Is Bitcoin As Good As Gold?

Gold and Bitcoin have been used synonymously as safe havens and currencies. What is a safe haven? It is a place to park wealth or money when there is a high degree of uncertainty in the environment. It has to be something that everyone can believe in even if the current institutions, governments or players in the business game are not available. The wealth has to be kept safe in times of trouble. What are the risks to someone’s wealth? There is theft by robbery if it is a physical asset. There is damage by fire, flood or other elements. There is the legal issue in not being able to determine if the asset is really yours or not. There is access risk in that you may own the asset but may not be able to get your hands on it. You may own the asset but may not be able to use it due to some restriction. Who else do you have to rely on to be able to use your wealth – spending it, investing it or converting it into different units of measure (currencies)?

In cases like cash or currencies, you may have the asset and can freely use it, but it does not have value due to a systemic issue. There may be too many units of the currency such that using them would not purchase very much (hyperinflation). There is also devaluation – where a currency is arbitrarily devalued due to some economic or institution issue. Most of these issues come from too much debt and not enough assets to pay for them. A currency devaluation is like a partial or slow motion bankruptcy for a government or issuer. In a foreclosure scenario, the creditors (or users of the currency) would be getting a fraction of what the asset (or currency) was originally worth.

No Liability

One key aspect for both bitcoin and gold is that in creating either of them, there is no liability involved. National currencies are issued with interest attached, which means there is a liability to the issuer of the currency. The currencies due to being centralized can also be “delisted” or have their value altered, devalued or swapped for other currencies. With Bitcoin, there would have to be consensus among the players for this to happen. Gold is nature’s money, and since it was found, there is no one really in charge of how it works. Gold also has the history of being used as money for thousands of years in virtually every culture and society. Bitcoin does not have this reputation. The internet, technology and power grid are needed for Bitcoin to function, whereas gold just is. The value of gold is based on what it is being exchanged for. The value of Bitcoin is similar to buying a stock or a good: It is determined by what the buyer and seller agree it is worth.

Bitcoin Issues

Are there regulatory, institutional or systemic risks with Bitcoin? The answer is yes. What if a bunch of central banks or governments took over the Bitcoin issuance? Would this not lead to control issues that could either stop the Bitcoin transactions or impair them? What if the justification was to stop terrorism or illegal activities? There are also technology issues like who controls the internet, the electrical energy involved in mining Bitcoins, or other issues in infrastructure (the electrical grid, the nuclear grid, the internet servers, the telecom companies etc.) Regulatory risks can also run the gamut from restricting who buys Bitcoins, how many can trade each day or perhaps issuing trillions of units of fiat currency and buying and selling Bitcoins with them which would cause convulsions in the prices of the unit, leading to mistrust and lack of use? Gold does not have these shortcomings. Once it is mined, it cannot get destroyed. It is not reliant on technology, infrastructure or any institution to make it valid. Since it is small and portable, it can be taken anywhere and still be useful without any other mechanism needed. The prevailing institutions can be changed many times and gold will still be valuable.

Gold is a classic safe haven because it does not need institutions to exist, is very hard to forge, cannot be destroyed by the elements and does not have issues of access or restrictions. Physical theft and restriction may be factors, but gold fares better than currencies or digital currencies at this point in time.

Do you want to:
Learn how the world of money really works without the need of a time consuming or expensive course of study?
Discuss what you want to achieve according to your horizon?
Restructure your finances to achieve your goals?
Advice that is not affiliated with any institution or any product – an independent opinion?

If you answered yes to any of these questions, contact me at: Contact me, Joe Barbieri by email at joetheinvestor.today@gmail.com, my web site at http://www.joetheinvestor.ca or by telephone at 647-286-8020 for an independent consultation on what your options are. Note: This article is intended for people who want to learn about the world of finance and how to research for themselves. If you would like to buy or sell investment products, or specific advice on investment products, tax or legal issues, please consult your investment advisor, accountant or legal counsel

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Why Do Gold Eagle Coins Rate So High Among Bullion Coins?

The American Gold Eagle bullion coin is hands down the most popular bullion coin to own for investors and collectors alike. Gold Eagles are a class of their own not only due to the fact of being the official bullion coins of the US but for many other reasons beyond that. Impeccable design, enormous demand and liquidity and scratch resistant 22 karat composition, all of these factors contribute to Eagle’s high ratings among gold investors and collectors as well.

