Bullion Investments – The Basics

Bullion Investments – The Basics

One of the most frequently asked questions about gold investments is – ‘when should I buy gold bullion’?

The answer is simpler than most people think…, The plain simple straightforward answer is, when you need it! This leads to another question that would sound like, when would I be needing it? The answer to that question is also simple, you have always needed it, and you will always need it!

No matter how you look at it, gold is fundamentally a wealth insurance and thus, you do not approach it in the manner you would approach other investments such as stock, bonds or real estate.

With regards to investing in gold, timing is never an issue and the only question that you need to be asking yourself is whether do you have sufficient back up plans or contingencies in stock in the event that the economy takes a dive and your purchasing power is shred into pieces. If the answer to that question is not, then you should buy gold bullion.

In other words, if you have the extra cash to spare and if it’s just sitting in a bank account earning insignificant interest, then the best thing to do would be to take out half of it and by whatever gold you can with it, P.A.M.P gold for instance come in 1g, 2g, 5g, and 10 g, bars which you can sell back to the vendor that you originally purchased it for at market value.

However, if at all there does come a time when you actually need quick cash and you have gold in your possession, the best thing to do would be to sell it to individual or independent buyers via eBay or even facebook.

Old Gold jewelry on Blue Silk

One word of caution that we would like to share with you about finding and selling to independent gold buyers via social media sites or eBay is that there are professional con artists in the market who are able to take unsuspecting buyers for a quick ride that would leave you high and dry, therefore make sure you be safe by getting all the information that you can prior to meeting them with your gold.

Back to buying gold, there is actually no point in delaying your purchase of gold by thinking that a favourable price will eventually come along, this may or may not happen and more often than not, gold prices head upwards gradually. One particular way for you to lower price, is by buying gold in small amounts each month, and if at all the price does come down, you could buy more than the usual, which would bring the average cost of every gram of gold you own lower.

Whatever you do, the primary objective of buying gold is to protect your wealth from being compromised by economic turmoil and uncertainties, by having your ‘eggs’ in different baskets, your level of vulnerability towards unfavourable economic conditions is greatly reduced.

For more on investing in gold please visit the Melbourne Gold Buyers website.