What You Need To Know Before Buying Gold

Gold is the most malleable and ductile metal known to man. There are many choices for the metal used to make jewelry. Going back thru time gold has a special meaning and sometimes symbolic depending on the culture, those who don’t like the look of yellow gold can look at gold that is white.

A karat is a measure of the purity of the metal used in the making of jewelry. The next time you look at jewelry make sure you get the karat count and compare the jewelry in this fashion.

It is called a precious metal because it has a high economic value and is relatively scarce in relation to the level of demand for it. Gold has been the preferred metal for wedding rings in the west for a long time. The best things that makes gold worth its name are the characteristics of gold—its malleability and ductility, making it the best metal to work upon.

There are many designs that encompass gold some of them are bracelets, necklace, rings, anklets and earrings. Indian gold jewelry is also famous for its beautiful designs all over the world. However, a little search will lead you to the best gold jewelry stores where the fine designs speak for themselves.

The purest gold specimens have a pure metal ratio of 96 to 99 per cent.. The higher the karat rating is, the higher the proportion of pure gold. Pure gold is 24K. When you hear everyone talk about solid gold this is when it exists in the earth and then mined in its pure form. According to all worldwide acceptable standards- the pure gold has now been reduced to 14k gold, or in many countries.

For those of you who are thinking about buying gold jewelry, it is crucial that you understand fully how to determine the price for gold jewelry.

Solid gold jewelry is usually much thicker and is about 50 to 100 times that of the gold that is gold plated. Gold filled differs from gold plated by the amount of gold applied. Gold jewelry is plated with gold in a many different ways.

When you hear the term gold plated this refers to jewelry that is electroplated or mechanically plated, this means that there is a base metal and gold is applied to the top of the metal.

Even if you are wearing a t-shirt and jeans jewelry such as a necklace or bracelet can really make you look great. Some people are wearing several bracelets at a time, to get a layered look.

If you are looking at gold jewelry one of the best places to look is the internet. By searching the internet you will be able to find a cost saving on jewelry. Just make sure you are dealing with a reputable dealer, read their return policy and make sure the have a phone number to call.

Why Gold Fluctuates

Annual Gold Prices for the past 5 years show that in 2005 the gold price had the biggest annual dollar increase, with an increase of over $80. A chart of annual gold prices over the last 30 years looks like a rollercoaster.

Exploration and development expenditures include all of the costs associated with manpower and activities such as geologists, contractors, engineering, drilling equipment, metallurgical testing and economic feasibility studies.

Gold mining requires the use of specialized facilities and technology. Gold prices can fluctuate widely and are affected by numerous factors beyond the Company’s control. Gold is measured in Troy ounces, which weigh 10 percent more than the ounces used for potatoes and feathers. Gold is often found in rock that contains sulfides, which when exposed to oxygen, water, and specialized bacteria produce highly acidic water.

Gold’s attractive appearance and malleability mean that it can be enjoyed as jewelry or other ornamentation and yet is easily convertible into coin or bullion. Where the gold price is presented in currencies other than the US dollar, it is converted into the local currency unit using the foreign exchange rate closing price on the same day.

Gold prices have surged past the $500-an-ounce mark, and more gains are predicted as investors look to protect themselves against inflation fears. Gold prices historically rise when faith in paper currencies erodes, as investors seek the intrinsic value of gold to protect themselves from inflation. Gold has continued to show strength in Asian and European trading.

Like all prices, the gold price reflects not only the inherent value of gold, but also the relative strength of the currency in which it is quoted. Costs are allocated to a stockpile based on relative values of material stockpiled and processed using current mining costs incurred up to the point of stockpiling the ore, including applicable overhead, depreciation, depletion and amortization relating to mining operations, and removed at each stockpile’s average cost per recoverable unit. While gold is a more stable store of value than paper currencies, it still remains a market in which governments have a heavy presence. Thus, taking into account the ever-shrinking value of the dollar, the real price of gold has hardly changed in a century.

Since 1982, average annual gold prices have stayed between $300 and $450 per ounce. Record upside price potential remains firmly in the hands of investors, with average annual gold prices for 2007 on track to beat the 1981 record of $614.

Why Should I Invest In Gold?

Of all the items man has used as currency, gold has far been the most prominent. It doesn’t matter if it is the most valuable, or the rarest. What does matter is that man has chosen this commodity to be a standard as a world yardstick for wealth. As a matter of fact, gold is one of the few metals that is so cherished by so many.

Today it’s easy to find the latest price of gold, from the Internet, the financial section in the morning paper, market news on TV, and even as a text message on your cell phone. But it wasn’t always like that. For decades the price of an ounce of gold was quite steady – so investors didn’t see the value in following the price changes.

But recently, the price gold has been changing, and a lot of interest has kindled for the precious metal. What once was under a hundred dollars in the 1940’s is now over 600 dollars. This has brought investors around in great numbers.

The price of gold is linked to how strong the US dollar is. Because of the great increase of gold over the last ten years, many investors believe it is a good time to buy and speculate. But remember that gold is a commodity, and doesn’t sit and earn interest like a bond in the bank. Your profit will be based on if the selling price is higher than the price you purchased it for, less any brokerage fees.

