The term bullion refers to gold, silver and other precious metals in form of coins, ingots or bars. Intrinsically, the value of bullion is determined by the purity and mass of the precious metal content.
However, from time immemorial gold bullion has proven to be short and/or long term solution during dangling financial situations. Therefore, savvy investors and any reasonable person(s) needs to give greater consideration to their investment vehicles, thus gold bullion is the most effective and efficient strategy.
As we dig deeper, you can tell the mystery behind gold bullion as the first and best option among conflicting investment mechanisms;
1. Universal acceptability. Gold bullion is recognized and in high demand globally, territorial boundaries are not barriers to buying or selling of these precious metals, so wherever you are on the globe, you can invest in gold.
2. Physical and tangible assets. Gold bullion is product you can see and touch; as such you are buying or selling a real precious metal and not transient goods like stocks or ETF.
3. Capital growth and ROI. When you invest in gold or silver, your investment will grow with time. It a common saying in the UK that gold is the best performing asset of 21st Century. Based on available statistics, from 1999 to date, gold has a growth of about 330% compare with FTSE and Housing market with growth of 173% and 231% respectively.
4. Inheritance/retirement planning. Buying of gold is the present days Solomon’s wisdom of planning for retirement (IRA) and inheritance of your estate. The mere fact that you are buying physical asset (gold), the propensity of growth and tax efficiency is an assurance that you will be financially strong at retirement and have worthwhile assets for your estate.
5. Safe haven. Investment in gold is antidote or assurance against inflation. In view of the increasing debts of strong nations like USA and UK, inflation is having negative impacts on paper currency, goods and services.
During this worst economic scenario, the value of currency is eroded, prices of goods and services are increasing and this circumstance is a pleasurable time for gold because while currency value is decreasing, the value of gold is increasing with the pace of inflation.
Therefore, the only route of escape to preserve your asset is to invest heavily on gold bullion. For instance, Judge Soro and Warren Buffet have gold investment worth about $50Billion and $31Billion respectively.
6. Tax exemption. Gold has tax advantage and certain types of gold are tax free. Also, it not mandatory to make returns to IR.
7. Low price. Provided you are tactical and strategic about your investment and future, you can predict with absolute certainty and buy when the price is slightly down in anticipation that your investment will grow with passage of time. If you are naive about the strategies, you can engage the service of professional at a reasonable fee.
8. Financial market. Your investment is outside the financial market, so you less concern about inflation, laws and monetary policies affecting the financial sector.
9. Private investment. Your investment is personal, no need of registration with any government agency and no mandatory laws as to how you should invest your hard earned money, compared with corporate world with several investment do’s and don’ts.
10. Scarcity. Gold is finite in supply that is the availability is limited. The law of demand and supply says, the higher the demand
the lower the supply, this is true about gold being an ostentatious goods.
In light of these revelations, what is now your investment decision about gold? Your decision will determine your financial destiny.