The Price of Gold

Have you ever come across an investor who has asked where they can sell gold bullion in Melbourne or anywhere in the world? When someone says they are hold in gold investment, whether it is for buying, selling, or as an exchange-traded funds, would you believe them? A little less than 1% of the population actually own gold bullion investment products. 

Indeed, gold is a royal metal that has a history that can be dated back to 3000 B.C.E a time when the Egyptians started creating jewellery. We all know that at one point in history, it was not just made into jewellery for the nobility or flaunt status. But, it also became the world’s currency. However, using gold as the backing of the monetary system ended in 1971 when Richard Nixon closed the gold window to the world. Some believe this event occurred due to the US running out of gold reserves while paying for the Vietnam war and paying foreign countries their redeemable gold in exchange for US Federal Reserve notes. Since this event the world has experienced mass inflation and asset class bubbles.

While gold has been known to be associated exclusively with jewellery making, there are other ways to invest in gold and clear benefits to the practice. One of those ways is to invest in gold bullion. 

Why hold gold bullion?

Gold will not lose its value

Even if gold is not used in transactions today, it is still considered important in modern economy. Gold has a history of preserving wealth because it has maintained its values through the years. In fact, paper currencies and other assets have a record of devaluing, but not gold. For this reason, global financial organisations like International Monetary Fund still holds a substantial supply of the world’s above-ground gold. Not to mention, banks have been pushing efforts to maintain and add to their own gold reserves. 

Gold works as a crisis commodity

Gold can retain its value during times when the world is experiencing financial uncertainty. For instance, during 1988 to 2008, the US dollar weakened, causing lots of people to buy gold for security which even tripled its price. Another example are times of inflation, when the price of gold rises as the cost of living increases; because of this, those who have invested in gold will enjoy as its prices rise while the stock market plummets. Historically, gold has also outperformed other forms of investment during deflation, tense global situations, and other geopolitical events that can cause global uncertainty.

After you have held gold bullion and it’s time to cash out.

After holding gold bullion for a number of years which you bought when the market was low, selling your gold bullion can be very profitable. All it takes is knowing the right gold dealer and where to sell gold Melbourne or any financial organisations who are willing to buy it from you for a low premium under the world market spot price. 

The process of selling your gold is easy, too. You can just go to their office, lay out your gold items and allow them to assess its value, and then you can get paid with cash or cheque on the spot, or you can ask them to wire the money to your account.

Treat gold as a way to preserve wealth, especially now that we can see the dollar is falling in value. Consider buying and selling gold bullion, ask investment specialists to advise you, and see how gold can reap significant earnings.