Protect your saving by investing in gold

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Investments in gold protect savings from inflation and provide economic security. Buying gold bars is now easier than ever before as there are a huge range of online dealers than make it safe and easy to buy gold bars online in the UK. Gold is an important investment that everyone should make. It acts as an insurance policy in times of economic and currency upheaval and protects your wealth. Experts have recommended that between 25-30% of assets should be fixed as an investment in precious metals.

It is possible to invest in gold in two main forms; gold bars and gold coins. Their high value derives from their high purity and precious metal content. Although bullions have little to no artistic component like jewelry, they are priced very close to the world gold price due to their value. Gold bars are available in a huge range of sizes ranging from a few grams up to 1kg and often greater weights too. This makes it particularly easy for large and small investors alike to buy gold bullion. Investment in gold has grown significantly in the last five year in the UK. There are several reasons that drive the high demand for gold. Currently the demand for gold from investment markets is booming and high demand is driving up prices rapidly.

China and India are the world’s biggest consumers of gold and contribute to over a fifth of the total world gold market. Reports published during the first quarter showed that total gold consumption by India and China outstripped global output. Another contributing factor to the rise in gold prices is the decline in output of gold from mines. South Africa is the world’s largest contributor to annual gold output, however since 1998, output has been declining at an alarming rate; output has been declining by almost half year on year. Other mining countries have failed to increase operations to compensate to increase global mining output and as a result the shortage has cause the price of gold to climb higher.

Additionally, geo-political and economic instability do contribute toward changes in the price of gold bullion. Investing in gold is a way to protect savings from inflation. Postal Bullion’s experts recommend everyone to buy gold bullion to protect their savings. “Now more than ever is an important time to invest in gold. With the current economic and political climate, you cannot be sure of tomorrow but buying gold bars can help provide some security. We’re seeing a much greater uptake in investments from people all around the UK,” says Marcus Allsop, Postal Bullion’s Head of Marketing. Online traders provide a safe, fast and simple way to buy gold bars online in the UK and supply a range of gold bars and coins.

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China and India combined consumption exceeds world’s total mine supply

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However, experts have suggested that these figures may underestimate the total amount of gold imported by these countries because of alternative points of import that were unaccountable in an official capacity. Following the Indian elections, it has been announced that the import legislations are to be relaxed which will have the predicted effect of further increasing the Indian demand for gold. This will undoubetely lead to a further increase in the mismatch in supply and demand.

The reason for the insatiably large demand for gold in China and India seems to lie with the fact that their attitudes towards gold seems to be fundamentally different to those of other Western countries. The intrinsic attitude towards gold as the ultimate investment of the Chinese and Indians drives their huge demand for gold. They appreciate and are aware of the value of an investment that can protect them from currency debasement and financial instability.

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However, China and India are not the only major consumers of gold. Increasing demand is also being observed in the UK as confirmed by Head of Marketing at Postal Bullion, Marcus Allsop. “It has never been a better time to buy gold bullion and people of the UK have realised this as we have seen sales of gold bullions increase by almost a third. It appears demand for gold bullions is increasing now more than ever,” says Marcus Allsop. Postal Bullion have additionally seen drastic increases in the sales of silver bars. Silver bullions are the first choice of small investors, however this precious metal is gaining increasing popularity as larger investors push to buy silver bullions.

Last year it was seen that there was a slump in the price of gold as the supply of gold exceeded that of demand due to the sales of exchange-trade funds. It is evident that the increasing demand for gold and deficit in mined output will drive prices higher.

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Tips to Help Identify Fake Gold and Silver Coins

ImageAre you aware of any effective techniques for identifying counterfeit gold and silver coins? The sale of fake gold and silver coins by a counterfeiter is a major issue in the market today. Surveys and studies have shown that counterfeiters are more willing to rob amateur collectors and investors than the expert ones. They make it next to impossible even for the experts and highly experienced professionals to detect fake gold and silver coins. You need to know a few effective techniques that will help you to separate fake gold and silver from the real thing.

