A Comprehensive Guide to All Forms of Gold Trading

Investors will always try to diversify their investments in order to reduce their risk. Specifically seek the investments of safe haven that have a better when the rest of the market drops. Of these safe investments – treasury bills, Swiss francs, and others, investors think gold is the best. For this reason, you will see that investors often include gold in their portfolios. Now with COVID19, gold is the order of the day and has a lot of attention from investors

Gold as Merchandise

Like any other asset, the price of gold is determined by demand and supply. Most of the world’s gold comes from hard rock mining, but it can also be produced by alluvial mining methods or as a by-product of copper mining. China, Australia, and Russia are the largest gold producers in the world. Regarding demand, the main use of gold is jewelry production. It is also used in aerospace, medicine, dentistry, and electronics. Governments and central banks are gold buyers. At present, the United States is the largest holder of gold, while Germany is second and the International Monetary Fund ( IMF) third. Private investors like you are also interested in buying gold and treat the purchase of gold as an investment. For this reason we have thought to make this guide.

Why are private investors investing in gold? Instead of keeping money in cash, investors can buy gold when they expect a recession, geopolitical uncertainty, inflation, or currency depreciation. Sometimes they keep it as insurance against the market crash. You can’t always predict unwanted events, so it makes sense to keep assets that do well as protection against a market crash.

Over the past 40 years, gold has recorded significant gains from 1979 to 1980 and from 2000 to 2011. It fought during the 1990s and after 2011. Fears of inflation and recession led to gold peaking in 1980, while several events caused gold to be traded higher after 1999. The 9/11 attacks and the war in Iraq kept the price high until 2003. The insurance purchase was behind the gold surge in the 2007 recession. It continued its upward trend as the market traded downwards, with economic uncertainty as to the main issue.

Problems in Europe, the weakening of the US dollar, and concerns about economic recovery kept the price of gold high until 2011. Do not think that gold behaves itself or always well. It has had difficulties during the 1990s due to GDP growth in the US, interest rate increases in 1995, and a strict fiscal policy. After 2011, the strength of the U.S. dollar and the U.S. economy damaged gold. The stock market broke a downward trend and became an upward trend and investors were not as interested in owning gold as insurance. So, now you know a little more about gold and why people can invest in it, let’s see how you can invest in gold

Investing in Physical Gold

If you want to expose yourself to gold, one way is to buy gold jewelry, gold coins, or gold bullion. Gold bullion is traded very close to the price of gold and may refer to gold bars or gold bullion coins.

Gold bars have no artistic value, which differentiates them from jewellery or coin. To buy gold bullion you must pay a premium on the price of gold that can be in a range of 3 to 10 percent. You will also need to use a vault or bank deposit box to store it. You can buy physical gold online, at a jewelry store, or at another gold store.

Before buying, make sure that the price is right, the gold is real and proven, and that you’re not paying a higher premium for collector coins if you’re just looking for pure gold. Be willing to move away if these rules are not possible to comply with, in particular, if it is an online store or a shop window of dubious repute.

A trusted online store with a 4.9 rating in the google store is Silver Gold Bull, which not only allows you to buy gold, but will also store it, and buy it back if you decide to sell it for a profit. When you buy gold, you need to store it properly. It is possible to store it at home, but security problems could arise in this case. If you prefer to do so buy and keep it at home, make sure you have a proper safe, and take steps to protect your property.