Gold or “shining dawn” in Latin, is a chemical element that is a very popular precious metal. It is bright yellow in color and is considered the most malleable and most ductile of pure metals. It has been used for coinage, jewelry and warfare for centuries now. Because of its ability to resist oxidation in air or water, it is able to maintain its color and luster, making it the perfect jewelry. It has become a constant symbol of affluence as well as the standard for various policies concerning money. As of 2009, a total of 160,000 tons of gold have been mined, and half of these have been produced as jewelry, 40% traded as investment and the remaining used in the industry. Recently, gold has also been used in the field of dentistry as implants, and in electronics manufacturing primarily due to its superior conducting ability and resistance to oxidation.
Being the oldest form of legal tender, gold is still used as a means of investment. Even during the financial meltdown, sales of gold have dropped only minimally. This is because the value of gold has pretty much stayed constant. Thus, even with an erratic financial market, it is still possible to profit from buying gold.
- Understand the gold market. Gold usually becomes more expensive when the economy is bad. On the other hand, gold is cheaper when the economy is good. This means that investors put more value to gold compared to their money or other investments in times of financial hardship.
- Keep track of the cost of gold. Unlike stock market prices, which go up and down in a whim, the price of gold follows a trend. In 1999, an ounce of gold costs $250. Approximately 10 years later, during the financial meltdown, the price soared to $1000 per ounce.
- Purchase it cheap, trade it for more. This sounds easy, but it actually takes a lot of observation, study and courage to do this. Buy gold when nobody wants it (i.e. economy is good), and get rid of it when people scramble for it.
- Bunch up on gold that nobody wants. The value of gold coins increases dramatically with better conditions, higher quality, and more rarity. Of course, everyone wants top-of-the-line, high-quality gold coins. However, you can actually buy the medium-quality ones from gold and coin dealers who want to get rid of these since their customers would not purchase them anyway. When the time comes that prices of gold are on the rise again, it is time to sell your quite imperfect pieces. You will have enough buyers who are willing to pay.
- Patience is a virtue. As mentioned, keep accumulating pieces of gold during good times as gold is cheap. Then during economy’s low seasons, sell these and earn with a big smile on your face.
- Wholesale buyer, retail vendor. Follow the old Chinese merchant secret. Buying in bulk can help you save a lot and gives you the leverage to bargain for a better price. Also, shipping fee and sales tax may be reduced depending on the amount you have purchased. On the other hand, sell these to the general public at retail price. You may use auction sites in the Internet to do this.
Remember to transact business only with people of reputable character.
There are still many swindlers and dealers who take advantage during