When it comes to gold, people are either selling it or buying it, regardless of your position there are some ‘rules of engagement’ when it comes to gold. First and foremost you have to know the spot gold prices in order to support your decision to buy or sell. As it is a generally accepted rule that it is good to buy anything when it is cheap and sell it when the price increase – the only way to make profit right?
So let us say you are buying gold as an investment, then the best for of gold to buy would naturally be gold bullions or even gold coins as these are the best kind of gold related investments to make. The reason is that when the time comes and you would like to get some cash for gold, you will be paid the total value of the gold according to the market price. Gold coins might even fetch higher prices if they became significantly rare.
However some people buy jewellery as a form of investment, especially in countries such as India (India is the largest gold consumer in the world), however always remember that when you buy gold jewellery, you are not just paying for the gold, but you are also paying for the workmanship performed on the jewellery which normally adds up to 20 % of the gold price (depending on the intricate designs of the jewellery piece).
Although on occasions gold pieces are valued for their designs, due to the fact the designer is famous and the designs are unique or if the piece was worn by somebody famous, then the value has a possibility to appreciate due to its background, however in most cases, this is not the case.
Other forms of gold investments includes investing in mining companies and buying paper gold, these forms of investment are relatively okay, but having physical gold in your hands is the best option by far, when the time comes for you to get some cash for gold.
The most important thing to remember about investing in gold is that gold is an essentially long term investment and investing in gold for quick money is not a viable venture at the least. Buying gold certificates is also a splendid option when it comes to investing in gold as unloading these certificate is fairly fast and easy as there are traders who will easily buy these certificates at the drop of a hat.
Gold is seen as a valuable commodity on top of the fact that people have more faith in gold than they do on paper currency. This is one of the main reasons that many people believe that one day the gold standard will be a compulsory measure implemented by all governments of the future.
Although this may cause some turbulence within the global economy as nations readjust themselves and re-evaluate the actual worth of their currencies, based on the amount of debt that they have in contrast to the gold reserves that they have, it will eventually stabilise and the true value of currencies will present themselves to the world. Looking at the current conditions, it would seem that the All Mighty Dollar will become the all mighty trash due to the enormous debt America has accumulated over the last 3 or 4 decades.