FAQ

Frequently Asked Questions

Gold Investment Terminology

Spot Price:  Real time price set by supply and demand.
Premium:   Price Paid minus Spot Price
Bullion products manufactured by refiners generally have lower premium than government issued coins even if they have same weight and purity.  Rare coins have higher premium. Mainly based on numismatic value.  Numismatic value is determined by scarcity, collector value, quality, demand and other intangible factors.
Troy Ounce: The traditional measurement for the weight of precious metal is Troy ounce. One Troy ounce is 1.1 standard kitchen ounces.
Karat: The purity of coin or bullion product is measures in Karat.  When jewelers tell you that a ring is 24 Karat gold, it means its 99.95% pure gold.
FINE: Precious metal dealers usually use the term  Fine to describe this purity.  When you see the gold or silver product is .999 fine, That means it’s 99.9% pure precious metal.

Q: Is Gold an investment
A: From WikiPedia
Of all the precious metals, gold is the most popular as an investment. Investors generally buy gold as a hedge or harbor against economic, political, or social fiat currency crises (including investment market declines, burgeoning national debt, currency failure, inflation, war and social unrest). The gold market is subject to speculation as are other markets, especially through the use of futures contracts and derivatives. Gold price has shown a long term correlation with the price of crude oil. This suggests a reason why gold is sold off during economic weakness.

Q: Is Silver an investment
A: From WikiPedia
Silver, like other precious metals, may be used as an investment. For more than four thousand years, silver has been regarded as a form of money and store of value. However, since the end of the silver standard, silver has lost its role as a legal tender in many developed countries including the United States, with the exception of the American Silver Eagle. In 2009, the main demand for silver was for industrial applications (40%), jewellery, bullion coins and exchange-traded products. In 2011, the global silver reserves amounted to 530,000 tonnes.
Millions of Canadian Silver Maple Leaf coins and American Silver Eagle are purchased as investments each year. The Silver Maple Leaf is legal tender at $5 per ounce and there are many other silver coins with higher legal tender values, including $20 Canadian silver coins. Silver is legal tender in Utah, and can be used to pay all debts.

Q: Is Platinum an investment
A: From WikiPedia
Platinum has a much shorter history in the financial sector than either gold or silver, which were known to ancient civilizations.
Platinum is relatively scarce even among the precious metals. New mine production totals approximately only five million troy ounces (150 Mg) a year. In contrast, gold mine production runs approximately 82 million ounces (2,550 Mg) a year and silver production is approximately 547 million ounces (17,000 Mg). As such, it tends to trade at higher per-unit prices.
Platinum is traded on the New York Mercantile Exchange (NYMEX) and the London Platinum and Palladium Market. To be saleable on most commodity markets, platinum ingots must be assayed and hallmarked in a manner similar to the way gold and silver are.

Q: Is Palladium an investment
A: From WikiPedia
Palladium price peaked near US$1,100 per troy ounce in January 2001 (approximately US$1340 in 2009 dollars) driven mainly on speculation of the catalytic converter demand from the automobile industry. Palladium is traded in the spot market with the code “XPD”. When settled in USD, the code is “XPDUSD”. Recent years’ palladium surplus condition was caused by the Russian government selling off government stockpiles built up during the Soviet Era, at a pace of about 1.6 to 2 million ounces a year. The amount and status of this stockpile is kept as a state secret.

Q: IS GOLD A LIQUID ASSET?
A: Gold has had a value for over 6000 years and is one of the only assets you can take anywhere in the world and liquidate.

Q: WHAT ARE THE TYPES OF PHYSICAL GOLD I CAN INVEST IN?
A: There are typically three types of physical gold you can invest in. The first type is gold bullion which is any gold that continues to be minted to this day and has no rarity to it. The second type is rare gold also known as numismatic or certified gold and this is any gold coin that is no longer be minted or that is minted in low supply. The third type of gold you have to choose from is proof gold which was designed specifically for retirement accounts in 1987. Each type of gold has different benefits so it is best to call Regal Assets (our top company) to speak with an Account Executive to find out which one best suites your investment objectives.

 

How To Buy Gold Bullion