Gold is a fortune and the most expensive material found on the face of the earth. Ever since ancient culture and even before history ever began, man was intrigued and fascinated by its inception, formation and value.
Today, the gold industry has grown to be a very demanding and a prosperous one providing countless jobs to numerous people all around the world.
Gold bullion is a heavy investment. Investors are willing pay any amount to purchase gold bars and coins mainly because the value of gold keeps rising year by year. It’s a fortune mainly because its return is guaranteed and protects your wealth from inflation.
Before you decide to sell gold bullion, it is important to note that usually the value of gold bullion is based on the value of its metal content. This is determined by its purity and mass which is a technique that has been used for centuries. The oldest technique known as fire assay is still being used with the latest spectroscopic instrumentation to precisely determine the quality of gold. Buy holding gold bullion there isn’t a need for a dealer to get a fire assay as its fineness is guaranteed by its hallmark, thus enabling you a higher price when selling.
Gold mining was a big industry, like the coal mining industry at one time, as we all know. Basically, gold sells anywhere and anytime.
Liquidizing gold bars and gold coins is very easy at any given time and that is why investors, rich businessmen and even the treasury of a government hold gold in their reserves for emergencies to balance their economies.
Gold comes into use mostly in an emergency or a crisis, when funds are required as it is easily liquidized.
No other asset can be liquidized that soon as gold, thus creating its high value and demand in a thriving business market. Basically, GOLD is READY CASH! Also, as it is easily traded and investors value and prefer it.
Ornamental jewellery engraved or formed of various designs and shapes of various cultures come of less value as traditions and cultures change, thus creating a lesser need for use but, not for the precious metal that is used to form and make it.
Therefore, it can be sold and traded at any given time with time. If a particular ornament’s value has completely deteriorated, the very object can be sold as scrap and melted down. In this scenario you will be paid less as its fineness is not guaranteed and a fire assay is required.
Coming on to the Gold Bullion market and industry, the specifications of bullion are self-regulated by market bodies and industry leaders.
In the Australia, the minimum purity for gold bullion that is treated as investment gold in regards to taxation, is 99.5% for gold bullion bars and coins, representing some great prospects for those who want to sell gold bullion.
An investor prefers to have gold bullion mainly because of the financial risks he takes in an uncertain and fluctuating or in other words, unstable market conditions – the risk of inflation, geopolitical risks, competitors, etc.
Banks, vault operators and brokers value gold bullion. It’s very useful to them as reserves as there is no other better reserve as gold bullion– since gold prices keep soaring.
Even though very few are aware of it, the gold bullion industry is as large as the fishing industry generating millions and millions of dollars to the economy of a nation.
The uniqueness in these two industries is that they are both natural resources even though gold is not found in every country and in every region.