Since its discovery 5,000 years ago, gold has been the standard of wealth, power and influence.
There are many industries which benefit from the qualities that make gold a high prized precious
metal. Gold is a good conductor of heat and electricity; highly resistant from rust and one of the
most malleable metal on the planet making it a good part of electronic, computer, medical and
communication technologies. However, jewelry making business accounts for about 75% of
today’s demand for gold.
But the greatest reason behind the value of gold is its rarity. Gold’s overall production, which is
just about 160,000 tons — when folded into a cube — is 2 meters short of standard sized tennis
court. Gold is steadily growing by a measly 2,600 tons annually or equal to about 11 cm a year
making it the most sought after precious metal in the world.
Whether you are a savvy investor or just a plain housewife who plans for the future, investing in
gold is one a top priority. There are many ways on how to earn from gold; some of the examples
are: ETF’s, certificates, gold futures and mining stocks. While these investment vehicles
promise many earnings, the most widely accepted form of investment for gold is to buy gold
bullions.
There are two types gold bullions: coins and bars. It is an investment-grade type of gold; refined
and stamped weighted. Bigger gold bullions are held in central banks as gold reserves. For
business or investment purposes, small coins and the famous kilobars — gold bars that exactly
weights one (1) kilogram — are the best choices.
London Good Delivery is the standard for measurement and purity for gold bullions adhered by
many gold manufacturers around the world. It is at least 995 parts per 1000 pure gold, with
999.9 being the highest possible quality. A Good delivery typically weights from 350 fine ounces
up to 430 fine ounces.
There is a lot of benefit when you buy gold bullion; first, a safe investment portfolio. Seasoned
investors around the world treat gold as a hedge against inflation. Diversifying your portfolio –
with gold bullion comprising 10 – 15% of your total investment — will give you cushion from
different scenarios such as: stock market collapse, war, social unrest and bankruptcy. The
reason being, gold has a proven record of raising its value in times of economic volatility. It also
experienced a steady increase in price from 2001 to 2011. Gold bullions are pure gold in basest
form. Thus, prices are directly tied with gold unlike stocks or bonds.
Secondly, gold is money. It is the universally accepted medium of trade and commerce. Paper
money devaluates overtime while gold bullions’ value are steadily increasing. Wherever you go,
businesses and traders will readily exchange your gold for goods and supplies. Nowadays,
more financial institutions are accepting physical gold bullions as collateral.
Lastly, Gold bullions — specifically gold coins — are space efficient. Any private place is an ideal
storage for your gold bullions. Unlike stock certificates, bonds or cash; gold bullions are more
lightweight and transportable. You can put it into your pocket, brief cases or boxes for storage or
transfer. It is also cost efficient. You don’t have to pay hefty fees on banks just to keep your gold
in safety deposit boxes. Unlike ETF’s, buying gold bullions makes you the real owner who
controls your own fortune without the hassle of paper and legal works.
Now more than ever is the best time to buy gold bullions. With a staggering demand from China
and India, it is sensible to invest in gold bullions because of its rarity; this alone will drive up the
future price and profit of your investment.
