Gold Investment – How Should You Invest In Gold?
Gold investment is a hot topic everywhere now, but do you really know how you should invest in gold? Gold is always the money since history and since there are limited resources, it’s categorized as one of the precious metals. Many man and woman are fascinated by the sight of gold and in the past and he wealth of a person or is determined by how much gold he owns.
But during these days, gold is still money and a precious commodity. The more gold an individual has, the more wealthy that person should be. Whereas for a country, the amount of gold will determine how wealthy the nation is. One of the reasons why gold price is increasing and breaking the record high is because the sources of gold are limited but the demand is always growing. When there is inflation, uncertainty on the market outlook, recession, weakening of the U.S dollar etc, investors will put much of their money in physical gold investment.
Best physical and non-physical gold investment
Gold bars and gold coins
Gold bars are the most traditional way if you want to invest in gold. They are available in various sizes like 10 troy ounce, 1 ounce, 1o grams, 100 grams, 1 kilogram (very popular) etc. For some of the serious investors with capital, gold bars are actually a cheaper, simpler and more efficient way for gold investment.
They have lower price premiums than the gold coins.The smaller gold bars will cost more than the bigger bars and therefore many investors will tend to go for the larger ones. However, the bigger gold bars have some risk for forgery as they are not easily revealed by an assay. On the other hand, gold coins values are easily measured and weighed.
Another drawdown of owning larger gold bars is that it may not be easy when you want to sell them. For example, you have a 1 kg bar, it will not be flexible when you want to sell only 100 grams of it as you can’t saw the gold off. Not only that, you’ll have to find a larger buyer.
Gold coins are a very common way to own gold as an investment. Kruggerands are one of the best known and 1 ounce and worldwide held gold bullion coins. There are approximately 46 million troy ounces, which is around 1.4 million kg of gold that are in circulation.
Since Kruggerands are only 1 troy ounce, it’s always quite an attractive and cost effective way for smaller investors to buy gold. They are being mass produced and because of that, the prices are at a very competitive rate compared to bars with smaller sizes. The best thing is that they are globally recognized, so it’s easy to sell and find dealers or buyers.
Other common gold bullion coins that are widely in circulation are the American Gold Eagle, Australian and British gold sovereigns, Canadian Gold Maple Leaf, Chinese Gold Panda, Mexican Gold 50 Peso etc.
Online gold trading
Online gold trading, also known as spot gold trading is a form of non-physical gold investment. It’s using leverage from forex brokers to trade gold, which you can buy or sell. Most brokers will offer a leverage of 50:1 or as high as 100:1. This means that if one troy ounce of gold cost you $1,000, then with a 100:1 leverage, you’ll only need $10 to buy an ounce of gold. Of course you are not buying physical gold in this case, you are just buying a contracts you foresee that gold price will rise.
But because of the high leverage, some of the uneducated investors fall into the trap thinking that they can earn 100 times more compared to buying physical gold. This is not true at all, they’ll need to calculate how much contracts they should trade according to their capital. This is money management. Without good money management, no one can bbe profitable in this area for long term.
While it seems like online gold trading is not an easy task for beginners at all, there are certain ways to get around it if you have no experience at all or no time to monitor the market. You can actually use an automated gold trading system as it will have neural network (which thinks like a human) technologies to trade the gold market and help you grow your money in years to come.
Gold investment using automated technologies is not so widely known by investors yet, but when they found this secret, they’ll rush to get into it for sure as it’s the most cost effective way to grow your money in gold investing
Hope you found this post on gold investment helpful. Please leave your comment below on whether you have already started in gold investment