The price of gold goes up in a crisis. It’s an old saying but it’s grounded in reality. When the world is in a period of economic instability, investors tend to shy away from stocks and shares because they aren’t reliable. Instead, they choose to invest directly in commodities and gold is the most popular one. During a crisis, investors will rush out to buy gold and the prices start to shoot up. If you’re the one holding the gold in this situation, you stand to make a lot of money out of it. That’s why it’s a sensible move to invest some of your cash in gold now while the prices are a little lower so when everybody starts panic buying gold in the future, you can sit back and watch the cash roll in. There are a couple of different ways that you can invest in gold so familiarise yourself with them and decide which works best for you.
The most common way to invest in gold is to buy and physically own gold bullion. People have been investing in this way for thousands of years and it’s a tried and tested method. You can buy bullion from the local mint or from companies that specialize in dealing gold. The most important consideration to make when you’re investing in gold bullion is how you’ll store it. By clicking here you can find out about companies that have specialist gold storage services. You’ll have to pay out a small monthly fee but it’s definitely worth it. If you keep it at home and you get burgled, you will lose everything.
If you don’t want to invest directly in bullion, you could look into gold funds. There are funds set up that invest in gold mining companies, they’ll see an increase in their value when gold sales go up but they aren’t as profitable as gold bullion. One of the major downsides is that they don’t have the diversification benefits of bullion that can easily be turned into hard cash. However, you won’t have to deal with storing the bullion so it’s a more hands off investment.
Investing in jewelry has its pros and cons. You get the same benefits that you get from investing directly in gold bullion but you also have a product that you can get use out of and then sell if you need to. However, the reliability of gold jewelry is sometimes questionable so if you’re a new investor, don’t rush into anything. It might not be pure gold so you could find out that it’s not worth as much as you thought it would be. When you’re buying it, you’ll also have to pay a slightly higher price to cover the mark up from the jewelry store. That doesn’t mean it’s not going to make you as much as bullion because you can get a higher price for items if the buyer likes the style of them. It’s still possible to make good money out of jewelry but when you’re buying it, make sure you get it properly valued by an expert to make sure it is pure gold.
Investing good money in gold now will stand you in good stead the next time there is a financial crisis because everybody will be flocking to buy it from you.