It is a store of value and a safe haven in times of crisis. Gold is rare, universally accepted, and can be easily bought and sold around the world. It is used in coinage and is a standard for monetary systems in many countries.
Most gold that is fabricated today goes into the manufacture of jewelry. However, because of its superior electrical conductivity and resistance to corrosion and other desirable combinations of physical and chemical properties, gold also emerged in the late 20th century as an essential industrial metal.
Gold performs critical functions in computers, communications equipment, spacecraft, jet aircraft engines, and a host of other products. Although gold is important to industry and the arts, it also retains a unique status among all commodities as a long-term store of value.
ABOUT GOLD COINS
A gold coin is a flat, disc-shaped piece of gold that has been minted and issued by a government or private organization. Although gold has been recognized as a store of value virtually since the dawn of history, the first gold coins are believed to have been minted in 670 B.C. by King Gyges of Lydia in Turkey. The legendary King Croesus minted 98% pure gold coins in 550 B.C.
Half a millennium later, Julius Caesar minted gold coins to pay the Roman Legions. Somewhat apprehensive at first, the soldiers were happy to discover that the value of the gold in the coins rapidly surpassed their face value.
For gold coin collectors as opposed to bullion ownership, many factors determine the value of a gold coin, such as its rarity, age, condition and the number originally minted. Gold coins, especially pre-1933 gold coins minted in the U. S. and Europe, are rapidly becoming the asset of choice among investors worldwide.
ABOUT GOLD BARS
A Gold Bar is defined as any gold item, regardless of shape, which is made by a bar manufacturer, records the name of the manufacturer, the precise weight and the precise purity, and is sold at a low premium above the gold price.
Gold bars are classified into two different types cast and minted, based on their method of manufacturing. Cast bars are made by pouring molten gold into an ingot mold to help the gold to take a form. Minted bars are made from gold blanks that have been hand cut to the required dimensions from a flat piece of gold. Markings are almost always applied by presses. Chip Gold is a relatively new form of gold bar consisting of a small ingot 1-20 grams in a sealed and certified package the size of a credit card.
Gold bars are produced in a wide variety of sizes, shape, and fineness, most of them destined for one-way transit to manufacturing end-users who intend to refabricate the gold into other forms such as industrial/electronic plating or decorative applications. Most gold bars are not intended for use as investment products (i.e., recirculated on the secondary public market) primarily because their authentic weight and purity both fall into question owing to the ease of tamper ability once the bars have traveled outside of the original commercial chain of custody.
U.S. residents can buy gold bullion and sell gold bullion bars and gold coins cost-effectively, directly and privately. There is no reporting when you buy gold bullion. However, be aware of cash transaction reporting rules.