Gold

REASONS TO INVEST IN GOLD

• Economic Stability. 

In the unpredictable world of finance, where market fluctuations and economic crises can strike without warning, gold has long been a symbol of stability and financial security.

• Inflation Protection. 

Gold is a proven hedge against inflation as it is said to preserve the real value of assets when other prices rise. Gold stands as a steadfast guardian against this monetary threat.

• Diversification Benefits. 

Gold offers diversification benefits due to its low correlation with other assets, such as stocks, shares and bonds. When the values of traditional investments fluctuate, gold often moves in the opposite direction.

• Crisis Resilience. 

Throughout history, gold has consistently demonstrated its ability to withstand crises and when geopolitical tensions escalate or financial markets become turbulent, investors often seek refuge in gold as a safe haven. 

• Global Demand. 

Gold’s enduring allure as a safe-haven asset is further bolstered by its global demand and diverse uses. The investment demand for gold remains robust as investors worldwide recognise its role in preserving wealth and often choose to include it in their portfolios.

HOW TO INVEST IN GOLD

• Stick to standardized investments. 

You can buy gold coins, jewelry and other collectibles in many ways. But as a pure investment, it is best to stick to standardized options with a predetermined amount of gold content.

• Buying from reputable dealers. 

Buying gold directly from a dealer, either online or in person, is safer. Be sure to check each dealer’s reputation and history of customer complaints through services like the Better Business Bureau.

• Consider gold stocks and funds for liquidity. 

Gold stocks, ETFs and mutual funds are much easier to buy and sell than physical gold. You can make these trades immediately through your brokerage account.

• Use a precious metal IRA for tax savings. 

A precious metal individual retirement account, or IRA, lets you buy and store your retirement savings in physical gold.

• Let someone you trust know about hidden gold. 

Let someone you trust know about the investment and hiding place. That way, if you pass away suddenly, your loved ones don’t lose the gold hidden inside a sofa or under a floorboard.

• Consult with a financial advisor. 

Before changing up your investment portfolio, consider meeting with a financial advisor first. They can give you an unbiased opinion of gold as an investment.

PROS OF INVESTING IN GOLD

• Hedge against inflation. 

During periods of high inflation, the dollar price of gold could increase and deliver a higher return to investors. Investor demand also could rise as people move their cash into physical assets to prevent further losses from inflation.

• Protection against market downturns. 

Gold can be a safe-haven asset. Investors often buy gold to protect their savings in the event of a market crash.

• Portfolio Diversification. 

Some investors buy gold or buy silver as a way to build a diverse portfolio. Rather than having all of your money tied up in one asset class, different types of investments could potentially help you better manage risk and return.

CONS OF INVESTING IN GOLD

• Does not generate income. 

The only way to make money investing in gold is if the price goes up. There is no stream of income associated with the investment.

• Extra costs. 

There are often extra costs associated with owning and storing gold. These are extra costs that reduce your overall return.

• Higher taxes on physical gold. 

If you sell physical gold for more than you paid, you will owe capital gains on the profit.