Gold has always been a great investment. But the recent run up in prices has created an even more lucrative opportunity for the savvy investor. At Houston Gold Merchants, we've begun to sell another form of investment gold.
While most investors use gold to hedge against the devaluation of the dollar and maintain their wealth, only a very few visionaries will seize upon this opportunity to CREATE wealth as well as maintain it.
For decades the acquisition of gold in the form of bullion has been a hedge against inflation. Usually the bullion has come in two forms. The most popular is coins. Minted by governments, private companies and as commemorative items, coins come in varying degrees of purity from 18K to pure 24K.
The second most popular investment bullion is bar form. Less expensive because demand is lower, bars were, for decades the only way to invest in large amounts of gold. Minted in many sizes and by various companies and institutions, bars will always have a place in the portfolio of many HNWI. (high net worth individuals)
But today's frantic marketplace for gold has created a new and exciting opportunity for investors who have the courage to try something new and the financial power to execute this exciting investment play.
The purchase (for investment purposes) of scrap gold jewelry is a huge and growing market, particularly in wealthier segments of the population. While the less affluent may have already sold their limited amounts of small jewelry, the affluent are less likely to have tapped into their reserves. That means there's still going to be a lot of gold in the market and it's going to be purer and of better quality because it's coming from the homes and safety deposit boxes of the wealthy. While most bullion purchases are made at the -spot- price of gold plus an additional fee or premium, scrap gold is purchased for significantly below the -spot- price. So instead of acquiring gold for costs that EXCEED its current value and hoping that it appreciates (speculating), with scrap gold, you buy below market cost and realize an instant profit even if the market price declines.
Without exception, this is the best play in the gold market today. There is huge market of untapped gold, a large profit margin and the security that is associated with that large margin. There's a reason you're seeing gold stores pop up all over the place. Scrap metal is the way to go.