There’s no doubt about it, gold and silver are a great investment. These precious metals have attracted a considerable amount of interest for thousands of years.
In the past, gold (and silver) were so valuable because they were objects that could be moved around easily as people travelled from place to place. Gold or silver could be worn as jewellery, it did not corrode like other metals and was light to carry around.
Even today, gold and silver are still valuable commodities. In many countries around the world gold is a popular choice for investors because its value remains stable and often unaffected even in turbulent economic times.
Gold or silver investments are usually made in either bullion or coins. Once purchased, the majority of investors will keep their gold or silver as a medium to long term investment, with four to five years being the minimum investment period.
Gold is the preferred choice for many because it is deemed to be a ‘safe haven’. Alternative investment options such as bonds often perform badly in an environment where the interest rates rise because inflation decreases the value of the investment. Equities are another option, but these can also fall during turbulent economic times. More often than not, gold and silver offer increased protection in both of these scenarios. Even if the price of gold and silver does fall, investors simply keep their investment for a little longer until the price recovers.
How to Invest
Buying gold bullion offers a number of benefits, but buying and storing gold locally is even better. Purchasing gold from a local company is a very personal experience. By visiting a local company, you can walk in with cash or a card, inspect in detail the gold that you wish to purchase and walk out of the shop with your gold investment.
With online purchasing you are buying gold that you have never seen and you are exchanging money with an anonymous online company.
Many investors also prefer the relaxed nature of shopping for gold in person and they find that it is much easier to browse and network with other gold investors. A local gold bullion dealer will often take the time to speak with you about gold investments. This makes them a great resource not just for buying and selling, but also for gaining ‘inside knowledge’ to the world of gold investing.
When deciding how and what to invest, you can place relatively small amounts of money into shares of gold or silver. This is where the knowledge of your local bullion dealer comes in useful. Bars of gold can also be purchased in a variety of weights to suit your specific requirements.
Gold and silver coins are also a suitable alternative and are the preferred choice for some investors. The coins can even be minted. Popular options for minted coins include Maple leaves, Sovereigns and Kruggerands.
Once you have decided what type of gold or silver to invest in, it is important to consider how your investment will be stored. Professional and secure storage is the preferred option and it is wise to think about how much this storage is going to cost. Keeping thousands of pounds in gold at home is not recommended and it won’t be covered by your insurance if it is lost or stolen. Some local bullion dealers offer storage facilities for their customers so it is always worth enquiring when you buy the gold whether this is an option that they also provide.
Buying gold locally is the preferred choice of many investors. Not only do you get to speak with someone who is knowledgeable about the gold that you are buying they can also provide valuable information and advice on your gold investment, helping you to maximise your return.