One of the most frequently asked questions that most individuals who decide to buy gold or silver for investment is what kind of gold should they buy? Well the most appropriate answer for that particular question can never be as straightforward as they expect it to be due to a number of reasons.
The reason as to why the answer cannot be as simple as the person asking would like it to be is due to the fact that what kind of gold they should buy, depends on why are they interested in buying gold or silver in the first place, to hedge against inflation, as savings, capitalise on price changes in the market or even taking precaution against capital controls and gold seizure. Once you have answered this question, then it would be relatively easy to provide a straightforward answer.
For instance if you are bent on hedging against inflation or economic uncertainty or even capitalize on price movement, bullion coins would suit your purposes well enough. If you are planning on putting aside gold as savings, then P.A.M.P gold would serve your needs best and for those who are utterly concerned about the possibility of capital controls being introduced that results in a gold seizure operation that took place in the good old’ United States of America in the 30s then contemporary gold bullion coins and bars carry their value in weight that would allow you to enjoy easy and strong liquidity anywhere on the planet.
However, in the instance of travelling with your treasures, silver is not advisable as you need a large amount of silver to make it your whiles worth and thus in this particular case scenario gold coins and gold bars would be the best option.
The second most frequently asked question that seems to ride shotgun to the first question is when should I buy gold or silver? The best answer for this question comes from two fronts, the first being ‘when you need it’ and the second is ‘whenever you are able to afford it.’ The reason that the answer to this question is split is because gold and silver are actually the only real money out there and thus it is wealth insurance, hence approaching gold and silver investments in the same manner that you approach the stock market or real estate could be disastrous as timing is not considered to be an issue in the precious metal industry as the only thing that actually matters is if you think that you should own gold – if yes – then buy gold as soon as you are able to, why wait?
Waiting for a favourable price, is also no big deal as with gold or silver purchases you can eventually average your cost down. This means that, if your initial purchase of gold was a t a high price, when gold prices go down next, you could buy more gold at a lower price and reduce the average cost of each ounce that you are holding.
For example, if you bought 5 ounces of gold for 100 dollars and ounce, you own 5 ounces of gold at an average cost of 100 dollars an ounce, now on your next purchase, let us just say that gold prices drop to 80 dollars an ounce and you rush in to buy 10 ounces of gold for 800 dollars, you would own 15 ounces of gold for the total price of 1,300 dollars meaning that the average price for each ounce of gold now has fallen to 86.6 dollars.