There is a huge range of methods to choose from; some involve buying actual gold in one form or another – bars, coins, jewelry – while others don’t require you to build your own vault, as you can get exposure to the gold price by buying various types of security.
There are several factors to consider when making this choice, including how accurately the investment reflects the price of physical gold, the risks and costs involved and the security implications. There is no one way to hold precious metals that is best. Each customer will have different requirements.
By contrast, there has been no shortage of physical gold in London, and premiums have barely changed for several years. On a weight-for-weight basis, premiums on bars are generally lower than for coins, and this makes bars the more attractive proposition for investors. As a rule, bigger bars have lower premiums (reflecting manufacturing and refining costs) than smaller bars, although larger bars provide less flexibility in liquidating part of an investment.
Bullion coins are legal tender in the country of issue. The market value of bullion coins is determined by the value of their fine gold content, plus a premium that varies between dealers. Don’t confuse bullion coins with commemorative or numismatic (collectors’) coins, whose value depends on their rarity, design and finish rather than just their fine gold content.
Small gold bars can be bought in a variety of sizes and weights up to 1kg. Like bullion coins, they contain a minimum 99.5pc gold. Bars are likely to carry less of a premium than coins
Gold is a hedge against inflation.
The price of gold will tend to rise, not because the US$ but because of supply and demand of oil and minerals.
Gold investments are now classified as low-risk investment, as gold prices always go up over the long term.
Investment in Precious Metals, because when you sell it is free of cost of manufacture such as gold jewelry
Investing in gold is more liquid than investments in other forms (easily liquidated into cash when needed).
Most of the shops that sell gold does not provide information or guidance to consumers openly about price and investment considerations.
Most owners of gold have difficulty when selling gold because they do not know the calculation standard of gold. While gold store itself is not transparent in applying the standard buy-sell price of gold as the dollar price.
Difficult to store. Gold Investment in large quantities such as 1 kg or above, will require special secure place. usually a few people choose to use a small safe to store, but other, use more secure way by hire in a safety box in a bank.
Gold is better for long term investment, forget it if you just want to go into short-term investments.
One point to bear in mind is that, as gold is traded in American dollars, there is foreign exchange risk for investors buying gold in another currency, such as sterling. This adverse effect comes into play whenever the dollar starts to slide. All precious metal products trade at a premium or discount to the market price of the precious metal concerned. Following strong demand for gold over the past year or two, demand for coins had pushed coin premiums to high levels.