So you’ve decided to buy gold for preserving your wealth and securing your family’s financial future.
But how do you proceed? What do you buy? How do you buy?
Basically gold comes in 3 major forms:
1. Jewelry: mostly not pure gold, but alloys (because it’s intended for use and because gold is soft, it’s good to add some other metal to it in order to keep it hard)
2. Coins: either old gold coins, numismatic investment coins or bullion investment coins (the latter two are specifically manufactured for the sake of investments, but beginner investors should focus on bullion coins – will be explained a little big lower)
3. Bars: the gold bars come in various shapes and sizes and even with a very small amount of money, you could buy at least half a gram or a single gram even.
OK, so if you intend to invest in gold, then jewelry is not the best form. It’s hard to re-sell and most dealers are only interested in the gold content of the object. You’ll most likely be able to sell your jewelry as “scrap gold”, on behalf of the aesthetical value/design.
You’ll need to focus on widely-recognized forms of gold, meaning: coins and/or bars. The latter are easier to buy and sell, but there are several coins that are also ideal for investment.
Before actually purchasing, look around, educate yourself on the basic facts about gold and understand how to buy investment gold (like which is the ideal form to hold, how to reduce risks and increase the benefits).
Make sure you focus on buying pure gold (bars or coins should be at least .999 pure, but there are plenty of .9999 purity items as well) and that you obtain them from reliable merchants. Don’t go hunting bargains on eBay or purchase from individual sellers – scams and fakes are abundant.
If you buy coins, focus on the Canadian Maple Leaf, American Buffalo, Vienna Philharmonic, Kangaroo Nugget coins and others… The British Sovereigns are widely known, but most of them have a purity of only 91.7 %, while the American Eagle and Krugerrand coins are not pure gold (despite having it engraved on them!) – the latter contain the face-engraved amount of gold (for instance, 1 ounce), but they also contain additional metals for keeping the coin hard.
Bullion bars are perhaps the best form of investment gold out there. They’re for the sake of metal content and many of them even sell with certificates.
It’s recommended for you to focus on those bars that are enclosed in boxes/cases/packages that cannot be opened. These packages generally serve as certificates and many even have hologram seals and bar codes, serial codes.
Make sure you pick a reliable place to buy.
February 16, 2013 – Non-Stop Gold