Many people are considering gold as a way to protect themselves against future financial unknowns. During the Global Recession of 2008, major financial institutions around the world were in distress. According to the U.S. Bureau of Labor Statistics (BLS), the price of gold rapidly increased between 2008 and 2012 as governments, corporations, and investors around the world sought to protect purchasing power.
Today, fixed income yields are at or near historic lows. As traditional paper investments like stocks soar, some investors ask, “Does the stock market reflect future earnings or are we entering another market bubble?” Most importantly, these same investors ask, “Will my family and I eventually pay for today’s financial markets excesses?”
Over the past 100 years, owning gold has helped investors, countries, and businesses to protect purchasing power. That’s why so many investors want to know about gold bullion bars for sale today.
Gold Bullion for Sale
Unless you’re an experienced trader, you may be more comfortable with gold bullion bars in your portfolio. Physical gold bullion is a tangible investment. You can hold it in your hand. The costs and risks associated with ownership of virtual gold alternatives, such as exchange-traded funds (ETFs), makes gold bullion or gold bullion coins for sale a sensible long-term investment choice.
Choose an established precious metals dealer with a volume business if you’re considering gold bullion for sale. A dealer with many customers typically charges a lower bid-asked spread. It’s relatively easy to compare spreads for gold bullion for sale online.
The amount of gold you acquire at any time can affect the dealer’s price quote. Larger buyers typically pay smaller spreads as low as about USD 1.50 per ounce.
Gold bullion coins are an ideal way to acquire smaller amounts of gold over the long-term. Kilogram gold bullion sized bars are approximately 32 troy ounces in size. This size is popular with larger investors, such as corporations or government central banks.
If you’re imagining that a gold bullion bar is very large—like pictures you’ve seen from inside the Fort Knox vault—note that only the most significant gold investors hold 400-ounce ingots. Each gold brick of this size weighs about 28 pounds.
Long-Term Investors and Gold
The decision about how and when to invest in gold bullion is yours. Many financial experts believe that buying gold as a long-term investment, and buying incremental gold bullion and gold coins to automatically average down the cost basis of gold, can lower investor risk and increase your return-on-investment (roi).
The price of gold peaked in October 2011 at more than USD 1,800 per ounce. In the next few years, the price of gold declined according to the principles of supply and demand. In June 2016, the price of gold recovered to more than USD 1,300.
• Like other investment vehicles, the price of gold will rise and fall.
• It’s exceptionally difficult for most investors to time a rising or declining gold price.
• Over the long-term—several years, decades, or centuries—the price of gold is increasing.
• Earth’s supply of gold is finite.
According to the BBC, most of the world’s gold is already above the ground. Throughout human history, only about 171.3 K metric tons have been mined. Experts say that’s somewhere around six billion ounces of gold in total.
If you own physical gold as an investment, consider a reputable independent or dealer depository. Don’t plan to hold your gold investments at home because theft or catastrophic event can happen.
Unfortunately, financial institutions’ and Comex depositories aren’t always reliably secure. Look for a reputable insured independent or dealer depository that will allow you to audit or access your gold holdings with at least 24 hours’ notice.