There are many underlying reasons why people buy gold, the most common being buying gold jewellery for the sole purpose of wearing it, others buy items in gold for the purpose of giving gifts and yet others for investment. Whatever the reason somebody decides to buy gold it is no matter how you look at it, is a form of investment.
Gold is tangible in every aspect of its form, even when it is mixed with other metals or substances gold still retains its value. Be it white gold, rose gold, red gold or yellow gold the amount of gold in the substance is always valued.
This is the reason the karat system was invented. The karat system keeps track of how much gold is contained in an item that contains pure gold. The karat system is applied to the trinket based on the karat material that was used to cast it in the first place.
The stamp of what karat range it belongs to when you buy gold is the sole reason why it is there. 14k means there is a percentage of the gold contained in relation to the entire weight of the item.
Gold is actual money, again no matter how one decides to see it. When individuals buy gold for the sole purpose of investment, there is a wide range of venues that they can accomplish this task by. Gold investment houses normally sell gold bullion, but the best method id to purchase physical gold, as many companies can claim they have bullion allocated to you, when the buyer actually never holds or sees the gold personally.
The gold bought is stored in their vaults with the buyers name attached to them; the buyer in return receives a piece of paper stating that he owns the gold. This is actually the best way to invest in gold as the buyer will be able to sell the gold at spot gold prices when the time is right.
A simple phone call informing the gold houses the buyer’s intention to sell, followed by a code or password is all it takes to convert the gold for cash straight into the account of the gold owner. The gold bar then is removed from the vault and returned to the for sale shelf where it ill be put into the buyers market all over again.
This form of gold investment is normally considered ‘big time’ and the investors never end up losing any money as opposed to when one buys gold jewellery instead.
It is normally a slow process of ‘gaining’ monetarily out of gold jewellery as most jewellery are not in the pure form of gold and as such the cost of refining the gold will already cause the value of the gold jewellery to lose value.