The amount it's fetching on the open market is known as the "spot price."īut equipping yourself to purchase gold means knowing more than just the price. Gold is priced by the troy ounce, a special unit 2.75 grams higher than a traditional ounce. To keep gold holdings as liquid as possible, it's generally wise to purchase in smaller quantities - 10 one-ounce bars instead of one 10-ounce bar, for example - to improve your odds of finding a buyer if need be. But if you're buying in larger quantities, bullion has the advantage of lower premiums because it requires less processing than coins. To be traded on the market, investment gold must have a purity of 99.5%, and bullion can range in weight from quarter-ounce wafers to 430-ounce bricks.įor the novice gold investor, coins tend to be more appealing for their liquidity and ease of storage. It comes in either ingots, which are pressed, or bars, which are poured, and is stamped with relevant details like purity, origin, and weight. The most common and universally recognized ones currently in circulation are:īullion is gold in its bulk form. While several nations mint them, not all gold coins are created equal as reliable investments. That makes these coins different from collectible, numismatic ones - those in your uncle's antique coin collection. Gold coinsĬoins (sometimes called bullion or mint coins) are created and issued by the governments of different countries, specifically for the purpose of investment. You own the actual, yellow metal - a commodity that can't be erased or hacked and survives catastrophic events that destroy paper currency and/or digitized financial accounts.įor investment purposes, physical gold can be bought in two basic forms: coins or bullion. ![]() ![]() There's the option of investing in gold securities, but purchasing physical gold is appealing for many investors because it represents the "purest" way to invest. When the rest of the stock market falls, gold often goes the other way, appreciating in value and protecting the canny investor against major losses in other financial assets.įor those reasons, many finance experts suggest investing 5% to 10% of your portfolio in gold, potentially going as high as 15% in times of political or economic crisis. Not only is gold largely immune to inflation, instead hewing closely to the cost of living, but gold also serves as a hedge against economic disaster. Investing in gold can be a smart way to diversify a portfolio - especially one that includes stocks, bonds, and mutual funds. By clicking ‘Sign up’, you agree to receive marketing emails from InsiderĪs well as other partner offers and accept our
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