5 Ways To Gain A Competitive Edge In Gold Investing With Expert Analysis
Expert Investor for Gold
Experience That Gold Rush And Be An Expert Investor for Gold
When we hear the term “gold”, we immediately think it is something expensive and worth a lot of money. Something that only the old rich can afford.
So when talking about investing in gold, you might think you don’t have any means to do it. But let us tell you one thing– gold can be invested in even if you’re not oh-so rich.
Investors can put their money into gold by buying an exchange-traded fund (ETF), gold mining shares, or gold itself. There are many reasons and ways to invest in this metal.
Some say that gold is an old piece of history that no longer holds much value as “money”. In a modern economy, paper money is the most common form of currency circulated for the transactions involved in acquiring goods and services.
According to some, gold’s only benefit is that it may be used to create jewellery. On the other end of the spectrum, others also contend that gold, due to its attributes, is a unique asset that investors must include in their portfolios.
However, from our perspective? You’re definitely missing out if you still don’t have that gold rush and shiny portfolio!
If you want to invest in gold but don’t know how, you’ve come to the right place.
Here at Pearl Lemon Invest, we house expert investors for gold that can help you understand better when it comes to investing in gold.
Contact us today to find out more about how we can help.
Investing In Gold Is A Must For You
Gold investing may be a safe place to put your money if you’re worried about trading inflation and other calamities.
Even though it can be just as volatile as stocks in the short term, gold has kept its value very well over the long term.
You can invest in physical gold, gold stocks, gold ETFs and mutual funds, or speculative futures and options contracts, depending on what you like and how willing you are to take risks.
Most financial experts say that no matter what form of gold you choose, you shouldn’t put more than 10% of your portfolio into it. This is because there are risks with every type of investment. Gold is the same.
But the gold market is very different, and it takes a long time to learn how it works.
Gold mutual funds and ETFs are the most secure option for investors who want to add some of gold’s stability and radiance to their portfolios.
If you’re still wondering why gold is important for your portfolio, let us show you a brief insight into it.
Gold is an important factor in every financial economy of every country. In addition to being an indicator of the economy’s health, it is one of the significant financial assets that national banks use to protect their loans to their governments.
If gold were viewed as a currency under a free-market system, it would hold the same value as the euro, yen, or U.S. dollar.
So the next time someone says gold has already lost value, tell them that your national finances and economy depend on how much gold a country holds.
How You Can Invest In Gold
Although one of the world’s oldest forms of money, gold can currently be used as an investment in various ways.
Before buying a gold ETF, we advise investors to consider why they want it.
Is it for the potential return or to spread out the portfolio?
If it’s not clear to you yet, how about learning more about the different options and the risks that come with them?
We’ve listed every possible gold investment you can take on for your portfolio so you won’t have to.
Take a glance at the different gold assets our expert investors for gold can help you with.
You’ll usually work with dealers outside of traditional brokerages regarding physical gold. You may also need to pay for storage and insurance for your investment because it needs safekeeping.
If you want to invest in physical gold, you can access bullion, coins, and jewellery since these are the three main tangible gold products available in the market.
Most people think of bullion when they think about investing in gold. These are big, shiny gold bars that are kept in a vault. Gold bullion comes in bars ranging from a few grammes to 400 ounces, but the most common sizes are one-ounce and ten-ounce bars.
Due to the high price of gold bullion, it’s vital to buy it from a trustworthy dealer and pay for delivery with insurance or store it in a large vault or safe deposit box.
If you want to invest in gold with bullion, it’s also a good idea to keep up with the gold price so you can buy it at the right time. Most dealers update their prices based on the current spot price.
Most gold coins weigh one to two ounces, while others only weigh a half or quarter-ounce. Typically, the most common gold coins come in collectable ones, like a South African Krugerrand, a Canadian Maple Leaf, or an American Gold Eagle.
Some dealers even sell coins that are broken or worn.
However, gold coin prices may not always match how much gold they have. People who want to collect coins often sell them for more than their face value.
You might find better deals on gold coins from local collectors or pawn shops, but it’s usually safer to buy from a licenced, reputable dealer.
You could also buy gold jewellery that you can wear or that someone else wore but is now broken.
Investing in gold jewellery comes with many risks that don’t come when you invest in pure gold.
First, you should be careful when buying used jewellery because not all of it is sold by reputable stores. Authenticity is essential not only to you but also to anyone you try to sell the piece to.
This is why it’s vital to buy investment jewellery from a dealer you can trust and get as much paperwork as possible.
Second, you’ll have to pay a markup that depends on who made the jewellery and how much it costs to make. This could be anywhere from 20% of the raw value of the precious metal to more than three times its raw value.
You should also know how pure your jewellery is or how much gold it is made of. Karats determine how pure gold is, with 24 karats being 100% gold. Your piece’s melt value, or the raw value of its parts if they were melted into pure gold, goes down as its purity goes down.
