Investing in gold bullion and the price of gold

 Gold is one of the most popular commodities in the world to trade and invest in. It is bought and sold as a safety net against political and economic influencers, including social crises and the collapse of the regime. Compared to currency, the value of gold bars is quite stable with relatively minor fluctuations. There are several factors that can influence the gold price and supply and demand play an important role.

 Annual production plays a small role in how the price of gold bars changes. This is because the amount of gold stored is high compared to the amount of new gold mined each year. The World Gold Council has estimated that the total amount of gold mined annually in recent years has been 2,500 tons, with 2,000 of that going into the production of jewelry and dental / industrial products. That leaves 500 tons for retail investors and commercial funds. It has been estimated that there is demand for another 1000 tonnes of gold bullion for investment purposes.

 The success of investing in gold bullion is highly dependent on the world's major central banks and the International Monetary Fund, as they play a significant role in price. of gold. In 2004 central banks and other official organizations held 19% of all ground gold as official reserves, and are restricted to the amount of gold they can sell Washington Gold Agreement (WAG). WAG member states include the United States, Europe, Japan, Australia, the Bank for International Settlements, and the International Monetary Fund. They are prohibited from selling more than 400 tons of gold each year, limiting the amount of gold available to independent investors.

 China and Russia, which are not members of WAG, have shown interest in increasing their gold reserves, which has added another competitor to the gold bullion investment market.

 What really influences the price of gold in the market can be separated into three main factors; bank failures, low or negative real interest rates and social / political crisis.

 When banks fail in the eyes of the public, there can be bank runs across the country, in which citizens quickly remove all their savings from the bank. When citizens take gold from banks, this can lead to the price of gold rising, as people worry that the value of paper money is worth nothing

 Demand for gold and other investment commodities increases when investment returns in the form of stocks, shares, and real estate are not worth the risk.

 There are several examples from history when the price of gold has skyrocketed in times of national crisis. The fear that currency will become useless or property will be seized leads to high demands for gold, because people always see sell gold as a way to buy food or escape.

 So now you have an idea of ​​how the price of gold is influenced, and that in times of bad economic fortune, gold often increases in value. So we've seen gold rise to over $ 1000 per ounce during the worst recession in three decades.

 

6 great reasons to own gold

 Gold is everywhere on the planet, but not in significant concentrations. It is difficult to understand the attractiveness and superiority of gold, but gold is respected around the world for its value. Because of the respect it demands, here are six great reasons why investors should own gold.

 Gold maintains its value

 Gold has a history of holding its value. The price of gold is often volatile in the short term, but it always maintains its value in the long term. For this reason, it serves as a solid hedge against inflation and currency erosion.

Supply restrictions

 Gold is extremely rare. According to geological data, essentially all gold is found only in low concentrations in rocks. And, a new gold mine can take a decade's worth of rewards to bring in new supplies of ore, with depletion starting as soon as the first load is pulled out.

 From 1990 to 2008, a large amount of the investment gold supply resulted from gold bullion sales from the vaults of central banks around the world. However, governments and central banks are now net buyers of gold, which means that they are buying and accumulating more gold bullion than they are selling.

 Gold does not default on promise or obligation

 All governments issue fiduciary treaties on paper (dollars, euros, pounds, yen, etc.). Fiduciary treaties have no real value and are backed by government decrees that promise to meet the established value. Throughout history, governments have printed too much currency, as the US has done at high speed since 2008.

 Historically, governments have also created inflation and devalued currency purchasing power as a measure to increase trade and exports. This also facilitates debt financing and social programs, such as Social Security. The problem is that retirees receive the promised checks from Social Security with no guarantee of the amount of goods and services the checks will buy.

 Deflation

 Deep-seated deflation in one country causes prices to decline, business activity to slow, and a central government burdened with massive debt. The money supply and credit are greatly reduced and overall spending slows down a bit.

 Unemployment and economic depression become the norm. During these times, the relative purchasing power of gold soars, while other prices drop sharply. In fact, people often subsist on a street-level barter system.

 Geopolitical uncertainty

 Gold retains its value not only in times of financial uncertainty, but also in times of geopolitical uncertainty. It is often called the "product of the crisis." When a country's government is in crisis, the reserve currency collapses and it can no longer finance its deficit.

