Gold has a hedge against most troubles, from inflation, to war, currency fluctuations, and economic downturn. When investing in gold, you can buy gold in physical form, as well as buying shares in gold mining or gold exchange-traded funds. Investing in physical gold is highly sought after for investors to diversify their investment portfolio. It can be challenging and knowing how to invest and where to store your investments is important.
When it comes to physically gold, you will be interacting with reputable bullion brokers, who will offer advice on storage, such as safe deposit boxes or bank vaults. Your bullion broker will advise on obtaining the best insurance if this isn’t offered as part of a package deal, as well as finding you the best options to suit your financial circumstances and investment goals.
Gold isn’t always invested in the form of big gold bars, you can buy anything from jewellery, coins, and bullion, ranging from a few grams to hundreds of ounces. Investing in gold is an expensive ordeal and it’s important your bullion broker knows exactly what they are doing. They should keep you up to date on the price of gold, so you know when to buy and when to sell.
Gold is a great hedge against inflation, whilst never suffering at the hands of economic downturn. Your gold will always retain its value and if it hasn’t gone up in value, you certainly won’t lose money as it never depreciates. Over the years the price of gold has risen steadily. Whilst the curve isn’t perfectly straight, you can see the price has increased.
Why Invest in Gold?
Gold is trusted by many investors across the world for its ability to preserve wealth. Owning £50 worth of gold back in the 80’s vs owning a £50 note, you’ll find carries a difference in value working in favour of the gold. Whilst the cash retains its value, you’ll find the gold has grown.
Prices can appreciate and often do whilst running alongside rising inflation rates and fluctuations in currency. Investors tend to invest in gold as an asset when they lose money on their cash. Gold generally retains its value and often increases in value when currency rates plummet.
Gold is not impacted by interest rates, and due to the increase in demand for gold and lack of ability to be printed or grown quicker to keep up with supply and demand, gold is an asset that is infrequent. This means it has maintained and increased its value over time. Because of this, investors find this a safe commodity to invest in to retain the value of their money or grow it over time. Put simply, you’ll never lose money.
Often investors enjoy diversifying their portfolio. Including gold in your investment portfolio reduces your investment risk. The value of gold stocks are generally maintained, with gold mining companies paying good dividends providing some incentive to buy both gold and gold stocks.