With so many options to choose from, selecting the type of gold you want to buy can be a difficult task.
Previously, gold had only existed in the form of gold bars or coins. Today, you see gold everywhere ? in the form of bullions, ingots, exchange funds and even gold nuggets, which are found in riverbeds or are extracted directly from the ground.
Reason for Purchasing Gold
If you are stuck and unable to make a decision on what type of gold you want to buy, then the easiest way then take a break and think about why you wish to invest in gold.
Here are your options:
Decorative and Jewelry
A large number of people purchase gold for decorative purposes purely because they like the aesthetics that gold has to offer. For such people, the best decision to make would be to purchase gold either in the form of gold coins, or decorative jewelry.
An upside to purchasing gold purely for decorative purposes is that you do not have to worry about the ?investment? side of things. The only factor you will have to consider is your budget, which will directly determine how many gold coins or how much gold jewelry you can purchase.
Gold coins come in all shapes and sizes. The minting of every good coin gives it a unique style of its own.
Infact, these designs are so unique that people often opt for collecting and displaying these gold coins as a hobby. If you are wanting to do the same, then the best option for you is to purchase proof coins.
It may take months or even years to have a decent gold coin collection, but proof coins are the most decorative and often the best for collecting purposes.
Casual and Storing
If you have enough money, and want to spend it on gold purely for the sake of it, then getting your hands on gold bullions in the form of bars is the best way to go.
Things become a little more complicated for those who want to purchase gold for the purpose of investment.
Smaller bars or coins are not the best to invest in as their price sums up to be higher than their actual value depending on the state of the market.
On the other hand, a kilo or ounce of gold is far more valuable in the long run as their spot value is higher than what you will have to pay to purchase them. In this way, your investment will not be at loss.
This is the main reason behind the popularity of Exchange Traded Funds (ETFs). Not only do you pay a far lesser amount, but you also receive a certificate indicating the amount of gold you hold in the vault.
However, even EFTs have their downside including taxes you will have to pay on your gains.
Hopefully, this article was of some help in pushing you to make a clearer and better decision.