 However, the market returns to natural monetization as the means for life to continue at the grassroots level. At this point, no other major currency in the world offers any refugees, but gold becomes a universal currency.

 As government balance sheets weaken, global banking systems deteriorate, and deflation sets in, gold in a portfolio makes sense.

 Portfolio diversification

 As emerging markets have grown, the demand for gold has increased. In these countries, gold is often intertwined with culture, and new money is available to accumulate bullion. India and China are two nations that are large consumers of gold.

 Many Americans are beginning to see commodities, especially gold, as an investment class to allocate money. A characteristic of a diversified portfolio is one that has investments that are not closely related to each other.

 As bonds have a negative correlation with stocks and rising interest rates, gold also has a negative correlation with stocks and rising rates.

 Gold tends to prove its own value as money. Gold is an "insurance policy" whose value to an investor is the universal monetary value.

 The bottom line

 Gold is an important part of a diversified investment portfolio because its price increases in response to events that cause the value of paper investments, such as stocks and bonds, to decline. The investment demand for sell gold has increased considerably, but new supplies from the mine will not increase in the near future, and new supplies are more likely to decline.

 Gold has historically endured as a safe and indestructible haven from the wealth of decline. Long-term gold provides diversification to a well-balanced investment portfolio.

 

Truths and lies about the value of gold in relation to currencies

 No one can doubt the value of gold  today as a conservator of wealth and heritage.

 The numbers don't lie, the price of gold has increased more than 300% in the last 10 years. 

Some critics of the gold market allude to the volatility of the market and to the fact that to obtain capital gains through the purchase and sale of gold it is necessary to wait for the price of gold to be conducive to selling.

Even admitting that the gold market undergoes readjustments and that the investor has to find the right moment to sell, there is no safer investment since neither bonds, nor stocks, nor real estate, nor pension plans, etc. can bear the upward trend of the gold market, the value of gold always ends up increasing, this has always been the case

Another impediment that some investors and entrepreneurs often put to enter this market is that the value of gold bullion is too high for people with normal economic resources to enter it.

This argument is also dismantled thanks to Global Intergold's online gold store , where it is possible to buy gold through small-sized bars at very affordable prices.

Additionally, Global Intergold's online gold store pays entrepreneurs who participate in its Goldset marketing incentive program with physical gold bullion payments for promoting the company's business.

The true wealth is in your time and your freedom not in the value of gold

If you decide to participate in the gold business, the value of gold is the means, the vehicle to obtain true wealth, that wealth translates into two elements, your time and your freedom, you can buy X euros or dollars of any good, but you cannot buy 1 euro of freedom.

This concept of freedom in the economic field has been greatly perverted as a result of the idea that economic entities have "sold" us that if you want to have wealth, you have to save in foreign currency.

What these high authorities do not tell you is that the natural tendency of currencies is to progressively lose their value.

All the paper money, all the currencies that have existed began with a zero value, the price that is given to the currency is a convention of the State, that value is illusory and unstable, that is why the people who are saving all their assets in paper money are not betting on insurance.

There are financial assets such as real estate or stocks that can experience significant increases, but during economic downturns they go down as easily as they did.

However, the upward trend in the value of this metal , (although the price of gold fluctuates), makes it the only asset that can guarantee the value of an asset.

The value of gold is not affected by economic cycles because it is an independent market that is only governed by supply and demand, States do not intervene to provide its value as in the case of currencies, the price of gold today is the same in any country in the world.

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The value of gold in Colombia, the value of gold in Venezuela, the value of gold per gram or the value of gold in dollars does not vary depending on the country you are in, the daily price of gold is the same throughout the world .

Start to be aware of the importance of the value of gold today

We all have a set of acquired beliefs about what we can and cannot do withoutThe true wealth is in your time and your freedom not in the value of gold However, it is important to be critical and check if everything they tell us or if everything we have learned corresponds to reality.

We have learned that the ideal is to have a lot of bills in the bank, when in reality that money that you cost so much to save, if you have been able to do it, will be worth less in the future.

 They tell us, for example, that the best way to guarantee the future is to create a pension plan when in reality very few are profitable.

 Many times the reality is in front of us, do not believe what I tell you, investigate, I refer to the data again, the value of gold has increased more than 300% in the last 10 years, furthermore that upward trend is not something punctual but something characteristic of the price of gold.

