The rapid increase in the price of gold leading to recession of several governments is a clear sign that the world’s reliance on bullion. Reports suggest that on January 4th 2008, the price of one ounce of gold closed at $859.19, exceeding the share price of Google (which closed at $657). Gold prices per ounce crossed $1000 on the 13th of March 2008. It is seen that investing in gold will become a preferred mode of investment in the near future. People looking for diversification of assets, reduce taxation or looking for a low risk investment are the ones who go for gold bullion.
Investing in gold can be done directly by bullion ownership or through several alternatives such as exchange trading. Here, the securities trade in the major stock exchange of the world. In gold bullion, it is possible for an investor to buy and sell gold via the stock exchange and the regulated brokering channels. The brokering channels charge a certain rate for every transaction.
According to the world gold council, the annual mine production in the last few years have been 2,500 tones and approximately 1000 tones of that are siphoned into the bullion. The rest goes into jewellery and industrial applications. Certain cultures have a higher than average interest in gold, such as India, which is the world’s largest consumer of gold as jewellery and as an asset. Bullion is currently an attractive option for anyone looking to invest.
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