Gold has long been the standard means of establishing and holding wealth, but have you ever considered why and how? Here’s a brief overview of everyone’s favorite precious metal.
Since ancient times people have mined and used gold. It has always been valued because it is a hard metal, yet malleable enough to be molded into a variety of shapes. Whether used alone or alloyed with other metals, it is one of the world’s most versatile substances.
Gold was long the preferred form of money because it could be easily formed into coins of uniform shape and size. These coins could be easily carried and stored. Because most cultures valued gold, it became an acceptable unit for trading.
As we all know the world’s supply of gold is constant: there will never be more gold created than already exists. However, there is still gold in the earth that has not been mined yet. This gold is mined very slowly, partially because it is getting harder to find and partially to hold control supply and demand. By keeping gold rare, those who control the gold supply get better prices.
According to TheStreet.com, an ancient Roman gold coin that weighed 1 oz could buy a toga, sandals and a belt. That same 1 oz coin today would buy a suit, shoes, a belt and a little more, being worth about $1170.
Today there are many ways to invest in gold. Of course, you can always buy and sell gold jewelry and coins. If your grandparents left you some of these items, you can take them to a reputable jeweler or coin dealer to get some extra cash. Or you can continue to enjoy these mementos and wait until the current price of gold improves. Bear in mind that when the time comes, it may be difficult to give up a treasured relic of your family’s past. Also, you may be disappointed to find that that heirloom contained less gold than you were led to believe.
Your grandpa’s gold coins could be the start of a collection. Not only are gold coins valuable, they are fun to collect. Take care to only work through reputable coin dealer. Don’t fall for those newspaper ads promising rare, once-in-a-lifetime offers. Many of them are bogus.
Remember to store your gold coins and jewelry securely and make sure they are properly insured. Because they are so easily carried, coins and jewelry are frequently stolen. Protect your investment, even if you don’t think your items are particularly valuable.
Another, less emotional means of investing in gold is through an ETF (exchange traded fund). Gold ETFs are bought and sold on the stock market. Similarly, you could invest in mining companies that seek gold and other precious metals. We also highly recommend trading gold bullion online.
No matter how you invest in gold, it pays to do your homework. As with any investment, gold prices fluctuate wildly. Read up on investing practices: You are the only one who truly has your best interests at heart. Pay attention to gold prices and market conditions. You don’t want to miss a golden opportunity to make some money.
