When Is The Best Time to Acquire Gold Bullion?

Gold has been habitually used to evade price increases. Gold's value has been decreasing because of the current economic depression. It is decreasing, however, only when compared to American dollars. For instance, whenever you intend to purchase gold in foreign currencies, its value will be very high. Thus, possessing gold is a method of battling against the economic downturn, and is a great safeguard against the market value of US dollars.

Because of the reason that the value of gold increases when the value of the dollar drops, it is therefore one asset that you can hold on. If somehow you have lost some money in your gold deposits, the rest of your gold will be perfectly ok. But if your gold investment remains stable, there is a possibility that the rest of your investments could suffer.

Gold can be very stable in times of financial crises. This is primarily why folks who were concerned about the Y2K scare have made gold investments. It isn't a good idea to invest a lot of money in gold. But in times of great financial crisis, knowing that you have 2-3% of your investment in gold should keep your mind at peace.

If you are thinking of investing in gold, a very good way to do it is to keep one-ounce gold coins. You could try an eagle coin, Maple Leafs, or Krugerrands. These gold coins can be purchased in a number of places -- coin collectors, gold or gold coin dealers, online dealers, metal companies, brokerage companies, and some banks. Just be wary when they offer Chinese Pandas or other coin treasures because those come with a bigger gain tax. These aren't good investments because they are marked up. You should be aware that you are not required to pay more than 5% mark-up over the gold bullion price for an ounce of Maple Leafs, the eagle coin, or Krugerrands. You must also remember that American gold eagle coin is not pure gold so that they are not well-liked by gold enthusiasts. They are made of 92.5% gold and 7.5% nickel alloy. These are larger and weigh more than an ounce.

The benefit of gold coins compared to gold bars is that gold bars must be examined every time they are sold so that they can be sure that they are made of pure gold while gold coins are normally standardized. Gold coins can be sold according to the standard price of gold and some additional premium to cover up for minting, marketing and distribution expenses. You can recover part of the mark up when you resell these gold coins.