Best Reasons to Buy Gold
Throughout the world, gold is recognised for its value. History also shows its importance. Coins made out of gold and other materials started appearing in 800 B.C. During the reign of King Croesus of Lydia 300 years later, people had widely used coins made of the purest gold.
But despite an economic crisis affecting countries around the world, is it still worthwhile to buy gold?
Why You Should Invest in Gold
Investing in gold is not the same as buying stocks or bonds. You have the option of taking possession of gold, and you can get it in coins or bars.
A stamp will tell you the purity level and how much gold there is in a bar. You must remember that the value of either bullion or coin will stem from its precious metal content and not from its rarity and condition. You can expect this value to change anytime in a day. You can use it to buy stocks or bonds in companies that mine gold, or contracts and ETFs that are linked or focused on gold.
The Ways You Can Own Gold
As you can buy gold in either coins or bullion, there are also other forms of gold that you can purchase or invest in, such as futures, coins, companies, ETFs, mutual funds, and jewellery.
Other Reasons to Own Gold
- Gold is money.
Used as a trading tool in the past, it is one of the world’s oldest currencies. It may not be considered an official currency anymore, but it still has value in markets.
- It is a physical asset.
You can hold it, unlike other investments that you may have. It cannot be burned, compared to paper currencies or financial instruments that you may have kept near you. You do not need to maintain it.
- It can be held in private.
If you want to keep your gold stash private, you definitely can. Unlike physical instruments, such as a bankbook or online account, where you and someone else know the value of your investment, with gold, you will be the only one who would know how much your stash is.
- Gold can easily be transported.
It is easy to move, especially if you have coins or bullion. You can quickly put it in a bag and bring it where you are planning to sell it. Gold is recognisable, so you do not need to wait for hours to get it verified and stamped with a seal of approval. As long as the shop accepts gold as payment, you can easily use your stash.
Important Points to Remember
Whenever you are deciding to invest with gold, there are several things you have to think about. If you do not like to keep gold, you have the choice of purchasing shares in companies that mine gold. If you would like to buy gold to be prepared against inflation, gold has different forms that you can buy and keep for a rainy day.
When you decide to invest in gold in whatever form, it is a decision that you have to make when you have all your chips in one place. You have to think about the possible risks you might get into if you decide to move further. You also have to do your research and find a legitimate broker who can keep your gold safe.