Even with international investors, one of the more popular types of gold coins is American Eagle coins. These are often rated highly both among appraisers and collectors alike. These particular coins allow investors to broaden their portfolio in both diversification and a guaranteed return due to the precious metal’s stable appeal. Every Gold Eagle coin price is assigned based on its weight and the spot price of gold on a given day plus dealer premium fees. Spot prices are noted in major media formats daily, weekly and monthly. The actual coin’s design is an exquisite one. The design was created by Augustus Saint Gaudens. It is an exuberant creation, which is often why it is rated so highly among gold dealers and numismatic assessors. The Gold Eagle coin was first minted in 1986 and the face denominations’ on the coins tend to be proportional to their overall weights. Each Eagle coin typically sells for much more than its face value. For example, a $5 Eagle may sell for almost $200 because of its priceless rarity and elegant specifications. Collectors find Gold Eagle coins to be the most fascinating among the bullion coins because they provide such a lucrative return.

When you are considering purchasing a Gold Eagle over another type of bullion coin, it is imperative that you research the coin itself. With so many counterfeiters and varying forms of fraud in the Gold Eagle coin and gold marketplace in general, reading up on the sellers is an important thing to look at when buying gold coins. Many gold retailer websites offer reviews on sellers and collectors who are looking to sell their Gold Eagle coins. It is also worthwhile to know how much you want to spend and what these bullion coins usually cost. Determining what kind of gold coin to buy, you should know and understand how the gold will affect your investing portfolio as well as how well it will be valued over time. Collectors want to acquire these bullion coins because they are already highly esteemed and their value continues to rise over time. Taking the bigger picture into consideration is usually one of the factors that collectors go by when purchasing Eagle coins over other bullion coins. Gold Eagle coins numismatic values are rated highly by such agencies as the American Numismatic Association. These coins predominantly are rated higher due to their United States government stamp of approval and backing, regardless of their denomination. The Gold Eagle coins are known as pure assets, because they offer built-in value to your gold coin collection.

Kayla McBride is one of the article contributors of the gold and silver investment website GoldBullionPro.com

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Reasons To Sell Gold For Cash

Selling gold became one of the most popular ventures since the recession. Why? The reason is because the value of gold jumped through the roof during that period. It has succeeded in continuing to give some great cash benefits over the years. Instead of buying stock, people searched through every gold item they had to sell for instant cash, whether damaged or not.

Another reason is the opportunity it creates for people to settle their financial problems, especially with the rise in living standards. The cash they get from selling gold goes a long way to cover most of their bills and mortgages.

There is also the business opportunity that comes with making a career out of selling gold. Some people buy gold from family members, friends and neighbors. They pay them a small sum of cash and turn in the gold to gold buyers for a profitable sum.

How To Get Cash For Selling Gold

There are many gold buyers out there who would trade in some cash for gold. One of them happens to be local jewelers. People need only walk into their places of business, have their gold items weighed and given cash depending on the weight of the gold.

Gold buying companies also exist for the same reason jewelers do. The process is the same in these companies as well. Walk in with the gold, weigh it and cash is provided.

Gold buying websites are other avenues to venture when in need of selling gold. The selling process here is a bit different as it does not require a face-to-face approach. People should first send a sample of the gold they intend to sell as proof. Then they weigh the gold and communicate with the website of their weight which follows with a value provided of how much the gold is worth. Afterwards, they send the gold to the gold buying company on the website and their cash is sent in immediately after verification of the weight. This process takes longer, but it is just as effective in the long run.

What To Do Before Turning In Gold For Cash

It is always is important to conduct some research on the current value of gold and the selling process before engaging in any selling. This is so people do not get ripped off for a lower sum of money or no money at all.

Therefore, the first thing to do is weigh all the gold items. The next step is to find out what the current market gold value is and come up with an estimate of the amount of cash to receive. The next thing is to conduct some research on gold buying companies that someone may want to sell their gold to. This way, one can know their nature of business, if they are legit or not. When it comes to websites, reading a couple of reviews would be very helpful.

Better Business Bureau stated gaining some knowledge on the different kinds of gold weighing scales is also very important before selling gold. This is because companies and jewelers use different types of scaling machines with different gram sizes for an ounce of gold. For instance, the standard weight of an ounce of gold is 28 grams. However, some companies and jewelers use the Troy ounce which weighs an ounce of gold at 31.1 grams. Others use a pennyweight which is 1.555 grams.

