Ever since early civilization, humans have valued gold for its luster, resistance to rusting, and scarcity. Since the United States’ dollar has not been backed by gold since 1971, many investors see gold and silver investing as secure ways to protect their money. Not all gold is created equal: 24 karat is the purest form which demands a purity of 99.9% or higher. The precious metal storage and trade industry works hard to ensure that investments are truly safe.
The Gold Trade
In 2014, United States mines excavated 211 tons of gold. Today, the U.S. circulates or deposits over $7.6 trillion worth in gold. Most investors start small with a solid gold coin: the American Gold Eagle coin is a solid ounce of gold that is worth nearly $1,300 and is the most widely circulated coin in the world dominating nearly 80% of the American gold bullion trade. More serious investors may choose to invest in a larger quantity of gold; these gold bars typically consist of 99% to 99.5% pure gold, making them nearly 24 karat in purity. Between minted and cast bars, most standard gold shops in America typically only sell up to a 10 ounce bar; kilogram and 400 ounce gold bars are also available from special sellers.
Investing in Gold
While the price of gold fluctuates just like that of any commodity, gold’s utility and value as a luxury item ensures that it will always have a value to people. Unlike the dollar which is the basis for the economy, many experts have stated that gold is the bedrock that investors can rely on. Many banks have special vaults designed for precious metal storage, giving investors additional peace of mind. So due to the fact that the supply of gold is finite while the potential supply for dollars is unfixed, no matter what direction the economy takes there will always be a value for gold in our economy.