How to Invest in Gold?

Ways to Invest in Gold:
1 Buy Gold Through Jewelry

gold jewelry How to Invest in Gold: The Complete Guide Buy jewelry is one of the opportunities to invest in gold. Just like investing in the stock market, the goal is to try to buy cheap sell high.

Some think the jewelry simply as equity, accumulating gold, silver and the like as part of household goods.

Despite the ease of investment, gift in gold jewelry is not always the 24k (999 shares to 1000 shares of Gold Metal), but 18k (750 shares to 1000 shares of Gold Metal).

Therefore, one must keep in mind that the level of purity for this investment is 75%, as opposed to investment in Gold through the BM & FBovespa, which is 99.9%.

advantages:

     Having money is very easy to get into a jewelery shop and leave with a gem.
     Easy to store, and even usable if the buyer want jewelry.

disadvantages:

This is an uncommon mode and has its difficulties for various reasons such as:

     Need to assess the quality of jewelry at the time of sale.
     Every jewel guarded home needs a very safe place to avoid looks selfish.
     Not always the price obtained when selling gold jewelry through is fair, depending on the expertise of the evaluator.
     Investment option impractical.
     The correlation with the gold price is not very strong.

Conclusion: Not Recommended for Investment!


2 Pawn Jewelry (Gold)

pawning jewelry How to Invest in Gold: The Guide has CompletoQuem jewelery or gold bars can use the pledge as a way of capitalization.

The operation is much more advantageous than a personal loan, for example, since the jewel serves as collateral for the loan made ​​from the pledge.

This is a rather traditional way, as capitalization can not exactly be considered a form of investment, but decided to put it in the article, since it involves the gold bars.

Conclusion: Not Recommended for Investment!

3 Buy Gold through the Auction Sites

australia How to Invest in Gold Gold: The famous CompletoSites Guide auction as the Free Market and eBay (links to the section of these gold sites) offer opportunities to buy jewelry as much coins and gold bars.

Despite the wide variety of options and prices, one should be very careful about buying gold through these sites, as informality is great and the quality of the material can not always be trusted.

advantages:

     Practicality of buying over the Internet.

disadvantages:

     Quality of the material sold depends on the credibility of the seller, which is not always reliable.
     High prices compared to the price of gold on the BM & F.
     Lack of standardization of the material.
     Difficulty of resale, since you would have to follow the same path of your purchase, announcing this type of site.
     The Purity of Gold sold (18k, or 750 parts of gold per 1000 parts of metal) is different from gold in the BM & F (24k gold or 999 shares for every 1,000 parts of metal).

Conclusion: Not Recommended for Investment!
4 Buy Gold Through Securities Dealers

Card ourominas How to Invest in Gold: The Guide today CompletoExistem some brokers and securities dealers (DTVMs) that create products from contracts and bars Gold 250g, selling small amounts (1g to 25g) on laminated cards and bars of different sizes .

The products are based on the daily price of gold plus a premium (extra) set by the distributor. All are standardized, certified and sealed.

The most common are the companies in this segment and the Ourominas Fitta Group (Reserve Metals).

advantages:

     Practicality of buying over the Internet.
     Easy to carry and store the gold (mainly the cards, with the same format of credit cards).

Although the apparent option is attractive, it has some strong disadvantages that are worth being mentioned:

disadvantages:

     Warranty on Sale Gold. Before closing any deal with a securities dealer, check their history and their warranty conditions. The Parmetal, for example, had its owner arrested for illegally extracting gold on a scheme that was worth $ 150 million. (news link)
     High costs. Since insurance, freight to the spread (difference) between the price of gold in bars and BM & F, it becomes very expensive to invest through this modality. I myself have invested through such and doing the math I realized that sometimes the costs came to 10% of the amount invested.
     Sale is Physics. How do you get the gold in your house to sell it you need to go to one of the distribution of values​​, mostly located in São Paulo agencies. The spread between the price of Gold BM & F and the price of its small bar of gold is also present at the time of sale.

Conclusion: Not Recommended for Investment!