Monday, November 9, 2009

How to Buy Gold

If you are wondering how to buy gold, then listen up. Buying is really a good trend right now and there are many reasons for this. First, production is either flat or falling all over the world. The price is increasing and it's due to inflation, the flat supply and prevailing uncertainty in other investments.

When buying gold, there are some things you will want to consider. The question is...Why do you want to buy? Is it just for your personal use or do you want to buy to sell? Jewelry and gold are two things a buyer looks into when buying gold for his personal use. It is more readily available, but it does have the least liquidity. You will not get your resell value of what you actually bought it for.

You will have better luck in selling collectible gold coins, due to quality and content being guaranteed. This may make your decision easier when figuring out how to buy gold.

So, if you buy gold as an investment, how will you know what the quality and content is? When you buy bullion, you are buying bars and coins that do not lose their quality. Same goes for buying gold stock.

When you buy stocks, you are not buying actual gold. These are stocks in a mining company. You are taking risks when buying stocks because there is no guarantee how much gold can be found in mines.

You ability to sell gold bars will be less than that of selling gold coins, due to the fact of the area, that is, unless you live in an area where there is a high demand for gold among jewelers who wish to make jewelry from it. So who is to say you will profit from this. There is no governmental guarantee of the quality or quantity when selling gold bars as there are with gold bullion. The reason is that the gold bars can be tampered with and when you get ready to sell the gold bars, you will more than likely have to pay for examination fees just to prove the value to a dealer.

It is in your best interest when buying gold bars, to not commit until you know for sure that the dealer is giving you proof of the quality and quantity of the gold. You have to know and trust the dealer. Make sure the dealer can prove the value of the gold before you buy

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