The Different Forms Of Physical Gold: We Have The Gold

We Have The Gold

The Different Forms Of Physical Gold

 

Gold is one of the precious metals whose value has stood the test of time. Its uses as a currency and in making ornaments and jewellery stretches as far back in history as humanity started to mine.

gold

In many regards, there is no substitute to what gold represents – unmistakable majesty.

However, in this modern time we live, in which trade is conducted with paper currency under the Fiat currency system, gold has garnered a new use. Beyond making jewellery and ornaments, gold is increasingly being used as a hedge against inflation.

Paper currency tends to lose value over time. Therefore, the purchasing power of a dollar diminishes due to inflation.

Gold, on the other hand, is like an insurance in an unstable monetary system. It withstands the effects of inflation. With this in mind, many people are turning to gold to maintain their acquired wealth.

If you plan to do the same, the first thing you need to do is to understand the various forms of physical gold in the market.

We Have The Gold

gold coin

Herein are the various forms of physical gold that you can invest in.

#1. Gold Jewellery – This is the most common form of gold that the majority of us will interact with. Just as gold has been used throughout time to make decorative ornaments and jewellery, it is still being used by jewellers to make jewellery.

In most cases, this tends to be the most expensive form of physical gold, because the acquisition price of gold jewellery is very high. Furthermore, resale price of gold tends to fall. Therefore, unless a particular piece of jewellery is a collector’s item, the value of gold jewellery will fall.

 

#2. Gold Coins – Gold coins are some of the best investment that people have access to. Gold coins are minted by governments as well as reputable companies for use as an investment product or as a collector’s item. Reputable gold coins include the Canadian Gold Maple Leafs, the South African Krugerrands, the U.S. Gold Eagles, the English Britannia, and the U.S. Gold Buffaloes.

In it pure form, gold is very soft and making coins or any other form is difficult. In this regard, the gold coins sold are usually alloys with varying degrees of purity.

For instance, you may purchase gold coins that are .999 fine (24 karats), .958 fine (23 karats), .917 fine (22 karats), all the way down to .417 fine (10 karats)

gold coin

#3. Gold Bullion – Gold bullion, in the form of ingots, bars, or even nuggets is the investment of choice for large scale gold investors. The value of gold bullion is determined by its mass as well as its purity.

In most cases, the bullion is labeled with the manufacturers’ name, the weight of the gold, the fineness of the gold and the gold content. This information makes gold bullion very liquid as owners can liquidate them for cash.

Additionally, there is another form of gold bullion – the vaulted gold bullion. Gold bullion is safely stored in bank vaults. Whilst purchasing vaulted gold bullion, one has to pay the storage fee. However, since there are fewer fees associated with vaulted bullion, it is the closest market value of gold.

 

MH Enterprises Australia

Disclosure: Affiliate for Amazon Affiliates

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