Monday, December 29, 2008

Why should you invest In Gold Bars?

By: Chris Linux
Through the age’s Gold has always been the metal people feel is worth dying for. Gold has affected all big and small civilizations of the world; it’s been a symbol of power prestige and affluence throughout the ages. Gold is not present in nature in the form as we see it; it’s extracted from ores, washed to remove impurities then refined to make it shiny enough that it appeals to us, even after going through many rigorous processes there will always be some minor impurities.

Gold is smelted then put into moulds and Gold Bars are formed. That’s how gold is transported commercially. Size and shape of bars vary from one refinery to the next but what’s a common practice is that Indicators for quality checks and the purity levels are stamped on each of the bars. Depending upon the size of the gold bar dictates which market the gold is delivered too. With heavier ones solely for commercial and financial purposes. Smaller gold bars are sent to banks and jewelers shops from where investors can purchase them. Buying a Gold bar seems like a good investment for every investor no matter high big or small.

Gold bars are tangible and provide instant liquidity as you can cash them in anytime for currency in a crisis. Picking gold bars is the right investment for those looking to protect themselves from oncoming recession worries. As with the 1930's crash in America people with money and power look to commodoties such as gold and silver for financial security of their own money. This the pushes the price of gold up and allows anyone who purchases gold eary to ride a wave of panic buying and wealth hoarding. It is known throughout history that when economys face financial trouble. People turn to a safer option for their money. As all our currencies in the world are backed by gold bullion. It makes pefect sense to invest in gold in a financial crisis. As its only a matter of time before people start buying for safety and the price goes up.

Another strong reason for buying gold bars over other gold bullion like gold coins is that certain types of gold coins especially old one’s like British Sovereigns may not be easily sold in times of need. There are hefty premiums on god coins and they are produced mainly for the collectors market. When a crisis hits the economy most people are buying gold for security rather than a collectors point of view. And if the worst comes to the worst. A gold coin is only a certain amount of gold. Regardless of the design stamped into the the coin. It still only has a basic intrinsic value when smelted down back into gold. Ive always thought the premium on gold coins is not justified when purchasing gold for security investments.

While buying gold bars few things need to be kept in mind like double checking the purity on each of the gold bars that you buy. You should be looking for .999% purity. Also if ever there comes a time when you need to trade in your gold bar for cash, smaller bars will be easier to liquidate. Try and buy some 2.5 gram, 5 gram 10, 20 and 50 gram gold bars for smaller everyday trading. Or you may lose out when over the counter purchases. Storage and transportation of gold bars is easy and it’s a smart way to preserve oneself from ups and downs of the market and surrounding political uncertainty. How much you can invest depends solely on you, but there’s no doubt that each of the gold bars you buy today will be worth their weight in gold even tomorrow - so to speak.

Looking for cheap Gold Bars the check out Gold Bullion sales for cheap gold prices.

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