Gold Bullion Bars. A Golden Investment!

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Gold Bullion Bars. A Golden Investment!

Gold has been a fascination of mankind for centuries. It is the most ductile and malleable metal known, making it ideal for jewellery applications; the fact that it does not tarnish in contact with air or water adds to its allure.

It may not come as a surprise that in these uncertain economic times, more people are looking to invest in gold, especially bullion, as opposed to stocks and shares.

What makes gold such a good investment?
Gold has been used as a currency for thousands of years worldwide, mainly because it is rare, it is indestructible, it is compact and its workability makes it suitable for cutting into smaller shapes and stamping images and values on it.

Unlike our modern paper currencies, which are created and controlled by governments, gold has a real value and cannot be created at the whim of politicians. Gold bullion, available in different sizes, is a real and tangible asset that you can touch and feel.

There are several methods of investing in gold bullion, you can physically buy and store the bullion yourself, you can invest in a pooled gold account or you can buy gold and have it stored for you in a gold bank. So what are the pros and cons of each method?

Buy gold and store it yourself:

The most tangible way to invest in gold bullion and certainly the safest option if the world’s banking system collapses. However, the down side is the risk of theft and converting your gold to money, should you need to in a hurry.

Invest in a pooled gold account:
You don’t get to own a specific piece of gold, rather you are investing in a promise that you will be able to redeem your money should you decide to sell your investment. On the other hand you avoid the risks associated with storing gold yourself. You will need to have faith in your gold dealer and be able to redeem your investment when needed.

Buy and store in a gold bank:
A good compromise between the first two options above. You own a specific piece of gold in the gold bank, but you will have to pay a fee for the storage of your gold, normally deducted from your gold balance. Other factors you need to consider before investing in gold include the actual price of gold, the purity of the gold you buy, whether to buy through an authorised gold dealer (recommended) and the collector value of gold you buy, particularly if you decide to invest in gold jewellery.

But whichever method you choose, gold will always remain an attractive, truly golden investment!
 

 

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