Throughout the ages, gold and other precious metals have been used for their incredible wealth-building and wealth-retaining characteristics that make investing easy, fun, and, most importantly, profitable. This gold investing guide is going to give you the ins and outs of the gold investing game, as well as tips and advice for budding investors and retirement wealth builders alike.
An investment in gold, or any other precious metal for that matter, is a solid long-term investment that provides additional protection against a number of factors ranging from inflation and deflation to civil unrest and future economic uncertainties.
Buying, selling, and trading gold does come with certain nuances and involves a degree of understanding that is rather important. Our fiscal security is one company that is fully able and armed with the right professionals and experts to take care of all your gold investment queries and concerns.
Investing in Precious Metals
Precious metals have many attractive qualities that are appealing to a multitude of investors, from novice to experienced investors. The most popular types of precious metals include gold, silver, platinum, and palladium, with gold being the most beneficial and durable in that it holds its value exceptionally well.
Silver has traditionally been used as an investment that goes back and forth and is kept for its alternative value as a metal that contains tangible industrial uses, making its value more volatile than gold. Silver is great for beginner investors because of its lower price, thus making it easier for investors to begin with.
Gold and other precious metals are used by the majority of investors for their inversely proportional relationship to the more traditional stock and bond investment options, especially during times of financial turmoil.
As the prices of stocks, bonds, and real estate decrease, their inverse relationship with gold and other precious metals dictates that the value of these metals increase.
Investing during times of uncertainty also assures one of a profit when selling during times of financial uncertainty. An investment in gold is a particularly attractive option, especially during times of war and political crisis, as physical gold is much more attractive during these volatile situations.
The major benefit comes when you are able to hold your own gold physically in your possession for greater security and peace of mind. Additionally, having a well-diversified portfolio will provide additional protection against losses due to both micro- and macro-economic factors influencing regular, more traditional investment options.
How to Invest in Gold
There are a number of ways that someone can invest in gold, either by way of gold stocks or physical gold, and each comes with a few investing options.
Gold Stocks
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Exchange-Traded Funds
Exchange-traded funds are relatively new ways of making a profit from the fluctuating price of gold. Investing in gold stocks is not an investment in actual physical gold stock but is rather an individual purchase of a security in the investment itself. You do not own any actual physical gold.
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Gold Futures
By making use of gold futures, you are essentially investing in the price of gold and, again, not the physical gold itself. Buying and selling gold futures works on the speculative price of gold at a particular stage or time, and profits are made on the difference between the value change and the expected value change. Those who do their homework in the gold industry stand to profit handsomely.
Physical Gold
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Gold Accounts
A gold account is one that is usually held at the bank and is a preservation of the value of your gold in a number of ways. An allocated account purchases your gold, which is then held in a secure location, such as the bank itself or a guarded warehouse.
An unallocated account purchase does not store your gold, but rather, it is used for investment by the bank for its own purposes. Although an unallocated account does not store gold, it is a better way to profit from the long-term investment of gold.
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Gold Bullion
Gold Bullion Bars can be bought just the same as governments do and are recognized as being at least 99.5% pure. Bars of bullion are purchased at their per-ounce value. The advantage of purchasing a bar of gold is in the cost of the purchase.
A smaller quantity carries with it a higher markup from the spot price of gold, making this investment a greater opportunity for realizing a profit.
Reasons to Consider Gold for Your Financial Investment Purposes
Let’s take a look at why investing in gold is such a win for you.
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Asset Allocation Enrichment
When you decide to insert gold into your portfolio, you are essentially creating a strategic advantage for yourself through diversifying your portfolio. This is going to help create a buffer against the innate ebb and flow of the markets.
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Potential for Appreciation
Placing gold into your asset portfolio affords you the opportunity to make some additional money off of your investment. This is driven by the interplay of market forces and the ongoing quest for this type of asset.
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Wealth Preservation
Gold, through the ages, has proven itself to be a fantastic hedge against inflation, while standing strong and holding its ground against a declining currency value.
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Liquidity
Gold, being a medium of monetary exchange, is both embraced and trusted as a means of exchange across borders. Gold speaks any and all languages. This being the case, gold has been positioned as a highly liquid asset that is ready and willing to be transacted across the globe.
The attraction of gold is something that has long caught the attention of those seeking to preserve and create their wealth, and this gold investing guide should provide some insight into how to best go about doing this. After all, the value of gold does not seem to be dropping any time soon.
