HomeBusiness & FinanceThinking about Gold as an Investment?

Thinking about Gold as an Investment?

In a lot of ways, storing your money and assets in the cloud is very secure – hackers aside – but there’s not much glamour in it. There are no tangible assets, no glistering pile of coins…

There are a few advantages besides the looks when you buy and take possession of some gold bullion from Golden Eagle Coin.

The advantages of physical gold

Gold has been the mainstay for centuries when it comes to investment and wealth-gathering. One thing about precious metals is that they grow in value when other commodities and currencies fail or devalue. If you already have a portfolio, gold acts as a hedge or a diversifier.

If there’s a serious market dip, or even a crash, then you can use your gold and any other precious metals that you own to trade and buy things.

The disadvantages of physical gold

One disadvantage of holding physical gold is that you could be burgled. If the thieves manage to get hold of it because you didn’t store it securely enough, then your insurer isn’t likely to be generous. It’s also often the case that you have to hold onto the gold for a few years before you get any serious dividends or profits from it. This may suit you, of course, but if it doesn’t, other investment vehicles might be better.

If you’re still interested…

Be safe

You need to find and use a well-established dealer, so take your time here. There are reputable individual dealers out there too, but make sure you get certificates or have the coins and bars examined and verified by a third-party dealer or expert.

What do you buy?

If you’re buying US gold coins, for example, then they come in denominations of a tenth, a quarter, a half and a full ounce. You’ll pay a small fee on top of the market price – this is the dealer’s profit. If you buy coins that weigh less than an ounce then this fee may be slightly higher.

Collectible coins

These collectible coins are known also as numismatic coins and they’re a different proposition altogether. The values of these coins vary with their current market value and trends within the collector’s market, rather than just the current value of the metal. If you’re new to precious metals, you should leave them be for now.

Don’t touch them!

This is easier said than done, because gold coins and bars look amazing. Gold has a special lustre, but it’s also very malleable, so any scratches or dents will reduce their value. You’ll have to leave the coins in their cases…

Keep thieves’ hands off!

If you don’t have a safe, then don’t hide large amounts of metals in your property because thieves know where to look. A good option is a safety deposit box at your bank, which can be pretty cheap.

Don’t go overboard

If you’re buying gold or other metals to diversify your portfolio, then don’t go over 15%. The rest of your portfolio should comprise stocks, growth funds and other investments, because you need it to be balanced.


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