The main reason many people and small businesses choose to invest in the precious metal that is gold is that it is seen as a safe option during times of economic instability. Gold itself has a strong record of holding its value too, though it experiences plenty of ups and downs as well, which can lead to some impressive returns.
Gold is now incredibly easy to sell and buy. The internet has not only helped make this so but also provides plenty of up to date resources such as the gold value information available through sites like BullionVault. If you’re considering investing in gold as a solo venture or part of a small business, be well prepared by doing extensive research beforehand.
Gold Investment Opportunities
There are many different ways to invest in gold, each one presenting different advantages and disadvantages. It is therefore important to decide upon your reasons for entering the gold market before pumping your money all into the same place.
Investing in physical gold is seen as one of the safest investments you can make, almost like an insurance policy. As a universal finite currency this isn’t always something that should be traded. Its value may increase and decrease but as it is used by many global banks you shouldn’t lose out much if you have to sell. Invest in physical gold for the long term.
Gold Bullion Coins and Bars
For those starting out with limited finances investing in modern bullion coins allows ownership of the precious metal at a smaller premium. Bullion coins are also available in silver and platinum, depending on your ambitions and financial backing. Bars of gold are sold in differing weights as well, meaning you can invest as much or little as you desire.
Gold exchange-traded funds (ETFs) have seen a significant dip, falling to a six-year low recently. There is more risk involved and they aren’t the way to go for safe-haven investors. You don’t have direct ownership of the gold but if the price goes up then you can make a decent return.
Amount to Invest
Investing in gold provides an insurance for your other finances, assets and portfolio. The amount you invest in gold will depend on how unstable you think the economic or political situation is going to be and how much you can afford.
Different experts claim anywhere between 5 and 30% of assets should be the goal. For new starters in the market taking small steps is advised, so start with about 5% and build it up.
How to Get Started
Unlike with the stock market, you should start investing in gold as soon as you’ve decided owning gold is a good idea in your situation. Waiting for a better price could take ages, if one does appear at all, and as wealth insurance and not a fully profitable endeavour this isn’t always the aim.
There are many gold dealers and online trading platforms available to start an account with. Read their terms and conditions, get as much advice as you can and then open an account with one. This is the quickest way to buy and trade the precious metal successfully.