Abraham dealt with Gold Dealers Company to sell his broken items of gold that lay around in the garage. He recommends this company because they gave him a great deal for his gold. The fact that the cash he got was the equivalent to the market price made him value the company’s professionalism. More information if you visit Sell Gold Sydney website.

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How to Purchase Gold Bullion Coins Today

For many investors today, owning stores of solid gold bullion is one of the best ways to secure your finances for the future. In today’s unpredictable economy where the currency has dealt a very weak and vulnerable hand, many investors are looking to invest in gold coins in order to gain stability, strength, and market independence from their currency held assets. There are many reasons that investors find to acquire gold coins, and gold’s stable legacy is definitely one of them.

Many investors and collectors purchase gold bullion coins to gain a more stable financial hold on their futures. In today’s day and age, many factors affect the value of currency, and therefore, affect the spending power of your hard earned salaries. Nobody wants to lose the value of their life’s earnings, and for this reason, many have sought out the market independence and resilience that gold has held over the course of centuries. In fact, gold has even been said to have maintained a stable and constant value over the course of two hundred or more years. The demand for gold plays an ever-present and visible role in global finances, and for this reason, many investors purchase the yellow metal coins and see gold as a more permanent fixture of value than currency simply because gold will always be worth more than printed paper and base metal coins.

Gold is also viewed as an excellent method to diversify your assets. As the saying goes, it is never a good idea to place all your eggs in one basket, so it is also unwise to place all your investment power in one asset. Gold, unlike any other investment on the market today, provides the uniqueness and value that many investments today simply cannot retain, which is yet another reason why many purchase gold coins. Some purchase the yellow bullion coins because of gold’s reputation as an excellent hedge against inflation, as gold has been viewed as a crisis hedge for many years. Stable and in demand during times of natural, political, and economic crisis, gold coins have become a popular commodity, and gold bullion bars, as well.

For those investors who are keen to purchase coins, there are many sources from where to purchase gold coins. Yellow metal bullion coins are minted through various international mints and refineries that have assembled comprehensive and easy to use websites where many investors and collectors of gold coins are free to purchase gold bullion coins and a large assortment of other gold products and precious metal coins. Though many who purchase gold bullion coins see this as the most secure and stable method of investing in gold, there are many other ways to go about making a purchase of gold and an investment in solid, fine gold.

Access to solid, pure gold is of interest to many investors today who wish to diversify their portfolios or are considering the future of their finances. Gold’s ability to preserve wealth is one of the reasons many investors choose to purchase gold bullion coins. For those investors who opt not to purchase gold bullion coins through a mint, the other method is to purchase gold bullion coins through a third party gold bullion dealer. There are many gold bullion dealers around the world, and many of them are large and frequented companies. There are many ways to purchase gold bullion coins in a secure way, and finding a reputable gold bullion dealer is one of them.

In order to find a reputable gold bullion dealer, there are several measures you must follow when on the market. Learning as much about a couple of gold bullion dealers of interest is a good place to start for those looking to purchase gold. Finding out how long they have been in business and reading any review that you may happen across by past investors is a good way to start evaluating each bullion dealer before you purchase gold coins.

There are many large gold bullion dealing companies who are interested in caring for their reputation, and in turn, they often facilitate simple and reliable transactions for those on the market to purchase gold coins. For others, it is always a good idea to review their specific policies regarding payment, shipping, and of course, returns and money back guaranties. For those on the market to purchase gold, it is prudent to be wary of any dealer who is unwilling to offer a decent return policy or who does not have a money back guarantee.

Lastly, for those on the market attain gold coins, it is a good idea to make sure there are several methods of contact between yourself and the gold dealer. A phone number or email address is not enough, it is often a good idea to ask for a phone number, email address, and a mailing address in order to make sure lines of communication are wide open incase a situation arises. Of course, if you are deciding to buy gold coins between a couple of dealers, but cannot make the decision, it is prudent and advised to gather several quotes from these dealers on the price of their gold bullion coins, bars, and other precious metal products of interest. This way, the ability to purchase gold is not only simpler, but it also ensures the best price possible for the yellow metal product you wish to purchase when on the market to purchase gold bullion coins.

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