Everyone loves the allure of pure gold and this unique precious metal has been the foundation of wealth since man first walked on the planet and is globally accepted as payment, while also being the main form of wealth storage.
There was a time when a government could only print as much money as they had in gold reserves, but today the Federal Reserve prints dollars day and night and lends it to major banks and governments.
Here is some background information about how gold is made into its various forms, to give you a deeper understanding of gold and the world market.
Gold Bullion Coins
We’re not talking rare gold coins (another market entirely), rather pure gold coins like the American Eagle, the British Britannia, and the Canadian Maple Leaf, which weigh in at exactly one troy ounce.
These coins are valued according to purity and weight, rather than the face value as a currency and many private investors store some of their wealth in gold bullion coins. For gold to be ‘bullion’, it must be 99.9% pure and for a lot of investors, the coins are more attractive than gold bars and you could amass quite a collection.
Gold Bullion Bars & Ingots
This is the most popular form of gold as an investment and many banks around the world use a standard 1kg bar of gold, while ingots come in sizes ranging from 1 troy ounce to the 400-troy ounce gold bar that weighs 12.4kg.
When you’re buying gold Brisbane specialists like City Gold Bullion offer, you can choose the size and form of the precious metal, and dealing with a respected gold bullion dealer is strongly recommended.
Global Uncertainty
The current COVID-19 pandemic has seriously impacted the global economy and investors move their wealth out of fiat currencies and stocks and shares, preferring instead to buy gold, which performed really well in 2020.
If you would like to diversify your investment portfolio, there are local gold dealers online. Make sure to check out their website, which would provide the spot price for gold of all forms.
Gold Futures Market
This is when a trader predicts the price of gold at some point in the future and when gold is traded, there is no physical exchange of gold, rather the transaction is carried out electronically, with promise notes.
If you want to enter the gold futures arena, you will need to do a lot of market research and the risks are high, while the chances of a great return are also present. The price of gold rose 24% in 2020, which is a very healthy return for such a stable commodity that is regarded by many as a hedge against inflation.
Regarding its use, gold bullion is mainly for storing wealth and also might change hands as collateral on a loan, and such is the system today, governments print money with no regard to their gold reserves, and the price of this bright yellow metal changes by the minute.