Buying physical gold is much more complicated than investing in companies that mine, refine, and trade gold stocks. Since this means buying shares of companies that mine gold, you can use your brokerage account to invest.
Some of the best-known stocks in this area are:
The Newmont Co. (NEM)
Newmont, based in Colorado, is the largest gold mining company in the world. It runs mines in Africa, North America, and South America.
The Barrick Gold Corp. (GOLD)
This giant gold mining company is based in Toronto and operates in 13 countries worldwide.
Franco-Nevada Corp. (FNV)
Franco-Nevada has no gold mines of its own. Instead, it pays other gold miners for the rights to royalties. Remember, though, that the shares of stock in gold companies are tied to the price of gold and based on the company’s current income and expenses.
This means that putting money into individual gold companies is just as risky as putting money into any other stock. Single stocks can be volatile, and they don’t give you the same level of security as diversified funds.
ETFs and Mutual Funds for Gold
You can gain access to gold’s long-term stability by investing in gold ETFs and mutual funds, providing you with more liquidity and diversity than buying actual gold.
Gold funds come in several different forms. Some of them are passively managed index funds that use futures or options to track industry trends or the price of gold.
Just remember that, like with gold stocks, you’re not buying gold. You’re buying paper supposedly backed by the debt or equity of mining companies or futures and options contracts for physical bullion.
Because of this, gold mutual funds and exchange-traded funds (ETFs) may not
Futures and Options on Gold
The riskiest option for investing in gold is through futures or options trading, a type of speculative investing.
Futures and options are both types of derivatives, meaning their value is wholly based on the price of an underlying asset.
A futures contract is a promise to buy or sell a security at a set price on a specific date, no matter how the market is doing at the time. A contract for options, on the other hand, allows you the choice to purchase or sell an asset if it rises to a specific price by a certain date or earlier.
People who buy gold through options or futures contracts need to keep a close eye on their holdings so they can sell, roll over, or use their options before they lose their value.
Also, each choice comes with a certain amount of leverage, or debt, by default. If investors use them too much and the market decreases, their losses can add up quickly.
Get That Shiny Portfolio
Here at Pearl Lemon Invest, we understand that there are good and bad things about every investment. You can never get rid of risks.
If you don’t want to own real gold, you might be better off buying shares in a gold mining company.
If you think gold could be a good hedge against inflation, you can invest in coins, bullion, or jewellery to make money from gold.
Lastly, if your main goal is to use leverage to make money off rising gold prices, the futures market could be your answer.
Remember that any holdings that use leverage have a fair amount of risk.
But if you want to invest in gold, why not ask experts to do it for you? This way, it will be handled by professionals in the field.
Want to get that shiny portfolio badly? Get in touch with us now!
Whether it’s because of tensions in Eastern Europe, the Middle East, Africa, or elsewhere, it’s becoming more apparent that political and economic uncertainty is also a part of our modern economy.
Because of this, investors often see gold investing as a safe place to put their money during times of political and economic uncertainty.
History is full of empires that fell apart, political coups, and currencies that lost their value. Investors who held gold during these times could keep their money safe and, in some cases, even use the commodity to escape all the inflation hedge trouble. As a result, investors often buy gold as a safe haven whenever the news points to some economic uncertainty on a global scale.
Investing in gold has its own set of rules. Here are a few examples:
Due to their high prices and value, gold assets like jewellery are always at risk of theft. Digital gold could be a choice for investors who want the same benefits as real gold but don’t want to worry about security.
Gold in jewellery or coins can be challenging to store for the following reasons:
- There’s always a chance that someone will steal or rob you.
- It might need its own safe.
As paper gold investments, alternatives like digital gold, gold ETFs, etc., are suitable investments as they don’t need physical storage.
Gold is easy to buy and sell, but commissions have problems. The total price may increase if you add charges to your gold jewellery. You might even have to pay a fee when you sell your gold.
In this way, gold ETFs do better. ETFs that invest in gold bullion can be bought and traded, much like equities. In general, ETFs don’t cost much.
Gold ETFs, sovereign gold bonds, digital gold, and other solutions are available if you wish to invest in gold without paying the expenses to produce it.
The gold standard is also something to think about. The real value of gold comes from how pure it is, and that’s measured in “Carats” (K). 24K gold is the purest gold you can buy. If you buy gold from a well-known and trustworthy seller, you won’t have to worry about its purity.
Also, if you invest in paper gold, you don’t have to worry about how pure it is because it just follows the price of gold bullion.
No Passive Income
Physical gold investments don’t generate passive income like stocks, mutual funds, or P2P lending. This could be a problem if you want to retire early or use your investments to make up for some of your income.
You can only make money on investments in physical gold by selling them.
British Sovereign and Britannia coins are the best gold investments available today. You have no counterparty risk if you have physical ownership.
Bullion coins are a great deal than proof or collector’s coins, and both have a solid second-hand market, so they’re easy to sell. Since these coins are legal money in the UK, there is no Capital Gains Tax on the money made from selling them.