Gold provides great value to investors both as a safeguard against economic crisis, and as a long-term investment for the future. This precious metal has served as a strong form of global currency for thousands of years.
For many years, financial advisers decried investing in gold bullion, coins and commodities, but the 2008 Wall Street crash changed that outlook. Now, most advisers agree that gold and, other precious metals are an essential part of any diversified portfolio. In response to this increasing demand, many options for gold investment have sprung up in the market, but which of these products is right for you?
By far the simplest method of investing in gold is directly purchasing assayed, and certified pure gold bars from websites like https://www.goldbullionaustralia.com.au/. These bars reflect the same gold prices you see published in newspapers, and commodity trading publications.
Gold bars are made specifically to be bought and sold, cast by select precious metal refiners these bars are stored in vaults immediately after being produced; with the particulars of each bar carefully recorded in trusted ledgers. These careful records allow buyers to track the provenance and purity of their bars without need for any further assurances.
After making your purchase you could either chose to have your online gold broker, store the bullion for you in special bullion vaults, or you could have them delivered directly to you for self-storage.
For those of you looking to make an investment that might carry a few more related costs, but a comparatively higher upside; gold coins are the perfect purchase. Governments around the world mint several new uncirculated gold coins every year, which also double as legal tender.
Each side is embossed with a unique and often intricate design that is changed regularly. These coins are all guaranteed for their purity, and often come in several sizes, to accommodate different levels of investment interest. Numismatologists are coin collectors that invest in both old and new rare coins due to their high market values, and the potential for exponential future appreciation in these values.
When buying gold coins make sure to note whether you’re buying numismatic coins, which are prized for their worth as collectibles, or whether you’re buying bullion coins whose worth is purely based on their gold content. Unlike larger bars, coins can generally be safely kept in safety deposit boxes in your own home.
If you’re looking to hold and trade gold as a regular stock, and you already have a brokerage account set up then EFTs might be a better investment vehicle for you. The values of these funds are pinned against tangible stocks of bullion and coin which are stored vaults, as prices rise so do the prices of the ETFs.
One issue many investors have with gold EFTS is the significant counterparty risks they carry. Unlike gold bullion which is a physical asset, when you invest in instruments such as EFTs you expose yourself to the investment decisions, operational integrity and management of a fund manager.
If your custodian is engaging in unethical behaviour or is simply incompetent, then you’re on the hook for the losses that incur as a result.