Gold has been used throughout history as a form of payment and has been a relative standard for currency equivalents specific to economic regions or countries. And today gold is the most popular as an investment. Investors generally buy gold as a hedge or safe haven against any economic, political, social or currency-based crisis, and the spot gold price or gold price itself always stable and tends to increase.
Gold investing itself consists of :
The most traditional way in investing in gold is by buying gold bars. Kilo gold bars are 9999 fine (99.99 % pure) and contain 32.15 troy ounces each.
Coins is popular way of holding gold. Typically, the price of gold coins according to their weight, plus a premium above the gold spot price. The standard gold eagle coins have a fineness of 0.916 and have a face value of $50. The actual gold contents of this coins is 1.0 troy ounce (31.103 grs).
Exchange Traded Funds
Gold Exchange Traded Funds (GETFs) are traded like shares on the major stock exchanges including London, New York and Sydney. Gold ETFs represent an easy way to gain exposure to the gold price, without inconvenience of storing physical bars.
ETF shares can be sold in basically two ways. The investor can sell the individual shares to other investors, or they can sell the Creation Units back to the ETF. In addition, ETFs generally redeem the Creation Units by giving investors the securities that comprise the portfolio instead of cash.
Gold Certificates may be described as the first paper bank notes. Gold Certificates allow investors to buy and sell the security without the inconvenience associated with the transfer of actual physical gold.
Most Swiss Bank offer gold accounts where gold can be instantly bought or sold just like any foreign currency.
Many benefits we get from the gold investment than other investments, such as :
- The gold prices tends to rise, not affected by economic crisis.
- Gold can be transported easily.
- Gold is major requirement in the jewelry industry.
- Gold is the universal standard against which the value of any object can be assessed.
- Gold is a popular form of saving.