So when the price of gold goes up, you should be concerned about the value of the US dollar. This is because gold increases as the value of the dollar goes down. Since we are at the 600 dollar per ounce levels, you can be sure the value of the US dollar is fairly low. This is called a lack of confidence.

Should you invest in gold today? We believe it is a pretty safe bet. Given current world conditions, and the time now before the US elections in 2008, gold will be only increasing in value.

Why You Must Invest In Gold Today

Gold. Rare, beautiful, and unique. Treasured as a store of value for thousands of years, it is an important and secure asset. It has maintained its long term value, is not directly affected by the economic policies of individual countries and doesn’t depend on a ‘promise to pay’.

Completely free of credit risk, although it bears a market risk gold has always been a secure refuge in unsettled times. Its ‘safe haven’ attributes attract wise investors. Gold has proved itself to be an effective way to manage wealth.

For at least 200 years the price of gold has kept pace with inflation. Another important reason to invest in gold is its consistent delivery within a portfolio of assets. Its performance tends to move independently of other investments and of key economic indicators. Even a small weighting of gold in an investment portfolio can help reduce overall risk.

Most investment portfolios are invested primarily in traditional financial assets such as stocks and bonds. The reason for holding diverse investments is to protect the portfolio against fluctuations in the value of any single asset class.

Portfolios that contain gold are generally more robust and better able to cope with market ncertainties than those that don’t. Adding gold to a portfolio introduces an entirely different class of asset.

Gold is unusual because it is both a commodity and a monetary asset. It is an ‘effective diversifier’ because its performance tends to move independently of other investments and key economic indicators.

Studies have shown that traditional diversifiers (such as bonds and alternative assets) often fail during times of market stress or instability. Even a small allocation of gold has been proven to significantly improve the consistency of portfolio performance during both stable and unstable financial periods.

Gold improves the stability and predictability of returns. It is not correlated with other assets because the gold price is not driven by the same factors that drive the performance of other assets. Gold is also significantly less volatile than practically all equity indices.

The value of gold, in terms of real goods and services that it can buy,has remained remarkably stable. In contrast, the purchasing power of many currencies has generally declined.

Traditionally, access to the gold market has been through: investment in physical gold, usually as gold coins or small bars,or, for larger quantities, by way of the over the counter market; gold futures and options; gold mining equities, often packaged in gold-oriented mutual funds.

Favorite Gold Coins To Collect For Investment

Why Gold American Eagle Coins are Popular among Collectors

Gold coins are a favorite of coin collectors with an eye toward investment. Not only are golden coins lovely to behold, but they also have a value that is guaranteed, due to their precious metal content. The value of gold coins is usually higher than the value of their weight in gold bullion, making them a better investment than the gold market alone.

Many countries produce gold coins for collectors or for commemorative purposes. These coins oftentimes emphasize unique aspects of the country’s culture. Australia reveres its national animal with the Gold Kangaroo, for example, while China has a Gold Panda with a lovely design that changes every year. Canada’s coin features a powerful national symbol with the golden Maple Leaf, and South Africa mints the Krugerrand. One of the world’s best selling coins, the Krugerrand features the South African national animal, the Springbok. Taking its place as one of the most popular gold coins among investors and collectors, however, is the American Gold Eagle. The American Gold Eagle stands out among other bullion coins because of its lovely design, and because its value is backed by the full strength of the United States government.

The Beauty of American Eagle Gold Coins
The Gold Eagle features a representation of Lady Liberty striding with torch in hand through a field of light rays on its front side. This image is inspired by a golden coin designed by Augustus Saint-Gauden and minted from 1907 to 1933. The Augustus Saint-Gauden Double Eagle is widely considered to be one of the most beautiful coins America has ever produced. On the flip side of the American Eagle gold coins is a nest full of bald eagles, the national bird of the United States. The nest represents the American dedication to unity and family. Furthermore, a special die is used when minting these coins, to bring the gold to an especially high shine and to make it easier to see small details in the design.

American Eagle Gold Coins have Guaranteed Value
American Eagle gold coins are valuable not only for their lovely appearance, but also because they are the only bullion coin whose gold content is guaranteed by the United States government. Each American Gold Eagle is stamped with its exact gold weight, as well as its face value. They are minted from 22-karat gold, which by law must be pure gold bullion mined from within the United States. This guarantee of the authenticity of the precious metals used to make American Eagle gold coins is highly valuable to investors.

Buying American Eagle Gold Coins
Golden American Eagles were first produced in 1985 and come in a variety of sizes and values, ranging from the 1/10th oz American Eagle coin with a face value of $5, all the way up to full ounce gold coins with a face value of $50. Remember that most gold coins are worth more than their legal tender amount. Although they re not available for purchase directly from the U.S. Mint, American Eagle can be commonly found for sale in coin shops, on the internet, by gold dealers, and at coin shows. There are also variations on the American Eagle that are minted from silver or platinum instead of gold.

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