When thinking of gold in a modern sense, your go-to thought is most likely a piece of jewelry or a collectible item rather than a form of currency. This sentiment often leads to the argument that gold no longer holds the same value in our society that it once held. This may be true in some ways. We no longer use gold as a form of transactional currencies with gold coins in exchange for goods and services, rather, gold bars serve as investment country-dependent currencies.
So, what does the gold market look like today? And how can gold be seen as a good investment if it is no longer used as a form of currency like other popular online investments?
This article will provide some information about the gold market today, as well as explain why gold is a valuable asset with intrinsic qualities that make gold investments an amazing asset to hold in your portfolio.
Let’s get into it. You may be wondering, does gold no longer hold value now that it is not being used in our society as a form of currency from customer to service supplier? As much as you might look at gold as gold bars and gold coins in a vault, or gold jewelry on a jewelry stand, gold still holds a significant amount of value, though that has shifted throughout the years.
Gold is still largely sought-out, and one of the most useful metals in the world. Not only is gold used to make beautiful jewelry and other collectibles, it conducts electricity and does not tarnish like other precious metals. Due to these properties, gold is the metal of choice for several industries such as the medical industry and technological industries.
Other heavily sought out items are also made of gold: some symbolic, like olympic medals, Oscars, and Grammys; others more tangible, like gold bullion coins, gold bars, and other pure gold products. On a more personal level, gold is used to make wedding rings, art, and religious objects such as crucifixes. Moreover, gold bars and gold bullion serve as an incredibly stable and strategic asset class.
Due to this continued stability, it offers both short and long-term stability, leading more people to buy gold as an investment, as opposed to traditional, practical uses.
For investors more used to internet stock and bond trading, investing in real gold can be difficult. You'll typically deal with dealers other than standard brokerages when buying physical gold, and you'll probably have to pay for storage as well as insurance for your investment.
Gold bullion, goldcoins, and gold jewellery are the three primary forms of physical gold investment
Gold bullion—large, gleaming gold bars secured in a vault—is what most people envision when considering a large gold investment.
Gold bullion is offered in bars with weights ranging from a few grams to 400 ounces, but one- and 10-ounce bars are the most popular sizes.
As of September 2020, the price of gold was approximately $1,900 per ounce, which makes buying gold bullion very costly. There is also no genuine means to acquire a fractional shares of gold bars, unlike stocks.
Due to the high cost of gold bullion, it is particularly crucial to select a trustworthy dealer, pay for delivery with insurance, or pay for storage at a sizable vault (such as the Royal Canadian Mint) or in a safe deposit box, which is where most people store their gold coins, gold bars, and other larger investment pieces.
Gold coins come in various forms and weights. Although half-ounce and quarter-ounce coins are also available, one or two ounce gold coins are the most typical.
The most accessible kind of gold coins are collectible gold coins like South African Krugerrands, Canadian Maple Leafs, and the American Gold Eagle. Even blank coins and worn or broken coins are sold by certain vendors.
However, the pricing of gold coins may not always correspond to their gold content. Coins that are popular collectibles typically command a premium. Mid-September 2020 will see the price of a one-ounce American Gold Eagle coin at slightly over $2,000, for instance.
That is a nearly 5% markup over an equivalent amount of gold bullion. Although local pawn shops or collectors may offer greater prices on gold coins, it's usually safer to buy them directly from the source.
Gold bars, gold bullion and gold coins aren't the only option. You can also purchase gold in the form of gold jewellery. However, investing in gold jewellery involves various risks that are absent when buying physical gold.
You must first exercise caution when buying jewellery because not all used jewellery is offered by reliable merchants. Authenticity is important to ensure, but it's also important to anyone you try to sell the piece to.
It is essential that you buy investment jewellery from a reputable vendor and collect as many supporting documents as you can. You should also be conscious of the purity, or the gold content, of your jewellery.
The karat scale is used to determine the purity of gold, with 24 karat gold being the purest form. Lower purity lowers the melt value of your piece, or the value of the raw materials that make up your jewellery if it were melted down to pure gold.
One of the main differences of gold today versus in the past, is the amount of variety available today.
The wonders of technology have brought various options for you to choose from, such as: gold futures, gold coins, gold bars, gold mutual funds, gold companies, gold jewelry, and gold ETFs. Just when you thought the hard part of picking an investment is over, another hard choice follows immediately after.
If we’re being honest, buying and selling gold is just as difficult today as it was 25 years ago, despite the rise in digital currencies and rampant technological advancements.
As cryptocurrencies continue to gain popularity with more and more shareholders turning to digital assets instead of gold, the problem still remains – how is gold going to be elevated to this new and changing digital world?
Now, more than ever, it’s time to revolutionize gold and bring it to the digital age.
Welcome to the Matador Network, the first of its kind platform to securely buy gold assets online from the comfort of your mobile device. Portability and increased accessibility opens up the market to new shareholders, while making it easier and safer for current gold owners to monitor and store their holdings. Cryptocurrencies have already risen and fallen in their lifetime, but gold is a timeless, safe haven asset.
Matador’s network reaches far beyond any single vault or gold producer, connecting buyers from all over the world and digitizing your gold assets while keeping transparency as an utmost priority. Buy gold, sell gold, and monitor your assets with 24/7 access to the market, 365 days a year.
As a gold owner, you can log into the Matador Network on your mobile device and register your gold assets. All physical gold underpinning the Matador Network will be custodied at MATADOR-certified vaults across North America, including the Royal Canadian Mint. While you let us worry about the security of your gold, you can use your gold’s digital signature to buy gold, sell gold, and track these holdings.
What’s more, we’ve constructed an industry-leading loyalty program. Your gold import and further transactions earn you loyalty points on Matador’s app.
Our built-in features also include flexible financing options and better gold prices than you might see at your brick-and-mortar or with a financial institution.
With these flexible payment terms and better pricing, Matador Network is actively aiming to democratize gold, and increase availability to users of wider geographic, demographic, and financial backgrounds. All you need is your smartphone.
Sign up today for early access to learn more about the Matador Network, and how we're bringing gold to the digital age, one user at a time.