 Do you know of any asset that has experienced such a rise and that has a sustainable upward trend over time? Not me, the data is there, anyone can check the historical value of gold.

 Gold has been a symbol of wealth since ancient times, however they have tried to convince us that real money is coins and bills, when gold is the only real and safe money.

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The strength of the acquired beliefs can be very strong, although the truth seems obvious, if you show a child some euro or dollar bills and a gold object and ask him what is more valuable, the child will instinctively respond that gold, because it is solid, because it is real, this shows that our beliefs are conditioned by a series of paradigms.

 Misconceptions about the value of gold that 'brings down' the GIG online store

 The Global Intergold online gold store, demolishes many of the myths and false beliefs that exist about the value of gold as a generator of wealth for a wide spectrum of users, I show you below:

 ·         Gold is business for the rich: It is not true, in this company anyone can buy gold thanks to the retail sale and earn gold bars for doing promotional work.

·         The small buyer cannot make money: This belief is demolished with a stroke of the pen, thanks to the fact that the company provides clients the possibility of participating in an incentive program in which they pay you with 24-karat gold bars, for bringing in clients and promote the business model.

·         Investing in gold is a long-term business: It is true in the case of the traditional gold business, in which to obtain a capital gain it was bought, waited for the price to rise and sold, in the Goldset incentive program, They pay you with gold bars for your promotional work, the speed with which you collect your incentives depends on your work, the price of gold is no longer decisive to win.

·         I cannot win the price of gold has dropped: It is true the price of gold has stabilized in the last 4 years, however for GIG clients participating in the Goldset incentive marketing program this has no relevance, as They only make 1 initial purchase and from there they receive gold bullion prizes for their work that they can resell to the company for cash, depending on the value of the gold on the day they decide to sell.

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Why invest in gold? Advantages and disadvantages

 Gold has fascinated humans practically since it exists. Since the most remote past it has been considered a precious metal, highly valued in the manufacture of jewelry and ornaments . On the other hand, it has served as a bargaining chip in itself and also as a raw material to mint and give value to different currencies  throughout history.

Today we will see the main advantages and disadvantages of investing in gold today, knowing a little better the position of this raw material in an economic context.

Why invest in gold?

Gold is considered a safe haven value . This means that its price is highly stable, so in times of crisis it maintains most of its value and can even increase it. This is mainly due to two reasons: on the one hand, it is due to the consideration of gold as a precious metal ; on the other, gold is a rare commodity  and its existence on the planet is finite.

These characteristics have made gold one of the most used goods to accumulate wealth, in order to have a security fund to face crisis or economic emergency situations. So much so, that until 1970 the main states of the world backed their monetary systems with the gold reserves stored in their central banks. As of 1971, gold was replaced for this purpose by the US dollar, as well as other safe-haven currencies.

To know if an investment in gold can be attractive for us, nothing better than to know the main advantages and disadvantages of this asset in order to form a well-founded valuation.

Advantages of investing in gold

It is a refuge value

As we have already mentioned, gold has always been considered a safe haven. This means that there will always be a certain degree of demand for gold, which guarantees a corresponding stability in its price. Also, if a state with some economic capacity decides to buy gold to increase its reserves, this can cause its price to rise globally. Not surprisingly, in 2017 gold rose 12%.

It is a finite good

The gold that can be extracted from the planet is limited. It can no longer be created artificially, as happens with the issuance of currency by states in times of crisis. This means that investment in gold is, to some extent, protected against inflation .

Increasing demand

The jewelry industry and the technology industry demand 70% of the gold bullion production worldwide. These are two sectors that are in good health and have sustained growth prospects in the coming years. Although there may be regions of the world where there are local crises, there will always be someone interested in investing in jewelry and technological development elsewhere on the globe, so demand from these sectors is expected to continue.

Gold is less conditioned by political instability than other types of goods and investment products

Gold is gold anywhere in the world, so it does not depend directly on the designs of a specific economic power or a company, as it could happen in the case of investment in currencies or other stock products.

Gold is a universal good

This implies that its liquidity  is maximum: there will always be someone willing to buy. Although this does not mean that we are going to ensure a profitability at the time of sale.

It allows to diversify the investment

Being a security that offers a certain level of investment security, it can be a good complement to balance options that present more risk in our portfolio.

