When it comes to profitable investments, nothing can surpass the value of gold. From gold coins to gold bars, you then hear about gold bullion and start getting confused. What is gold bullion? It is common for people to misunderstand the real definition of the word.
“Bullion” means a refined as well as a stamped weight of gold, silver, or any other precious metal. This is why you would commonly see “gold bullion” in most websites that sell them. It actually pertains to precious metals that are refined and stamped, and it can be used to describe gold coins and gold bars as well. Whether they come in coins or bars or wafers, it is termed gold bullion as long as it is well refined and stamped.
Investing in Gold Bullion
Due to the unpredictable status of the economy today, people who have invested in paper money are frantic about finding an alternative investment. Paper money could easily crash because of the inflation and deflation of currency nowadays. It is more safe to invest in precious metals, most especially in gold. It is an excellent source of financial stability and security in the future whether is to keep in your house or added to a gold backed retirement account (a gold IRA).
Once you have established a basic knowledge of the gold industry and the principles of investing, you can start by buying some gold bullion coins or bars from reliable accredited dealers. If it’s for a gold or silver IRA account you obviously need to do your due diligence before investing since we are talking big investments. Reputation, customer service and pricing are the most important factors to look for when making your list of best gold IRA companies to choose from. BBB, Trustlink and Trustpilot are great sources for such a research.
Even if the value of money crashes, the value of gold remains the same, so do not worry about spending a large amount of money in buying gold. You may store your gold in a safe in your home or better yet, keep them in a safety deposit box in your trusted bank. After a few years, the gold will slowly increase its value, and you would be able to sell it in a much higher price than what you have paid for.
There are a lot of dealers and mints that sell gold. You can even find online stores that sell gold bullion bars and coins. Do not be fooled by the term “bullion”. It does not necessarily mean that you have to really trust and believe that it is indeed a refined and stamped weight of gold. Just like any precious metal, it should be keenly observed and checked to make sure that it is valuable. This is not difficult to do. Gold bullion is stamped with its manufacturer’s name, weight, and purity. Just look at the markings on the bar or coin and check if it says 99.99 or anything from 90 percent and above. If you are still unsure, you can ask help from a trusted financial adviser or any professional with expertise on the industry of buying and selling authentic gold.
It is also important to buy gold bars and coins from reliable dealers. You can find some online or you can visit gold trading markets and mints. For further reference, you can check out consumer reviews and feedbacks online. Now that you know what is gold bullion, you are now ready to take the next step in gold investment. Remember that the success of a gold investor relies on his knowledge of gold, including his awareness of the changing prices of gold.
Gold and Silver Bullion – The Ultimate Inflation Hedge
Is the ultimate inflation hedge gold and silver bullions? Currently, most investors believe so and now that inflation is at a rate that is twice the target of the government, it is not really a surprise that gold has not really lost its luster, so to speak.
World Gold Council new studies reveal the way in which gold has retained its values for the long haul, especially when it is compared to other commodities.
For example, for over fifty years, the price of both oil and gold has remained somewhat constant. Even if the price has increased over the years, if you were purchasing an oil barrel with gold bullion you would have somewhat similar weights to gold as you would have if it were nineteen fifty.
More surprisingly, gold seems to have retained its power to purchase over lengthy periods. In the time of King Nebuchadnezzar of Babylon, who had died in the year 562 BC, gold at that time purchased around three hundred fifty loaves of bread.
Currently, one ounce of gold can still purchase around three hundred and fifty loaves which indicates that over a period of two thousand five hundred years, gold has proven to be quite an effective hedge versus an inflated economy, especially when it comes to essential everyday items like food.
With the current economic situation of the United States, it is obvious that there is a concrete reason for the increased demand for gold and silver bullion.
The US government’s measure of inflated prices which is preferred is called the CPI or the consumer price index.
Now at Four PC, this level is expected to increase even more in the later months of 2011. The RPI or the retailing price index, on the other hand, which takes into account the house costs of people is actually the better gauge of rising prices and is currently at 5.1 PC.
With today’s flat wages and lower rates of interest, a lot of homeowners are really feeling inflation’s corrosive effects. Not only are pensions and salaries losing their daily power of purchase, the savings are also decreasing when it comes to value.
If inflation stay at the rate it currently is in, your saving’s value in true terms, will become half in as rapidly as fifteen years. According to financial data providers Moneyfacts, many if not all saving accounts today pay enough interest to really earn a true return when RPI inflation was taken into account.
With this background in inflation, it is then not really a surprise that gold and silver demands are rising. The fact that the supply of these commodities is limited is the reason that their prices are driven upward year after year.
Gold in particular has truly enjoyed a superstar decade. Priced traditionally in US dollars, it is still measured using a medieval system called a ‘Troy ounce.’ One Troy ounce is a little more than thirty grams and costs currently around one thousand three hundred and seventy five dollars. This is compared to more than two hundred dollars in the year two thousand and one, which makes the increase almost seven times.
Uncertainty with the economy has also driven gold and silver prices upward. In the year ’08, at the world financial crisis height, gold and silver prices rose almost forty-four PC over the year. As this class of asset was seen historically as a true haven in times of crisis, the same can be said during turbulence in the stock markets.
Even if equities were recovered, however, gold and silver prices continued to surge upward. Many investors enjoyed seeing a 34.5 PC return on last year’s gold and silver prices.
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Trade Gold Bullion for Cash – The Benefits
Gold has been used as a medium of commerce and trade over the centuries. Because of their artistic value and historic worth, they have long been utilized as a method for investment. The value of this precious metal depends on the amount and the content, so if you are looking to trade gold bullion for cash, some research about the market price of gold is in order. The singularity and these precious metals being in good condition are just some of the factors that gauge their worth. The worth of these bullions does not lie only on their weight.
