Gold Chains or Gold Bars?
Gold must be on many people’s mind, now with prices reaching new heights. What are the advantages and disadvantages of various types of gold?
Gold jewellery is the most convenient to buy, and people get to wear them. It all depends on whether yellow gold is your colour. Other colours of gold do not have good resale value. It also depends on the purity. However, the price is usually marked up by 300% in retail shops, as the prices include rental, employees’ salary, utilities, and of course, design and workmanship. For housewives, this is the easiest way though. Many goldsmiths shops offer such buyback services.
Next, bullion coins and small gold bars are possible. You can get them from banks. Small investors can easily buy them at lower prices. It is quite a liquid market, so you can easily change your gold into money. Usually, gold coins are backed by governments. American, Australian and Canadian gold coins are some examples.
Unfortunately, only dealers are able to spot fakes, so be careful of where you get your gold coins. The pip spread can be quite significant compared to other types of investments. This means that if you buy and sell gold at the same time, you will lose out in terms of money. For those who like to have the feeling of gold coins in their hands, (actually they are specially kept), it is quite affordable to obtain them.
Finally, there are big gold bars available. They are usually traded in a professional market. Normal small time investors do not get to see them. They have serial numbers and are kept in vaults. It is very tough to find fakes in the market. They are extremely expensive. You cannot just buy one gold bar and expect to make money out of it. One gold bar may cost more than $200k. Usually the smallest amount is $500k. It is meant for banks and other financial institutions instead of private investors.
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Gold Chains or Gold Bars?
Gold must be on many people’s mind, now with prices reaching new heights. What are the advantages and disadvantages of various types of gold? Should we buy gold jewelry from shops? Or should we buy gold bars from banks? How much do they cost? Which o…
It doesn’t matter whether you buy gold coins, ingots, or jewelry- gold is bound to go up. But of course when you buy gold coins or jewelry, some of what you’re paying for is the workmanship that goes into it, not just the gold itself.
If you want to wear your gold/investment, buy the jewelry. If you plan to just stick it in a safe deposit box, then just buy from the market so you can trade it easily.
It all depends. Gold prices were depressed for 20 years before it finally reached today’s prices.
I know of a lot of people who buy gold jewellery and put them in safe deposit boxes. Yeah, they might as well buy the gold coins instead so that they do not need to worry about outdated designs.
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