Gold is the most traded precious metal in the world . Although it is very true that gold is not currently the currency in circulation, in the field of finance, it is one of the means of obtaining a safe investment . However, why should you invest in gold? How to do it? Discover, below, how to invest in gold – Complete Guide.
Why invest in gold?
Gold is a safe haven investment. Due to the instability of the financial markets, it is necessary to know a safe option in which the money can be invested . Learn about 5 reasons why investing in gold is the best decision:
- The value of gold increases over the years : This metal is considered the most valuable metal. Although it has not always risen as expected, it has never fallen in value , as in the case of other financial media.
- It is a respected metal : Gold is considered an essential asset in the investment portfolio. Even when it comes to giving stability to any investment portfolio, large companies prefer to invest in gold .
- Does not suffer from geopolitical crises : Many investors are concerned about the risks of devaluation of their country’s currency. Investing in gold is a way to keep money safe, because its value is maintained, even when there are ups and downs in the country’s political sphere.
- Works against inflation : As the cost of living increases, the value of gold does too . There is no reason to worry about the return on investment.
- Its availability increases its value : The gold production process is quite slow , for this reason, the demand for this metal will always exceed its availability . Investing in gold is one of the best decisions, because the price will always increase considerably.
These are just 5 reasons why investing your money in gold symbolizes a sure profit. Now the serious question, what are the ways to invest in gold?
Ways to invest in gold
Beyond knowing that gold is an investment medium that provides great benefits in the revaluation of your money , it is necessary to know how to invest. Let us explain the ways to invest in gold.
Invest in physical gold
Worldwide, the purchase of physical gold is everyone’s favorite. Experts have recommended this way of investing to anyone who wants to be able to take advantage of investing in the long term. It is a type of investment that does not run any risk of loss . The purchase of physical gold can be done as follows:
- Gold bars : The purchase of gold bars is quite beneficial for anyone who wants to invest their money. The more weight the ingot has, the lower the price you will have to pay for it.
- Gold coins : Represents a safer investment . The characteristics of gold coins are very different from ingots, both in their diameter, gross weight, net weight, width, and design. In addition, to having a value for being gold, many of these coins are considered collector’s items, so their value increases.
Invest in gold through investment funds
This is a slightly more speculative investment option. The similarity of the physical gold price varies a bit, with the cost of shares being higher. This method is based on investing in companies that are dedicated to the extraction of gold , in such a way that the profits will depend on several factors such as: the quality, quantity, location of the mines. So it is important to know well the company in which you plan to buy the shares. Consider the management of the company, balance sheets and operations.
Invest in gold through CFDs
CFDs on gold or contracts for difference allow you to take advantage of the current price of gold . And, in this case, you will not have to deal with storage or insurance tasks. You can invest in contracts for difference (CFDs) and thus increase your profits with only a small initial investment deposit . The only detail of this type of investment is that the margin of possibilities of increasing your profits is the same as that of your losses.
Invest in gold through ETFs
If you want to see short-term investment results , investing in gold through ETFs is your most viable option. This investment method is safe, even when stock and bond prices fall .
Currently, investing in gold is the safest method of protecting your assets . Regardless of the method you use, the results and benefits will always increase.