While some businessmen engage into different investments, gold is a kind of investment that will never run out of value. This precious metal has been used a medium for exchange in earlier times. The “barter system” brought about the idea that gold is equivalent to cash. More often than not, it can even have a higher value regardless of the movement of the economy. Saving your money into gold is simply saying that you are putting your money into a safety volt.
Benefits of Trading Gold for Cash
Gold trading has a lot of advantages. A lot of people nowadays prefer to invest in it because of the security that gold offers. The price of gold is not extremely affected by economic problems such as inflation, low currency values and low interest rates. Many investors consider gold investments to be one of the safest and reliable of all the methods. When stock markets are directly affected by economic downfall, it causes the mistrust of a lot of people, and thus they turn to gold for financial assurance. Selling stock shares in a troubled economy means immense stress for stock holders; so many people looking to invest their money choose gold investment.
Earn Money by Selling Gold
Selling gold for cash is now rapidly increasing in popularity. In spite of the current condition of the economy such as the recession, gold-selling has proven to have flourished for so many times. Gold trade is extremely high even during these economic downfalls, because of the fact that the value of gold is still unaffected. This is one of the advantages of investing in gold. Even with the ups and downs of the economy, with the price of gold unchanging, cash for gold is unaffected as well. Gold is considered to be a commodity that still remains to be one of the safest investments.
Making money in the trading of gold has attracted a lot of investors as well as common people, and many reputable companies offer high prices for gold bullions. So a person who is looking to sell gold possessions is provided many opportunities to choose the best offer there is. Cash convertibility of gold follows a quick and easy process, making it a very popular form of trusted investments. Gold bullion trading offers a quick way to fortune for its owners, but owners should not think that the worth of another’s gold will be the same for them.
The total value of gold will still depend on the purity and the gold content of the bullion, thus, will gauge the total amount of money that the owner will get from selling their gold. Online gold trade has been popping out of the market, and many of these facilities offer good prices as well. The process of gold selling nowadays have been made easier by these online facilities, so if you would like to trade gold bullion for cash, then just make sure that you choose the right time and the reputable people to deal with.
When Is the Right Time to Sell Your Gold and Other Precious Metals?
If you own precious metals, then it can be tough to know when to sell them. Now, obviously, most people are keeping precious metals as an investment. This means that their main aim is to purchase the metals at a low price, then sell them on as high as they can. This, of course, does not tell the whole story, however. It can be easy to say “yeah, I am about to make a profit if I sell now”, but what if you could make a greater profit just by holding onto your precious metals for a few more weeks?
These tips will help you to determine when the best time to sell your precious metals is.
Look at inflation
If you notice inflation rates are going down, particularly if they are starting to hit negative numbers, then it may be a great time to shift your precious materials. When inflation falls, people start to look towards precious materials as it is a much safer investment. Obviously, since everybody is trying to buy precious materials, it will become a seller’s market. Demand will outstrip supply, and the prices will rise.
Perhaps the best time to buy (or sell) precious materials will be shortly after inflation rates are announced for a major world economy. The price will often level out pretty quickly afterward, so you may need to act quickly if you want to make serious bank.
If you are going to sell your precious metals when inflation falls, then keep hold of your cash. Don’t use it to make further investments at the moment (unless it is in more precious metals), because falling inflation could signal an upcoming recession.
When the US Dollar weakens
When the US dollar starts to weaken, it could be a good time to sell your precious metals. Most of these markets are going to be tied to the $. If the dollar weakens, then people outside of the United States will find it a whole lot easier to purchase precious metals. The price will go up because, once again, demand will outstrip supply.
If the US Dollar is strong, it is a surefire sign to keep hold of your precious metals.
Watch the pricing trends
Honestly, one of the best ways to know when to sell your precious metals is to take a look at the pricing for the metals you own. Is the price constantly rising? It may do this for a while. However, at some point, it will start to level out. This may be the right time to sell. Prices are never going to be rising forever.
Remember; don’t just look at the charts. You may want to look at the reasons behind price increases and decreases. For example; if a hoarder has suddenly shifted mass quantities of precious metal, then this may force the price down for a while (supply outstripping demand), but the price is likely to recover. It may take a while, though.
Look beyond the precious metal market
Looking beyond the precious metal market may give you an idea about the right time to sell your precious metals.
A lot of precious metals are used heavily in certain industries. For example; gold is used in the electronics industry. Silver is also used there, but also heavily in jewelry. Platinum is used in car manufacturing.
If you notice any of these markets start to plummet, then it is likely they will be buying fewer precious metals, which can cause those markets to fall too. This means that it could be the right time to sell if you do not see a recovery in sight.
Check the ‘price ratios’
This isn’t something which is guaranteed to ensure you are selling your precious metals at the right time, but it can help:
Gold will traditionally sell for 30x the price of oilGold will sell for 16x the price of silver
If Gold is selling for more than either of these prices currently, then it could be the right time to sell. It will level out eventually. The same with silver. If it goes outside of this price, then it may be worth selling on.
When you need liquid cash
As valuable as precious metals are, they are not liquid. You can’t use them to pay your rent and bills.
If you need quick cash, and you have no other options available to you, then it could be the right time to sell your precious metals. Sure, you will probably not be able to score ‘peak’ value for them, but it is better to sell them than have them sitting around while the bills start to stack up.
Remember; even if you follow the tips on this page, you are not always going to get it right. There is no way to accurately predict the exact direction the precious metals market is going to go. If there were, then it would be ridiculously simple to make bank on the open market. What these tips will do, however, is give you the greatest possible chance of scoring the highest possible price for your precious metals. At the very least, they can help you to make a small profit or keep your losses to the absolute minimum.