WHY PEOPLE BUY GOLD?
For centuries now, people have been making beautiful ornaments and jewelry out of the precious metal, gold. But one thing that the recent global economic meltdown has brought forward is the benefits of buying gold for investment purposes. Gold is one metal, the prices of which have been rising year after year.
News headlines often talk of soaring gold prices, setting up new records in the market. This shows that the demand of gold has also been soaring up, as it provides safer investment option for the people. The metal is extracted from the earth mines and its availability remains limited. The statistics show that the gold consumptions exceeded the production by around 1200 tonnes in the year 2002. This gap in demand and supply is the main factor causing an increase in its prices.
The increase in the monetary value of the metal hence makes it a safe investment option. People usually invest their money in stock markets or debt instruments for fetching returns on their wealth. But the volatility of the markets always imposes a risk on the investments, as downfall of the market can lead to significant financial losses. But gold is one commodity that is relatively less affected by the downfall of the market. When the entire market came crashing down in the year 2008, gold prices still took an upward swing. This shows that your wealth and money remains protected when invested in gold. Gold will always maintain its value will save your money against any crisis.
The commodity also remains free from devaluations. A currency can get appreciated or depreciated in the global market but the gold prices remain unaffected by these devaluations. It thus safeguards you in times of inflation or any other economic crises. When your money goes weaker, you remain protected with gold. You don’t even have to make heavy bulky jewelry and can store the metal in easier forms. Gold bars and gold coins not only assure you of the purity but also can be stored easily. You can even trade gold as a commodity without even having to keep it in the physical form.
Another benefit of purchasing and investing in gold is its ability to be controlled. Everyone wants to have complete control on their wealth to feel safe. And the ownership of gold bullions or bars helps you feel that you have control on your wealth. Your funds no longer need to be dependent on the intelligence and luck of your fund manager. You can instead possess your money in physical form and see its worth rising upwards. It is also highly liquid. You can sell it in case of emergency situations and get liquid cash whenever you are in need.
If you would have made this smart choice ten years ago, you would have been ten times richer right now. But it’s never late to start investing in gold. So, whether you are a millionaire or earning few thousand bucks, you know how to become wealthy in times to come & the answer is: BUY GOLD
WHY PEOPLE BUY SILVER?
Buying Silver bullion bars and coins and stacking them at home is equivalent to grow your wealth immensely. It is just like planting “Money Tree” and reaping huge profitsin a few years from now. This is no hype but 100% truth. Let us find the reasons behind this…
As you are aware, gold and silver are popularly known as precious metals. Whenever people think of making or buying jewellery, invariably they think of these two metals. More particularly in the UK, we have a unique fancy in Silver for making jewellery. This is because of the age-old traditions being followed in our country, from centuries back.
Contemporary jewellery or antique jewellery – Silver has always a better rank in peoples’ mind. So all said and done, buying Silver, as far as our culture and tastes are concerned, is only for the purpose of jewellery and not otherwise.But this is a fast changing trend, judging from the way Silver prices are escalating. You must have observed from the personal experience, how price for gold catapulted first, and subsequently in the recent years, silver also followed suit – especially in the purest form of 99.9% Silver bullion bars and coins. The reasons adduced by experts in the field is, when compared to any other metal the uses for silver as a metal are more, and naturally applying the supply and demand theory.
This clearly suggests that the chances are high that Silver will be a very rare commodity – rarer than Platinum.
Also, the Industrial use of Silver depletes stock of Silver bars very fast. Silver is used in the production of an array of products like super conductors; electrical motors; micro-processors; cell-phone batteries; DVDs and a lot more. Authentic statistics put the figure of shortage at 1899.9 million ounces, between 1990 and 2003 to meet the overall industrial demand.
Well that’s all industrial accounts, but if we consider its other uses, like making of jewellery and aesthetic applications, It made the shortage to swell up-to 2,214 million ounces.
Now this is easy for any lay person to depict that how dearer will the metal silver be in the times approaching. It is time to act smart in buying Silver and stacking at home right now.
Count the benefits in buying Silver one by one. Silver is less in value. This can help you buy more volume of Silver in least time, before it gets out of your reach.
Secondly, you have excellent opportunities to buy Silver online from outlets, selling different sizes and weights of Silver Bars and coins – 1 ounce Silver Bar; 100 grams; 1 kilo and 5000 grams Silver Bars. They will reach safely at your door steps after buying.
You can wait for your money to grow steadily and certainly, this way. Whenever you need money, you can easily exchange these purest-form Silver bars, at the prevailing prices then, which will be by all means, higher than what you invested now.
So without wasting any more time, it is prudent to get your share of silver now
SHOULD YOU BUY GOLD COINS OR GLOD BARS?
You can buy bullion in two main forms: coins or ingots (bars). The advantage of gold coins over gold bars is that they allow you to be more flexible. After all, it’s easier to sell 20% of your gold if you own ten gold coins rather than if your whole investment is in one gold bar.
By the same token, given this flexibility, you’ll probably find that coins are that bit more liquid (easy to sell) than big bars. That said, if you want to buy a sizeable amount of gold, then bars might make more sense from a practical point of view.
HOW TO BUY BULLION?
One key thing to consider is costs. Gold dealers make their money like anyone else – by selling for more than the market price, and buying for less. The difference (or ‘spread’) can range widely depending on the quantity and type of bullion you buy, as well as who you buy it from, and the current state of supply and demand.
The worst deals will come from the gold vending machines and ‘gold bars’ now popping up in shopping centres. The latter serve a market for people keen to turn cash into gold fast, but most investors should go nowhere near them.
Hong Kong is widely acknowledged as the cheapest place to buy gold coins. Go to Queen’s Road in Hong Kong’s Central District, and you’ll find well-known banks, such as HSBC, shifting gold coins for as little as 0.2% above the premium.
But given that a flight to Hong Kong isn’t cheap, the best option for most UK investors is to buy from large, established British or European dealers. They will deliver it straight to your house, through trackable insured couriers. It’s better to go with a well-known, large firm with a good track record.
When it comes to selling your gold, you’ll find yourself at the wrong end of the gold dealers’ spreads once again. Depending on the dealer, you could find yourself getting up to 5% less than the market price. Based in Birmingham’s Jewellery Quarter The Bullion Store offers all its customers just 1% less than the market price.