• April 14, 2019

Gold as a Gift and as an Investment

Gold has long been big news in business and in particular in the world of finance. Historically most economies were linked to the Gold Standard but this was progressively abandoned and most experts now believe that to reinstate the relationship would not be in the best interests of the majority of citizens.

Nevertheless gold is one of the staple investment commodities around the world and is often preferred to paper bonds or securities as its value is not always influenced by the whims of the governments but rather fluctuates at least semi-independently. Investment in gold varies from the large-scale purchase of bullion or blocks to the small private individual purchasing an item of jewelry, possibly in the main for its aesthetic value but also as a secondary investment. More on this later.

The Appeal of Gold as a Gift

Gold is almost certainly the most popular precious metal for those who like to use it for decorative purposes. Rings, necklaces, bracelets, charms and chains are available in abundance at any jewelers and are often purchased as gifts for loved ones. Sometimes though small gold bars are themselves bought for decoration and can be worn as an adornment. There are a large number of jewelers where you can buy gold bars online for just such a purpose.

One form in which gold is very popular as a gift is as coin. Generally speaking gold coinage is more expensive ounce for ounce than simple blocks because the buyer is paying for the design and inscription as well as simply for the base metal. But a commemorative coin which is produced in limited edition naturally develops a value of its own over and above its mere weight in gold as it becomes a collectors’ piece with supply by definition strictly limited. By way of an example the Pearl Harbor commemoration issue will have acquired a particular value for those with connection to this historical event.

The Benefits of Bullion

As previously stated bullion offers more investment value in its own right than ornate jewelry in which the purchaser pays for design, as well as sometimes for scarcity, than rather than for the simple weight in gold. And although mention of the word conjures up images of huge metallic bricks stored away in underground vaults a simple gold block can be small, and decorative. Many wear gold blocks as necklaces on chains, straddling both concepts at the same time.

As if to illustrate the point one of the largest online retailers of gold bullion offers a range of items to potential buyers on its front page, with tiny one gram gold bars available from around $50 to a 12.5 kilo gold bar priced at a little under $600,000. Unsurprisingly the latter is not generally dispatched by post.

It is clear then that the purchase of gold as an investment is not incompatible with its availability as a gift, but rather that there is a significant element of overlap between the two.

A pretty interesting post, huh?

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