ExecutiveChronicles.com | What Are the Different Types of Gold That Exist Today? | Are you looking to invest in the gold market, but not sure what type of gold to buy?
Gold has held financial value for millennia, used as currency and a store of wealth. It remains a core investment for many people today as part of their portfolios.
There are several different types of gold you can buy and sell to make money.
Types of Gold Bullion
Buying gold and silver bullion is the main way people invest in precious metals.
Gold bullion is manufactured by stamping the metal or pouring it into a mold, in a process known as minting. There are sovereign mints, or manufacturers, owned by national governments, which are also responsible for producing currency. There are also private mints that produce bullion for investment.
There are three main types of gold bullion: bars, rounds, and coins.
The best gold bars for investment are stamped with their hallmark, or brand, as well as their purity, weight, and registration number.
Gold bars are easier to stack and store than other forms of bullion. And as they are easier to produce than coins, buyers pay a smaller premium over the gold price.
Gold Coins and Rounds
There are thousands of types of gold coins around the world. But there is also value to rare gold coins, which are collectible and carry premiums for their historical natures.
Gold rounds are coins made by private mints rather than governments. They are often stamped with commemorative designs that make them popular with collectors.
Types of Gold Jewelry
Owning jewelry is a way to invest in gold while enjoying its natural beauty and practical use. Jewelry is easy to pass on to relatives as a gift or inheritance. In Asia, people gift jewelry at weddings and festivals as a symbol of wealth and gold fortune.
Pure gold is too soft and malleable for everyday wear, so jewelry is usually made from gold alloy. There are three main types of gold used for jewelry: yellow, white, and rose. The metals used in the alloy determine the colors.
Yellow gold combines pure gold with metals like silver, copper, and zinc. It maintains its gold-like appearance but is stronger than pure gold and more durable to wear.
White gold is alloyed with nickel or palladium to give it a silvery-white appearance. Rhodium plating makes it more scratch-resistant and durable than yellow gold and it is a more affordable alternative to platinum.
Rose gold has a higher copper content and less silver in the alloy to give it a pink hue. Rose gold jewelry is valuable because of its unique and attractive appearance
The different types of gold come in varying qualities that affect the price and resale value.
The quality of gold is measured in 24 karats. Pure, 100% gold, contains 24 karats, with the number of karats declining along with the gold content. The most common types of gold jewelry contain 9k, 18k, 22k, or 24k gold.
As we have seen, the content of gold karats affects durability, so a 9k ring is more durable than an 18k ring but is less valuable.
As gold bars are not used, they do not need alloying with other metals so they usually contain 99.99% pure gold.
Invest in Gold to Build Wealth
Buying and selling gold is one way to make money from an investment and build long-term wealth. Research the different types of gold and decide which is right for you.
For more tips on investing, check out the Money section on the blog.