Is Investing In Gold A Good Idea: Facts You Don’t Know

If you have money to invest, is investing in gold a good idea?

Such question and other similar queries are just proper for anyone who is in the process of making a choice where to put one’s money in.Actually there are so many types of investment available. Investing in gold or  silver, and later to sell it is just one of your many options.

Before one further pursues this question, you must know certain basic facts about gold investment:

1.     Gold is the most popular form of investment among precious metals

Gold is part of men’s history since the dawn of civilization and will continue to play a vital part in the present time and in the future.The allure and appeal of this yellow metal to man’s mind and imagination is beyond dispute.

Just like silver and platinum, gold is a precious metal which has a high demand throughout the world. As such, gold has high economic values. A number of people invest their money in gold as a strategy to preserve and maintain capital during hard economic times.

Some people reason out that in case an economy collapsed, the value of money will be worthless. In this scenario, you could trade in gold as a substitute for money.

Investment in gold serves as a hedge or protection against political, social and economic uncertainty or instability. The prices of gold tend to go up in the event of political or economic turmoil especially when the inflation is high.

2.     Investment in gold is a high-risk investment

High-risk investment is a kind of investment that carries with it a high potential risk or risk of loss in return for large profit or gains. While it is true that you can earn huge amount of profits from gold, there is always the tendency of losing some or all of your financial investment.If you are really contemplating investing money in gold then you must be in a position to afford losing your investment funds in view of the risk.

3.     The market for gold is subject to speculation

Just like in any other type of high-risk investment, gold is always subject to speculation like in futures contracts and derivatives.Future contract is an agreement between two parties to buy or sell a particular commodity of definite quality and quantity based on the price today, the delivery and payment of which is to be made at a specific future date. This simply reflects the expectation and intentions between the buyers who hopes that the price will be going to increase, while the seller hopes that the price will go down in the future.

is investing in gold a good idea

4.     The price of gold is subject to supply and demand

The price of gold is always subject to market fluctuations based on the supply and demand side of the market.  If you are planning to invest in gold, or buy and sell gold, you must constantly monitor any development in the market especially the price movement of gold and must be decisive and quick to make any decision to insure profits and avoid losses on the basis of gold market indicators.

5.     Gold does not earn interest or dividends

Unlike money in the banks or stocks of a company, gold itself as a form of investment does not earn any interest or dividends. The intrinsic value of gold depends upon factors outside of itself which is the appreciation or depreciation of its prices. Thus, it appears that it will always have this speculative element.

To be a wise investor in gold and to find the right answer to the question “is investing in gold a good idea” – you must have an informed judgmentOne way of doing this is to weigh and consider the facts presented here. Your sound judgment in the light of the basic facts is good as gold.

Investing In Copper Pennies: More Cons Than Pros?

Coin collectors are known to be very sentimental and even invest in copper pennies. But a lot of people wonder whether saving up on cents is a good idea. There are those who swear by copper pennies as the better alternative to gold or silver investing. While there are those (and they number in the majority) who think that pennies are just a waste of time. Is investing in copper pennies a good investment or not?

Let’s see both sides of the debate. You can make up your own mind whether the value of pennies as an investment is a penny-wise move, or a dollar-foolish one.

PROS

1.      The Copper in Copper Pennies is worth more than a cent

As of this writing, the melt price for scrap copper is around $3.24. A typical copper penny weighs around 3.11 grams. Let’s do some math here to come up with an amount. To get a pound of copper from copper pennies, you need approximately 146 copper pennies. Calculate how much a hundred and forty six pennies cost: $1.46.

The math should be proof enough for you. Get enough copper pennies, melt them, and then sell them by the pound. You get a 45% profit from this application (but take into consideration how much it costs melting metal).

2.      Copper Pennies have considerable value as collectors’ items

Coin collectors are willing to pay hundreds of dollars for a penny that’s rare. There are several pennies that never saw circulation and these are the coins that coin collectors will pay an arm and leg for.

investing in copper pennies

CONS

1.      You need a lot of coins

If you did the math above then you can certainly calculate how many coins it will take you to come up with a profit of, let’s say, $100. Ok, we know you hate math so we’re doing it for you: You need at least 4,507 pennies to earn a hundred bucks. Where can you find pennies that many?

2.      Some Pennies are Not even Copper

Pennies minted after 1982 are made of zinc. As you all know, zinc costs less than copper. They are also lighter than their copper counterparts. You’ll definitely need more and more zinc pennies to eke out a good profit.

3.     Melting coins are illegal

At least those that are currently in circulation. Make sure you check on your pennies before even considering melting them.

4.     Melting can be expensive

You need to find a good metal smith to do the job right. And these guys can charge you a pretty penny (pun intended). You can do it yourself, but we will warn you in advance that it can be difficult and dangerous.

There you go: the pros and the cons. Always remember that there are two sides to a coin, copper pennies included. Investing in copper pennies can be a fun hobby, especially if you’re out to collect the rare ones. But if you plan on melting the metal to sell then you need quite a lot of them to turn in a profit. A lot of people will argue that it’s just not worth the effort.