Gold Spot: 1,948.00 | 0.0% |
Silver Spot: 23.59 | -1.1% |
Investing in gold can be exciting adventure for many people. Nothing beats the magic of holding beautiful American Eagles or American Buffaloes. Some new investors are probably wondering if they buy gold, if it is sent to them and how to store it so that it is secure.
Receiving physical gold is dependant on the desires of the buyer. The reasons for holding gold, issues with security and investment strategy can all affect the decision. A buyer can have gold shipped to him for storing his own gold or he can enlist the services of a depository to hold it for him.
Holding gold is important for some buyers. These people feel more secure with this expensive possession in hand, being responsible for its security. In addition, some hold gold fearing a possible collapse of the economy or monetary system, leaving this commodity as the last true, tradable commodity. Many of these people choose to take delivery of their gold and store it at home or in a safe deposit box.
Long-term investors are also likely to take possession of physical gold, especially if that gold is held in certified rare coins. Rare coins can be discretely hidden away and a long-term investor may be unwilling to pay storage at a depository for years or decades.
Short-term traders or people owning high volumes of gold are more likely to enlist the services of a depository. Many depositories are connected to gold exchanges and offer special services to their clients who frequently buy and sell gold holdings.
Depositories can hold bullion as part of a general collection, or rare coins as a personal, private collection. People storing coins at a depository pay a fee to have their gold kept and it is guaranteed by the depository to be safe from damage or theft.
For those who buy gold, receiving delivery is a decision of choice. Holding physical gold offers the comfort of having something tangible for what you paid; using a depository eliminates the uncertainty of trying to find a secure place to keep your purchase. With gold prices that have quadrupled in the past decade, both methods have advantages and a decision should be made that best fits the investor’s needs.