Should You Invest in Gold?
Gold has been considered one of the most important precious metals for centuries. It has been used as a form of currency in multiple different forms in many different cultures and societies. Gold nowadays is most a status of wealth. It is molded and formed into rings and chains. This is to show status and wealth, very similar to the many cultures before us. So gold still has substantial amount of value. So How should someone go about making money buying and selling gold in today’s society?
Gold is a great way to diversify your investment portfolio. Its value doesn’t normally follow other financial trends such as stocks, and real estate. Some experts even say anywhere from 5-10% of a standard portfolio should be based in the precious metal. There are multiple ways to actually invest in gold. There is obviously physical gold. This can come in many forms. Some actual currency such as gold coins for example is something that will hold value. the majority of big banks own some physical gold. The reason behind this is that gold is considered a finite universal currency. Meaning there is a limited amount and its value is respected everywhere. This is a great way to preserve wealth, and eventually pass down to the next generation.
Old rare gold coins isn’t always the best way to invest in physical gold. Many countries world wide produce and mint gold coins. Generally you will pay slightly higher than face value for the gold its self. And these coins will be recognized as legal tender. They are produced in multiple countries including America, Canada, South Africa, and the United Kingdom among others. These coins come in different sizes from 1/100oz, all the way to 10oz. These are great to help diversify a portfolio.
Another way to invest in gold which isn’t with the physical material itself. This way involves investing in gold mines or companies trying to find new gold deposits. The thinking behind these sorts of investments are involving the specific company(s). As well as the actual price of gold going up. It is possible to leverage this money. Meaning you can make more money betting on gold prices, but would lose out on the initial investment, or even more, if gold prices were to go down.
One of the main attractions of gold investing, specifically with physical gold, is the easy liquidation. Many people and places of business are willing and actively seeking to buy gold. If you were to go to a gold buyer portland or to get money for your gold, they would generally offer 90-95% of the current value of gold. With things like jewelry it is normally closer to 70-80% of the melt value. Still this process is an easy liquidation of the asset incase a big expense were to arise.
Overall gold is a worthwhile investment to look into. When it comes to building your portfolio, gold and other precious metals should be researched and considered. With gold there is lots of different options and price points to enter into at. Gold is generally a stable investment, and does well in times of economic struggle. If you are looking to expand your portfolio, gold is worth looking into.