Caribbean, gold coins are much more difficult to forge making them a potentially safer investment.
The South African Krugerrand is arguably the most well known gold coin and there are over 1,200 tonnes of gold krugerrands in circulation.
Long Term Investment
Due to gold’s physical nature, investing in gold bars and gold coins can be considered a safe investment option. The main factor to remember with gold however is gold’s value largely relates to supply and demand. Should the demand for gold fade so will its value, which can quickly and greatly affect your investment.
It’s interesting to learn about different ways your assets can be invested and buying gold in any number of forms can be lucrative, however always make sure to buy from a reputable source and keep a keen view of the marketplace.