Is Gold a Good Investment? Learn about Gold Bullion

Jan. 3, 2009 - PRLog -- Is Gold a Good Investment?
If you keep up with the news, watch business reports, or follow the stock market at all, you have probably read gold’s daily “spot price. This “spot” value tells you exactly how much one troy ounce of .999 fine gold bullion is worth at any given moment. Gold bullion is usually presented in the form of bars and they do not have any numismatic value at all. Instead, the true price of gold bullion is judged squarely on its melt value. When gold jumps $15 on one day, the price of the bullion jumps the exact same $15. If the “spot” value of gold falls $3 another day, then naturally, the gold bullion’s value falls down as well. Gold bullion is most often traded in 100-bar lots, named “contracts.” Generally, the contracts are sold and bought without any physical exchanging of gold taking place. This is sometimes referred to as “trading paper gold.” The farther out the expiration date on the contract is, the higher the future value of the gold contract will be. The distinction between the daily “spot” price and the future delivery price is based on the interest of the money which is put up by the person guaranteeing the contract.

One of the advantages of buying gold bullion is that it is one of the most liquid tangible assets in the world, thus making it valuable everywhere you go.. No matter where you are - New Deli, Madagascar, France – everyone is familiar with the value of an ounce of gold.

However, one of the disadvantages of gold bullion is that a profit can only be made if the price of gold goes up. Any revenue you receive will be tied into the daily “spot” value of gold, unlike numismatic gold and to a somewhat lesser extent semi-numismatic gold.

To learn more about why you should buy gold visit http://irccoins.com/ today for more information on investing in gold coins.

# # #

IRC Coins is your resource for investing in gold and silver coins. If you are interested in gold coins and what they can do for your financial situation visit us online: http://irccoins.com/ or call toll-free at: 800-947-2646(COIN)

IRC has the experts that can help you determine whether or not you are making a good investment. Our professional and experienced staff are here to guide you in your search for more wealth. IRC takes consumer protection very seriously! In fact, IRC insists that every numismatic coin that we sell carry an independent grade and guarantee of authenticity from the most respected third-party grading services in the world. Quality, rarity and authenticity are all of the utmost importance at IRC. We are the best place to have a significant portion of your capital.