Since the oldest times on record, gold has been valued as jewelry and ornaments, even when gold coins were created in the ancient Egypt, they being used as decoration and not as coinage as such, for trading purposes. But in the sixth century B.C., King Croesus of Lydia decided that they may work as well as monetary means. And, however accustomed we are to print money, we have to acknowledge their use as such till as late as the last century, when they could buy you whatever commodities you wanted.
Of course, all this period gold has remained a commodity itself, though, evidently, some of its forms have changed completely. It is not the case of gold jewelry, however, which has succeeded to remain a major commodity as such, the Chinese and the Indian citizens of these days actually driving gold demand globally, by their appetite for it. But retail investors have moved to new forms of gold investment, such as collectible gold coins, gold bars or ETFs, all meant to stabilize their portfolios in case the global economic crisis will continue to worsen.
Gold bar acquisition has represented so far the most significant contribution to the gold demand internationally, increasing by a stunning 44% between 2009 and 2010. On the other hand, worldwide concerns about sovereign debts and currency devaluation were responsible for further increases in gold ETF acquisition. That is why exchange traded funds investing in gold bullion reached the sixth position among the largest gold owners in the world.
On the same lines, gold coins are a reliable alternative investment vehicle these days. Investors are attracted to them because they are exempt of VAT, income tax and capital gains tax. In addition, the fact that their supply is limited adds further value to their constitutive value. On the other hand, high-purity gold bars are also subject to many tax exemptions, which explains the investors' preference for them when deciding to buy gold. Besides, gold also helps to the creation of other commodities, like high-tech goods (such as i Pad or smart phones), therefore is also the subject of industrial demand.
It is then safe to say that gold has remained a vital commodity, due to its inner value as a precious metal and to its capacity for hedging people's wealth. Moreover, by comparison with other commodities, you can't consume it properly speaking, gold remaining intact as a quantity of metal, whatever changes it may undergo as a commodity form.
Of course, all this period gold has remained a commodity itself, though, evidently, some of its forms have changed completely. It is not the case of gold jewelry, however, which has succeeded to remain a major commodity as such, the Chinese and the Indian citizens of these days actually driving gold demand globally, by their appetite for it. But retail investors have moved to new forms of gold investment, such as collectible gold coins, gold bars or ETFs, all meant to stabilize their portfolios in case the global economic crisis will continue to worsen.
Gold bar acquisition has represented so far the most significant contribution to the gold demand internationally, increasing by a stunning 44% between 2009 and 2010. On the other hand, worldwide concerns about sovereign debts and currency devaluation were responsible for further increases in gold ETF acquisition. That is why exchange traded funds investing in gold bullion reached the sixth position among the largest gold owners in the world.
On the same lines, gold coins are a reliable alternative investment vehicle these days. Investors are attracted to them because they are exempt of VAT, income tax and capital gains tax. In addition, the fact that their supply is limited adds further value to their constitutive value. On the other hand, high-purity gold bars are also subject to many tax exemptions, which explains the investors' preference for them when deciding to buy gold. Besides, gold also helps to the creation of other commodities, like high-tech goods (such as i Pad or smart phones), therefore is also the subject of industrial demand.
It is then safe to say that gold has remained a vital commodity, due to its inner value as a precious metal and to its capacity for hedging people's wealth. Moreover, by comparison with other commodities, you can't consume it properly speaking, gold remaining intact as a quantity of metal, whatever changes it may undergo as a commodity form.
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The most used and classic manner to Buy Gold is by investing in tiny bars and coins.
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