There is a mythology of Irish origin that speaks of a leprechaun at the end of the rainbow. This leprechaun is believed to be the keeper of a pot of gold. Some people have even tried looking for this mythical creature in the hope of finding the pot of gold. But is there really a pot of gold?

Perhaps there is no other precious metal in the world today that has the most popularity as a form of investment than gold. Gold is accepted in many countries in the world – as a currency and as an instrument to augment profit as well as to prevent losses.

For many years, gold has been a ubiquitous element in trading activities. In olden times, gold has been used as a currency owing to its high valuation. Historical data reveal that ancient civilizations have used gold in a variety of ways. Some have used gold as a currency in trading, bartering them with other goods or items. Gold was also largely used as jewelry, an ornament to the human body and something of great value – like a palace or a chamber, even bathrooms in ancient times were decorated. Of course, only the royalty and the rich can offer such precious metals. Gold was regarded as something of value that possesses more quality and worth than other commodities.

Presently, gold has not changed quite a bit in terms of valuation. It is still being regarded for its market and aesthetic value. Perhaps, no other precious metal enjoys the same affluence and regard than gold. And why not? Gold has greater appreciation value. It is the only element that has increasing value over the years. Well, there may be some slight variation. But generally speaking, gold has had a tremendous rate of valuation since it was first used in the trading business.

Gold: An Investment Instrument

Gold offers lower risk for businesses or individuals to have compared to cash and bond investment. It is a great medium for diversifying your assets. Analysts and financial experts would often tell clients to widen investment portfolio by considering hard assets such as gold and silver if they want to get higher returns. Gold, in particular, has a stable price in the market, has almost never slumped in demand and price. It is a tangible, real asset that can stand long against time and is constantly enough against currency issues, inflation, deflation and even risks involving geographic and political unrest.

What to Buy

There are a variety of gold products to choose from. Knowing which of these products are safe for you to invest in can certainly do you a lot of good. More importantly, knowing how to identify if the gold is genuine can take you to far greater heights in trading and other investment ventures.

Primarily, there are three classifications of gold products – bar or bullion, coins and jewelry or scrap.

1. Gold Bars/ Bullion. Gold bar or bullion is one form that provides investors and buyers low cost because these can be purchased on a per troy-ounce basis. Simply put, the more bars you get, the fewer prices you may have to pay. Then again, that would depend on the trader you are dealing with. Gold bars/ bullion offers a great way for anyone who wants to acquire investments in the form of hard assets. They come in many sizes – weight variations actually. Gold bullions in 1 troy-ounce, 10 troy-ounce and 1-kilogram bars can be purchased from traders. There are also 100 troy-ounce and 400 troy-ounce bars. At times, gold outside of these weight options are also available.
2. Gold Coins. There are historic gold coins which pretty much retain their value – or even higher. Gold coin, in itself, has a nominal face value, and, regardless of time, has the same gold content in it. Some of these historic gold coins are: Spanish Escudo, British Guinea, British Sovereign, the American Gold Eagles, French 20 and 40 Francs, Swiss 20 Francs, the American Half and Double Eagles.
3. Gold Jewelry. Of course, jewelries made out of gold are convenient investments. Other than its aesthetic value, it can be used to add to your investment portfolio. Opt for antique or vintage gold because they are higher in gold content and are more pure than their modern counterparts. Gold jewelries being prepared today are often made of the 14 karat variety. Choose jewelries that are higher than this. One concern to take note, though, is that because these are made in various designs, their value depends on the craftsmanship and style that were put into making them. This means that if they are not done quite beautifully, their value may not be that high as well.

Things to Remember Before Buying

The intricacies of buying gold are what make people think that it is a risky and difficult business to venture. Gold buying is actually easy and convenient. There is a gold shop online, although you have been cautions when dealing with some of them. Go to those that are trusted, and has been in the industry of trading for some time. A good track record simply says a lot about the company you may want to deal with. Remember to:

• Have a Good Sense of Role in Buying Gold. Remember to ask yourself first the reason why you are buying gold in the first place. Would you have the capacity to look after it after some time? Develop a keen attitude towards owning gold. Remember that it is an investment and not some form of keepsake that you just put away on a shelf.
• Understand How Much You are Investing in Your Gold Portfolio. In the past, it has been a common practice to invest 10% of the portfolio in gold. In recent years, however, analysts would say that a good 20 % will do. Just to be on the safe side, you can invest from 10 % to 30 % of your gold portfolio.
• Know What Your Objectives Are and Match Them with Your Portfolio. It is beneficial for those who are just starting to invest in gold to have a strong sense of their investment portfolio. Am I investing on gold bullions because they yield the most premium? Should I keep gold coins because I can keep it in a safe or put it in a safety deposit box in the bank? These are factors to consider when making a portfolio. Align your objectives with the portfolio you have.
• Choose to Do Business with the Right Trader or Firm. Business dealings with gold can be quite risky, especially since there are scammers everywhere. Only do business with trusted and reliable gold traders. There are online shops that can offer you valuable help regarding gold investments and buying them. Other the APMEX and Kitco, there are traders around the world and online to take all your queries and process your transaction about buying gold.

Gold has made a tremendous impact on the economic processes of nations and the world in general. Without a doubt, an investment portfolio that includes gold is a strong portfolio. It involves fewer risks than the bond or stock investments, even strong enough against currency. When cash and bonds perform well, there is always inflation that will go after it, increasing alongside them. Gold, however, retains stability both in price and demand, making them excellent choices for diversifying your portfolio.

Invest in gold now. Who knows, this might give you the opportunity to discover or earn the gold pot. And certainly, there is no need to look for that leprechaun,