Why and how to invest in gold?

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Have you even though to invest in gold but the lack of information has stopped you? In this article we will try to provide you with as much details as one might need before making a decision to invest in gold.

Gold is considered to be a safe bet since it is one of few assets whose value has been in constant growth throughout the history. Since gold has always been associated with wealth, high purchasing power and great fortunes, a lot of us assume that in order to start investing in gold one must have a lot of money. However, anyone of us can start with 50 USD and make small initial investments before entering this sector.

The best reasons to start investing in gold

There are a lot of reasons why many of us opt for one of the most valued metals in history. Here are some of them:

First reason: If you are just starting to invest in gold you don’t need large investments. Of course, we all know that more you invest, more profits you can get. However, there are ingots of 1 gram that you can buy for 50 USD.

Second reason: Gold doesn’t devalue in times of economic crises. Because gold is a finite metal the demand for it will always grow.

Third reason: The price of gold is more stable than a lot of currencies and in any country you can exchange gold for local currency.

Forth reason: It is easy to store and keep it. As we will see further on the majority of investors choose ETF or investment funds to buy gold. In this case you don’t need physical space to keep it. In case you decide to buy gold in form of ingots and store it at home, don’t forget to hire a good insurance company and to distribute it well in different places around the space.

Fifth reason: Gold is not subject to taxes. Since ingots of gold are considered by the state as an investment, they are exempt from added taxes.

What you should know before investing in gold?    

Even though investing in gold is considered safe and money-making, there are some aspects of this sector that one should know before entering this sector.

Gold is correlated with US Dollar

The vales of US Dollar and gold are related inversely. That means that when the value of the American currency is going down the price per ingot of gold is going up and vice versa. Therefore, in times of economic crisis when the value of national currencies of many countries is going down the value of gold rises or stays stable.

Gold is a long-term investment

If you a looking for a long-term and safe investment, then invest in gold. Buying this metal won’t make you reach from one day to another, neither in 6 months or a year. The value of gold grows slowly but surely.

Choose a right moment

Don’t buy gold when its value is even a bit higher than usually because it will decrease again but your margins won’t be as high as they could be if you have waited a little bit.

The value of gold is cyclical

It has been demonstrated that the best time to make investments in gold in short and medium term is to buy it during the month of June, July, August and September. However, if your plan is a long-term investment than even if you buy it in the worst month and sell it after 10 years you will gain more than when buying it in July and Selling it in 6 months.

There are different ways to buy gold

If you want to invest in gold you can actually invest in ingots (there are different sizes and weights), in coins (these are easy to store and can be sold to collectors), jewelry (while you are waiting for a perfect moment to sell it, you can still enjoy wearing it).

How to invest in gold?

Here are several options you have if you want to start investing in gold.

  • Buy physical gold (coins, ingots, jewelry). The only inconvenience with this kind of investment is storage and keeping it safe. Having 6.000 USD ingots at home is not always a safe option.
  • Buy gold through online portals. For example, you can buy gold on a Swiss portal and it will be kept in Switzerland. Once you want to sell it, you can go to the same platform or another one and using the certificate of the ownership of this gold and its characteristics and value just sell it.
  • Invest in gold investment funds. The risks are much higher in this case due to the fact that you have to trust other people to make a decision and invest for you but if you are lucky enough you can earn quite good money.

What is your best option?

Depending on the amount of available initial investment and benefits you expect to obtain one of the options we have mentioned in this article can be valuable for you. Just make sure you did a good research before making any investment and put your trust only in hands of authentic experts.