What Should You Know Before Investing In Gold?

Gold investment is not a new concept and has had profitable outcome for a very long time. Gold has been a way of wealth storage for over 3,000 years. The reason is that gold is rare. Today, it is even more valuable because it is becoming harder to find and mine yet more people now know its value and want to invest in it. Gold is rare 6 times more than platinum and rarer than silver by 18 times thereby making it to be valued those other precious metals. Gold is also precious because:

  • It is almost impossible to destroy
  • It does not rust, decay or rust
  • It is not affected by hydrogen sulfide or oxygen
  • It does not melt easily  unless heated up to more than 1063 degrees Celsius
  • Is not dissolved by anything except cyanide

Reason to buy Gold

Majority of private investors who go for gold investment see it as insurance against bad policy by central banks and financial instability. The strongest appeal of gold is when real returns on bonds and cash are negative and going down regardless of whether interest rates are increasing. Prudent gold investors make sure that they only pay lowest costs when buying and can therefore quickly sell their gold still getting full value when circumstances change.

If you want to invest in gold, it is wise to read about market analysis, gold price commentary, investment research and forecasts. There are always articles by leading market commentators on various platforms.  Technology has mad it even easier to get gold investment reviews and tips. You may subscribe to be receiving market update email in your inbox every business day. When you read widely about gold you will understand how the market functions and be able to maker informed decisions when you want to do buy gold:

  • At best prices in the market
  • That you will  directly own as personal property without going through complex and expensive investment vehicle that will  cost you  high fees
  • Which is safe , economically stores and insured in the professional bullion markets such as Switzerland, Zurich , London, New York or Singapore
  • That is easy to sell at full time when you want to

Investing in physical gold

buying gold for investmentInvesting in direct ownership of physical gold will give you certain psychological satisfaction because you are able to physically handle the metal you invested in. Gold investing is not like stocks that give you legal share in a company when you directly buy physical, you will be able to handle it.  It is exciting to see and touch it as it   uplifts you psychologically because of the feeling that you own one of the most valuable things.

Well, everyone would want to feel that but owning gold directly also has a downside. When you keep gold in physical form, you must be worried about thieves. If you know your gold bullion is valuable, it is not in doubt that other people will find it even more valuable and would want to get it away from you without making any gold investment.

Buying physical gold therefore comes with added cost of investing in secure safe or charges to have the gold stored somewhere safe. To be on the safer side, you must get proper insurance for the bullion investment.

Selling physical gold will cost you some assay fees as a guarantee for the company you are selling the gold to that the bullion is real and pure. This is because the common way of selling gold is through companies that buy and sell it after they liquidate.

There is also the psychological cost because you keep on worrying about robbery or an occurrence that would lead to destruction of your gold.