The price of gold is steadily rising, and many people may want to make an investment in this precious commodity. Investing in items such as gold coins and gold bars can yield quite a profit. However, any would-be investor should know several things prior to investing in gold bars or coins.
Gold coins are composed either completely of gold or the majority of their ingredient is gold. Currently, most gold coins are bullion coins designed mainly for investors or as an item for collectors. Collector coins are often handed down through generations and usually appreciate.
An alternative to investing in gold coins is to purchase gold bars. Banks and governments often purchase gold bars as an investment. These bars are a weight of gold that is purchased at the ongoing rate of gold. A small percentage markup is added to the rate in order to account for fabricating, refining, and shipping the bars.
Prior to making any investment in gold bars, individuals should conduct thorough research in order to make sure that they are dealing with a trusted dealer. The investor should also calculate how much money is available for the purchase. This will determine how much gold can be afforded and thus what size gold bar can be purchased. The price for a small 1kg bar runs about $10,000. Some states may charge a sales tax for the purchase of gold bars, so figure that into the budget.
Investors should also educate themselves about the different types of gold bars. Cast bars are created by pouring molten gold into a cast. Minting bars involves stamping a bar of a specified size from a piece of gold that has already been cast. Education regarding purity of the gold is also essential whenever one wishes to buy gold coins or bars. The purity of a gold bar is usually stamped on the bar and the bar should be about 99.98% or 99.99% pure.