Do you want to save money with appreciation? Saving in gold has long been more profitable than bank services and much more secure than shares or speculation on the stock exchange. You will find a conservative investment in gold, which, however, has seen such an appreciation in recent years that very few comparable commodities have been able to offer.
If you do not want to leave the money in a savings account and you still want to have some predetermined security in your investment portfolio, consider buying investment gold from one of the gold backed IRA companies on the market. Let us give you some tips on how to do it without risk while yielding the maximum profit!
The main argument of gold lovers is: “When there is a real drama and crisis, and it does, gold will come in handy and the only certainty will be.” You don’t have to be a lover of catastrophic scenarios, but it’s good to be prepared for all economic options. Gold is suitable as an additional investment tool.
Why invest in gold
Some of the main purposes and reasons in investing in precious metals are that they preserve the value and thus are protected from inflation, they allow for diversification of the investment portfolio and the invested funds are appreciated in the long-term run. At the same time, one does not have to possess immense wealth to invest in precious metals – several hundred dollars can easily get you a decent amount to start with.
One other reason for investing in metals, whether in form of coins or ingots, is that they make for a perfect gift for special occasions, such as a wedding, the birth of a child, college graduation, etc. By giving coins or ingots, you give the recipient a great value on a small piece of metal, which will increase even more over time.
Since the investor keeps this precious metal physically at home (or in a safe at the bank), he does not have to be afraid of fluctuations in the stock market as he would with equity investments. Read more about the stock market fluctuations here: https://www.brookings.edu/opinions/what-do-stock-market-fluctuations-mean-for-the-economy/. In the safety of the vault, investment gold will still be available and in full value for him. Of course, as always, the gold investment must form only a part of the entire portfolio due to the distribution of risk.
The purchase of gold is exempt from value-added tax and its sale is also exempt from income tax. For this reason alone, it is a relatively interesting possibility of long-term investment. The price of gold is rising in the long run and for many different reasons, but it makes no sense to buy gold in times of economic crisis and sell it at a loss in times of prosperity.
How to buy gold
Gold can take many different forms and shapes, but standardized tools are used for investment purposes. In the case of investment gold, these are investment gold bars or ingots (small gold bars weighing from 1g to 100g), gold bars, and investment gold coins.
There are several possibilities when it comes to coins. It is possible to buy foreign investment coins or commemorative coins. Coins with logos of different world mints can be purchased for investment as well. Investing in coins is not only an investment in gold, but their collector’s value can also increase their price.
Investment gold can be bought from online shops, stone shops, or other venues. For example, in the United Arab Emirates, in 2010 they even installed a gold vending machine in one hotel. Read more about the vending machines at this link. The best option, however, is to select a trusted company to avoid falling in a trap.
If you have decided to buy investment gold, you are probably wondering where to store it. One possibility is your own home, especially if it is equipped by a security circuit and you possess a safe-deposit box. An even better idea is to use the vault of the bank, just like you would not leave a larger amount of cash at home. Bank vaults are very well secured against robbery and insured as well.
When is the right time to buy?
Because investment gold serves as a store of value, it is logically the greatest demand for it in times of crisis and uncertainty. As soon as something fundamental happens in the financial market, investors flee en masse to gold investments, and its price rises.
It is thus definitely more interesting to postpone the purchase of investment gold until time of prosperity when it already seems that the economy cannot be in a better condition in any possible way. It is in these moments that the price of gold will be stable, relatively low, and in anticipation of similar growth as in the period 2008-2012.
Mining plays a substantial role in its price – just one good new deposit or an increased mining limit for the old ones, and the price of investment gold will be like on a swing. Swings also occur due to the behavior of market players, for example, the central bank of China which has a lot to say about the prices of precious metals. Managing Chinese yuan can influence its price a lot.
Given that the invisible hand of the market is led by the clash of supply and demand, this means that as demand increases, so does the price and thus the investment opportunity.
Likewise, because of historical developments, its price is still very much tied to the US dollar – so when the dollar is doing well, the price of gold will usually fall. Investors usually see more potential in the US economy, and there is no such fight for gold.
There is no way to generalize, but the ideal time to buy investment gold is so often when most countries around the world are doing well, the US dollar can no longer do better, and mines are heavily increasing their output – in such a situation, the price is expected to come soon gold will only grow and grow.