If what you need is to know a little more about how to invest in gold and not fail in the attempt, you must finish reading this article, experts in the field know that investing in gold is a safe bet because its value is never devalued, having as the only one against having to take care of the gold in banks or protect it in safes.
Also, when investing there are many different ways to do itTherefore, the investor finds his own formula on the way to get the best advantage when investing in gold.
Financial institutions, national governments and investors With great purchasing power, they tend to prefer to buy physical gold, either in bullion or in coins, but there is always the latent risk of being stolen. Another less risky method is through certificates of deposit since it is not necessary to physically store it. With these methods, the investor acquires ownership of the gold for which you have paid without having to physically possess it.
The keys to investing in gold are mainly:
- The term
- The storage
- Liquidity
- Purchase prices
With how volatile the economy has become lately and the red numbers dominating the stock exchanges worldwide, added to the returns on fixed income at testimonial levels, gold acts as an economic refuge and security in exchange.
The price of gold rises around 15% since the beginning of the year and has surpassed the incredible level of 1.200 dollars an ounce.
For seasoned investors, it is not just a quintessential traditional option to shield your capital; but also serves as a very useful mechanism for diversifying investments, now that there is a moment of great uncertainty, gold is an excellent option because it has no correlation with the price of stocks or bonds.
More than just expectations of revaluation in short periods of time and its strategic value for the financial world, individual investors who are dedicated to invest in this sector, they have a great number of possibilities to choose how to invest in gold.
To choose the best option, the keys to success are in liquidity, term, costs storage, custody of the metal, the volume to be purchased, commissions and points of purchase and sale.
Purchase of physical gold.
It is the option most used by individual investors around the world. Experts recommend acquiring physical gold to those who buy long-term quantities. One of the main problems is that of cost of purchase, cost of storage and protection, but there are companies specialized in these branches that allow to reduce expenses considerably.
Apmex, Auvesta or Lingoro are some of the best known precious metals selling companies in the industry, allowing private investors to create a safe and physical gold deposit.
Many of these companies allow you to transfers or sell the gold anywhere in the world and at any time for amounts that start with one gram, which guarantees the security of the liquidity that you will have investment.
These private companies also provide solutions to metal storage problem.
The big gold sellers They have established agreements and treaties with multinationals such as the North American Brinks that offer competitive costs to negotiate specifically.
The Exchange Traded Fund
Or exchange traded funds, they are the other viable option for trading gold.
Through these ETFs, companies use the metal as an underlying, replicating its behavior. The ETFs are simply put, the best option for short-term investing in gold, and for those who prefer to protect their investment when the prices of bonds and stocks fall. These guarantee total transparency and avoid investment and management to buy physical gold, as well as for its protection and storage. Some of the most famous companies that perform this type of option, they are the ZKB Gold and the SPDR Gold Shares.
Investment funds
Although the relationship it has with the current price of the yellow metal is somewhat high, it is very far from the levels of risk involved in the physical purchase of it. These products are intended to invest in companies engaged in the gold mining business, Therefore, the evolution of these also depends on external factors, an example of this is the location of the mines where it is intended to extract or the quality of the management. Therefore, it is a more speculative option, but with well-paying earnings.
Certificates and warrants
For those more advanced and experienced investors. They find each other certificates and warrants. These certificates are products listed on the Stock Exchange that replicate the price of a raw material. In the Madrid Stock Exchange, for example, a Société Générale product is traded always referenced to the Troy ounce of gold, the international measure to fix the market price of gold. On the other hand, we have warrants, which allow you to operate with leverage.
Tips for buying gold
The most important thing to buy gold, is to make sure that its purity is good, considering that 999 is the maximum and, in the case of being a bullion, that it has a brand recognized throughout the world, such as SempsaJewelry Silverware, the only Spanish benchmark that has the international certificate for sale of gold bars.
It is also extremely important to obtain the invoice, since in addition to being mandatory by legal means, it is the only way to know the origin of the metal. In addition, it is highly recommended that in case of ingots they have a company certificate that has manufactured it where the weight, the law, the brand, the identification number and the date of manufacture of the same are indicated.
Regarding weight, it must also always be considered that, the greater the quantity, the less it is usually pay for every gram of gold, so it is highly recommended to buy bars of 100, 500 or 1.000 grams.
Buying Coins
As initial data the coins acquire their total value with the sum of 2 values; the value of the metal they contain, be it gold or silver, and the numismatic value they possess. Coins of high quality or historical relevance, have a high percentage of numismatic value, which makes them an unsuitable option for a new investor, these are generally acquired by collectors or connoisseurs on the subject.
To successfully make the purchase, you must contact specialist sellersOn the one hand, these operations are usually expensive, since the minting of the currency is generally charged as well. And it is very simple, for a seller with little ethics, of which there are usually many in this field, to sell coins with the amount of gold reduced without the buyer even noticing.
For this situation it is important that the buyer is aware that the Troy ounce equals 31,10 grams of fine gold and that he pays the seller for the gold that the coin carries, not for its gross weight.
The safest option when it comes to investing in gold coins is the Krugerrand of South Africa, which weighs 33 grams and has 31,10 of fine gold which has been an investment with little loss.
Other advisable coins, both for their purity and for their value in the market, would be the Chinese coin called Panda, the North American Eagle, the Canadian Maple, the Australian Lunar Calendar, the Mexican Centennial, the Austrian Philharmonic or the English Britannia, and trading at prices similar to gold and is made by the Mint of the respective countries of minting having the assurance of authenticity.
Future gold
Among the latests Moravia's compositions advantages that gold offers towards the economic future is that the differential between buying and selling it is very low. The price at which we can buy gold is slightly higher than the price at which we can sell it. The smaller that difference, it will be time to buy or sell gold that you have acquired.
This tool is used by short-term traders. It is complicated to master and you have to be very aware of the dates of the exercises, the expiration dates and spontaneous changes in the exchange currency.
Investment funds that invest in shares of mining companies:
This is believed to be the best option for a private investor who wants to venture into the gold business, due to the low initial investment amount required. Still, you have to know how to choose the right time to enter and exit. It is not an investment that is simple because these types of companies last for short periods and have a very high volatility in their results and prices.
These types of funds are more risky than a conventional investment fund that is invest in the IBEX 35 or the Eurostoxx 50, for example. It must also be borne in mind that in these funds there is a risk of currency volatility that we can use to our advantage or against us.