Posted on July 6, 2009 - by Chee Wan

Investing in Gold

Gold Bar

Investing in gold can be a great way to add to a portfolio because it has been more stable than any other asset throughout history, and it is both tangible and liquid. It also has a high amount of solidity and is a reasonably secure investment.

Because the price of gold never dramatically fluctuates, it is always a good time to invest in it. There are a few forms of gold that you can invest in. Gold bullion usually come in bar shapes and can range in size from a tiny bit over an ounce, or one troy ounce, to 400 troy ounces. This form is usually the most convenient cost-wise. Gold bullion can be purchased from places, such as brokerage houses and commercial banks selling gold. Gold bullion coins are usually the most popular form to invest in, as they are both valuable and aesthetically-pleasing. The price of gold coins is based on their bullion price plus an additional four to eight percent. They can be made in increments of 1/20 of an ounce, 1/10 of an ounce, 1/4 of an ounce, 1/2 of an ounce, and one ounce, with well-known types of these coins including the Canadian Maple and American Eagle.

A more advanced form of gold investment is the numismatic coin. These types of coins are purchased and sold by collectors without the current gold prices having too much of an effect on the prices of these coins. They also have a high value, and the amount of gold they contain does not alone determine this. Other factors that determine this coin’s value are its age, what condition it is in, how rare it is, and the number originally printed on it. Read more…

Other Gold related articles from the author’s blog
Determining and Calculating Your Gold’s Value
The Right Time to Invest in Gold

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