Investing in gold is becoming more and more popular nowadays. The wealthy have been investing in gold for centuries. However, it is only just becoming a popular way to save money amongst the middle and lower classes. The best thing about investing in gold is that you can get a higher price than what you paid for it. If you study the market and make the right moves at the right time, you could end up making a significant profit on your investment. That’s the reason why commodity trading is becoming more and more popular these days. However, most people are confused about whether they can own gold or not. Here are a few things that you need to know:
Gold Was Illegal at One Point in Time
Most people are often confused about owning gold because they’ve read that it was illegal at one point in time. In 1933, Franklin D. Roosevelt, the President of the United States of America signed Executive Order 6102. This prevented the average person from hoarding gold coins or gold bullion. This order remained in effect until 1974. During this period of time, anybody who wanted to buy gold was required to obtain a special license. The government wanted to keep track of all the people who owned gold, in case currency values began to fall. In the global economy, gold is often used as a way to balance currency values.
However, all of these restrictions were lifted on the 1st of January, 1975. Right now, anybody can buy or sell gold throughout the United States of America. In some states, buying or selling gold is also exempt from any sales taxes. There are a few things that you need to know about buying gold.
Buying gold is not as easy as it looks. Gold is measured in terms of karats. 24 karat gold is the purest form of gold available in the world. Needless to say, it is also the most expensive. Prices tend to decrease proportionally to its fineness. For instance, 10 karat gold usually contains just about 40% of gold, which means 60% of the material consists of impurities and other alloys. That’s obviously cheaper.
If you have decided to buy gold, think about when and where you want to buy it from. You should learn how to read the market. Invest in gold when the market is at a low. That’ll help you generate some good profits.