Choices In Gold Investment

By : NGDlover


Currently, there are at least three types of commonly traded gold. Each type has its own advantages and disadvantages. But in terms of investment, we would select the type of gold that gives the greatest benefit.

1. Gold jewelry Types of gold jewelry is the most popular and commonly sold in the community. The gold, in the form of jewelries, can be worn everyday as a beauty accessory. However, for the investment purpose, this gold jewelries is not recommended to be purchased. This is because when we buy jewelry, there are additional components that we must pay, that is, the cost of making their own gold jewelry whose value can be quite large. Meanwhile, if the jewelry was sold again, just judging from the gold weight alone.

2. Gold coin In contrast to gold jewelry, gold coin are purposely made to be traded as gold deposit. Gold coin are often used as collectibles. frequently, the value for rare coins can be very expensive, far exceeding the value of gold contained in the coin itself. There are many gold coins that circulated in the world.

Although gold coin type is good to serve as an investment tool, but still there are two things that make them less competitive. First, on some countries, its sales still subject to Value Added Tax. Second, the printing costs for a gold coin set for 3-5% of the value of gold itself. Thus, the purchase price of the gold coin is still more expensive when compared with the gold price itself.

3. Gold bullion Do not imagine the bullion bars of gold bricks for all made of gold as we often see in Hollywood movies. The weight of gold bars range from 1 gram to 1 kg. Usually this gold is pure gold content of 24 carats. For investment purposes, you should choose 24 karat gold purity level of 99.99%.

Purchase of gold bars are usually not subjec to taxable by the government, because this kind of gold is regarded as a kind of raw material for the jewelry industry and so on. Therefore, for the same weight, the price of gold bullion always cheaper than gold coin.

Thus, gold bullion gold is a type most suitable for use as an investment instrument, because we do not need to spend additional costs to pay tax or the cost of design / manufacturing.

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