Apr 2012


Apr 2012

Buy Gold

By StoneX Bullion

Physical Options to Buy Gold

In this first part of the article I am going to present you what options you have if you want to buy gold, meaning if you analyze the past, the present, and the future evolution of gold and you decide that it is the case for you to invest into gold. There are two main options when you want to buy gold: you can invest into physical gold and non-physical gold.

In the category of physical gold also called bullion gold are comprised the gold bullion coins and gold bars. When you want to buy gold in the form of gold coins there are a few things that you should know. Gold coins have a high purity; the highest purity amongst gold coins is of 99.999% and belongs to the Canadian Mountie. There are also various coins with a 99.99% purity out of which we could mention the American Gold Eagle, the Canadian Maple Leaf, the South African Krugerrand, and the Chinese gold Panda.

Another thing about gold coins as an investment is that they have a certain premium over the intrinsic value of their gold content. The value of this premium varies and when that particular coin is in high demand and it has a scarce mintage, you as the holder of that gold coin can make a nice profit from the increased high premium. This is most about all you need to know if you want to buy gold in the form of bullion gold coins.

Gold bars as an alternative to buy gold in its physical form require a greater investment than bullion gold coins. They also will necessitate a greater insurance and be careful when buying them about the reputation of the seller.

Non Physical Options to Buy Gold

If you decide yourself that you want to buy gold in a non-physical way you have at your disposal futures and options, gold accounts, mining stocks, and gold ETFs which are electronic funds and give you the possibility to establish a loss limit.

This option to buy gold and own gold is especially for traders and investors that actively want to trade gold, traders that want to make a profit from speculations, and for those that have in particular pretty large funds at their disposal and that are thinking long term.

Therefore, how you choose to invest into gold, the best form that suits you, depends on your funds, on you personality if you want a safe way or a way that is accompanied by more adrenaline.

Why should you Buy Gold?

There are some pretty great reasons for which you should choose transform part of your money into gold and you can buy gold in the form presented above. The really great thing about the gold price is that it increases in hard times from an economic perspective. In times of crisis, pretty much like these that we are experiencing, people turn their attention to precious metals like gold and silver.

When you buy gold you can be sure that you will be in the possession of an asset that has an intrinsic value that cannot be diminished by currency devaluations or inflation. You will get hold of an asset that it is characterized by a high liquidity and that will offer you as investor privacy. These are just few of the reasons for which you should buy gold.