It is up to an interested investor to know the various ways to invest in gold. Gold is a commodity that is gaining in value making the prices shoot up as the years go by. The value of gold has never been zero; it has a lot of advantages and its purchasing power has remained steady. Gold investment comes in various forms; an investor can choose to suit his needs.
Small bars and coins
These small amounts of gold have been legal since the reign of King Croesus who ruled Lydia in Western Asia. What is particular about this king is that his wealth mainly came from the gold sands and mines of the Pactolus River, making them legal tender. Small coins and bars are an attractive means of investing for most investors especially because any gold meant for investment purposes is exempted from VAT in many countries and from the European Union as a whole.
Bullion coins
These coins are normally issued by a governing body in most countries. They are considered legal tender because of their face value, not their content of gold. However, in purchasing, the gold content is what gives them value and the premium rates may vary from one dealer to another, as well as from one coin to another.
Bullion coin premiums rely mostly on the size of the coin unlike in numismatic and commemorative coins whose value is determined by their quality and rarity in addition to their gold content.
Small bars of gold
Any bar weighing 100g downwards is considered small. Gold comes in a variety of sizes and weights, which of course vary in value and price. These bars contain 99.5% of fine gold and provide a great platform for investment for interested parties or institutions. There are only 94 accredited brands and gold bar manufacturers in the whole world who produce different types of gold bars.
A potential investor should not limit himself to one method of gold investment. Instead, thorough research can help a great deal when settling for a method of investing and deciding what form of gold one is to invest in. This is largely determined by the various needs of the buyer, as well as the reason he or she is buying and investing in this commodity.
Gold investments should be given the same keen analysis as any other form of investment.
Showing posts with label gold bullion. Show all posts
Showing posts with label gold bullion. Show all posts
Monday, October 11, 2010
Thursday, August 5, 2010
US Gold Mint: July 2010 Sees High Demand for the One Ounce Gold Eagles
The sale of US Gold Mint bullion coins continued at a high through July 2010. If considered individually, the demand for gold bullions saw a marked shift towards the one ounce coins. This tilt in demand seems to be the after-effect of the previous month’s initial popularity of fractional weight coins.
US Gold Mint: The Bullion Metal Options
July witnessed some new introductions in the US Gold Mint bullion collection:
Silver bullions: In the month of July, the US Gold Mint also offered the one ounce American Silver Eagle. This was the only silver bullion option. However, later in the year, a new five ounce series of silver bullion (whose design has been replicated from the National Park Quarters series) is expected to debut.
Gold bullions: The US Gold Mint offered the 22K American gold Eagle coins in different sizes:
• one ounce
• one-half ounce
• one-quarter ounce
• one-tenth ounce
The 24K American Gold Buffalo was brought out in just one size.
Platinum bullions: The US Gold Mint’s bullion lineup is yet to see the American Platinum Eagle. This coin has not been seen in the bullion format since 2008, but the US mint is all set to release it in August 2010. No price has been fixed on the coin as yet, although NumisMaster.com has speculated an approximately 30% mark-up from the present platinum price.
The following table summarizes the sales figures of the US Mint bullions till July 2010:
JULY 2010 BULLION COIN SALES
Coins July 2010 YTD 2010
American Gold Buffalo 1 oz 23, 000 183, 500
American Silver Eagle 1 oz 2, 981, 000 21, 149, 500
American Gold Eagle 1/10 oz 30, 000 310, 000
American Gold Eagle 1/4 oz 2, 000 46, 000
American Gold Eagle 1/2 oz 2, 000 33, 000
American Gold Eagle 1 oz 147, 500 766, 000
The overall gold bullion sales amounted to 175,000 ounces for the month July. Although this figure was 10,000 ounces lower than the previous month’s level, it was well above the 86,000oz sold during the same period last year. The sales mix shows a heavy inclination towards one ounce Gold Eagles. The rise in demand for the Gold eagles followed the heavy demand for fractional weight coins. For the month of July, the fractional weight gold coins accounted for 2.6% of the complete gold bullion sales, whereas in June, the same accounted for approximately 30% of the sales by weight.
US Gold Mint: The Bullion Metal Options
July witnessed some new introductions in the US Gold Mint bullion collection:
Silver bullions: In the month of July, the US Gold Mint also offered the one ounce American Silver Eagle. This was the only silver bullion option. However, later in the year, a new five ounce series of silver bullion (whose design has been replicated from the National Park Quarters series) is expected to debut.
