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Basics: Invest in Gold

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As I told you yesterday wrote in the Weekly Outlook already, I assume that the environment for gold remains excellent and continue as before - especially the central banks is thanks. So what has to better than once again to talk about the fundamentals of investing in gold. More specifically about the fundamentals of investing in physical gold, the long term always preferable form. So let's get started ... you should all know:

Bullion:

Gold bars are available in various weights, from gram scale up to kilogram range. When you buy a bar of gold, you pay a certain fee, by melting and separating costs etc. comes about. Bullion in smaller units (for example, 1 gram) are typically dominated or punched. This results in a higher premium to the pure gold value. Bars in larger units (for example, 1 kg), however, are cast. Here, the premium to the pure gold value is lower because the casting is cheaper.

When buying you should make sure that the bars of a relevant and well-known manufacturers are. In Germany are the most famous: Degussa / Umicore (the Belgian Umicore took over in 2003, the precious metals division of Degussa By 2005, the bullion with the Degussa logo were produced since 2006, but marketed under the Umicore logo..) And the Swiss manufacturer Heraeus / Argor.

In general, the motifs in gold bullion is not particularly versatile. This is what matters but also not. It is important that are stamped next to the name of the manufacturer, the weight and fineness. Gold bars weighing about 250 grams wear additionally usually a serial number. The manufacturer Heraeus also produces gold bars shine differently depending on the light and also wear a safety element, the so-called kinegram, on the back. These bars are also called Kinebar gold bars.



Fineness:
Gold bullion for investment consist of fine gold and thus have a gold fineness of 999.9 / 1000. However, there are bars with a lower purity. Bars at 400 ounces (ie a weight of 12.44 kg) and a gold fineness of 995/1000, for example, are referred to as standard bars or good delivery bars.
Gold Coins:

Gold coins also serve the investment. World give a number of states called bullion coins (ie bullion coins) from which, however, can be interesting for the collector area, which increases the price of the coins then. Usually it comes in here on the vintages. Therefore recommended the purchase of current vintages of gold coins for the purpose of investment, since they are usually much cheaper than older vintages.

The rising price of gold has done much to cheapen the gold coins compared to the corresponding gold bullion. Meanwhile, the amount increases imposed for a gold coin, as compared to the corresponding unit weight of a bar must be paid, only between 1-3%. Nevertheless, gold coins will always have a higher collective character, as bullion and are also likely to justify later in the resale value of a certain collector's premium.

The bullion coins have, depending on the country of issue, of course, very different motives. It is important, however, to ensure that it is in fact also true bullion coins. That is, the coins must have been issued by the state.


They carry accordingly a nominal value (the only exceptions are the Krugerrand and the Libertad coin, which have no par value, but the official currency are), the weight designation and the words of fineness. Everything else are badges that can cause problems when selling because they are not, for example, adopted by banks. And even after verification, a gold dealer will usually pay only a discount on the price of gold.

Fineness and weight:

Bullion coins are available in different weight units (from 1/10 ounce to several ounces of gold) and with varying degrees of fineness. As a rule, the bullion gold coins to a fineness of 999.9 / 1000. Some bullion coins such as the Gold Eagle, have opposed a fineness of 916.67 / 1000 on (22 carat). But its mass is higher. Actually equivalent to 1 ounce of gold weighing 31.1 grams, the 1 ounce Gold Eagle, however, has a weight of 33.93 grams - this ensures that even here actually 1 ounce (or 31.1 grams) contained gold .

The reason for this procedure at the Gold Eagle coins as is to make the coins more scratch resistant and durable. Gold is a soft metal and is subject to wear and tear if not handled. By the addition of e.g. Copper as the Gold Eagle, the surface of the coins is scratch resistant. Besides the coins get a slightly reddish color.

Where to buy?

When buying gold bars or coins, you should attach great importance to the selection of a reputable seller. The easiest way to buy physical gold is to buy them at banks. While this is the safest alternative, but not always the cheapest. At local stores, Microsoft strongly recommends to make a price comparison. When buying over the Internet, you should urgently review the firm offering it, as far as possible, for example through advice and reviews. Recommended are known and large online retailers.

Also note: the purchase of gold investment coins or bullion is exempt from VAT in Germany. For this, the fineness be at least 900/1000. When it comes to coins, then the gold coin legal tender in the country of origin and after the year 1800 have been coined. The selling price of physical gold may also exceed the current gold price by more than 80%, which would be the case with collector coins.