Investment Ideas – Gold & Silver Bullion

If you are making savings and have a good, strong and stable income then its only a matter of time before you conclude that standard savings accounts do not really make the level of return on investment that a real investment such as property, stock, shares or business would. Although many of us would like to make some form of investment that will give a reasonable return without too much input and preferably without a whole host of knowledge and qualifications and risks that traditionally come from investing in business or stocks or shares.

Enter gold and silver bullion, which is a relatively simple investment in something physical that will retain value and raise in value, most of the time at a higher rate than the bank of England interest rates. Here is a brief overview of these investment options.

1.)  Gold bullion

Gold bullion is a general bracket term used to describe bars, ingots and any other lump that is made of gold. Gold is considered to be a precious metal and banks use their gold stocks to base the value of their currency on.  Investing in gold bullion is a simple matter of finding a broker who will be able to sell you gold bullion in the form that you want it in. Gold is measured by weight, and density so the cost of your gold is decided by the carat of the gold (the higher the more expensive) and the weight of the gold (the heavier, the more expensive).

The main benefit of investing in gold bullion is that you are purchasing the gold at a time when it is quite early in its manufacturing process and closest to its purest form where it is at its most profit making potential. As the gold travels down the manufacturing process and into coins and jewelry it loses its purity and density and also gains expense and cost, which is why a gram of gold bullion is cheaper than a gram of gold jewellery even though the bullion has more value that the jewellery.

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The main benefit of investing in gold is in the simplicity of it. Unlike stocks or shares which require monitoring and knowledge, or property that requires a significant investment of finance, or even a business which requires not only finance but also time, gold is a simple and easy investment that can be made with pretty much any reasonable amount of money.

2.)  Silver bullion

Silver bullion works and operates in a similar way to gold and is also considered to be a precious metal, only less precious than gold. All of the rules and habits that apply to gold, apply to silver also with the exception that it is cheaper to invest in than gold.

Both gold and silver bullion are commodities and because they are commodities they tend to rise and fall in value in the same way that oil and petrol does. However, they are also rare and precious meaning that as far as safe investments go, gold is a pretty good one. Whilst you will notice a drop in the price of gold, this is generally a limited occasion which should be interpreted as a signal to buy rather than a signal to abandon any plans for investing altogether.

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