Six Reasons Why You Should Own Gold Bars

Everyone knows that gold is precious. But not everyone knows why. The chances are, that if you are reading this you will already have a good idea of the reasons for putting money into physical gold.

Gold is considered by some to be the king of precious metals. And having at least a portion of a investment portfolio in gold, and especially physical gold bars, can certainly help one rest a little easier in these volatile economic times.

Below are a few less obvious reasons why you should own or invest on gold bars:

1. Fiat Currency is being rapidly debased. Fiat Money is essentially being printed at a rate faster than at any time in modern history. As a result the buying power of currency is getting weaker and weaker because of more and more oversupply.

But gold bars are not like dollars and other currencies. They cannot be easily created and therefore tend to maintain their buying power over time.

2. The increasing prices of commodities do not negatively affect physical gold bar prices. Gold bars as a hedge for inflation, can increase in price along with other commodities.

3. Eastern Central banks and other institutions are more likely to increase their holdings of gold bars, instead of foreign currency reserves. Whilst western central banks have been selling down their gold reserves under the Washington Agreement, many Eastern central banks have been increasing reserves of gold, mostly in gold bar and ingot form, and are likely to continue to do so as skepticism in the long term value of their fiat currency reserves increases.

4. There is an increasing investment demand for gold bars and coins from private investors. Gold bar collecting worldwide is increasing as new entrants to the market buy gold bars, as distrust of paper financial products increases.

5. The dollar is projected to continuously depreciate its value. Many economists predict that the decreasing value of the US dollar will increase the value of alternative investments like gold bars.

6. Gold bar can be bought now at its cheapest value. You can sell this after some time when its value becomes a good return for you.

In general, most investors in gold bars bought gold bars for two reasons:

Bars tend to trade at a lower premium than coins therefore are a cheaper alternative to coins.
To provide counter party risk free safe haven asset for their finances while there is social, political, economic, and currency-based crises.

Why Gold Bars or Coins and Not Other Forms of Gold?

So, why you should buy gold bars instead of other forms of gold investment?

Gold bars and coins carry no counter party risk. Meaning, holding them is not holding someone else’s liability. Other forms of gold investing or speculation all carry counter party risk.

Gold certificates
Gold futures
Gold mining stocks
Gold Options
Exchange traded funds
Gold mutual funds
Spread betting

If the institution providing you with the gold product goes bankrupt, all you have is a worthless piece of paper.

Disclaimer
The above article is for information purposes only, and is not advice. Its accuracy cannot be guaranteed and no responsibility for errors or omissions can be accepted by the website owners.

Published On: 2nd April 2009 Six Reasons Why You Should Own Gold Bars

Everyone knows that gold is precious. But not everyone knows why. The chances are, that if you are reading this you will already have a good idea of the reasons for putting money into physical gold. Gold is considered by some to be the king of precious metals. And having at least a portion of a investment portfolio in gold, and especially physical gold bars, can certainly help one rest a little easier in these volatile economic times. Below are a few less obvious reasons why you should own or invest on gold bars: 1. Fiat Currency is being rapidly debased. Fiat Money is essentially being printed at a rate faster than at any time in modern history. As a result the buying power of currency is getting weaker and weaker because of more and more oversupply. But gold bars are not like dollars and other currencies. They cannot be easily created and therefore tend to maintain their buying power over time. 2. The increasing prices of commodities do not negatively affect physical gold bar prices. Gold bars as a hedge for inflation, can increase in price along with other commodities. 3. Eastern Central banks and other institutions are more likely to increase their holdings of gold bars, instead of foreign currency reserves. Whilst western central banks have been selling down their gold reserves under the Washington Agreement, many Eastern central banks have been increasing reserves of gold, mostly in gold bar and ingot form, and are likely to continue to do so as skepticism in the long term value of their fiat currency reserves increases. 4. There is an increasing investment demand for gold bars and coins from private investors. Gold bar collecting worldwide is increasing as new entrants to the market buy gold bars, as distrust of paper financial products increases. 5. The dollar is projected to continuously depreciate its value. Many economists predict that the decreasing value of the US dollar will increase the value of alternative investments like gold bars. 6. Gold bar can be bought now at its cheapest value. You can sell this after some time when its value becomes a good return for you. In general, most investors in gold bars bought gold bars for two reasons: Bars tend to trade at a lower premium than coins therefore are a cheaper alternative to coins. To provide counter party risk free safe haven asset for their finances while there is social, political, economic, and currency-based crises. Why Gold Bars or Coins and Not Other Forms of Gold? So, why you should buy gold bars instead of other forms of gold investment? Gold bars and coins carry no counter party risk. Meaning, holding them is not holding someone else’s liability. Other forms of gold investing or speculation all carry counter party risk. Gold certificates Gold futures Gold mining stocks Gold Options Exchange traded funds Gold mutual funds Spread betting If the institution providing you with the gold product goes bankrupt, all you have is a worthless piece of paper. Disclaimer The above article is for information purposes only, and is not advice. Its accuracy cannot be guaranteed and no responsibility for errors or omissions can be accepted by the website owners. Bullion Supermarket > Bullion Resources > Six Reasons Why You Should Own Gold Bars More information about precious metals, investments, tips, bullion, bars and coins: Gold Bullion is Timeless Buying Silver Bars For A Sound Investment What Is Silver Britannia? Just Why Are Gold Bullion Coins Such A Good Investment? Want Gold? Buy Krugerrand Coins Gold Coins Are Still A Good Investment Engelhard Is Good If You Want To Buy Silver Bullion Bars A Few Reasons To Buy Gold Handy Hints: Buying Gold Coins and Bars Gold Sovereign Buying The Rising Popularity of Gold Coins Six Reasons to Invest in Silver Bullions Tips to a Secure Way in Buying Gold Six reasons Why You Should Own Gold Bars Understanding Gold Bullion Specifications Krugerrand Gold Bullion: Its History and Design Investing in Silver: Silver Coins & Bars

Six Reasons Why You Should Own Gold Bars

Why Gold Bars or Coins and Not Other Forms of Gold?

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