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6 Benefits of Buying Gold as an Investment

There are numerous benefits of buying gold and it is an important asset for investment. It can be purchased in various forms, including bullion bars or ingots that are minted and struck by Governments and private mints. Or you can buy bullion coins made from gold such as South African Krugerrand, British Sovereigns and other European, American and Canadian currencies produced by Governments.

There is the option of investing in bullion rounds struck by private mints available for ongoing purchase. Finally, gold jewellery made from high-quality materials can make an excellent investment with the added bonus of being able to wear and enjoy it at the same time.

You can work out what your gold is worth at any one time by following the gold prices online. Gold can then be bought or sold according to the best available price data and requirements to add to or liquidate an investment portfolio.

Why Choose Gold for Your Next Investment?

So, gold is readily available as a wise investment, but why is it such a sensible option? Here are six reasons why people have long placed their trust in the precious metal and bought it over many years in its various forms.

1. Simplicity

Buying gold as an investment is easy. You simply choose what type you want to invest in and buy from a reputable, approved dealer. The physical gold coins or bars are sent securely to you for storage. You can keep them over the long term as insurance against future economic uncertainties or sell them back to the dealer when the price is at an acceptable level for your appetite for returns on investment. Gold can be traded all over the world, is apolitical and easy to understand.

2021 Robin Hood1oz Gold Bullion Coin- Benefits of Buying Gold

2. Diversity

Adding gold to an investment portfolio adds diversity and helps to reduce risk. As a relatively stable option, it can help offset risks from shares, bonds, pensions, property and other types of investment. This can help reduce concerns over running into financial problems later on. Gold is also very quick to convert back into cash quickly, as opposed to a property that can take a long time to sell or stocks and shares that are more prone to dramatic drops and rises on the stock market.

3. Low Volatility

As gold is mined, rather than manufactured, there is a finite amount of it in the world. This makes it scarce and more valuable than other investments. As demand increases, prices rise exponentially. As production or supply cannot be increased, existing gold assets rise in value instead. As prices go back down again when demand is not so high in one area, this makes the option more attractive to other people wishing to begin buying gold as an investment. This then pushes its value back up. Hence gold’s low volatility and ongoing appeal.

1 Ounce Credit Suisse Gold Bar Sealed

4. Flexibility

Whether you choose gold bullion bars or coins is up to you. However, coins are more flexible, easily transported and simple to convert back to cash as required. Bullion bars also offer flexibility in the varying sizes you can choose from. Smaller quantities can be liquidated more easily and are less cumbersome to store. Larger bars are worth a lot more money and therefore represent a more serious investment. Plus, they attract lower premiums and a better long-term return on buying gold as an investment than coins or rounds.

5. Inflation Protection

As the value of gold has historically remained fairly stable, it is considered to be an inflation hedge to cushion against the unpleasant effects of inflation. There is no VAT tax payable on investment gold. Its value tends to rise during times of higher inflation. This is because investors tend to trust gold bullion over fluctuating dollars, euros, pounds etc. during less certain times and paper currency can lose its value fast. Always do plenty of research about what kinds of premiums you might have to pay when purchasing gold, including any additional charges around handling, insurance etc.

2020 Saint Helena Una and the Lion £5 Gold Proof 1oz Coin

6. Pleasure

Handling gold bullion bars and coins is a great pleasure. The glinting, smooth metal feels cool and solid against the skin and the glint from the metal adds a highly attractive shine. Gold has long been considered a valuable possession. Owning gold lets you take your place in the long line of investors who have appreciated its worth and admired its beauty. Make sure that your storage arrangements are properly secure for peace of mind and that your insurance is sufficient to cover the physical pieces of gold in your keeping.

For more benefits of buying gold as an investment or to add to a portfolio, speak to an expert at Veblen Collectables.

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