subject: Why Gold Bullion Should be a Part of Your Investment Portfolio [print this page] Why Gold Bullion Should be a Part of Your Investment Portfolio
Gold bullion is gold that is designed for storage rather than for jewelry or for industrial use. Gold bullion is a very pure form of gold and has been approved for IRAs since 1997. For an IRA, gold must have a minimum purity of 24 karat or a fineness of 0.995. It's a key asset for most of the world's banks and should be an asset in your portfolio, too.Precious metals have been wise investments throughout history, and especially during uncertain economic times. The value of precious metals, like gold, is tied to supply and demand. When gold is in high demand, the price goes up. A key component of demand for gold is the expectations of national and world economies. For example, the United States is borrowing money at an unsustainable rate, with 42 cents of every dollar spent by the Federal government being borrowed. This this and other reasons, the price of gold has been steadily rising in recent years.Gold bullion for investment is found in both coins and bars. Coins are round in shape and are issued by governments with exacting specifications. Bars are rectangular in shape and are produced with specific purities. Bars range in size from 1 gram to 400 ounces.Gold coins are sometimes thought to be best for average investors. This is because gold coins are standardized and are legal tender in the country they were minted in. This makes them easier to dispose of if you need to rapidly liquidate your assets. In any case, popular gold coins are easily recognized throughout the world. The most popular gold coins include the American Gold Eagle, the Canadian Maple Leaf, the South African Krugerrand, and China's Panda gold coins. The American Gold Eagle is the most popular coin among investors.The benchmark or spot price of gold bullion is fixed twice a day by members of precious metal trading firms in London. This is a momentary price which changes throughout the day as gold prices vary on the international futures exchanges. When you buy gold, you will pay a premium over the current spot price.Many people consider gold bullion to be a wise investment because it protects wealth during troubling financial times. Investing in gold bullion bars is affordable to almost all investors because of the wide range of sizes. Your gold investments typically do not have the drama of market swings so frequent in the stock markets. You can sleep better at night knowing your assets are protected.If you are concerned about the economy and its future stability, gold bullion is an area of investment you should not overlook.
