Precious metal investments: news, consultancy, trends, reports & more!
HomeMarket WatchHard AssetsInvestor's GuideDownloads

Gold as Investment

The most notorious of all metals requires no presentation.
Throughout history, gold has been highly valued - considered a "value", even "wealth" and during times of crisis, a "safe haven" asset.

Gold nuggets

Gold nuggets

Source: ©

Solid reasons underline the importance of precious metals during times of economic crisis. It helps preserve wealth and can even generate profits.

Are you ready to learn about gold investments? Proceed to the content below...

Gold's Price Has Been Rising Since The Year 2000

Gold has been through a tremendous price increase during the first decade of the 21st century. This was gold's decade-long bull market.

During the same period of time, appetite for the shiny yellow metal as increased also due to the "panic of '08" (the outbreak of the current global economic crisis).

The long-lasting bull market peaked in 2011 at 1889.90 $. That's a staggering high, when compared with the 250-300 $ interval (within which, gold has "played" in year 2000).

Historic charts reflect the tremendous rise of the "king of metals" - in comparison to all fiat currencies in the World.

Understanding Karats, Purity

If you want to buy physical gold, you must understand karats and purity.

As we all know, gold's quality depends on its purity, which is measured in karats. 24-karat gold is considered pure and is 99.9 % Au (gold). This is basically clean gold with almost nothing in it.

If you want to buy pure gold, even the 24 k gold can be of different types! As mentioned: 24 k is 99.9 %, but that doesn't mean you won't find 99.99 % pure gold! Even purer than the minimum limit at which it is accepted as "pure". A good example for 99.99 % (or .9999) pure gold is the Canadian Maple Leaf coin.

In reality there is no such thing as "24 karat gold jewelry", because gold is very soft. Too soft to resist the kind of wear that jewelry must withstand.

Another mistake commonly made is to confuse "carats" with "karats". The latter are used for gold and reflects purity, while carats refer to the weight of a gemstone.

Here's a list of purities by karats:

 24-karats - 99.9 % purity usually in the case of bullion, but at least 99 % (minimum required)

 22-karats - 91.6 % purtiy (this concentration is popular in Arab countries, Bangladesh, India, Pakistan, Malaysia, and Sri Lanka)

 21-karats - 87.5 % purity

 19.2-karats - 80 % purity (wide-spread in Southern Europe, especially Portugal and Spain)

 18-karats - 18 parts gold, 6 parts other metal(s)

 12 karats - 12 parts gold, 12 parts other metal(s)

 10- to 18-karats - 41.7-75 % purity (USA, Canada)

 9- to 22 karats - 37.5 % and 91.6 % purity, respectively (UK)

 9- karats (37.5 % purity) and 14-karats (58.5 % purity) - popular in Russia and former Soviet states

 8- to 18-karats - 33.3 to 75.0 % (especially popular in Germany)

You will find plenty of bullion products measured in grams, others in ounces, but the purity will always be measured in karats.

It's advised not to buy gold for investment if the product's purity is below 22-karats or 90 % purity.

How to Actually Buy Physical Gold?

If it's your first time, then you can choose between coins and gold bars. This buyer's guide will help you understand the difference between gold coins and will provide details about the most popular gold coins.

comments powered by Disqus

Prime Values on FacebookPrime Values on Twitter

about us    terms of use    privacy policy    disclaimer    partners    advertising    contact us