is Gold Bullion?
Gold bullion is either gold coins and
bars of various types, sizes and weights.
The bars come in a variety of sizes
and weights from as small as one gram
worth a few dollars to the one ounce,
ten ounce, one hundred ounce and one
thousand kilogram bars as well as the
traditional 400 ounce bars or ingots
used by large companies and institutions.
All gold, when
bought comes at a price and a premium
over the spot price (market price),
and this changes day by day. The smaller
the bar or coin, the larger the premium.
There is a specific cost to fabricating
gold and that does not change very much.
Of course the fabrication costs for
gold coins is higher than bars as they
are struck to a much better finish.
Gold investment coins provide hedges
against currency debasement and devaluation.
Yet when investors search the Internet
for information about gold investments,
they often are confused by the many
sites that promote numismatic and collector
coins, which sell at high premiums to
their gold content. Gold bullion coins,
on the other hand, sell at small premiums
over the value of their gold content
and make the best gold investments.
What is the
best Gold Bullion to Buy?
Americans regained the "right"
to own gold bullion on December 31,
1974. Previously, since President Roosevelt's
1933 "gold call-in," Americans
could own only numismatic coins whose
prices were determined more by collector
interest than by the value of their
gold content. Numismatic and collector
coins sell at huge markups, sometimes
at prices many times the value of their
gold content. Bullion gold coins sell
at small markups over the value of their
gold content. Today, American Gold Eagles are the best selling gold bullion coins
in the world. South African Krugerrands,
although no longer imported into the
U.S. for the investment market, remain
immensely popular, with thousands of
them trading daily in the U.S. Krugerrands
sell at much smaller premiums over spot
than Gold Eagles. Still, Gold Eagles
are the best selling gold bullion coins
in the world, as millions of investors
have made them their preferred gold
investment. When buying gold bullion
it is better to buy the largest size
bars or coins you can afford. The larger
the gold bars or coins you buy are,
the closer to the actual value of gold
you are likely to get for your money,
with a proportionately less margin to
pay. There will always be some margin
to pay but this can be reduced down
to virtually 1 or 2 percent with the
larger bars. Of course you do have a
rising scale of storage and security
to attend to so there is a balance to
be drawn. If you can afford the 400
ounce bars then it is likely you can
afford the transport and storage fees
associated with such a large value of
gold. Most bars of such size are generally
kept in bank vaults. If you purchase
a 1 gram bar then you will likely pay
twice the value of the actual gold.
However your security or storage problems
will be minor. It will fit in your pocket
or could be hidden in your house and
virtually impossible to find.
How to Buy Gold
Basically it starts with, how much are
you going to spend? Then you can check
out the various dealers and mints to
see what is on offer. Some things to
keep in mind are: Pick an established
dealer or mint. It is not recommended
you purchase off eBay unless you know
the dealer is established and has an
excellent feedback record a mile long.
The Perth Mint is an excellent place
to purchase Australian gold bullion.
Get the current value of gold per ounce
or gram in USD. This is the standard
used. Compare this to the price of the
bullion bars on offer. Pick that bar
or those bars that more closely match
your spending budget and offer the lowest
margins. Ask yourself, "do you
really need a certificate?" This
is valuable if you later need or want
to resell the bar. But, with the smaller
bars, unless you are prepared to hold
onto it for some considerable time,
you are unlikely to get your money back
due to the margin you have to pay unless
the value of gold rises remarkably.
Once you have chosen what you want,
you simply pay for the bar and await
its delivery. Most people collect gold
bullion as a way if preserving or increasing
their asset base. Some collect it just
as a rewarding hobby. Whatever your
reason, if you are thinking you would
like to buy gold then the above information
will assist you to understand how to
buy gold bullion.
>>> go to Bullion.com Gold Bullion Coin Directory