Gold bullions: The US Gold Mint offered the 22K American gold Eagle coins in different sizes:
• one ounce
• one-half ounce
• one-quarter ounce
• one-tenth ounce
The 24K American Gold Buffalo was brought out in just one size.
Platinum bullions: The US Gold Mint’s bullion lineup is yet to see the American Platinum Eagle. This coin has not been seen in the bullion format since 2008, but the US mint is all set to release it in August 2010. No price has been fixed on the coin as yet, although NumisMaster.com has speculated an approximately 30% mark-up from the present platinum price.
The following table summarizes the sales figures of the US Mint bullions till July 2010:
JULY 2010 BULLION COIN SALES
Coins July 2010 YTD 2010
American Gold Buffalo 1 oz 23, 000 183, 500
American Silver Eagle 1 oz 2, 981, 000 21, 149, 500
American Gold Eagle 1/10 oz 30, 000 310, 000
American Gold Eagle 1/4 oz 2, 000 46, 000
American Gold Eagle 1/2 oz 2, 000 33, 000
American Gold Eagle 1 oz 147, 500 766, 000
The overall gold bullion sales amounted to 175,000 ounces for the month July. Although this figure was 10,000 ounces lower than the previous month’s level, it was well above the 86,000oz sold during the same period last year. The sales mix shows a heavy inclination towards one ounce Gold Eagles. The rise in demand for the Gold eagles followed the heavy demand for fractional weight coins. For the month of July, the fractional weight gold coins accounted for 2.6% of the complete gold bullion sales, whereas in June, the same accounted for approximately 30% of the sales by weight.
Sunday, June 6, 2010
American Eagle Gold Coins Well Know Bullion Coins
American Eagle Gold Coins are well known bullion coins. These are minted in USA and as per the rules the gold is 100% American for it to be considered legal. These were launched when South African gold was banned due to protest against apartheid.
The American Eagle Gold Coins are 22 carat gold, i.e. 91.67% pure gold. They are made in 1/10 oz, ¼ oz, ½ oz and 1 oz denominations which are also the weight of the coin i.e. its gold content. Gold has baser metal like copper and silver alloy content. They differ from Kruggerands in their yellow color, which is due to the alloy. Kruggerands are deep orange.
This coin was designed by Augustus Saint Gaudens, the world famous designer. It has the Lady of Liberty holding her torch on one side, the other has a male eagle flying above a female eagle and a baby eagle. It is rich in symbolism. The male eagle represents the power and might of USA, and the male eagle also carries an olive branch that represents USA’s commitment to peace. All of the coins bear the same design. The gold content varies as per the denomination.
Another great advantage is that American Eagle Gold Coins are recognized globally. They are, in fact, the most popular gold coins in the world. Hollywood has done its bit in making people from countries all over the world familiar with both its intrinsic value as well as its artistic value. This adds to their appeal as a collector’s item. People display pride in owning an American Eagle Gold Coin.
Moreover, U.S. Mint guarantees their gold content and their weight.
The American Eagle Gold Coins are 22 carat gold, i.e. 91.67% pure gold. They are made in 1/10 oz, ¼ oz, ½ oz and 1 oz denominations which are also the weight of the coin i.e. its gold content. Gold has baser metal like copper and silver alloy content. They differ from Kruggerands in their yellow color, which is due to the alloy. Kruggerands are deep orange.
This coin was designed by Augustus Saint Gaudens, the world famous designer. It has the Lady of Liberty holding her torch on one side, the other has a male eagle flying above a female eagle and a baby eagle. It is rich in symbolism. The male eagle represents the power and might of USA, and the male eagle also carries an olive branch that represents USA’s commitment to peace. All of the coins bear the same design. The gold content varies as per the denomination.
Another great advantage is that American Eagle Gold Coins are recognized globally. They are, in fact, the most popular gold coins in the world. Hollywood has done its bit in making people from countries all over the world familiar with both its intrinsic value as well as its artistic value. This adds to their appeal as a collector’s item. People display pride in owning an American Eagle Gold Coin.
Moreover, U.S. Mint guarantees their gold content and their weight.
Thursday, June 3, 2010
Euro Debt Risks Fuel Demand for Gold
On May 27th according to Bloomber investors bought precious metals over concerns of Europe debt crisis sending gold near a one week high. The euro declined as gold bullion rose to $1,212.25 an ounce by 8:10 a.m. in Sydney. June delivery gold is up 3% for the week ending May 28th.
