There is an expanding field of opportunity to buy gold in the markets today. Every year, more nations join others that are already minting gold coins. More gold bars are put on the market by more than 100 companies involved in their production. As word spreads among investors of even average means about the potential gold has for the future, new individuals are learning about the unique financial advantages of this precious metal.
It is not just the average investor who is choosing gold over some of the typical investment targets. In the last few years, governments around the world have begun buying gold in large quantities.
India is one example of a developing country that has purchased a lot of gold in the last few years. In addition, the population of India is causing the import of gold as they put their saved money into this precious metal asset.
Gold purchases, in terms of more traditional investments in coins and bars, have also suddenly become popular among large investment firms and some famous investors. John Paulson, Frank Giustra and Jim Rogers all speak openly about the wisdom of buying gold. Paulson has shifted significant portions of his funds in gold’s direction. Most surprisingly, even George Soros is advocating gold investments. He used to decry the coming gold bubble. Apparently, he does not think the bubble will pop any more.
The Benefits of Gold for the Average Investor
The people of India do not see themselves as spending money when they buy gold. Even when their purchases are not of gold bars and gold coins, they see themselves as putting money in a savings account. They have a natural appreciation for a quality of gold that investors in the developed countries of the world are only beginning to rediscover.
Many modern investors point out that gold lacks some key qualities that normally draw them to an asset. It does not produce income in the form of dividends or interest. When you buy stocks and bonds, you can count on an income from those investments. If you buy enough, you can usually quit working and just focus on receiving that income and reinvesting it wisely.
This does not seem possible with gold and this disappoints many investors who would otherwise be interested. In fact, you have to count on gold advancing in spot price in order to have any chance of seeing a profit. In that case, you will have to sell the asset in order to get the money.
However, thinking this way misses the big point with gold and with investment in other precious metals. People do not generally invest in gold for the same reasons that they invest in stocks. Gold is not a replacement for stocks in your portfolio. Instead, gold is a reaction to understanding something about the future.
The idea of gold retaining its value should be obvious when you consider that gold is seen universally as a hedge against inflation. When people buy gold, they are not fixated on generating big returns. That has been the case for the last decade but many investors would admit that those gains are not going to be repeated.
The realization that gold will probably not have future great gains in value does not diminish the demand for gold very much, though. When you include gold in your portfolio, you do so for more than just the purposes of diversification. This asset is designed to protect you against certain events.
Just as bonds have been used to protect wealth when the stock market undergoes periods of extreme volatility, gold is used to protect against inflation. Serious gold investors are not in the market to make profits. Instead, they are hoping to avoid disastrous losses due to inflation. They use gold to ensure their own survival.
That so many people with admirable skills in investment are picking up gold investments right now should alarm you.
Gold Investment Today
Investing in gold gets easier every day. The variety of gold coins is increasing as different nations get involved in the coin-minting business. The tiny European Union nation of Slovenia is just one of many small nations that have become attracted to the lucrative possibilities of minting gold coins.
Gold bars have become a more popular choice now that companies are producing smaller bars. These lighter ingots are more accessible to investors of moderate means. Since gold is worth more than $1,600 per ounce, the purchase of 10-ounce bars is now much more difficult to manage than it was a decade ago.
Among gold coins, the American Gold Eagle is one of the standard purchases, even among non-Americans. This coin is treasured for various reasons. The backing of the United States government and the design are only part of it. Oddly enough, it is the mixture of base metals into this coin that brings many buyers to it.
This practice is normally frowned upon. However, the American Gold Eagle uses silver and copper in its alloy to strengthen the resistance of the coin to the usual wear and tear. The lasting appearance of this coin lets it stand up to others in the long run.
If you are more interested in gold of the 24-karat variety, than you do not need to look any farther than Canada. The Royal Canadian Mint strikes coins with a fineness that is unmatched anywhere else in the world. Each Canadian Gold Maple Leaf is certified to contain .9999 gold. This essentially means that it is pure gold with absolutely nothing else mixed in.
Several other nations make gold coins now, including some who have just gotten back into the business of striking gold coins. Slovenia is just one example of such a country. You can also buy gold coins struck by Australia, Mexico, Great Britain, China, Austria and others. Each country has its own reputation with regard to the quality of their coins.
Proof coins are coins that have never been removed from their casings and have never been circulated. These coins are much more valuable because they remain in mint condition for many years as long as they are treated properly. As long as you have the resources to care for them these are excellent investment choices.
You can buy gold bars online with ease. Just visit the websites of places like APMEX, Johnson Matthey and PAMP Suisse. They offer the public a wide variety of gold bars that sell for prices very close to spot values. These assets are easy to store and require less worry than coins.
There are many other ways to start investing in gold. Some involve other underlying assets, such as collectible coins or forms of jewelry. This and other precious metals are beginning to advertise their usefulness to a populace that is increasingly worried about inflation and market turmoil in the near future. You can let a physical gold investment defend you from such possibilities.