The sale of gold is exempt from paying VAT

As long as it is sell gold bullion with a purity of more than 99.5% or coins with a purity of more than 80%. Now, if we obtain an increase in equity derived from a gold sale, we must reflect it in our income tax return.

Disadvantages of investing in gold

Gold is a valued good

Gold is listed on the commodity market as a precious metal. This means that its price can go up, but it also means that it can go down. Although the price of gold tends to stay high, if we buy at one price and sell at a lower price, we will lose money. As in all investments in stock markets, investing in gold involves a risk, so the profitability of the operation is not assured .

Purchase or investment commissions

Whether we buy physical gold or if we decide to invest in gold through a financial product, we will have to face the profit margins with which advisors and suppliers work.

Pegged to the dollar

Gold is priced in dollars. This means that there is a correlation between the position of the dollar and that of gold in the markets: if the dollar goes down, gold goes up. The problem is that the opposite can also happen, so that the US economy directly influences the price of gold worldwide.

Profit margin on jewelry and coins

If we decide to buy physical gold as an investment, we can do so in the form of certified bullion, certified coins, or jewelry. The best option is the first of the three, since if we buy jewels or coins, the value of the gold used in the production will be added to the price of the manufacture and design of the jewel; or the numismatic value of the coin. In this way, we will get less gold for the same money than if we bought bullion directly.

The price of gold rises when interest rates are low

When the interest rates offered by some savings and investment products are low, investors tend to look to gold as a safe haven. However, this movement influences the price of gold, so we will buy it higher.

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Intermediary companies

The mining companies  specialized in gold mining can stop your activity to manipulate the supply of the metal , in order to increase their price. In the same way, if they decide to buy and invest in gold, they will increase production to buy it down.

Storage problem

The fact that gold concentrates a lot of value in a small space can also be a problem from a security point of view. In this case, the most sensible thing would be to keep our gold in a bank safe or at least take out insurance. This can cause us a series of maintenance costs for the investment.

 

 

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Should you buy gold?

 

Gold is a yellow precious metal very popular with investors.

Rare, malleable, unalterable, gold has been used for decades as a safe haven.

Existing in different forms (rings, earrings, necklaces, ingots , small ingots , investment gold coins, modern coins, etc.), gold is THE benchmark for precious metals.

Did you already know all of this, but need more information because you would like to invest in gold very soon?

In this article, you will learn...

·         The reasons to buy gold ,

·         The tips and tricks to know before starting to buy gold ,

·         How to buy gold anonymously in United Kingdom,

·         How to protect your investment.

Why buy gold?

The experts of the offer you 5 essential reasons to buy gold:

1: Physical gold is the metal par excellence of goldsmiths.

2: Gold, an attractive capital gain in the medium to long term, retains its value in times of economic crisis or financial instability.

3: Gold allows you to protect your assets and preserve your savings because it is a safe haven, and a safe and low-risk investment.

4: Gold is a precious metal accessible to all budgets. The first investment levels are around 100 Euros!

5: Taxation in United Kingdom is advantageous.

Are you convinced? Would you like to buy physical gold now ?

Know that it is important to think carefully and to know all the information well before embarking on an investment and proceeding to the purchase of gold.

What should you know before buy gold bullion or bullion gold coins?

Before investing in gold, you must know that the value of gold bars or coins is determined by the price of gold . This one is in perpetual motion. It is therefore important to take an interest in it before making any investment.

By browsing our website you will be able to see the live gold price chart . This is regularly updated, in the same way as the prices of the products we offer for sale.

If you have any questions about the price of gold in euros , we invite you to contact our experts recognized in the world of gold and silver trading .

They will respond to all your requests with great precision.

The gold price in live time will soon have no secrets for you!

The purchase of gold in any anonymity is possible?

At the Thegoldbullion, we guarantee total anonymity.

You can come, with complete peace of mind and discretion, to our 100% secure establishment to carry out your transactions.

Professional secrecy is a golden rule!

It's done, you have invested in gold! However, you do not know how to protect it from possible burglaries ...

How to protect your investment?

The Thegoldbullion, located in the heart of the United Kingdom capital, offers its security service.

No more burglary worries, the Thegoldbullion keeps your gold in an insured and secure safe.

You have questions? Would you like to meet one of our experts to learn more about the gold market?

