The people save their hard earned money for the purpose of meeting future needs. But rather than keeping the money idle at home, they opt to keep it invested among the various options that are available. From among these, the one which is relatively safe, liquid and has the best appreciation value is gold. People prefer to buy gold and keep it as an investment for meeting their future needs. Gold can be purchased in a variety of ways. Some of the popular methods are as follows:
- Gold Jewelry - The gold jewelry is considered to be the most common ways to purchase gold. Buying jewelry from an authorized seller is the best choice. But it is only useful if the jewelry is to be used or gifted. Jewelry has additional charges apart from the gold cost, such as craftsmanship charges also known as making charges. So this is a disadvantage over other options as one only gets the value of gold when the jewelry is sold.
Gold coins - These are popular investment options as gold coins are very much used either for gifting or for storage. They can even be used in future to create gold jewelry. They come in multiple types depending on the weight.
Gold bars - These are popular investment options as gold bars are very much useful for storage. They can even be used in future to create jewelry. They come in multiple types depending on the weight.
- Gold bricks - Bricks are relatively larger in size than the gold coins and gold bars. They are even more expensive as compared to the other gold options as the smallest size is also quite heavy. Their main purpose is investment and usage for making jewelry in the future.
- Gold bonds- This is the most different among all the other types of gold. Here, there is no physical purchase of gold involved. There is only a gold certificate that is issued to the buyer by the issuing authority, in most cases it is banks. There are no making charges, only the market rate of gold affects the value of the bond. Some banks even provide interest on a yearly basis for such bonds.
Let’s elaborate on the gold coin and gold bar purchase.
About Gold purchase
At the times of economic uncertainty, the smart investors opt for the precious metals in order to diversify the portfolios and to protect the hard-earned money against the economic downturn. The paper currency constantly fluctuates in its value, going up and down based on the unpredictable political as well as the social circ*mstances. In order to avoid the risks that are associated with the unstable paper-based currency, the people who are looking to make a safe investment decision are turning towards gold, silver, platinum, and the other precious metals.In case one decides to convert some of the assets into the precious metals, it is believed that one has opted to take the first step towards the right path. But still, there are important decisions that are to be made before one takes that big leap. One of the primary questions that the investors always ask is that which bullion must they opt to buy coins or bars? Whether one is a large investor or a private citizen, who is interested in owning a moderate amount of physical metals, below compiled is some of the valuable information on the pros and the cons of adding bullion coins as well as the gold bars to one's prized possession.
