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Gold has been a highly sought-after precious metal for centuries. In modern times, that fact hasn’t changed. Gold is still highly sought after for its beauty and status, which makes it a worthy investment.
There are hundreds, if not thousands of brokerages and dealers out there looking to get you into gold investments. Reviews, like the Schiff Gold review, can help you find the right gold investment company for you. But why should you invest in gold and how do you even go about it? Let me help explain.
Here is a list of reasons why you should invest in gold today.
It reduces investment risk from dollars
Inflation is a big thing that’s happening in companies all over the world. As the price of a dollar increases, the worth of stocks can plumate. Gold doesn’t do this and that’s why investors love it. They use gold to hedge against possible inflation so they have something to fall back on if their other investments are affected.
You can make a LOT of money
Gold costs a lot of money and can be expensive to get into, but that just means that there’s a high potential for making more money. The more something is worth, and the more it appreciates, the more you’ll be able to make on your investment. For example, if you buy $2000 worth of gold and sit on that investment for six years, there’s a chance that it could appreciate in value and be worth $3000 or more in value.
It’s stable in economic collapse
You probably know this already, but stocks and bonds shift with the market. They can, at times, be a volatile investment. If something happens in the stock market that causes a major economic collapse, then your stocks are going to plummet big time and take all your profits with you.
Gold isn’t in monetary form and therefore remains stable despite economic collapse or challenges. Its price isn’t affected by the stock market and has been known to ride in price despite economic hardships or recessions.
Diversifies investment
Investors are constantly looking for ways to diversify their investments. Diversifying your stock is crucial to protect your money and investments. Let’s look at this scenario so you can better understand why.
Mike is an investor who decides to put $5000 in stock towards a particular company. After a few years, the company suddenly goes bankrupt and its stock crashes. Now he’s lost a lot of money.
What Mike should have done is put part of that $5000 into other investment opportunities. He could put $1000 into the company stock he wanted, then another $2000 into an IRA account, then another $1000 into a mutual fund, and then another $1000 in bonds. This way, if something happens to one of his investments he still has his other investments to fall back on.
Since gold is a great hedge toward inflation and is relatively stable in an economic collapse like a recession, it makes for a great addition to your portfolio.
For more information about diversifying your portfolio, follow the link. https://www.forbes.com/advisor/in/investing/beginners-guide-12-tips-for-diversifying-your-investments/
I want in but how?
Alright, so I got you interested. Maybe even a little excited about a new investment opportunity. Now you want to know how to invest in gold and start your new investment journey. Let’s look at some common ways people invest in gold.
- Bullion- these are pure or almost pure gold bars, coins, or ingots. In many cases,it’s considered legal tender.
- Coins- these can be a great way to invest, especially if you like to collect things. Coins come in all different sizes and designs so they can be fun to collect, especially if they’re something that’s continuously updated. They’re also global so every country produces its own gold coins into circulation. This means you can get some from different countries too.
- Gold companies- go right to the source. Gold companies are the people who mine and purify the gold that gets placed into circulation. This is often the safest bet when it comes to investing in gold because these companies are extremely lucrative and established companies don’t fail easily since there’s always a supply and demand.
- Gold Jewelry- Something worth mentioning, but not super common. People are always on the hunt for gold jewelry and most of the gold that’s mined from the ground is made into jewelry. If you have any gold jewelry at home, good news! You’re already investing in gold because the price of that gold jewelry can rise with the price of gold.
There are also things like gold mutual funds, gold EFTs, gold futures, and gold IRAs that are becoming more and more popular. For a more in-depth look at mutual funds, EFTS, futures, and IRAs, click here.
Things to avoid
Do not, I repeat, DO NOT just give your money away to the first person that says they have gold for you to invest in. Precious metals are probably one of the most scammed investments. If you’re buying bullion, coin, or jewelry, make sure that the broker has the physical items and isn’t trying to trick you.
One of the best ways to vet these people is to ask them as many questions as you can and research the company. Don’t let yourself fall victim to a scam. Protect yourself, your money, and your gold. Avoid empty promises and vague replies.
There are a lot of great reasons to invest in gold and equally great ways to do so. They can hedge against inflation, diversify your portfolio, and curb economic disaster. You can invest by buying physical gold or invest in things like gold companies, gold EFTs, gold IRAs, and gold mutual funds.
If you decide to invest in gold, do your research and make sure you’re not opening yourself up to scammers that can take your money and leave you with nothing. I can’t tell you when the right time to buy is, but if it’s something you’re actively interested in, then the time is now!
Photo by Zlaťáky.cz on Unsplash