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How to Identify Different Types of Gold for Investment

Investing in gold is a common way of diversifying a portfolio and protecting against future economic uncertainties. Prices tend to remain buoyant, due to the relative scarcity of gold (it cannot be manufactured, only mined). There are several types of gold and it is a very valuable asset and attractive, precious metal. Deciding to purchase gold is a straightforward thing to do. Gold is recognised for its value around the world and is easy to buy and sell. The next stage is working out what you going to choose out of the different types of gold for investment that is out there.

Some Common Types of Gold For Investments

There are several different types of gold for investors to choose from. Here are four popular options.

1. Gold Bullion

Gold bullion is valued according to the market price of gold at the time of purchase and/or sale. It can be available in different formats. First of all, gold bars or ingots represent a good choice for larger investments. Due to their size, gold bars are not always kept by the investor. Instead, they are stored on their behalf in secure storage facilities, such as a bank vault or safe.

A cheaper option for investing in gold bullion is purchasing coins or rounds. Coins are minted in different sizes and range from South African Krugerrand and British Sovereigns to other currencies from around the world. They are far easier to transport and store, due to their smaller size and weight.

Metalor 100g Gold Bar Sealed

 

2. Numismatic Coins

A coin collector or enthusiast can also be known as a numismatist. Gold coins that they invest in or collect are not only noteworthy for their gold content, but also for their historical importance, design and provenance. Coins have been minted to commemorate historical events, such as a monarch’s birth, marriage, coronation, anniversaries and death. They can also be struck and used as currency by the country in question.

Gold bought and sold by numismatists can also take the form of medals and medallions, presented for achievements in the fields of sport, science, culture, politics and the military. Choosing these types of gold for investment can often reap rewards as the value is enhanced by the story behind the coin, medal or medallion.

 2020 David Bowie £100 - 1oz Gold Proof Gold Coin - types of

3. Jewellery

Gold jewellery is another of those gold investment types that come with an interesting story or provenance. Many pieces of jewellery will become, or are already considered to be family heirlooms. Watches, necklaces, earrings and brooches passed down the generations will always retain their value if kept in good condition. They will also give the wearer much pleasure as something to wear, as well as a savvy inclusion in an investment portfolio.

If you are bequeathed or purchase gold jewellery that you plan to keep as an investment against future uncertainties, keep it repaired and protected to maximise its resale value. Store it in a protective box or pouch to prevent damage and get it regularly valued by an expert so that you know how much it could return if you choose to sell.

4. Gold Mining Stocks

This type of gold for investment doesn’t involve you purchasing actual, physical gold bullion, coins or jewellery. Instead, you are investing in a share of a gold mine and its profits. Share prices will not always rise with the market value of the gold being produced. However, it is still wise to keep an eye on gold prices to find out how much your mine could be selling its gold for. This investment choice comes with different risks to solid gold, as it can be affected by company management decisions, economic risk factors, auditors’ reports and geological considerations.

£2 Gold Proof Coin - 2020 Agatha Christie - PCGS PR70 DCAM

The Next Step

Whichever form of gold investment you are interested in, the next step is to do your research into when, how and how much to buy. Each one comes with different advantages and disadvantages. These are based on the price of the gold, storage and security arrangements, ease and speed of buying and selling and the attraction of owning the different gold types of gold investment.

It is worth seeking expert advice before choosing the types of golf investment you want to purchase for the very first time. You could start small by buying lower amounts of precious metals and tracking their progress for a while on the stock market. Then, once you feel more comfortable, you can up your investment, diversify further or liquidate it, as you see fit. Speak to the professionals at Veblen Collectables for further details and advice.

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