Saving Gold May Be More Trouble Than It's Worth

The recent trend suggests that gold is extremely volatile right now. From hitting the dizzying heights of more than $1,900 per ounce in August, gold started to fall drastically. Investment terminology described it as a 'correction' but this was bad news for investors, especially since experts predicted that gold would surpass $2,000 an ounce by the end of 2011. As of November 22, 2011, gold is at approximately $1,700 an ounce, a long way shy of this target. So the question is: Should you hang on to your precious metal and wait for the price of gold to rise or is it best to sell with the market being so unpredictable? Essentially, is holding on to gold more trouble than it's worth?

No Quick Profit To be honest, that depends a lot on your current circumstances, desire for instant profits and volume of gold you possess. If you have no dire need for quick cash, then perhaps it is best to hang on to the gold for now. However, if you have gold lying around the house and are in need of money in the near future, you would be foolish to risk waiting. The thing about gold is that it's the most highly evaluated market in the world. In layman's terms, this means that every investor knows the value of it. As markets move when people react to events rather than moving solely because of the event itself, the chances of gold rising to the heights of $2,500 (as J.P Morgan claimed) are slim. Therefore, you would be better off selling what you have.

No Dividends One of the differences between investing in gold and investing in stocks and bonds is the fact that the latter investment offers dividends while gold does not. Stocks pay dividends monthly and this money can be used to reinvest in the stock. With gold, you don't earn any profit unless it gets sold. So if you have 10 ounces of gold that have risen $300 an ounce, you can make a $3,000 return on investment if you sell now. If the price drops, you lose that profit.

Storage Space The question of volume is most important when it comes to finding storage space. If you have pure gold jewelry that weighs less than half an ounce, you have little problem when it comes to keeping it safe. However, trying to store a reasonable amount of gold is another matter entirely. You certainly could try and purchase a safe but this is an unnecessarily large expense. Banks will hold your gold, for a fee. The only other alternative is to purchase Exchange Traded Funds (ETFs) or mining shares but these don't necessarily mirror the gains or losses of physical gold. You would definitely need to read a variety of terms and conditions to clarify this.

Theft A final issue when you own a large amount of physical gold is the problem of theft. It probably won't take long for people in your area to know that you own a substantial amount of gold. Presumably you'll have tight security on your home and the location of the gold to prevent this but is it really worth all that stress? When you consider the fact that the value of gold could drop significantly, the money you pay on a security system may not be your best investment, even if you think it is at the time.

So, is owning physical gold more trouble than it's worth? Those with large amounts of gold and who can afford to store it can keep hold of it as a solid investment. For people with a small amount of gold and a need to sell, owning physical gold is a burden they could do without. There are numerous locations where you can sell your gold for a fair price and gain instant benefit in the form of cold, hard cash. Although gold is wonderful to have, it isn't always the most practical thing to own.

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Learn To Buy Gold Bullion Coins

Currently, buying gold has proved itself to be a financially responsible decision. In fact, for many centuries, gold has been one of the more valuable commodities. Many countries have even given their lives for it, while their environments fight for the valuable commodity. Owning any variety of the gold coin has, for a long time, been the best way to protect your finances. One of the reasons gold has continued to gain popularity is because the ins and outs of the gold market are easy to predict. For this reason, people are able to tell if this is really the right option for them.

But, can the possession of a gold bullion coin or gold bars really protect your wealth? More importantly, is it a smart decision? Well, the way it works is you spend money, which you would put in your bank, on rare gold coins. You then keep these coins until you want to exchange them for money. One of the reasons the gold coin method is successful is because after time the gold coins, or gold bars, are worth a lot more than you spent initially. Individuals have disputed this method because of how easy the process is, but this is not a reason to dismiss a money-making opportunity.

When you look into the coin method, you'll notice the kinds of coins. For example, the Krugerrand is one of the more sought out after bullion coins. This coin was first minted in 1967, and this coin comes out to 1 ounce of gold, which is worth around $1,130. Another gold coin that is constantly being hunted down is the Sovereign. This coin comes from the United Kingdom and is also worth a good amount of money. The United States also has their own gold coin, and they're referred to as US Eagles. Although they aren't worth the most, this coin, and Canadian Maples, will keep you financially secure.

Another method, aside from the coin method, is to look into gold bullion. Being found in gold mines; gold bars and bullion are a great investment. Most of the gold bullion you'll stumble across will also have the face value right on the coin, so you won't have to second guess yourself. And, even though gold coins are the preferred method, silver coins are just as valuable. So, whether you get gold or silver, you can expect a sizeable payoff.

The gold bullion coin method has become the most financially responsible decision available. In life, we need a method in which we can protect our wealth. Using the gold coin method is the best way to make sure you, and your money, will be better protected.

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