Due to geopolitical tensions and fears of inflation, the price of gold has been steadily increasing, reaching record highs. As a result, savers are turning to coins and bars as a way to invest in this precious metal. While many view gold as a safe haven for their investments during times of crisis and inflation, it may not be the best way to build wealth in the long term.
Financial advisors recommend that investors allocate a small portion of their assets, around 3 to 10 percent, in gold. There are various ways to invest in gold, including funds, structured products, and physically backed ETFs. However, some investors prefer to own physical gold in the form of coins and bars.
When buying gold, it is important to consider the price ranges as there are no real bargains in the precious metals market. Gold dealers typically have buying and selling prices for bars and coins so buyers should be aware that they may initially be in the red after purchasing. Popular gold coins like Maple Leaf, Krugerrand, and Vienna Philharmonic are widely used and easily sold.
It is crucial for buyers to purchase gold from reputable sellers to ensure authenticity and reliability. Additionally, buyers should pay attention to storage costs and consider how they want to store their precious metal. Gold bars should have the LBMA label which ensures they can be traded in Switzerland and other European countries. Furthermore, buyers should be aware of the VAT exemption for gold coins and bars in Switzerland.
In conclusion, while investing in gold can be a wise choice during times of crisis or inflation concerns; it’s essential for investors to weigh its potential risks before making an investment decision. Financial advisors recommend allocating only a small portion of one’s portfolio towards investing in gold due to its volatility compared with other asset classes such as stocks or bonds.
Overall investing in physical gold can offer investors with stability during uncertain economic times but long-term growth opportunities might not exist as much as with other investment options like mutual funds or stocks markets.
If you decide on investing physically then make sure you buy from reputable sellers who provide secure storage solutions such as vaulting services that allow you access your investments at any time without worrying about theft or damage from natural disasters like floods or fires.
In summary: Investing in physical
