The Best Approach for Investing in Gold
More and more people are realising the importance of gold as an effective investment. If you want to diversify your investment profile and give it a helpful innovation, investing in gold is definitely an option to consider. We all have seen and so, know that the yellow metal has hardly lost its value and the graph of its value is generally ascending. As compared to other investment options such as property or equity, the profile of gold is certainly more impressive.
It can be said that investing in gold is like insurance for your investment portfolio. Often people are advised to keep aside 5% to 15% their total portfolio value for the gold- or precious metal-related investments. However, it has become so common, especially on the internet, that people believe it. No doubt, you should believe it as it is not incorrect. But you should also remember that it’s only half true.
The part you should believe is that, yes, you should plan to invest 5 to 15% of your portfolio for gold (actually 15% or even more is a better option). However, another part you should understand is gold market has become shaky today.
The truth is prices of gold have descended today. The reason for this is mining companies don’t afford the high operational costs and so, most smaller mining companies are looking forward to merging with or being taken over by bigger companies. On the other hand, bigger companies are eager to take over smaller companies at low prices and want to show a hopeful picture on their balance sheets.
ETFs and other “paper gold” too have become too complicated to understand. Still, when one tries to understand the value of the gold mentioned on the paper, it is usually found that most of the gold is borrowed, and there are at least 5 to 6 owners to it.
This gives rise to a question: is investing in gold actually wise?
The solution to this is to buy physical gold. However, there is something you should remember that its value is counted in the form of dollars. Buying gold in the form of jewellery isn’t a very good idea. Even gold with too many added premiums like P.A.M.P. gold or special edition bullion actually considerably reduces your margins. And even it’s not advisable to buy the numismatic coins today.
The best option is to buy gold bullion bars or coins above 2 gm but below 10 gm. This way you can easily liquidate them. So, when there would be a time when you want to get rid of your gold, you can do it easily.
This is the best advice as of today for investing in gold since the entire economy has become uncertain and if something is not solid, you should not trust it; so, to be on the safest side, this is the best thing to do.
We want to thank Gold Buyers Blog for helping us for this article. Please visit their website to get more information on gold investment.