  1. Reliable and reputed dealer: First of all, when purchasing gold or silver, you need to know a reputed and reliable coin dealer. Getting an experienced dealer is your first line of defense in keeping yourself free from counterfeit coins. An honest dealer will go out of his way to demonstrate the authenticity of coins to anyone who genuinely intends to purchase coins.  Avoid purchasing anything from dealers who are unwilling to prove the authenticity of their coins, as they may be selling counterfeit coins.
  2. Weight and dimensions: Dimensions and weight are some of the quickest techniques to detect the lowest quality of counterfeit gold and silver bullion coins. A side-by-side comparison of identical coins will weed out the counterfeit coins in a few minutes. Sophisticated counterfeiters may have coins that are matching dimensions and weight so you need to use precision calipers and scales for dimension and weight measurements. The dimension and weight tolerances of legitimate coins are minuscule, so much so that any real deviation from either would indicate a fake coin.
  3. Fine details:  An authentic gold coin has quite a specific colour, luster, and details that expose any counterfeit coins. Plenty of counterfeit gold or silver coins are cast, not pressed, so they are lacking in the fine details that, generally, authenticate pressed coins possess. Other signs of a cast coin are the presence of misshaped edges, tool markings, uneven letter spacing, surface blemishes, lack of detail and a casted appearance. You can inspect the surface and other details of a counterfeit coin by using a good magnifying glass. All these details hold true when buying or selling silver coins too.
  4. Ring test: According to a ring test, if you tap the gold or silver coin, which you intend to purchase, with another real gold or silver coin, you will get a high pitched ring if the coin is real and a thud sound if the coin is fake. Balance the coin on the end of your index finger, when performing this test. Listen for a ring when tapping the coin with the authentic one. This test is an easy and quick way to identify a counterfeit coin.
  5. Magnetic test: Another simple method to use to weed out counterfeit gold and silver coins is a basic magnetic test. In reality, both gold and silver bullion coins are non-magnetic so even the slightest magnetic attraction in silver or gold coin indicates the presence of ferrous metal in its composition. So, a strong pocket magnet would be a good thing to take along with you when you are in the market for purchasing gold or silver coins.

There are several more tests that can help you detect a counterfeit coin, such as counterfeit coin detectors. All these above mentioned tips will definitely help you in differentiating counterfeit gold or silver coins from the real ones, thereby preventing you from being the victim of a deceptive coin dealer.

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Six facts that explain why platinum is considered as The Rich Man’s Gold

ImageThe value of platinum is greater than the value of other precious metals such as gold and silver. Platinum is considered the most precious metal since ancient times and is even well-known as the rich man’s gold. Delving deeper into the details of this metal, you will find that a greater number of people prefer to invest their finances in this valuable metal to make greater profits.

ImageDo you know why it is popular as “The Rich Man’s Gold”? There are several reasons that explain this peculiar identity of this worthy metal. One of the main reasons is its relative scarcity. Here are six facts that tell you the significance of the platinum price and the reason behind the increasing demand of this metal.

  1. If you research on the supply of this precious element annually, you will find that its annual supply is just about 130 tons which is the equivalent to only six percent (by weight) of the entire western world’s annual mine production of gold and less than one percent of mined silver. Platinum’s annual global production amounts to the total of one day’s silver production in just the USA.
  2. The production of this valuable metal, also known as “so-called white gold”, takes upto six months or more for the entire extraction process. Approximately ten tons of ore is supposed to be mined, at times almost a mile underground at temperatures greater than 120 Fahrenheit, in order to produce one pure ounce of platinum.
  3. Several researches and studies reveal that counting all the platinum mined together till date throughout the history would fill a basement with less than 25 cubic feet. This is why the platinum price is greater than any other metal.
  4. Even though its relative weight does not contribute to its value, this highly valued metal is heavier than gold. One cubic foot of this precious metal is little greater than 1,330 pounds, which is about 11 percent denser than gold.  This is why platinum bullion is more valuable than a gold sovereign. If you study more about its weight, you will find that a 6 inch cube of “The Rich Man’s Gold” weighs as much as an average man.
  5. In comparison to the amount of platinum mined, most of this metal goes into industrial applications. Statistics reveal that 50 percent or more of the annual production of this worthy metal is used up by various industrial applications, unlike gold.
  6. Unlike gold, you can find a large number of inventories of the above-ground platinum worldwide. This is why any breakdown of two major supply sources of this so-called white gold would hike the platinum price tremendously.

