Getting Started in Gold Investing

With thousands of years of history, gold is clearly not going anywhere anytime soon. Year after year we continue finding new uses for this precious yellow metal. Even when it was just valued because of its aesthetic value and scarcity, it was a reliable form of currency. Today gold remains a favorite item for wealthy people who appreciate its esteem, visual splendor, and rarity, but it has transcended being a luxury and has actually become quite useful today. This has secured it as a safe investment vehicle for people from all financial backgrounds.

Gold offers many benefits to savvy investors. Although the price will fluctuate, it tends to be one of the safest and most profitable long-term investment options that there is. Because it acts as a hedge against inflation, demand for gold tends to skyrocket during times of economic instability. Gold also transcends global crises, as the price is fungible, meaning that it is the same wherever you go. Being able to store your value consistently regardless of where you may be is another benefit that many investors find appealing.

Another reason why gold is a safe investment is because it just makes sense as a global currency. Gold is durable, which is important because you don’t want to lose your savings because of unforeseen physical distress. It does not corrode, fade, or change because of the elements, even after thousands of years. Gold also is able to store a considerable amount of value in a very small package. Money needs to be portable and gold can be easily transported if necessary. The size to value ratio also makes it convenient for storage.

Gold is also divisible, which is essential. Of course, you would not trade an ounce of gold for an ounce of silver! You need to be able to divide money into increments that are appropriate for the transaction. Gold can be melted down and purchased in quantities that work for the owner. Finally, gold has real intrinsic value because of its scarcity, its usefulness, and simply because people trust it. Nobody is ever concerned that their gold will eventually be a worthless chunk of metal. People trust gold, and therefore it can be used as currency.

There are quite a few ways to invest in gold. Most buyers prefer to purchase physical bullion coins or bars because it offers the most reassurance. You can buy shares or certificates, but then you lose the tangibility that is so appealing about gold. One positive aspect of buying ETFs is that you have instant liquidity. If you want to buy or sell, it can be done without any sort of waiting period. Buying, selling, and trading gold bullion is not difficult, however. In fact, most reputable dealers will happily buy back your gold if you do decide to sell.

Another way to buy gold is by investing in rare coins. If you are going to take that route, make sure you do some extensive research beforehand. Rare gold coins tend to cost much more than bullion coins because they tend to be in much shorter supply. A rare coin is much more collectable than a bullion coin, which can give it much more potential to grow. However, it is wise to avoid buying rare coins unless you are confident in your knowledge of the market. It is much easier to lose money on a rare coin investment than a standard gold investment.

Although getting started in gold investing may seem like a daunting task, it is actually a fun and rewarding way to diversify your finances. Just talk to a professional about your plans for the future, and they should be able to recommend the best course of action.