How to Invest in Gold
by Admin
Posted on 29-07-2022 12:11 PM
When economic times get tough or international conflicts such as what’s happening with russia and ukraine throw the markets for a loop, investors often turn to
gold
as a safe haven. With inflation spiking and the stock market trading well below its highs, some investors are looking for a safe asset that has a proven track record of gains, and that’s gold. Investors like gold for many reasons, and it has attributes that make the commodity a good counterpoint to traditional securities such as stocks and bonds. They perceive gold as a store of value, even though it’s an asset that doesn’t produce cash flow.
Getty throughout history, few investments have rivaled gold in popularity as a hedge against almost any kind of trouble, from inflation, to economic upheaval or currency fluctuations, to war. When you think about investing in gold, don’t restrict yourself to just buying physical gold, like coins or bullion. Alternatives to invest in gold include buying shares of gold mining companies or gold exchange-traded funds (etfs). You can also invest in gold by trading options and futures contracts.
Compared to other commodities , gold is more accessible to the average investor, because an individual can easily purchase gold bullion (the actual yellow metal, in coin or bar form), from a precious metals dealer or, in some cases, from a bank or brokerage. Bullion bars are available in sizes ranging from a quarter-ounce wafer to a 400-ounce brick, but coins are typically the choice for new investors. Not to be confused with vintage numismatic coins, these are new issues priced on their gold content, plus a premium. For maximum liquidity, most buyers stick with the most widely circulated gold coins , including the south african krugerrand, the american eagle, and the canadian maple leaf.
This article was co-authored by kennon young. Kennon young is a gemological institute of america (gia) graduate gemologist, an american society of appraisers (asa) master gemologist appraiser, and a jewelers of america (ja) certified bench jeweler technician. He received the highest credential in the jewelry appraisal industry, the asa master gemologist appraiser, in 2016. There are 9 references cited in this article, which can be found at the bottom of the page. This article has been viewed 38,793 times. Investing in gold is a popular way to try to earn extra money. Gold is relatively immune to the effects of inflation, drops in the value of currency, and global fluctuations, which makes it a particularly attractive investment.
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This article is for general information only and it does not constitute an offer, recommendation or solicitation of an offer to enter into any transaction or adopt any hedging, trading or investment strategy, in relation to any securities or other financial instruments. This article has not been prepared for any particular person or class of persons and does not constitute and should not be construed as investment advice or an investment recommendation. It has been prepared without regard to the specific investment objectives, financial situation or particular needs of any person or class of persons. You should seek advice from a licensed or an exempt financial adviser on the suitability of a product for you, taking into account these factors before making a commitment to purchase any product or invest in an investment.
Schlun & elseven rechtsanwälte is a full-service law firm with offices in cologne, aachen, and düsseldorf, as well as further facilities in berlin, hamburg, munich, stuttgart, and frankfurt. Our lawyers support both private and business clients and provide their advice in english and germany. Our investment team advises clients on the options available to them in all forms of investments in germany. From advice relating to specific investments (such as gold and other precious metals) to tailored support in the diversification of your portfolio, our lawyers will support you throughout. If you have further legal questions regarding the buying and selling of gold in germany, as well as in an international context, please contact us directly using our details provided below this article.