These are six facts that explain why platinum is regarded as “The Rich Man’s Gold”. This highly valued element is extremely scarce throughout the world, which makes its price soar high in the market attracting numerous investors to invest in it for financial gain. However, at times, the price of this precious element falls in the market. Purchasing platinum bars when its price falls and selling them when the price soars can help you obtain great financial profits and make your investment in this worthy metal worthwhile.

 

Why investment in silver coins is superior to other metals for building wealth in 2014

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Silver is a precious metal from ancient times. In olden days, it was used as currency to carry out various business transactions. It succeeds in retaining its significance even in the twenty-first century, as a greater number of people prefer to invest in this valuable metal than any other. The beginning of 2014 is marked with the fall in price of silver and increase in the number of investors in this valuable metal, as people find investing in this metal as a great technique to build their financial portfolio.

Silver is available at cheaper rates, in comparison with other metals, and it has the potential to offer outstanding returns, particularly when it is invested for a long span of time. This is why lots of people are opting to invest in this precious metal rather than other metals such as gold and platinum. You can find various forms of silver, such as silver coins, silver bars, and silver bullion, in the market enabling you to get this valuable element in the desired form. If you pursue the hobby of collecting different rare coins, you can buy silver coins to enhance your collection. If you aim to invest in the physical form of silver, you can go for silver bars or silver bullion to enhance your investment portfolio.

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Although investing in the physical form of silver is one of the most convenient and reliable ways of investing in silver, you need to make special arrangements for storage and transportation of this precious metal. Silver coins, such as silver coins UK, being smaller in comparison with silver bars can be transported without any hassles. Also, they do not occupy a lot of space for storage purposes. However, you need to take great care when storing both silver bars as well as coins by ensuring that they are stored in an air-tight medium.

Delving deeper into the popularity and demand of silver coins, you will find that American Eagle silver coins is one of the most popular and valuable coins by several investors and collectors. Silver Maple Leaf, Silver Monarch coins, Silver Laxmi coins, Silver Ganesh coins, and many more coins are common coins, in which most of the investors and collectors prefer to invest their finances.

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There are certain reasons why people prefer investing in this valuable metal than any other. One of the reasons is its availability at lower rates in comparison with the rest of the metals. For instance, silver coins are cheaper compared to gold coins and, at times, they are available at sixty percent less than the rate of gold. Additionally, investing in silver for the long term can help you derive remarkable financial gains. Investors prefer to purchase this valuable metal when its price falls and sell it in the market when its price goes high. This helps them obtain substantial profits.

When investing in this precious metal, it is better to consult a professional advisor, who has good knowledge and experience in handling transactions of this valuable element for years, to derive full benefits from your investment in it. Prefer to store this precious element in safe and secure locations such as a bank safety deposit box. It is safer to store it in a bank than in your house. A careful investment in silver is sure to deliver you remarkable gains in the future times. So, plan to invest in this valuable metal as soon as possible.

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Pros and cons of investing in gold and silver

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Several individuals prefer to invest in precious metals that mainly include gold and silver. These two valuable metals play a vital role in the financial market, specially, gold. Additionally, these metals have several significant industrial applications. Common individuals and savvy investors prefer to invest in these metals by buying gold and silver bullions and coins, most preferably, over gold ETFs and various other options are available in the market. Generally, people buy coins of these valuable metals when their price is low and sell gold coins and silver coins when the price of these metals rises. This enables them to derive good financial gains, if they store these precious metals before selling gold bullions and silver coins for a considerable span of time.

Investment in gold and silver is advantageous for many individuals however, there are pros and cons of investment in these highly valued metals. Here are a few pros and cons of investment in gold and silver.

