What Are The Forms And Uses Of Gold?

When making gold investment, you should know as much as possible about the precious metal. The first is to understand what gold is. It is a shiny, malleable, soft precious metal occurring naturally in the earth. It is a bright yellow metal whose symbol is AU on chart of chemical elements. Gold does not oxidize in water or air. It is also resistant to individual acids and corrosion.

These and many other elements make gold a valuable product and therefore you cannot go wrong when you invest in it. Apart from aesthetics, gold has attributes that are not existent in other precious metals.

Gold investment will always have high unequalled potential for returns because it has numerous uses including:

  • Jewelry making
  • Dentistry
  • Artworks
  • X-ray technology
  • Treatment of grievous muscle and joint problems caused by rheumatoid arthritis
  • Treating brain degradation conditions such as parkinson’s disease
  • Improving IQ by up to 35%  when administered  orally under the tongue for one or two months

Gold is also use in making numerous other products. 

Calculation of gold

Troy ounces are the calculation for gold. Try ounce is based on British imperial weights and measures system.  It weighs slightly more than US ounce (avoirdupois) which is defined as series of weight units built upon pound of 16 ounces and ounce of 16 drams. A troy ounce is therefore equivalent to 1.09714 avoirdupois ounces or 31.1034768 grams.

Gold quality is determined by its purity. There is minimum market purity standard for each precious metal sold or bought. Before making gold investment, you should know that the purity of gold can be defined using karat (parts of gold/24), fitness (gold parts per 1000) or percent (gold parts per 100). For instance 24K=100 per cent=1000 fine.  However it is unlikely that there is a metal which is 100% pure hence it is accurate to say 24K=99.9%. This means that it is 999 fine.

Ways of investing in gold

There are different strategies to use if you want to want to make gold investment. There are various types of available transactions for investing. Some of the examples in which you can invest are to execute spot gold transaction, sell or purchase gold futures. You may also acquire shares of gold exchange traded product. This is referred to as exchange traded fund (ETF). It is important for you to comprehend terms of transaction when you buy through an ETF, mutual fund kind financial product or stock.

Every fund has its special policies that could be unfavorable to you. Before you purchase as whether underlying gold actually exists and who it belongs to. There are instances of double counting physical bars.  In order to be sure about your gold investment, inquire whether you own the asset and it is possible to take possession of the gold or it will be its value in price shown on paper from that specific broker.

 There should be an option because there are people who prefer to hold coins. Always establish if there are some costs involved with your chosen method of investing beforehand.

Forms of gold

There are many forms in which you can find gold. It is available in bullion coins, gold bars and ingots. Coins are round shaped. They are assortment of sizes, purity and fashions. Before making gold investment you should know that they are made according to detailed specifications given by governments of different countries. Companies that make gold coins will regularly produce memorable editions as collector items or for investment purpose.

 Gold bars are categorized as cast or minted depending on the way of manufacturing.  Minted bars are those produced by cutting gold to specific dimensions from flat gold pieces. The bars are then pressed with the desired markings. Ingots are casted from molten gold poured into mold with desired markings already in mold.