Our experts, specialized in the purchase and sale of precious metals in all forms (ingots, gold and silver coins, jewelry) and currency exchange,.

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They will also present you with a wide choice of quality products at very attractive prices.

 

 

 

 

Gold investment risk - lower than many other investments

 

The precious metal gold is more popular than ever these days. A crisis in the stock market? Just invest in gold! Interest rates too low in the area of ​​fixed and overnight accounts? No problem, with gold bars or Munich you are currently earning significantly more money! At least that's how the presentations read, especially on the portals of many online retailers who concentrate on trading in precious metals. Investors have known that despite all the opportunities, there is definitely a risk associated with gold investments. Because there is not only the way up. Interim price adjustments can also reduce gold investors' profits. Or they lose some money every now and then because the demand for the precious metal drops for a short time.

Invest in time and cash in correctly?

Such situations are part of an investor's life. Interested parties will recognize that, although they need to know the risk of gold investments, they invest less riskily than most other asset classes. No investment is completely risk-free, and that applies not only to buy gold in its various forms, but also to the same extent for real estate, which analysts have repeatedly touted as a safe haven and a worthwhile way of retirement provision. The bottom line is that gold investments are characterized by a comparatively low risk. Fluctuations on the gold market are similar to those that investors are already familiar with in the stock market. The course line has been rising more or less steeply for about a decade.

Historical price developments also show losses

A look at the 1990s, on the other hand, shows that there is no guarantee of profit. Back then, some investors suffered painful losses. In any case, experts advise not to invest all of the savings in gold. As part of its own portfolio, the precious metal is indispensable for many investors - if only to protect against inflation and to hedge against any economic crises. A risk of gold investments is the influence of the economic situation. Only a high level of demand from industry and other branches allows the course to remain at a high level. In bad economic phases with low demand, the price will also decrease.

Compare fees before you start trading

The risk of gold investments in certificates on the precious metal is much higher. Since there is no protection from physical gold in this case, a high speculation risk must be attested. The same applies to the shares of gold mine operators. In general, however, investment professionals assign gold a lower risk than the majority of investment types. Investors generally need to know the buyers' and sales fees of the dealers and the storage costs, since the reserves of a certain size should rather be kept outside your own four walls.

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Saving gold: minimize costs with online providers

 

When it comes to building wealth by buying the precious metal gold, many investors first think of buying physical gold once. Indeed, this is a worthwhile approach when savers are timing the right moment to buy. The fact that they can also save gold by gradually increasing their gold reserves is often forgotten. Gold savings plans and gold-based savings books allow savers to gradually invest money in gold according to their financial means. Most providers can also do this in the form of a regular investment (for example, per month or quarter). In this case, there are regular debits from the reference account, the sums are invested in gold at the current daily rate.

Online depot management reduces running costs

If service providers do not have their own branches, as is usually the case with normal branch banks, this has a positive effect in that companies have to bear lower infrastructure costs. In many cases, these savings will at least partially benefit the customer as a lower deposit fee. Another approach to saving gold is shown in the interest. In many cases, the usual annual interest rates for these savings offers, taking into account the gold price level, are above the level within the classic banking industry. Saving gold is not only worthwhile because customers minimize their costs through online providers. This is one of the reasons why the gold savings plan proves to be an advantage for small investors who could not afford gold investments or could only afford them to a very limited extent.

Saving gold: long-term planning with an adjustment option?

Compared to the normal purchase of gold bars, which can be associated with relatively high fees, especially when they are light, gold saving offers consumers massive savings potential. Investors should know the minimum requirements of potential providers from the online segment. Many operators have terms between 12 and 240 months on the WWW. The minimum monthly deposit is usually in the range of 25 to 50 dollar, which makes saving gold bars interesting for consumers on a budget. Corrections from previous investment practice should be possible at any time.

How well are my gold deposits protected?

Consumers who want to minimize the cost of saving gold through online providers should generally check in which country the company is based. Although the legislator for investment products from the gold sector in the strict sense does not provide for government regulation, the subject of deposit insurance is nevertheless of great importance in a provider comparison. If the gold savings plan fails due to misconduct by the online provider, the savings should be fully secured. Companies from United Kingdom such as gold from Munich-based Trade GmbH are characterized by transparent terms and comprehensive investor protection.

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