June 17, 2024

Ultimate Gold Buying Guide For Beginners

Ultimate Gold Buying Guide For Beginners

Who Buys Gold And What?

First of all, it should be emphasized that the purchase of gold is established in two very distinct areas: physical Gold and virtual Gold. This dual nature of the market is essential to know and grasp because an individual wishing to acquire gold will, according to his needs and his personal dispositions, be led to favor one or the other of the two possibilities available to him.

Buy Physical Gold coins

Buy Gold Coins

Non-exchangeable gold coins have a value that depends on the official price of gold on international markets (by weight). Their value is solely a function of the quantity of gold they contain and the cost of gold at the time of sale.

Exchangeable Gold coins are distinguished from non-pursuable Gold coins by quality criteria. These coins are tradeable on the stock exchange, and it is the meeting of supply and demand that sets the value of the coin. Thus, these coins offer a premium. This premium is the differential between the value of the piece by weight of gold and the value of the listed amount. The type of effigy represented on the faces of the coin is another criterion that makes a coin tradable or not.

Beyond the purchase of exchangeable and non-exchangeable gold coins, there are gold coins of collection. The group’s gold coins have a value represented by their rarity (seniority, low mintage, etc…). But it must be specified that this is a micro-market, that gold is only a RareCoin because only a few hundred copies have been minted, or that it has particular flaws that make it unique. It should also be specified that a gold coin only has value because it has a buyer in front of it. Its value is therefore fixed by this particular request.

Buy Gold Bars

In addition to gold coins, gold bullion is the other preferred investment medium for those wishing to invest in gold. It offers the advantage of being detached from these notions of rarity and seniority. Its quotation is determined on the international markets, particularly in New York, London, and Chicago. The authority on these markets is done in US Dollars/ounces of gold. As for the French market, the quotation is daily and is done in Euros per kilo.

The purchase of gold bullion is often neglected in favor of gold coins because they are a more affordable way to invest in gold.

Buy Virtual Gold And Paper Gold

Nature Of The Gold Market

Purchase of Virtual Gold does not correspond to the simple acquisition of a substantial and tangible volume of gold.

It is necessary to distinguish, in fact, two sub-categories:

Virtual gold this gold is not totally immaterial because the gold purchased actually exists. The gold purchased is, in fact, stored in the vaults of the intermediary through which the transaction was carried out. In many cases, these banks allow access to the gold acquired. But other players, in particular online platforms, also offer a similar service. The Gold buyer has no direct contact with his gold, which is permanently stored in the company’s coffers in question until its possible subsequent resale. Some sites work in particular through various e-currency, virtual currencies, calibrated on Gold: DON (digital Gold currencies), easily convertible, and 100% in gold.

Paper gold corresponds to a panel of financial products (mainly ETFs: exchange-traded funds) being indexed to the price of gold (but not 100%, however). People investing directly in the gold financial market can use the various trading tools available to investors. This paper’s gold does not correspond to the reality of the physical gold market because it is not linked to concrete and tangible materials. But like any financial asset, it is much more liquid and facilitates investment.