Gold bullion business involves buying and selling of physical gold or silver to gold dealer in order to make profit. Some business man who buys gold could hoard it and sell it when the price is higher. This always happens when there is an economic crisis when most prices go up.
Other investors of gold buy it at wholesale prices and sell it to gold dealers. Jewelers for retail prices. Gold trading is very advantageous to the businessman who deals with this kind of business although it requires a huge amount of money.
Gold trading works in a way when a businessman buy gold from supplier at the wholesale price since they buy gold in bulk and then sell it to different gold dealers and jewelers at a standard price which is in the market.
When talking about gold price, it is not stable; it is dynamic and change everyday. Sometimes the price could goes up or down. To succeed in this kind of business one has to possess the required knowledge in gold and be smart enough to deal with this kind of business. One has to be alert and sensitive to the current price of gold where you have to know it everyday.
Trading is not an easy business and you need to know where to get gold bullion or suppliers of gold. You also need to get bid fund outlay for this business. Being a precious metal trader, you must know how to deal with gold businessmen dealers.
In some cases, people prefer dealing with gold coins because it can easily moved and transported rather than gold bullion bars. It depends on ones motif as to which gold bullion you decide to buy or sell. Gold bullions has different sizes either in bar or in coin. Gold bullion are easy to hide when you stock them in you house.
You can also buy futures, stocks and ETFs. There are many dedicated gold exchangers where you can buy and sell gold online 24 hours a day and 7 day a week. And has greatly changed the nature of what it mean to trade gold.
There are numerous information online about gold bullion coins and bars. As coins has different designs and features, that also applies to gold bullion bars. You can research for gold trading online in a very easy way.
There is also online trading where you can compare the price. Many website where you can register in order to trade gold. Make sure that you get reputable dealer or supplier. Always remember to be careful when buying gold through the internet and also to be careful and alert in detecting fraudulent website.
The only ever time I made a call based on fundamentals was when I called a gold top at 1825. It promptly fell through 17 and 16 down to the high 15s.
Despite the high fear last few weeks taking the euro into 1.2x area, gold has indeed struggled to shoot towards the 2000 my Goldman sachs research paper is talking about. Although the looming double dip, quantitative easings, rating cuts and problems in Japan might come to bare on the price yet.
What I wanted to know is your own outlook as a gold bug? How come you still advocate the physical gold plays? You thinking long term? I personally forecast a gold crash in 2013 or if two or more countries should leave the eurozone in 2012, a crash in 2014 - it’s a price bubble driven by weakening dollar not any real supply/demand forces.
I know everyone says hold gold, cash is dying, blah blah but there’s no gold supply on mass to make it legal retail tender so not sure how pulling out golden nuggets from under the mattress will get you a Big Mac if there’s no stable cash to give you change. Sure gold works for transfer of savings, wealth and big money but I’m not an economist, I don’t see how hoarding gold necklaces will work out in the end unless the cash desk at British Airways will take them for a ticket to high tail it out of here to Brazil or Dubai.
Au crashing? LOL! Au never since a couple of thousand years crashed. An ounce is an ounce and it will ever be an ounce. What will crash sooner or later are the euro AND the dollar, because it’s a fake currency. It has no inherent value, you can’t eat it, nobody can use it for anything in the industry. See, those thoughts give you an idea why all the arguments against au are utter nonsense. You can’t even pay with diamonds and your house for a ticket, but that doesn’t mean it’s all crashing, lol.
What you need to recognize is that we have different asset classes. Gold falls into the real goods class. While paper pieces with numbers on it falls into the debt class. The key difference between those both classes are that governments or anybody else can’t produce real goods out of nothing, but they can and will continue to produce debt.
The key to understand the au price is that it is not rising, but it is an indicator to know that the dollar, euro or whatever debt vehicle you have is falling. Since 40 years the dollar has lost ~ 98% of it’s value compared with au.
Bottom line, you need cash for paying your tickets or goods, but cash is not a good value conservation. For keep your value you need real goods, because they can not get inflated by number bubbles. To buy au is merely an insurance against inflation. Sure you can also make money with it if you buy if it’s undervalued, but so it is with every good.
You may argue au might droop til 1k in 2013, but I doubt it will go any lower if that low at all. Because the production cost of au is around that number and still rising. Even if it droops that low it will go back til higher highs later, because nobody will pay all the debt bubbles back. As mentioned, in reality not au is drooping or rising, but debt bubbles with go through contraction and extraction again and again.
No crash in sight Imho. In Europe, banks are being allowed to borrow double amount of cash against the same amount of gold. If this is not gold bullish you tell me.