Investing in Gold Bullion

During these times of economic hardship, there is a high demand for stable and reliable investments. Both experienced and novice investors are turning to precious metals, and more specifically gold bullion as a way to add stability to their portfolio. Gold has been recognized as a status symbol for centuries, from the times of the ancient Greeks and Romans through to the modern day. It is highly sought after, and maintains its value through recessions and even depressions in the economy. It is a universally accepted currency, is highly durable, and will not wear out passing form hand to hand. Here we will outline how you can add gold to your portfolio.

To understand how to invest in gold, you must first understand how the price of gold is determined. The standard benchmark price for gold is the London Gold Fixing. It is set twice daily by telephone by the five members of the London Gold Pool. Like most other forms of investments, gold prices will fluctuate through supply and demand cycles. However, because the world’s total supply of gold is relatively finite the price is more susceptible to acts of hoarding and disposing. We find in general that gold becomes more desirable during the following situations, war and national crisis, bank failures and dramatic drops in real estate prices. Many people invest in gold simply because they do not trust normal currency and see gold bullion as a form of safety net.

There are many ways to invest in gold, which includes either direct ownership, or indirect ownership through stocks, shares or other accounts. If you wish to own gold directly you can choose to place it in a safe deposit bank inside your home. The disadvantage to this is if your home is burgled or suffers a disaster you will lose your investment. There are safer forms of direct ownership, such as placing the gold in a larger pool with a bank or dealer. Some even choose to select an offshore dealer to ensure higher security. The most traditional form of gold bullion is gold bars and gold coins. Gold bars are sold in various sizes depending on the country. Because gold bars are difficult to transport most Swiss banks offer gold accounts. In these accounts you can buy and sell the gold just like any other form of foreign currency.

So next time you are evaluating your investment portfolio, consider gold bullion as a way to add stability and further your peace of find.

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