We live in a world of dazzling technology where people routinely make purchases from local or international stores with their phones. There are more cryptocurrencies in existence than a person can count. The change can be exciting, but even investors at the forefront of ecommerce and other emerging technologies like to avoid putting all their eggs in one basket.
Many turn to gold as a safe and reliable asset. However, there are different types of gold to buy, and each type has unique considerations to bear in mind when purchasing. Please read on to learn more before investing in gold.
Gold Jewellery for Buyers
The gold jewellery we wear is supposed to look beautiful and make us feel confident, like we can be in any room and shine. Before buying it, you’ll answer very different questions than you would before buying bullion.
You need to verify that the gold is real gold and determine how many carats of gold it’s made from. Reputable brands all hallmark the gold, so there’s no doubt while shopping. The price you pay also includes the stones and the labour that goes into setting and designing them.
What are you buying the gold for, exactly? If you want jewellery first and foremost, select the piece you like wearing most. Buying jewellery is not a great idea if you are looking for an investment. Too much of the price you pay for jewellery goes toward name recognition, design, and marketing. Much like buying a new car, that’s value that you cannot recoup when you resell it. Investment-grade gold is a very different beast.
What’s Investment-Grade Gold?
The leading source for bullion investments only sells gold bullion or coins that are at least 99.5% pure. Once in the store, you won’t find anything gold-plated. The minimum purity for investment-quality gold bars and coins is 99.5%, and many are even higher, at 99.9% or more.
Unlike when buying gold jewellery, you don’t pay sales tax upfront with the purchase. Instead, you pay capital gains tax when you sell it. Not surprisingly, investment-grade gold is treated as an investment rather than a consumer purchase.
Gold bars for investors are made by private mints like PAMP Suisse, Valcambi, and others. National mints make gold coins, such as the Royal Canadian Mint. That’s why you’ll see designs on the coins with national symbols on them, like the maple leaf in Canada.
The leading bullion suppliers will provide guidance and answer questions you may have. However, you’ll have to make your own investment decisions for yourself. Everyone has their own financial situation and investment temperament. Buying investment-grade gold is an excellent way to hedge against a recession, but only you can decide what approach is best for your situation.
Gold comes in different carats, colours, styles, and forms. Whether you’re buying a shimmering jewel that catches everybody’s eyes or a bar that rests in a vault at home, you need to weigh your options before the purchase. Remember the above tips, and you won’t have to worry about fool’s gold.