Protecting Your Wealth by Investing in Gold Bullion

Gold bullion is just another form of gold, meaning that it is melted down from the coin stage or the jewelry stage or directly mined and turned into scraps or gold bars, which is then invested in by many different types of people. Investing in gold bullion can provide a great means of income and safety for the financial security of your family, even in tough economic times.

Since gold no longer has a face value in the sense of being used as legal tender, the price fluctuates greatly each day, giving people a chance to earn a substantial return from a small investment, or lose money if the markets decline which has happened very few times. However, those who invest in the world gold markets understand that their investment is for the long haul, and not just an overnight way to make a quick buck.

Putting your money in gold bullion can be much safer than investing in other stocks because the price of gold has remained steady in comparison to other stocks and commodities, even though it has had its fair share of highs and lows throughout the late part of the 20th century and early into the 21st. Gold averages about the same investment value in all five of the world markets, making it an internationally safe choice to place your money. Many people and some investors don't believe that gold is still a precious commodity, and think that it is outdated and reduced to being used for jewelry and other fancy adornments. There are those that are dead set against gold as a stable investment.

However, gold bullion has a value that is worth far more today than it ever was as legal tender. In 1971, the value of the U.S. dollar was no longer determined by the gold standard, which allowed gold to take its own place in the free markets as people and the law of supply and demand determined its price. This caused a huge jump in the price and took it up to about $850 per ounce in 1980. After this, the markets declined rapidly for almost 20 years, leaving gold at an all-time low of just $252 per ounce in 1999. Since then, the price of gold has been steadily increasing and did see another all time high of over $1,000 per ounce in March of 2008, but has since fallen off this historic level.

If you have invested in gold during a time when the value was low, you are going to be more likely to make a profit. For example, if you invest in gold when the market is low like it was in the late 90s, you'll be more profitable than someone who invested in gold when it was at its peak, because they have had to wait for nearly 20 years for the price and their investment to recover, that is, if they didn't end up selling at some time in the past.

Investing in gold bullion is a very sound move in most cases today, because it is still a precious commodity around the world. Unlike company stocks which fluctuate with the changing economy, the price of gold sets its own standard in the market, often making it more desirable for trading and investing in.

Alan LeStourgeon owns a gold coin auctions website where you can find lots of information about buying and investing in gold coins and bullion.