Gold is universally regarded as the foundation of wealth and has been for as long as humans have been trading. The world of gold bullion trading can seem a bit of a mystery to the average person, with specific terms that are used exclusively in the precious metals industry.
In this article, we will examine both ‘physical’ and ‘paper’ gold, to help you gain a deeper understanding of how and why these 2 different forms of gold ownership exist.
Taking Physical Possession of your Gold
Every single private investor should insist on taking physical possession of purchased gold, as this eliminates any form of error that could result in your losing the gold.
The dealer could go bust, the economy crash, or we could be invaded by aliens, and if you have possession of your gold, your wealth is safe.
If owning gold interests you, you can start checking the gold bullion price at City Gold Bullion, among many other dealers. They can facilitate your purchase and ensure that you leave their office with your gold safely stored in your case.
Storing Your Gold
When you take possession of your gold, you’ll need to find a safer place than under the bed. Indeed, many gold investors use the safety deposit box offered by the local bank. You could also get a safe installed in a hidden area in your bedroom. It is not recommended to bury your gold as if something should happen to you, the gold is lost forever, or until someone digs it up centuries in the future.
Paper Gold
While there are several forms of paper gold, the one used by gold traders is Gold CFDs, which stands for Contract For Difference, and this is regarded as an asset equal to actual gold. Traders use CFDs as they have no expiry date, and it simply closes when the trader chooses to close the transaction, and traders like this because they can hold on to the CFD until the market is favorable.
Trading Gold
If you are interested in trading gold, you are advised to first carry out a lot of research, which would include the variables that affect the spot price of gold, educating yourself about how the markets work. At some point, you would require a broker.
A simple way to look at gold trading is that you make a forecast, either that the price of gold will go up or go down within a specific timeline. You have the option to close your position at any time, taking your profit or accepting a loss. Check out articles available online to further understand gold pricing.
Unless you are trading gold, insist on taking physical possession of the gold that you acquire, as this is the safest all-round solution, and keep your eye on the spot price, as it could change at any time. To purchase gold of any form, look for a leading gold bullion dealer online, then make an appointment to visit the offices of the ones that interest you.