Gold, as the oldest and more enduring form of legal tender, is one of the most popular investment.
Investors generally buy gold as a hedge or safe haven against any economic, political, social or currency crises and instabilities (including investment market declines, war fears, currency failure, inflation, etc).
While financial markets go up and down fast, the quotation moves more slowly.
Gold : Economic Health Thermometer
With gold you have to be a patient investor : at the moment of this article, the price of gold reaches and exceeds $1.700 per ounce, but if you would bought around one year ago, the quotation was at $1.300, the 30% of profit and if you would decided to invest 5 years ago, the price was around $500, or else more than 170% of gain compared to today.
Gold can be defined as the world’s economic health thermometer : you can deduce that when this thermometer is high, it means that the world may be in for another or worse financial condition.
With the price getting higher everyday, it is up to you if you are going to invest online some money buying gold as commodity, thinking that in future price will grow up more and sell with profit. See how to make money trading stocks.
Another way to make money is buying used gold stuff from people : you can insert some announcement in your local newspaper, for istance.
You have to purchase the proper instrument to be sure that you will buy real gold and not worthless trinkets.
It is a good thing to understand how much pawnshops are paying people for their gold, because people have numerous ways they can dispose of gold, but the main advantage for them to sell it to you is that you will give fast cash in their desperate times at competitive prices.
You can also move to your customers, feature that many buyer shops do not provide.
How to Buy and Sell Gold
Buying gold coins is the most traditional way to buy gold. And it is certainly less convenient, but it also offers some important advantages over other ways to buy gold and its instruments.
Find shelter from a global monetary crash and people who want to have a direct possession (in their own hands), in other words physical gold, achieves this goal with buying gold coins, that are readily available and payable anywhere in the world, divided into individual pieces, each of limited value.
Who looks for a safe haven in gold as insurance against extreme events, however, can support the high cost represented by the otherwise unacceptable spread as the real payment for a service, just as you are willing to cover a potential risk with ensurance for cars.
The coins are those ideal without any numismatic value: what matters in this case is the metal content and the ease with which they can be resold. In this regard the British pounds and South African Krugerrands are perfect.
The purchase of coins is affordable also for very small capital, and it may be subdivided into lots in limited time (as an actual plan of accumulation) and provides a cost / oz after all interesting, due to the production of thousands and thousands of pieces.
You can also find good deals on EBAY though it is always advisable to seek professional input on the list held by your National Bank in your country.
Tips to Make Money with Gold
Take a look to these tips in order to make money buying and selling gold :
1 – know the future. When the economy is in good condition, the gold quotation will drop and the opposite is truth, like in this moment that we are living a world financial crisis, gold price will continue to increase ;
2 – buy low and sell high. This is one of the basic rule of investments. If you are buying gold, do it when no one wants gold. Do not buy when everyone has gold fever;
3 – study the historical graphic quotation. As said at beginning of this article, 5 years ago, gold price was around $500. This will help you understand the future trends;
4 – recover what nobody wants. Most transactions focus on high quality level gold coins. With coins, the condition and rarity increase the price dramatically. There are many more gold coins, bars and scrap that are not in good condition : you can buy these in cheap lots from gold or coin dealers who want to discard them since most of their clients want the high quality gold coins. When the price is so high, your will be able to sell your not so perfect gold with no problem.
Good luck with the Gold Fever !