The benefits of investing in gold

Post 111 of 579

Nowadays, you have many options for making investments that will help you become wealthy. Unfortunately, some are more effective than others. This is why you should research your options carefully before investing. Seeking guidance on the internet is the most accessible and obvious place to start. Outside of the traditional assets like bonds, shares and cash, where else can you invest your money? One alternative to bank savings is gold savings. It’s common knowledge that the economic crisis remains a problem which is why many people continue to have financial challenges. If you want to protect yourself from the risks of market downturns, you should consider starting gold investment as soon as possible.


First things that you should know

In a continually evolving global economy, the possible market threats grow by the day. Nowadays, an economic downturn in one region has a huge impact everywhere else in the world. So avoiding pitfalls around the world is an impossible task. That’s where owning some gold comes in. Generally, when the dollar falls, the gold price rises, presenting a real opportunity for you as an investor. Owning gold can be a wise move because you can become really wealthy if you know how and when to act. You have more control over improving your future because this precious metal is becoming more and more valuable. Some specialists in this domain have said that the future of this world is golden, metaphorically speaking. You can be sure that a business based on this metal will ensure you a bright future and you’ll be able to pass this fortune to your family, from generation to generation. Experts admit the fact that this is like a financial insurance that will ensure your stability for a long time.

Some historical facts

Since antiquity, gold was a special metal that was used in making precious jewellery and it was also used as an alternative to paper currency. It’s always been appreciated for its unique beauty and amazing allure. Gold was the first metal that was discovered thousands of years ago. Nowadays metals like iron and copper provide important roles in modern life, but gold remains the most sought after and valuable metal. Its ornamental appeal, rarity and historical value maintain its position as the premier metal.  In fact, this metal is responsible for the appearance of money itself because it was first used in trading. It is almost the heaviest metal and has the benefit of being easy to melt and mold into beautiful jewellery. Its value is enormous because it appeared before paper money and nowadays it seems that its appeal has spread far and wide. While Central Banks around he world are moving more reserves into gold bullion, the existence of small coins means the average man in the street also has the opportunity to own some gold.

Buy gold coins and bars

People always wonder what type of gold to buy, but the answer depends on your objectives. If you want to make an investment that will reduce your overall market risk, you’re best buying some gold coins.  Due to their small size, accessing the market is possible for everyone, even with modest means. Gold coins provide the flexibility that you can sell some of your portfolio in the future if you need to realise your profit. Owning one large gold bar means you have to sell all your holding rather than having the choice of keeping some. If the coins are 22 carats or higher, they’re VAT exempt, and if they’re UK Sovereigns or Britannia coins, they also benefit from being Capital Gains Tax free.  Privacy is also a bonus of owning physical gold as there’s no obligation to declare your ownership. However, you must obviously be careful when it comes deciding on a safe place to store your gold. Insurance may also be a consideration if storing at home.

You don’t have to be afraid about the risks

As you have already understood, gold will always hold intrinsic value which can never fall to zero, unlike paper assets like shares and bonds. Owning some gold as part of a balanced portfolio will in fact reduce your market exposure and volatility. If you want to purchase some of this metal, it’s recommended to seek the help and guidance of a specialist gold dealer. They can source the best gold coins and the lowest prices and also store the gold on your behalf. Alternatively, they’ll send the gold direct to your home using fully insured secure couriers. However, everything depends on the quantity of gold that you want to purchase and of course whether you want direct access to your gold.

Other ideas for a good investment

If you want to trade the precious metals market rather than own physical gold, you should be aware it’s also possible to invest in paper and electronic gold. This strategy refers to making investments in gold mining companies, gold funds, or gold Electronic Traded Funds (ETFs). While profits can be very high, there are much higher risks than buying physical gold, and being paper assets, they can fall to zero if the underlying company becomes insolvent. For this reason, it’s important to contemplate your objectives before making a choice between paper or physical gold.

Final thoughts and conclusions

In conclusion, if you want to proactively protect your family from uncertain global markets, then buying physical gold coins or bars will help achieve that balance. You don’t have to tell anybody about this possession and you won’t be liable for tax on your profit if you buy the right type of coins. Don’t forget that every time the dollar falls, gold can increase in value. This investment is as liquid as cash but offers the chance of considerably higher returns.