Investing in Gold
The supply and demand for the buying and selling of gold, a major precious metal, is mainly due because it is considered a hedge against inflation, that is, it retains its value during bouts of inflation),one may buy gold if one thinks the inflation rate might accelerate. Conversely, one may sell goldif one is concerned about disinflation. The easiest way to gain exposure to gold is through the stock market, in which you can invest in actual gold bullion or the shares of gold-mining companies. Investing in gold bullion won't offer the leverage you would get from investing in gold-mining stocks. As the price of gold goes up, miners' higher profit margins can boost earnings exponentially. Suppose a mining company has a profit margin of $200 when the price of gold is $1000. If the price rises 10%, to $1100 an ounce, the operating margin of the gold miners goes up to $300 – a 50% increase.
Gold might have a stamp with a particular purity mark, but it isn't always an accurate certification of its actual gold content. Some gold products of low quality have a false higher fineness marking. On top of this, there are gold-plated fakes filled with a different metal underneath the plating. Other times, you might have an unmarked piece of gold. To understand its actual value, you need to authenticate it. Through the use of various tests it can be simple to test your gold objects in the comfort of your own home.
The Acid Test
The Gold Acid Test is the most popular and accurate home gold test. This is because most acids may harm or damage only fake materials. However, make sure to perform the acid test only if your item was identified as non-magnetic. This helps to avoid any unnecessary expenses and actions. Additionally, take into consideration to carry out the acid test only on pieces that you won’t mind scratching/damaging. Or, items that you will not sell for aesthetic value. Also, be prepared to properly dispose of (or store) your acids after use.
Weight & Size Test
This test is ideal if you own bullion coins and want to check the size and weight of your gold. Gold bullion coins are a specific weight and size, made to certain specifications. This will give you a starting point to ensure the authenticity of your gold coin. Since gold is among the densest materials in the world, its weight is very hard to replicate. Real gold will be less compact. Counterfeiters will need more of the material to replicate the actual weight of gold. You should know what your gold coin is supposed to weigh, as well as its diameter and thickness. Simply weigh and measure your piece. This will help you to more easily spot real vs fake gold when knowing the specifications and checking to see if the coin matches said features.