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Gold Bullion As An Investment

Why Bullion is a Great Investment

Gold and silver bullion bars, ingots, and coins are highly sought after and tradable investment assets that receive their value based on its metal content, which is dependent on the current price of the metal, on the world market. Bullion is given a value based on its weight and purity of the metal it contains, while numismatic pieces or jewelry can also carry some artistic value. The price you will pay for your bullion is going to be different than the world market price because there will be a 3% to 8% added premium that comes with both buying and selling the bullion.

There are several reasons why precious metals make a great investment. First off precious metals maintain their value and for those investors who choose the physical form of the metal will not risk losing their money. Also most precious metals are extremely liquid making it easy to both buy and sell in numerous markets. Another reason why precious metals are highly sought after is because they are a reliable and stable metal during inflation and rocky economic times.

An advantage to gold and silver bullion is that it can be purchased in different weights making it easier on those with a smaller sized pocket book. You can purchase bullion bars at the 1/10oz size, which can cost you under $200. Smaller sized bars are going to be easier to transport and store than larger sized bars. Rounds and bars of smaller size are a great choice for private investors and can cost under $100. They are also great if you are in need of some quick cash because it is easier to sell smaller denominations.

Buying precious metals is pretty easy and there are a wide variety of reputable dealers to do business with. Trading in Good Delivery standards is important because it guarantees competitive price and integrity of the product. Bullion pieces come with its fineness, assay refiner, serial number, and the year produced stamped on it. Gold and silver bullion can be purchased at local storefronts or online and in complete privacy.

Gold and silver bullion can be purchased in a variety of sizes and typically the smaller the item the more expensive it will cost. The added premium and or price may vary depending upon the bulk pricing. Before making a purchase it is wise to ask what the premium charge will be because it can change the initial price significantly.

Buying gold and silver bullion is a worthwhile investment and is simple to get started. You will however want to do some research before beginning the buying process. It is best to start small with coins or rounds and then work your way into purchasing bars or ingots.

Why Own Bullion

When there is strength in the economy many people turn to gold bullion. You will want to bear in mind that gold bullion should not be regarded as an investment. What I mean by this is that when purchasing metals, the person buying the metal is exchanging their paper currency for something that has “real” value according to the outside world.

The main reason gold bullion is a great metal to own is because it can protect other assets. The time when asset protection is needed the most is when there is an economic recession and the price of gold increases and people run to dealers to sell precious metals. For thousands of years gold bullion has been utilized as a form of money exchange. Many collectors purchase gold bullion because it is a cherished commodity all over the world, for its physical properties, scarcity, and beauty. Many people find great joy in collecting bullion.

For those that are new to collecting precious metals, understanding the product is a critical aspect. Gold bullion should be investment grade and can be purchased in the form of a coin or bar. The level of purity varies from 22 karats to 24 karats. The price of the coin or bar is determined by its metal content. Something to bear in mind is that jewelry is not considered bullion. You can also own gold bullion through certificates, which represent owning a certain portion of the metal. The metal in which you own is stored by a license dealer in a secure place.

The most popular sized bullion coin is 1 ounce and is produced in several countries throughout the world, such as the United States, Austria, Canada, Mexico, China, Australia, South Africa, and the United Kingdom. Before purchasing these coins you should always examine the coin first and ensure its quality. You should never touch these coins with your bear hands and they should never be cleaned, as this could reduce the coins value.

There are certain procedures to follow when you are getting ready to sell your precious metals. Even if you are a collector who purchases gold bullion the selling process is still important. Knowing the current price of your metal is important as these prices change on a daily basis. The listing price is going to be in dollars per ounce. Like I said before, if the owner had been handling the coin or if it has any scratches, the value of the coin is going to be less. Also keep in mind that the buy and sell price is going to vary among dealers because the dealer is going to factor in a profit.

Before making any big purchase or long-term commitment it is important to understand all aspects.

Source by William Russell Scott Jr

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