As the Brexit shock develops as the global financial crisis did, it would be glad buying gold at 1000 Euros per ounce as prices rise amid the next ten years of turmoil. However, the Brexit rush to buy gold at 1000 Euros per ounce puts private investors at a risk of not meeting the actual gold returns. Over the past few weeks, the gold price has risen by over 17.6% against the British Pound. As such, returns for retail markets gold products have varied wildly. Experts say that how you buy gold is just as important as when you are selling it. More than any other major assets, gold price may decline wildly if you involve brokerage costs. Therefore, before you buy gold today ask yourself; who will I sell to? What delays and hassles might I encounter? And what will be the profit margin?
Currently, many coins and small bar shops are bidding gold on different search engines like Google. Indeed, they are bidding up to 10 Euros for you just to click their advert, and never mind whether you become their customer because the retail gold investment market is far much lucrative for the miners than for the investors.
Contrary, wholesale gold market for governments, hedge funds, and miners do not trade small bars or coins. Instead, it sells bulk gold bars cast by a few and closely-monitored by large refineries. These bulk gold bars weighs around 400 ounces and comes with a quality guarantee. If any gold bar is ever found to be lighter than the markings stamped onto it, the refiner will have to compensate the buyer. Additionally, they are stored inside specialist vaults, guarded by the latest hi-tech motion sensors.
When kept inside specialist vaults, these bars retain their maximum resale value until withdrawing moment. They are then shipped off to the melting point where they are molded into wedding rings, bracelets, bonding wires for microchips used in smartphones, and sporting trophies. Interestingly, the smaller the unit, the higher the manufacturing cost. Additionally, the more the intermediaries between a buyer and the manufacturer, the more you pay for handling and shipping expenses, profit margin, and insurance cover.
Therefore, before buying gold bars be sure to check the market trends. Today it could prove a great day to buy gold bars, but maybe buying one month ago would have been better. Buying six years before the Brexit would have been smarter considering that there are ready markets where you can sell your bars instantly.