Every investor should consider investing in precious metals at some point. Gold is among the most traded metals in the world, and even when things are not as smooth on the economic front, gold tends to flourish. In case you didn’t know, gold bullion comes in form of bars and ingots and is 99.5% pure at the very least. Bullion is different from gold coins, as the latter is often used as collectibles. In this post, we take a look at gold bullion and things worth knowing about investment.
Why go for gold bullion?
Well, bullion gold prices may fluctuate, but you still have a real asset in hand. For anyone who is new to investing in gold, going for ETFs and certificates might not be the best idea. When you trade in ETFs, you are basically trading like stocks, and when there is economic turmoil, a piece of paper is unlikely to have any reasonable value. The same is not true for bullion, which always stays in demand. Also, unlike ETFs and certificates, gold bullion is an easy form of investment. You don’t have to know a lot to invest in bullion, and that’s a huge advantage. However, there is no denying that serious and frequent investors do consider ETFs at some point.
How to invest in bullion coins and bars?
When it comes to bullion coins and bars, there are three aspects that influence the valuation. The first is the weight of the gold, which is an obvious thing. However, the fineness of the gold also matters and is the second factor, while the current one is the spot price. Purity of gold is eventually everything. To be more precise, you will always get a better price for 24k gold than 22k gold. It is also very important to understand that no gold bar or bullion is 100% pure. Yes, that’s true. To make a durable bar of gold, another metal must be mixed with gold. Gold that’s 24k is 99.9% pure, and that’s the best you can buy. If you are interested in investment alone, make sure to invest in 22k gold at the very least. Beyond that, you can use the gold to buy jewelry, but certainly not for getting a good deal.
Many dealers have their own online websites, where you can find more on the spot price of gold and other aspects related to bullion.