Should I Buy Gold?

Jan 05, 2022 By Susan Kelly

Buying gold is a good investment, and it can expand your investment portfolio. It also involves ownership of various assets. Buying gold can be favorable for you because it can protect you from inflation.

However, gold is volatile for the short –term, and it cannot benefit in the long term like bonds or stock. What do financial advisors recommend in this regard? They suggest investing no more than 105 of your savings in gold.

Before buying gold in any gold-backed financial object, keep in mind that it should meet your financial goals and have a high-risk tolerance rate.

There are many advantages to investing in gold.

The first one is, gold has tangible nature that has high liquidity, so it is easy to find its buyer when you plan to sell it.

Some experts suggest it as a border against inflation because eth price of gold is likely to keep pace with daily living costs.

Gold has flexible nature that can expand your investment portfolio because it does not fall in sudden value like stocks and real estate.

However, there are some risks to buying gold that you must consider.

Gold cannot produce money as bonds and sticks can produce. Other assets like stocks shares are favorable because they help you earn profit.

Gold prices may be unstable.

How much does it Cost to buy gold?

The answer to this question is not the same every time because the price of gold does not remain constant the same every time, and it keeps changing depending open a lot of factors. Plus, gold has different price ranges across the states and countries.

You are required to pay extra charges to buy and sell gold as an investment.

Best Ways to Buy Real Gold

Here are few methods that can assist you buying real gold.

1. Gold Bullion

One of the most popular ways to buy gold is in the shape of bars and coins. It is a satisfying way because you own this ownership physically. But do you know that it has some risks too? The riskiest thing about it is; it is in physical form, and you need to protect and ensure its physical existence.

Man owners buy it intending to depend on it entirely when commodity prices rise. You can use several ways to purchase gold bullion, like by an online dealer. Many shops sell gold but make sure to buy from the one you can trust to get real gold.

2. Gold Futures

Gold futures s another good way to speculate the rising gold price. You can take it in physical form too. Another benefit of investing in gold is the amount of leverage you use. Plus, you can take gold futures in small chunks of money. If gold futures move in another direction, it will help you make money.

However, the future market of gold is useful for sophisticated investors, and you need to hire a broker that can help you in future trading.

3. ETFs that own Gold

If you are not willing to buy gold in physical form and do not intend to deal with the future market's fast pace and margin requirements. So, you can use this option as a substitute for buying EFTs that include SPDR Gold Shares, iShares Gold Trust (IAU), and others.

Another benefit to owning an EFT is bullion that is also exchangeable for cash that you can get from the market. In addition, you can prefer trading the fund when the market is open for expanding prices. It is somehow similar to selling a stock.

4. Jewelry

Another option is to buy gold jewelry. Remember that the price for purchasing gold that you pay is tangled with the amount of gold and the overall weight percentage. In simple words, you need to high money for less gold.

Several jewelry merchants encourage customers that their gold comes from satisfying resources. These prices get sold with tags “sustainable’ and “ethical.”

Bottom Line

In short, everyone cannot buy gold because this shiny metal has a high price and has less return as an investment. It may not be accessible whenever you need to convert it into cash. So, it would help if you made a thoughtful decision before buying gold.

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