How The Gold Market Works

Many investors who are new to the gold market may initially be overwhelmed by the enormity of the market, and what seems like an endless array of investment options. Rest assured, that investing in the gold market can be as simplistic, or as intricate as you prefer.

To quantify matters, understand that most gold market investments fall into the categories' of either leverage, or non-leverage investments.

The leverage side of the gold market includes gold stocks, gold futures, ETF's (Exchange Traded Funds), along with a growing assortment of leverage programs. This side of the market is for investors, whose aim is to speculate on profit potential, and it generally consists of investors with extensive market knowledge, who are holding their gold for possible short-term gains.

The non-leverage alternatives are physical gold coins and bars that are owned outright. Popular examples of this debt-free side of the gold market include government-issued gold bullion coins, 24-karat bullion bars, and PCGS, or NGC certified gold coins. All of these precious metal items are delivered insured and completely confidential, safely to your door.

Both sides of the market naturally hold risks, and you can expect prices to fluctuate as the underlining gold spot price rises or falls. Beyond this similarity, these investment strategies part company, as derivative, paper-based gold transactions falter, primarily due to debt. Gold ETFs like the GLD fund may not actually hold the sufficient inventory of physical metal to cover its paper assets in tally, which thankfully is not the case when you hold your own precious metal bullion, and/or a certified rare coin.

To more thoroughly clarify, just suppose you were a real estate investor who bought two homes; one that you paid for in full, and the other that you’ve financed with ten percent down. Now let’s assume the market drops by 30 percent. The property that is leveraged will likely default, while the property that is owned outright, would retain the ability to repair lost equity over time. The gold market, and the options that lie therein, can work for you in the same way. For 5000 years, gold coins have maintained their spending power far more effectively than leveraged assets like ETFs, or printed currencies.

The Certified Gold Exchange has been physically delivering gold, silver and platinum bars and coins to your door since 1992. We can help you surpass the demands of the market, as well as deliver peace of mind in an ever-changing world. To get started, please request one of our market insiders’ guides below, or feel free to contact us directly.