This guide outlines some interesting factors for those who are considering investing in gold, including some fun facts you may not know!
There are several precious metals out there that are worth a lot of money. Everyone has heard about investing in gold, but not many people know much about this precious metal apart from the fact that it is expensive.
Gold is actually one of the most unique and scarce elements on the planet, which is one of the reasons behind the high cost of assets like gold bars and jewelry. However, there are many other uses for gold apart from stashing it in a vault or wearing it on your fingers or around your neck.
Investing in gold: 6 things you may not know
It is Seen as One of The Best Assets for Investment
Everyone is becoming increasingly more aware of the importance of investments and owning assets, and this includes investing in gold. Most people know that having many in the bank does not necessarily result in wealth, majorly due to inflation. Some people invest in stocks and company shares or real estate so that their money can grow. Gold has very little risk as it carries no liability, for this reason, it can have such a vital role in an investment portfolio.
Investment can be difficult, and you may feel overwhelmed – the investment mavens over at Retirementinvestments.com recommend reading expert blogs to learn the pros and cons of investing in gold, as well as the process. This may be the best option you have when it comes to securing a positive financial position when you retire.
You Can Trade in Gold
As you may know, owning jewelry is one of the easiest ways to possess gold – there are different pieces with a variety of amounts of gold. The more gold is in a piece, the more expensive it will be. Even though many people do not see the advantages of buying jewelry, it should be seen as an asset for investing in gold. If you are ever struggling financially and finding it difficult to have cash, you can trade your items into cash. All you need to do is go to a pawn shop in person or even find an online company that will buy them off you.
You Can Gift or Collect Gold Coins
You may know many people that collect gold coins for investing in gold – and they actually serve as gifts and collectibles and have for many years, all the way back to Ancient Greece.
The value of gold tends to increase and people collect coins from around the world, some of which have rare designs. This means you can then sell them later on for more money than you bought them. Even if you are not interested in doing this yourself, you can do this for a loved one – get them one or two coins to start their collection for investing in gold, and they will certainly appreciate this.
Gold is One Of The Most Expensive Metals in The World
Gold is not the most expensive metal out there, but it is not surprising that not everyone can afford it. The cost of gold stems from the rarity of the metal – if something is unique and difficult to have, it will subsequently be more expensive. In addition to this, the process to obtain gold and mine also contributes to the high value and price of it. There are countries, such as South Africa, that spend over 10 billion dollars annually solely on mining gold. So you can see why gold ends up being so expensive and why it is popular to be investing in gold.
Gold Can Be Found in Household Objects
This may surprise you, but gold is actually around you more than you think. Although the metal is often associated with luxury items and with investing in gold, it can be found in many day to day objects that most of us have in our households. Some examples of where to find gold include circuit boards on computers and phone devices and even dental fillings. Evidently, these will not have abundant amounts of gold, hence why they are not worth much.
Gold Coin Designs Change Often
The coins we currently use have value, but they do not contain gold, except for specialised ones favoured by those investing in gold, such as the American Gold Eagle and the South African krugerrand.
The majority of coins in common currency are made up of copper and zinc, whose value significantly differs from the one gold has. However, gold has been used as currency across the globe, including in countries such as Persia, India, and Ancient Greece. These gold coins have also seen many changes to their designs, which makes some of them extremely unique and highly sought after by collectors. Many gold coins are now found in museums and are priceless.
Advantages of investing in gold
- High liquidity – Gold is one of the most liquid assets in the world. It can be sold quickly anywhere in the world. It is accepted and recognized worldwide. This metal can be melted and converted in a matter of minutes. The same cannot be said of other types of investments.
- Simple investment – It is a simple investment because you don’t have to be a guru or understand much about it. You just have to buy gold physically or acquire gold deposit certificates.
- Diversify investments – To increase your profitability and protect yourself against other less profitable or lossy investments, gold is a good investment to add to your portfolio. There are many investors who use this raw material to diversify their portfolio.
- Safe refuge for your money – It is known as a safe haven for your money. It can be sold and bought anywhere in the world, is not under the control of any government and is easy to transport.
- It is hardly devalued – It is possible to buy gold in several ways. From jewelry, ingots, coins or buying investment deposits specialized in gold. Even in times of uncertainty or prosperity, this raw material remains reasonably stable and does not suffer from devaluation effects like money. The 100 dollars 10 years ago are not worth the same as 100 dollars today. In return, gold is worth 10 times more today than 10 years ago.
Summary
As you can see, there is more to gold than you can imagine. The information discussed on this page should provide you with new information about this precious metal that you were not aware of before.
