- For centuries, expert investors have been aware of how important it is to include gold in their portfolio. In addition to offering you equity diversification, gold is globally recognized as a safe investment to protect your funds in times of economic crisis.
How to Buy Gold
History has taught us that gold is a practically eternal resource that helps preserve heritage. In addition, its high demand and high value have made it the preferred among other forms of investment. According to the World Gold Council, the Central Bank’s gold purchase indexes peaked in 50 years in 2018, while the financial crisis remained the main concern of finance experts.
Demand is high and investor interest in gold mining companies remains strong, considering that
Several corporate mergers are currently underway. As we have indicated in our Annual Predictions on Gold Price section, the expectation is that gold will continue to provide gains this year. Gold demand last year was based on the slowdown in the economy and trade restrictions, which together with its conception as a stable and safe investment have made it a very attractive resource to diversify portfolios of securities and buffer the risk of loss. Buy gold with financial products
Faced with the investment in physical gold, there is the option of buying the precious metal or buying silver through different financial products. In this case, the raw material will generally be an underlying asset to invest in. These are the alternatives to gold bullion by post.
Invest in gold
Gold have become an alternative to physical gold for investors more focused on the short term. Gold listed funds try to replicate the behaviour of gold in the commodity market. It is one of the most reliable ways to invest in gold without buying the metal.
Investment funds invested in gold
Investment funds on gold invest in gold and in everything related to the gold market. For your understanding, the fund manager will buy mining stocks and other businesses in the area of too extraction, may invest in London Gold Centre and other derivatives and will generally be more or less related to the price of gold, but will not replicate it directly.
In reality, it is a more diversified alternative to direct investment in gold, although it all depends on the objective pursued. And it is that these investment funds invested in gold do not have that refuge asset profile that, in theory, physical gold does.
How are the funds investing in gold?
Buy gold with certificates and warrants
They are another alternative to enter gold but for investors with a little more experience. A certificate replicates the price of a raw material, while a warrant allows you to use leverage to trade, with all that this implies.
Gold has a clear cyclical component. It performs better in high inflation phases or when the dollar depreciates. Similarly, it also tends to rise when there is fear of a recession or economic stagnation, as well as when there are sharp falls in the stock market.
The same occurs throughout the year, there are months in which the price of gold rises and others in which it falls. In other words, it is better to buy gold at one time of the year than at another.
Things change with physical gold. Where to buy gold to invest? For this market there are houses in charge of selling bullion, as we have already seen. These are a great option to sell gold at the best price with guarantees. The problem is that the same does not happen with jewellery or coins, for example.
To sell gold at the best price in a physical store, you have to get a price of more than one, since according to markets what they offer you for your jewellery can vary by up to 64%. In addition to the stores specialized in buying gold, visit a jewellery store if what you are selling is a jewel, since they can give you a more equitable price if they are interested in the piece.
To know if gold is a good investment, it is important to understand why people decide to buy it. In times of uncertainty and economic instability, buying gold makes more sense than buying other resources. Trusting that the banking system and the world economy will continue with the current historical collapse, investment gold could be the best way to secure part of its portfolio.