Gold Bullion Investment
A gold bullion investment may prove to be the shrewd investor's best hedge against rising inflation or devaluation of the dollar. Gold (Au in the periodic table) has been for centuries the finest and most respected of all the standards for wealth and affluence and nothing has really changed in that judgment. What has changed in recent years is the price of a single ounce of the beautiful stuff, slowly rising in value since the thirty five dollar an ounce days of the sixties. When the word bullion is used along with Au, the topic is Au in its purest form. Most jewelry has some others metals joined with the Au to give it strength but pure gold bullion is only available through a few sources. One would be 24K jewelry, which is .9999% pure Au, but extremely soft and often not real practical for anything except an occasional night on the town just showing off a little bling.
The best way to do some gold bullion investment transactions is through the purchase of nationally minted coins from major nations' own mints. These are guaranteed to have the amount of Au in them advertised on the coin's obverse. These coins can come in different sizes, although the standard is the one ounce size. Countries producing these coins that are perfect for beginners who want to have a bullion investment include the United States with its American Eagle Collection, Canada with its Maple Leaf, South Africa with its Krugerrand, Austria with its Philharmonic and Australia's Kangaroo. America's Eagles can be purchased in Au coins with one ounce, a half ounce, a quarter ounce and a tenth ounce metal in them.
Of all the commodities investing a person could engage in, gold bullion investment may be one of the simplest. To be successful in profiting from the rise or fall of gold prices, one should learn intimately the factors that go into making Au more or less significant on the open market. Of course supply and demand is at the heart of many price reductions and increases, and this is also true of the earth's Au resources. In recent years, emerging countries such as China and India have put ever increasing pressure on the supply of mined Au. As more people have discretionary income to spend, the demand for jewelry, dental work and more reliable electronic connections will increase. Demand for the yellow Nirvana (what some would have us believe) is rising every year. The world's Au mines, while trying to keep up with demand have not been able to do so, bringing a spike in gold's value and making a gold bullion investment appealing to many.
Getting into all this mix is the up and down nature of world economies. Au was viewed by the ancients as the true measure of wealth, and when inflation, hyper inflation and perhaps deflation occur during difficult economic times, this same time honored measure gets more and more attention, further driving up the value of a gold bullion investment. There was a time when the value of Fort Knox and its holdings were of legendary importance, yet since the country was taken off the Au standard in the early 1970's, having Au to back up the country's monetary system has slipped into disrepute. But when national budgets and deficits continue to race into the red, many look again to the value of one of the gifts brought to the young toddler named Jesus Christ by the astronomers from the East. When the angels declared peace on earth good will toward men, they were not announcing the end of war on earth; they were telling mankind that the war God had declared on sinful mankind was over if they would accept His gift to the world. "But God commendeth his love toward us, in that while we were yet sinners, Christ died for us. Much more then, being justified by his blood, we shall be saved from wrath through him." (Romans 5: 8, 9)
Buying American Eagle coins can be a great way to have a gold bullion investment. There are other older Au coins of various countries that may have value not so much with their Au content but with various imperfections, age, rarity, etc. This is called numismatics and is a whole other investing field that a person can learn to succeed in after years of study and experience. There are other ways that a person can have a gold bullion investment apart from actually physically having coins and that would be holding shares in working Au mines. There are world class major Au mines, those that are not world class but still producing and small independent junior Au mines, all looking for investor money in order to produce more of the much sought after metal.
So a person can have stocks in gold bullion mines and speculate on Au derivatives and all those complicated issues, but if a person wants to feel just a little decadent, a little privileged, a little bit special, hold one of those gold bullion American Eagles in your hand worth over nine hundred dollars. A gold bullion investment is a look back into history's past. It's the stuff that made up the legend of Midas and the stuff Solomon had sprinkled in the hair of his body guards each morning in the form of dust. Look at it closely and feel its heft and maybe even its giddying effects. Then remember that heaven is going to be so fabulous that gold will be relegated to nothing more than yellow asphalt on its streets.
