There are investments that stand out above others and that are repeated over time, investment in gold and silver and precious metals in general is one of them. The gold rush is not new; it is more than even this century.
Why to invest in gold and silver?
There are many reasons to buy gold and silver, but one of the most repeated is for its supposed security. This metal acts as a refuge in times of crisis, since the price of gold tends to be more stable than that of other financial assets.
This does not mean that gold cannot fall, far from it. Everything will depend on when you started buy gold bullion. What happens is that in the long term its value has risen. In part, all of this is because gold is intimately linked to the price of the dollar, so that when the greenback suffers, gold rises, and vice versa. Something similar also happens with inflation. When the money in circulation increases the gold also does it, only with between six and nine months of delay.
Beyond its value as an investment and safe-haven asset, gold is used in jewellery and the electronics industry, causing a constant demand for the metal. As it is a finite good, this causes its price to go up.
If you do not have much knowledge on this matter, it may be best to find a financial advisor to help us get the most out of our investments.
Advantages of investing in gold
Investing in gold and silver can be a good option to cover the risks of our investment portfolio, but that does not mean that it is not exempt from having its positive and negative points. Among the benefits of investing in gold is its already mentioned stability, although there are others:
Saving in physical gold gives you a fully liquid asset. You can sell it at anytime, anywhere in the world. It is the closest thing to physical money. Of course, it is possible that the sale price of gold does not always reach the purchase price.
- Gold is not subject to political uncertainties.
- It allows diversifying the investment portfolio.
- A small amount can be of significant value, making it easy to store in case of physical gold.
These are the benefits of investing in gold that have made it a safe haven and one of the first alternatives that the saver looks for when he thinks about security for his money.
How to invest in gold?
The most common thing to think about investing in this precious metal is to buy gold bars or any other physical gold formula. The reality is that there are other alternatives to invest in gold and silver that have nothing to do with physically acquiring the material. You can invest the gold in London Gold Centre.
The most important thing is to understand how they work and what we will get in each case
Gold coins
The value in this case is double. On the one hand the gold with which the coin is made is revalue (in this case the percentage of the metal is crucial) and on the other, by the coins own numismatic value. At this point there is no better currency than another or more secure. From the American Eagles to the Napoleons to the South African Kruger and, anything goes; it’s a matter of choosing the one you like best.
Each coin has its own value and price for the percentage of gold it owns and for what the gold coin collectors market marks.
Jewellery
Invest in gold jewellery an alternative similar to numismatics. The big problem with jewellery is that its value is not always directly proportional to that of gold. In addition, here it will depend on the proportion of metal that they include and their quality. 24 karat gold is not the same as 18k gold.
Also, the good thing about jewellery is that you can always go from gold to silver if the first one is very expensive. What’s more, this could also be done with any investment to save on physical gold.