Why investing in gold is always a smart decision

investing in gold

Since time immemorial, gold has been regarded as a symbol of prosperity. Kings, queens, noblemen and the common man coveted it and they still do. This precious metals has been fashioned into beautiful jewellery, bullion bars and coins as well as ornaments. The admiration for gold has only grown throughout the years. However people don’t buy gold merely because it looks good, they buy gold as an investment, an asset that protects wealth in uncertain economic times.

Compared to fiat currency, gold has proven itself to be more stable and more reliable. We have seen how quickly currencies can lose their values and in so doing put the economy of a country in serious problem. Ask Zimbabwe or Venezuela; these countries have seen their currencies rendered to less than the paper they are printed on.

The desirability of gold has been growing and so has the number of companies that sell or buy gold. Gold is bought and sold for various reasons. It is used in electronics. The cellphone, tablet or the laptop you have has gold components in it. Gold is used in dentistry too and various other medical applications but more commonly, it is used in the jewellery industry. As such, this precious metal will always be in demand.

When investing in gold, there are certain factors you need to consider:
  • Gold comes in different levels of purity. There is no such thing as 100% pure gold but gold bullion coins or bars are made from 90 to 99-percent pure gold or 24k gold.
  • Most gold ornaments are made from 14, 18 or 22karat gold which means their purity ranges from 58%, 75% and 58% pure gold.
  • Buying gold bonds is not the same as buying actual physical gold. Owning gold bonds or stocks does not require you to take physical possession or actual gold.
  • The manufacturing of gold jewellery consumes most of the gold produced on a yearly basis.

Gold is still susceptible to fluctuations in market prices. The value of gold bullion coins with a purity of 99.9% bearing the hallmarks of government mints or other reputable refineries appreciates when the markets are volatile, inflation is high and the economy is on a downward spiral like it has been in recent times.

Gold bullion bars are also a great investment. They come in different sizes and weights as small as 1gram.

Gold jewellery and Ornaments:

Gold jewellery has double the benefits that gold bullion has, it is beautiful and wearable but it can also be sold for cash. Gold Jewellery and ornaments can be combined with other precious metals and precious gemstones. This enhances its appeal as well as it’s value. If you view gold Jewellery as an investment then it is important that you buy high purity gold in order to get a higher price when you decide to liquidate.

When buying gold, the wise thing to do is to ensure that you buy it from reputable gold dealers. Gold can come in handy in yes of financial crises so invest wisely. The great thing about this precious metal is that you can start small, invest in the type of gold that you can afford. Your investment in something as small as gold jewellery and work your way up to high quality bullion, it all depends on what your motivation is. Get information about the gold market, research and educate yourself and you will find that gold is always a smart investment to make.