Gold Bullion TradingGold bullion trading and investing seems to be an exotic pastime for the very wealthy, but many financial experts are touting gold and precious metal investing as a smart part of an overall diversified portfolio. Many average Joe citizen investors are considering the purchase of bulk Au in the several forms offered by the US Mint, particularly when the price of an ounce of yellow precious metal hovering around the eight hundred dollar range and threatening to go higher. The price has come a long way since the standard price of about $35 an ounce in the 1970's. In fact, it has cheated inflation and a rise in the cost of living and in tough economic times seems a tempting hedge against an uncertain future. In fact, many TV ads are now imploring people to turn in old yellow precious metal jewelry for cash, and this is becoming a more lucrative industry as each day passes.
The recent rise of China and India upon the world economic scene has created more and more of a yellow precious metal shortage in the world. Amazingly, all the yellow precious metal ever mined in the world would fit in a cube sixty feet square. Gold bullion trading and investing of a scarce commodity by more and wealthier nations is not the only reason gold prices continue to climb. Yellow precious metal is used in high quality electronics and other manufacturing applications also. The prospects for yellow precious metal continuing to be a highly sought after commodity are stratospheric in nature.
Precious metals in bulk form are called bullion, which is usually either placed into bar or coin form for easier handling. Raw precious metal is valued by mass and purity rather than face value. Many countries mint bulk form precious metals with the United States American Eagle series being the flagship standard for America. Yellow precious metal bullion trading can be easily handled by the exchange of the American Eagle coins minted by the West Point, New York mint. Gold bullion coins in this series come in one ounce, half ounce, quarter ounce, and one tenth ounce sizes. Their price usually runs about one hundred dollars above the standard market price of an ounce of Au.
The South African Krugerrand is probably the most well-known goldmetal piece in the world. The Canadian Maple leaf, the Austrian Symphony and the Australian Kangaroo are other world gold bullion trading coins that are available for purchase and trade. As like the American Eagle series, these goldmetal bullion coins usually run at least a hundred American dollars above the value of goldmetal on the open market. So many people worry about the future and try to save as much money as possible, believing that a healthy bank account is the most important asset a person can have. But Jesus said, "Lay not up for yourselves treasures upon earth, where moth and rust doth corrupt and where thieves break through and steal, but lay up for yourselves treasures in heaven, where neither moth nor rust doth corrupt and where thieves do not break through and steal, for where your treasure is, there will your heart be also." (Matthew 6: 19-21)
Gold bullion trading and buying always ignites at fever pitches when stock market values take a nose dive. Oftentimes, federal governments around the world cut interest rates on money loaned to banks, and when this happens, goldmetal is also looked to for stability. There are many companies online that buy and sell gold bullion trading coins and bars. Most of these websites run the real time price of goldmetal on their website, usually updated every minute. This enables a buyer to reference whether or not the prices are rising. There are many training programs online to help a potential investor in gold bullion trading coins and bars. And while one's stock portfolio manager may not be the one to advise on this particular purchase, he may be able to refer you to the right resource.
For some people who fear economic collapse and perhaps resulting depressionary times, gold bullion trading coins is a tremendous comfort. In the form of coins that can easily be moved, transported and traded, goldmetal bullion is a tremendously liquid asset and many people consider keeping a stach of the yellow stuff nearby for emergency purposes. Eight or ten American Eagles in creative hiding places around the house can give someone some peace of mind in case a bank fails or there is a long term electrical outage. There are some very creative places to hide valuables like in the middle of crunchy peanut butter jars and maybe some heating vents. After all, what good does a safety deposit box do someone if the bank suddenly folds?
Financial experts advise that no more than 10% of a portfolio ought to be devoted to goldmetal. But that 10% need not only be in gold bullion trading coins but also in commodities and derivatives. Investments in precious metals can also be in bullion producing mines that are around the world in various countries. There are opportunities all over the Internet where a beginner can learn about investing in bullion of platinum, silver and goldmetal. Both platinum and silver show increasing values that naturally follow the lead of goldmetal. Precious metals always be the gifts fit for kings but certainly in today's market within the realm of possession by many of the most ordinary Bobs and Alice's of Main Street USA.