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Friday, July 22, 2011

Why physical gold buying tops investments chart

Here are 7 reasons why buying physical Gold is still the best precious metals investment:-

1.Gold has been around for thousands of years so there is plenty of investment research. The more research available, the better chance you have of assessing an asset's prospects.

2.If you buy gold there is no VAT to pay on the purchase. However, Silver and other precious metals are not VAT exempt so you're 20% down before you've even started with those.

3.The gold market has evolved into a highly competitive and efficient arena. So the bid/offer spread (or difference where a dealer will buy and sell gold) is relatively tight (perhaps 5-10%). This means the market doesn't have to move up much for you to enjoy profits.

4.When you do come to sell your gold, you'll find the market is very liquid (there are lots of buyers and sellers for gold). As long as you bought from a reputable gold dealer, they will have helped you buy coins or buy gold bars and gold bullion which are well recognised globally, therefore maximising the price you'll get for your gold.

5.Gold is a precious metal and there's not a lot of it in existence! The lack of supply and difficulty in extracting Gold provides a huge support to its price. If you have an asset who's supply could increase significantly, the price of that asset is always exposed to a sharp fall.

6.Due to gold's relatively high price per kilo, buying gold bullion is cheap to deliver. This means that a £50k gold investment can be shipped cheaply and discreetly whereas the equivalent in say, Silver would be heavy and expensive to deliver.

7.With political unrest in North Africa and continued terror threats from the Middle East - the Safe Haven tag of gold provides one of the most compelling reasons to buy. Gold investment also provides a portfolio insurance against the current economic instability we're experiencing. If you believe there is a chance that Greece may default on its debt, that it may withdraw from the Euro currency, that Spain, Portugal, Italy and Ireland may follow, or that the US will need to increase its debt ceiling, then you should buy coins or buy gold bullion now before it's too late. As the ultimate safe haven asset, gold will undoubtedly spike in value if this happens.
courtesy : EzineArticles.com

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