Investing in Gold Bullion
Gold bullion holds a number of advantages for investors. For decades this precious metal has provided investors with portfolio stability despite the economic climate.
From the Bronze Age, to Tutankhamun’s burial chamber, to the Gold Rush of the 1800’s, gold has long been synonymous with opulence, luxury and the promise of a better life.
Nowadays anyone can invest in gold and other precious metals such as silver and platinum. So, if you are looking to put your money into a more corporeal investment then gold bullion coins and gold bullion bars can provide a lucrative investment option.
Why you should invest in gold bullion
If you are considering investing your hard-earned money and saving for your future then there are a host of options out there for the savvy investor. This begs the question, why invest in gold bullion?
Gold is an investment which is in many ways superior to investing in the stock markets. Firstly, gold is a tangible investment which you can actually hold in your hand as opposed to stock market investments where you may be getting rich on paper but you are not actually seeing a physical return on your investment.
Secondly gold is a much more secure investment. Where the stock market tends to fluctuate and is always vulnerable to a crash the gold price is relatively stable and constant.
5 Advantages of investing in gold bullion
1. Gold investments protect your savings should the currency devalue.
2. Gold investments can protect your purchasing power when inflation is on the rise.
3. Gold investments are protected should a banking crisis occur.
4. Gold investments are protected against government action such as the over-printing of money to cover debts.
5. Gold investments have no counterparty risks.
Different types of gold bullion
There are two different types of gold bullion investments, gold bullion bars and gold bullion coins.
Both types of bullion have their advantages. Take a look through the different types of bullion investment and their advantages to determine which bullion investment is best for you.
Gold Bullion Bars
Gold bullion bars seem to be the preferred bullion investment for those who have lots of money. When we say lots of money we’re talking about governments and financial institutions.
Gold bullion bars need to contain 99.5% purity to qualify for investment. This means that investors are able to acquire large amounts of gold bullion without paying a premium on the spot price.
Advantages:
• Low price for physical gold
• Bars are sourced from trustworthy mints
Gold Bullion Coins
Gold bullion coins are the preferred method of investment for smaller investors. Prices on these coins may differ from place to place however smart online shopping can help you acquire bullion coins at a low premium.
It is important that you do your research when buying gold bullion coins as different coins may have different gold purity which can drastically alter the price. It is important to remember that the spread on these coins can be quite large so in order to get the most from your investment, it is best to hold onto the coins for as long as possible.
Advantages:
• Easy to acquire
• Can be potentially used as currency
Remember that gold bullion coins track the gold price, so if you were to consider withdrawing your investment you would have to do so at the right time, when the price is high, to make the most of your investment.
If you have any questions regarding gold bullion or if you require additional advice and information then please contact us.