Pros of investing in gold and silver:

  1. Protection in depreciation: Investment in silver and gold bullions offers a high level of protection against depreciation since the value of gold and silver never diminishes to zero, even during economic crisis. Even if value of currency or paper money gets affected adversely during the economic crisis, the value of gold and silver remains constant. Gold offers great support to the investors even when the central bank weakens its currency for a given monetary policy. This enables you to have a substantial financial protection against depreciation, if you have purchased gold and silver bullions well in advance. Selling silver coins and gold bullions even in depreciation can fetch you a considerable amount of money. This is why after experiencing the effects of the recent recession in 2008, lots of people are relying on their investment in gold and silver due to its benefits
  2. No liability: Precious metals such as silver and gold are not a liability to any individual, business entity, bank, or government. Big companies can suffer bankruptcy and governments can fail to pay its debts. On the contrary, these valuable metals won’t be affected adversely similar to bankrupt companies and governments in debt. Investors’ portfolio that shows their investment in these precious metals and maintains its value even in critical times. Any other asset in place of these valuable metals would have crashed to zero but this can never happen when selling gold bars and silver coins.
  3. International liquidity: Silver and gold offer the best liquidity value throughout the world. You can sell gold coins and silver coins easily to any part in the world due to high liquidity aspect of these valuable elements. This is because you are bound to find someone who is willing to purchase these valuable metals irrespective of your location. Lots of people and savvy investors are willing to purchase gold and silver because they never depreciate in value.

Cons of investing in gold and silver:

  1. Low Rate of Return (ROR): One of the biggest cons of investing in gold and silver is that they have low rate of return in comparison with the currency or paper money. This happens because prices of these precious elements do not vary marginally over a short span of time like that of currencies. This is why you need to store bullions and coins of these valuable metals for a long span of time before selling them in order to make a high amount of returns.
  2. Untimely appreciation cycles: Price of gold and silver does not appreciate regularly. These precious elements appreciate to their highest price only in the span when the value of paper money depreciates. So no doubt these metals are great protection against depreciation, but their untimely appreciation cycles prevent common man from investing in them on a regular basis.
  3. Price corrections: Just like other traded commodities are subjected to price corrections, silver and gold even experience price correction. One of the biggest disadvantages is that, if you do not hold these valuable metals for long span, the price correction can work against you. You need to wait for long span until prices of gold and silver rise considerably before selling gold bullions and silver coins.

If you invest in gold and silver by acknowledging these pros and cons when investing in these valuable metals, you can definitely reap good financial gain and secure your wealth without any losses.

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Five Best Reasons to Purchase Gold Coins

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Gold coins are experiencing ever-increasing popularity due to the stumbling economy these days. In fact, the economic future looks a bit cloudy, so it would be difficult for an ordinary man to protect his hard earned money and simple living if the world slips into a full recession. Finding gold coins for sale and adding them to your investment portfolio is one of the most practical ways to protect your wealth, even in times of economic crisis. Gold is one of the stable, reliable and safe investments that anyone can count on. Here are five good reasons that explain why you should go for investing your valuable money in gold coins UK.

  1. Intrinsic value of gold coins: Gold coins have intrinsic value that has been recognized and exploited by man for several years. Utilizing these coins always prove beneficial due to its stable value. Additionally, this precious metal has maintained or even raised its value in challenging times of economic instability.
  2. Fair means of gold storage: Many people are fond of this glittering element, so much so, that they wish to own it in its physical form. If you wish to own this attractive metal  and keep it for a considerable period of time, gold coins can be the best option to go for. Having these coins is a legal and practical way for individuals to possess and store physical form of this metal.
  3. Easy to determine value: If you study a bit about these coins, you will find that most of the gold bullion coins have a certifiable content of this precious metal. Usually it is from 1 oz or fractions of that weight. This is why it is easy to determine the value of these precious coins as it is easy to track the quoted value of 1oz. gold on the open market. In certain cases, rare gold coins may have a higher value due to their scarcity factor.
  4. Easy to sell: This highly valued metal has demand in the market all the time. If you wish to sell gold coins, you can sell them anytime. You can find customers ready to purchase gold coins that are available in the market anytime. So, in times of crisis when you need money you can easily sell this liquid asset and obtain money.
  5. Secure your financial position: You can purchase one gold coin at a time and develop your pool of wealth by preserving these coins for a considerable period of time. In this way, you can secure your financial position as the price of this valuable metal never diminishes.

This is why it is always beneficial to purchase gold coins to have safe, stable, and reliable investments without any terms and conditions. In times of need, you can sell these coins and get fair financial gains from the transactions. So, do some research on gold coins and go ahead and buy some to secure your financial situation for the future.

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