Most
people are investing in gold bullion today. Gold
bullion prices are seeing a steep rise as investors are flocking to the
commodities market of precious metals. This has been attributed to the current
scenario of stock market crash and rising inflation. Double recession has hit
the economy immensely, and investing in gold bullion is believed to be a hedge
against inflation.
In
general, small gold bullion bars are made from pure gold. The gold used is
generally 99.5 % fine. According to estimates, there are nearly 50 accredited
manufacturers of gold bullion bars all over the world. Gold bullion bars are available
in different sizes and weights. Some gold bullion may weigh just one gram. On
the other hand, large gold bullion bars can weigh up to 400 troy ounces. Small
bars usually weigh less than 1 kg.
Gold is a precious metal and it is usually measured in troy ounces. In
general, most people prefer buying gold bullion bars of smaller size as they
are easier to handle and cheaper. Gold bullion bars are available at premium
which is little above the spot price of gold. Higher the weight of gold bullion
bars, smaller will be the associated premium. Thus, although smaller gold
bullion bars are cheaper, the premium price of these bars is comparatively much
higher.
Gold bullion investment is quite recommended as it is the safest form of
investment. In times of recession and political chaos, all other capital assets
lose their value, excluding gold bullion. Gold is the only physical asset whose
value increases in times of inflation, recession, and currency devaluation.
Buying gold bullion bars implies that you possess real physical assets of
gold. These are considered as assets with high liquidity. Most gold investors
will agree with the fact that people need to have a diversified investment
portfolio. Among the different available options, gold bullion investment is
the safest option.
Although you may have an investment portfolio of stocks, shares, and mutual
funds, investing in gold bullion will surely help you in diversifying your
portfolio. Investment in gold bullion serves as a hedge in times of market
volatility. So, we recommend that your investment portfolio should constitute
up to 10 % of gold investment. Note that, you can invest in gold bullion
throughout the day as the international gold trading is operational throughout
the day. In general, most people store large gold bullion bars in the vaults of
banks for security reasons.
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