January 10, 2010 - Many people who are looking to start investing ask the same question, “Is gold a good investment?” The answer lies in the financial ability and investment objectives of each investor. While there are decisions to be made, recent history has viewed gold as an excellent investment vehicle.
Gold spot price is the figure given on the Internet or reported on the evening news. Over the past ten years, the spot price has nearly quadrupled, meaning that a $1,000 investment in 2000 would now be worth almost $4,000. The value of collector’s coins is more complex; certified coins have a rating system that determines the quality of a coin by evaluating the condition of the coin, then factoring in the gold content and its rarity. The highest price ever brought by a rare coin was a 1933 American Eagle that received $7.59 million at an auction.
Gold investment can be done either short-term or long-term. Short-term investors typically buy bullion and hold it until the price reaches the amount where they are willing to sell. A strategy like this might have a 1 to 14 month cycle. Long-term investing is more commonly done with certified collector’s coins; an investor will purchase these coins and then let them mature, gaining profit over years or even decades.
Investors must accurately evaluate their financial situations before investing. Most gold exchanges have minimum order quantities between 10 and 20 ounces, meaning that the minimum investment amount on a 20 ounce purchase could be around $24,000 when gold is $1,100 per ounce. Investors that don’t have funds for a purchase of this magnitude can look at individual collector’s coins, which can be purchase for hundreds, instead of thousands of dollars each.
Is gold a good investment? The past says it definitely can be. Investors should consider discussing their objectives with gold-investment.info before making any decisions. This is part of the Certified Gold Exchange, a highly respected company in the gold market. The company’s specialists can help investors decide what is right for their portfolios and make the sales and purchases that their customers need.
Senior Staff Writer - Gold-Investment.info