Sunday, November 29, 2009

How to invest physically in gold

gold coin Krugerrand
Every week gold price is reaching new highs but for many investors the peak is still well ahead. For those who believe in the long term potential of gold as inflation protection investments, is an ideal way to buy gold ingots, respectively. bricks, or investment coins. It is virtually the purest form of investment in gold, in which the investor has the physical security of tenure of the yellow metal with all advantages and disadvantages.

Purchase of ingots and bricks is a relatively simple matter, just contact the selected dealer and buy gold. There are plenty of traders offering the possibility of investing in gold ingots. Choosing the merchant will actually be the most difficult task. You get bricks or ingots from reputable manufacturers with a certificate bearing the manufacturer, punch, weight and serial number.

A good trader is also a guarantee of liquidity, as well as ensure the redemption of investment in gold. Sometimes, when redemption of gold company offers you a lower price for ingots, which are purchased from another dealer (from another manufacturer). Thus preventing speculation in prices because the difference in prices between different dealers can be significant.

Investment alternative may also be investment gold coins, which also reflect the real price of gold (plus dealer charges) and have no problem with liquidity. On the market there are several different types of issuers and are commonly available in various weights one tenth of an ounce to an ounce. Some may even be a collectible article.

Probably the most famous investment coins are South African Krugerrand, which emits since 1967. It's bigger and heavier, because it has only 22 carats, but the amount of gold is the same as for other coins. In the U.S. there are two investment coins that is American Buffalo with a 0.9999 and American Eagle which has a purity 22 carat (0.9167) like the Krugerrand. The British Britannia has content that only 22 carat gold and is the most heavy investment coin (34.05 g in one ounce version). Australian Nugget (Kangaroo respectively) and the Chinese Panda are interesting in that its appearance changes every year and are so popular among collectors. Most investment coins are issued also in the design proof and also in silver version.

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