The methods and mediums we use have changed, but long before the California Gold Rush of 1848, gold was making its mark on society and becoming an integral part of the world’s financial system.
Gold was discovered in its most basic and natural state – in streams and in the ground of the ancient world – and gold is one of the first precious metals known to mankind.
As gold made its way into the basic economic fabric of the global economy, it found three major functions that contributed to its value.
There are four typical components that are used when it comes to assessing gold’s real value. To understand what gold is actually worth, it needs to be considered in all four contexts.
Gold differs from the rules governing other commodities like oil, crops and produce, in that it’s difficult to assess the commodity’s actual value by traditional assessment tactics.
Traditionally, the value of gold increases as the uncertainty surrounding fiat currency increases, making it an ideal investment in today’s fiscal climate.
For those looking to invest in gold there are several different methods by which to do so. The gold price is generally going to be the same across the board, though it can fluctuate slightly if cultural value, artistic appeal, purity or market speculation come into play
Within the three investment categories, gold comes in a variety of different products that can all have different value and investment benefits. Understanding each type of product is critical when deciding how to proceed with your investment.
As is true when investing in stocks and bonds, gold investments require proper education and planning as there are inherent risks when dealing with any type of investment. Even in a strong gold market the buyer needs to consider when and where to buy, when to sell and what is considered a “good” spot price.
Be aware of companies that solicit you personally to invest in gold, particularly those that predict or guarantee large profits with little or no risk. These groups should generally be avoided.
When selling your gold back to a dealer, tax implications will depend on two basic questions: What form of gold bullion are you selling? What amount?