A golden investment: how to invest in gold

A golden investment: how to invest in gold

Gold is a commodity that people have invested in or used as a collateral for their assets for hundreds, or even thousands of years. The mighty of this world buried their gold in the ground to hide it from plunderers. Whole economies were based on the gold standard, and gold itself was a currency for a long time. Therefore, there is nothing surprising about its esteem and popularity among investors.

What is gold then?

Gold is one of the most stable foundations of the market economy and a safe investment option. This is because it cannot be forged due to its nature, it cannot be destroyed and is not vulnerable to shifts in investments. This is evidenced by the fact that the price of gold was still rising even during the last economic crisis.

A small, 10-gram bar of gold costs as much as 500 pounds, whereas a one-ounce gold coin may be worth up to 1,500 pounds depending on whether it is a collector coin. In such a situation, gold is usually stored in central banks.

How to invest in gold

Investing in gold is, in fact, very simple. You only need to have enough assets and buy the right bullion coin or a bar of gold. If you make such a purchase, you can keep millions of pounds in a small box.

Gold is usually available in the form of coins and bars. Coins are smaller and easier to sell, while bars are larger and more difficult to monetise. The difference, however, is in the margin. In order to buy a valuable coin, we need to turn to a specialist who will make a professional valuation. In case of a bar, the seller’s margin is lower and we do not need expensive consultations with coin collectors. It means that if an investor decides to buy ten one-ounce coins, they will pay more for them than for a single ten-ounce bar.

In order to invest in gold, it is enough to buy it and keep it. Although it happens slowly, gold steadily increases in value, so it is a long-term investment.

And where can you invest in gold?

Purchasing gold does not pose particular problems, because the investor may choose The Royal Mint, private companies or individual owners.

The Mint is by far the safest option because it offers legal investment gold, providing its certificates and grammage.

Private companies are serious competitors for the Mint in terms of offer and margin. Most stores with investment gold offers unique coins and other products, and has a much larger choice than the Royal Mint. They also charge a slightly lower margin. However, it is worth remembering that buying gold from a private seller may involve a certain risk. Gold can be forged if it is alloyed with titanium and then sold as pure gold. Specialists will discover the difference very soon, but it may remain unnoticeable to investment amateurs.

Is investing in gold safe then?

Essentially, it is. For years, gold has been a product with a very low investment risk. While it may slightly decrease in value on a temporary basis, the price of this commodity is continuously growing when viewed from a long-term perspective. Over the last twenty years, the price of gold has tripled, which translates into a stable, safe growth even if you take inflation into account.

Is there anything unsafe about investing in gold? For sure, it is the moment of purchase and manner of storage. Gold may be forged or stolen. Therefore, when you are buying it, make sure that you are supported by a specialist and than you can store your investment in a safe place.

Who can we recommend investing in gold? This is definitely an option for those who seek safe, long-term investment opportunities for their assets. Gold also works very well as a reserve for retirement or for securing the future of your children. It is also relatively light and portable, and easy to convert into cash. Gold is an investment option for people who want to protect their assets and seek low-risk, long-term investment opportunities – you can keep gold even for dozens of years.

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