Thinking of Buying Physical Gold for Investment Purposes?: Consider These 5 Things First

buying physical gold

Did you know that a single ounce of gold is rarer than a 5-carat diamond?

Along with its unique beauty, the rarity of gold has made it an amazing investment for anyone looking for a steady and secure place to put their money.

If you’re thinking about buying physical gold bars, you need to consider the below 5 things first. Let’s dive in!

1. The Relationship Between Gold and the US Dollar

What happens when the American economy is growing strong?

The value of the dollar continues to rise and fall according to the success of the US economy.

Around the world, the US dollar is viewed as the most stable and reliable currency. When the dollar is strong, the more people buy the dollar.

However, when the dollar is weaker, people start purchasing gold instead. As a result, when the US dollar is failing, the price of gold increases.

That’s why many of the central banks of the biggest economies, such as the United States, China, and Germany, have reserves of gold.

2. A Safe Investment

We all know about how the financial markets fluctuate by the hour. However, one of the most reliable kinds of investment is gold.

In troubled times, many of the wisest investors put their money into gold for safety. Even though gold has no functional value, by investing some of your money in gold you protect yourself when the economy slumps.

3. Levels of Purity

Not all gold is the same. There are many different levels of purity that you can purchase.

You have probably already heard of 24K gold. That means it’s 100 percent gold. It’s the purest form of gold around.

However, you can also purchase 22K gold. Therefore, it’s gold that’s made up 22 parts gold and 2 parts another kind of metal.

4. The Home of Gold

The home of gold is the capital of the United Kingdom, London.

After taking over the reigns of the London Gold Market Fixing Company in 2015, the ICE Benchmark Administration (IBA) has become the most important place in gold trading in the world.

Two times per day, the price of gold is set by the IBA in the morning and afternoon.

5. The Production of Gold

It’s easy to forget that gold mining remains a huge industry even today. People have been mining for gold for thousands of years.

That’s why the gold that’s easy to find has already been gathered from the earth. Nowadays, you have to dig a little deeper to produce gold. There are many countries that still have thriving gold production industries.

Among the big players of Australia, the United State, and Russia, it is China that has become the world’s largest producer of gold. They produce nearly 500 tonnes of gold mined every year.

To find out more about the industry, check out ABC Refinery Liquidation.

The Future of Buying Physical Gold

Did you know that gold production has fallen in recent years?

The decline in the production of gold only makes buying physical gold an even better investment.

The less gold in the market, the higher the value of the existing gold. This suggests that the price of gold is only going to continue to increase over the next years.

Do you want to learn more about investments? Check out our blog post on investing in commercial real estate today!

the barcode

Mundane Mysteries: Who Invented the Barcode and How Does It Work?

medical bills

Understanding Your Medical Bills: What Do Those Codes Mean?