GOLD AS AN INVESTMENT AND THE LIQUIDITY IN THE MARKET
GOLD AS AN INVESTMENT AND LIQUIDITY IN THE MARKET
Gold as an investment and the market liquidity is a market’s ability to purchase or sell an asset at stable prices. High liquidity means that a high number of parties are willing to take the other side of the trade. Gold, like cash, shines as a very liquid asset.
GOLD’S POSITION IN THE MARKET
Despite its qualification as a liquid alternative, gold is set apart because of its large global market capacity, low cost for implementing the investment, and a long, proven track record. In addition, gold is also rare, useful in industry, a hedge against inflation, a store of wealth, and always has intrinsic value.
At any given point in time, there are active buyers and sellers for gold. From refiners to dealers, banks, and individuals. For investment purposes, jewellery or other industrial uses, gold is always in demand, therefore a very liquid asset.
In addition to immediate sales based on current spot prices, investors can sell (or buy), based on a limited order, meaning a transaction based on an agreed price in the future. This option gives buyers and sellers more opportunity for exchange. In short, there is always a vivid active market for gold.
When measuring gold’s liquidity, an important metric is a bid-ask spread, which is essentially the difference between the highest price that a buyer is willing to pay for an asset and the lowest price that a seller is willing to accept. Gold offers a low spread, thus proving its liquidity.
On top of its high liquidity, gold as an investment that aims to provide investors with diversification and downside protection. During market crises, this kind of diversification gives investors added security; the price of gold and other alternatives usually does not ebb or flow with the tide of the market.
HOW J.ROTBART & CO. CAN HELP YOU SELL YOUR METALS
At J.ROTBART & CO. we can assist you in liquidating precious metals and other assets with our custom-made service, tailored specifically to meet your needs. We will escort you from the moment you wish to start the process right up until you receive your funds. We can liquidate bullion usually within less than a day for a very competitive fee.