On May 26th platinum rose 0.3% to $1,520.50 an ounce while palladium rose another 0.7% to $442 an ounce.
Silver also increase 0.2% to $18.10 an ounce achieving a total of 2.3% over the last three days.
On May 26th platinum rose 0.3% to $1,520.50 an ounce while palladium rose another 0.7% to $442 an ounce.
Silver also increase 0.2% to $18.10 an ounce achieving a total of 2.3% over the last three days.
Thursday, March 18, 2010
The Significance of Gold Price Forecasting
The recent global turmoil has reaffirmed the significance of gold as a safe and viable investment alternative. Other precious metals like platinum have not been able to take the position of gold, due to its high value and price volatility. In addition to retail investors, central banks, institutions, pension funds, etc. also take large positions in gold and drive its prices.
Why gold?
The one most apparent factor is that the lifetime returns on gold have been positive. Gold value is subject to short and medium-term fluctuations. However, it is not susceptible to the ups and downs of the economic and business cycles. This renders it a more stable investment in the long-term.
There is a negative correlation between the dollar rates and the gold prices. In the case of volatile market conditions or a weakening currency, people start replacing their dollar investments with gold. On one hand, this ensures that the investors do not lose their purchasing power by the day. On the other hand, the increased demand for gold pushes its prices up, augmenting the values of gold holdings. A weakening dollar is indicative of strengthening gold and vice-versa (this is mostly true, but not always).
Gold prices are not dependent upon the political or economic conditions. Events, like natural calamities, political disturbance, wartime etc. either do not affect gold value, or put an upward pressure on it. Therefore, in distress conditions gold acts as an effective hedging strategy to prevent the erosion in investor wealth.
Is gold always a ‘buy’?
Like stocks, investors often make a mistake of buying gold at a peak on the expectations of further price rise. Speculative gold trading has a large market and often the speculators accelerate the uptrend through futures and forwards. Such artificial price rally is liable to correction, sometimes leading to sudden plunge in value. Always remember the thumb rule to buy low and sell high.
Is jewelry worth the same as coin, bullion, or bars?
Jewelry yields lesser returns that the other forms due to the mixture of alloys, wear & tear, handling marks, and designing. In addition, gold jewelry is a costly acquisition because of its processing charges.
How to ensure right decisions?
Acquiring gold calls for more than intuition and tracking the mass sentiments. Guidance from expert precious metals consultants, newspapers, trade journals, investment websites, authentic investing forums, etc. are some of the reference points for making informed decisions.
Why gold?
The one most apparent factor is that the lifetime returns on gold have been positive. Gold value is subject to short and medium-term fluctuations. However, it is not susceptible to the ups and downs of the economic and business cycles. This renders it a more stable investment in the long-term.
There is a negative correlation between the dollar rates and the gold prices. In the case of volatile market conditions or a weakening currency, people start replacing their dollar investments with gold. On one hand, this ensures that the investors do not lose their purchasing power by the day. On the other hand, the increased demand for gold pushes its prices up, augmenting the values of gold holdings. A weakening dollar is indicative of strengthening gold and vice-versa (this is mostly true, but not always).
Gold prices are not dependent upon the political or economic conditions. Events, like natural calamities, political disturbance, wartime etc. either do not affect gold value, or put an upward pressure on it. Therefore, in distress conditions gold acts as an effective hedging strategy to prevent the erosion in investor wealth.
Is gold always a ‘buy’?
Like stocks, investors often make a mistake of buying gold at a peak on the expectations of further price rise. Speculative gold trading has a large market and often the speculators accelerate the uptrend through futures and forwards. Such artificial price rally is liable to correction, sometimes leading to sudden plunge in value. Always remember the thumb rule to buy low and sell high.
Is jewelry worth the same as coin, bullion, or bars?
Jewelry yields lesser returns that the other forms due to the mixture of alloys, wear & tear, handling marks, and designing. In addition, gold jewelry is a costly acquisition because of its processing charges.
How to ensure right decisions?
Acquiring gold calls for more than intuition and tracking the mass sentiments. Guidance from expert precious metals consultants, newspapers, trade journals, investment websites, authentic investing forums, etc. are some of the reference points for making informed decisions.
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