If you are an investor, you must be looking for the best investment opportunities available out there to consider. That’s where you can think about getting your hands on gold investments. It is identified as a low risk investment opportunity available for the people in today’s world to consider about. Therefore, you can go ahead and invest on gold without keeping any doubts or second thoughts in your mind.
Treating gold as a commodity
Gold is similar to the other commodities. In other words, the price of gold is determined by demand and supply. From the recent studies, it has been identified that most of the gold available in the world comes through hard rock mining. However, placer mining and copper mining methods also give life to a considerable amount of gold. Russia, Australia, and China can be considered as the biggest gold producers that you can find out there in the world.
Gold is being used for a variety of applications around the world. Production of jewelry holds a prominent place out of them. However, it is also important to keep in mind that gold is widely being used in many other industries, such as electronics, dentistry, medicine, and aerospace. The central banks and governments are key buyers of gold.
Why should you think of investing in gold?
Now you are aware of few basic facts about gold. With that in mind, you need to understand why you should start investing in gold.
If you take a look at the gold prices in the past, you will be able to notice some important fluctuations in the price. In fact, you can see that gold price has significantly increased in between 1978 to 1980 and from 1999 to 2011.
Instead of holding cash, you can think about investing in gold. Then you don’t need to worry too much about currency depreciation or geopolitical uncertainty. The gold prices will remain stable, and you will not have to worry about anything.
How to get started with investing in gold
To start investing in gold, you need to go ahead and purchase physical gold. You can purchase gold bullion, coins or jewelry. It is important to keep in mind that the gold bullion trades are extremely closer to the price of gold. They are referred to gold bullion coins and gold bullion bars as well.
You need to keep in mind that gold bullion is not linked with any artistic value. Therefore, it is different from numismatic coins and jewelry. In order to purchase a gold bullion, you will need to make a payment in the premium gold price. In addition, you will need to use a bank deposit box or a vault in order to store the gold bullion that you purchase.
It is also possible for you to purchase physical gold from the local jewelry stores or online stores. But before you purchase, you need to make sure that the price of gold is fair. In addition, you should also verify that gold is tested and real. Then you will be able to refrain from scams, where gold plated coins are being sold as pure gold coins. If the standards that you are looking for are not available in what you are about to purchase, you can simply walk away.
After purchasing gold, you must take appropriate steps to store it properly as well. Even though you can store gold at home, you will need to be concerned about security as well. Otherwise, there is a high possibility for you to come across a variety of security issues in the future.
Instead of purchasing physical gold, it is also possible for you to buy gold futures. The futures contracts can be considered as standardized contracts, which can be traded on organized exchanges. They provide ability for a holder to sell or purchase an underlying at a given time in future. You will be able to purchase at the prices defined in the futures contract.
There is a possibility for you to invest in the gold ETFs as well. It is possible for you to purchase shares of ETFs. This will keep you away from the hassle of paying attention towards maintenance margin and owning futures contracts. In case if you have never invested in gold ETFs before, you are encouraged to do some background research and get to know about the facts.
Last but not least, you can think of investing in the gold mining companies. However, the exposure you will get in here is quite limited. These companies are carrying the operating risks, which has the ability to break a correlation to the price of gold.
It is up to you to analyze these methods and go ahead with the best method to invest in gold.
Is it worth to invest in gold?
Now you have a basic understanding about investing in gold. With that in mind, you will wonder whether it is worth to invest your money in gold or not. By taking a quick look at the way how gold prices fluctuated in the past few decades, you will be able to make a decision. If you purchased gold 10 years back, you could see how your return of investment is as of now.
In simple terms, yes, it is worth to go ahead and invest your money to purchase gold. It can provide you with an outstanding return of your investment.
Is gold a better investment than stocks?
Yes, you can say that gold is a better investment than stocks. That’s because the risk associated with gold investment is significantly low when compared to investing on stocks. The pressure that you will have to go through is minimum as well. You just need to buy gold and keep it and it will do the rest. Whether you are looking for a short term investment or a long term investment, you can take a look at gold. The investment would make sure that you will never end up with any regrets.