Financial ability counts a lot in our society. It is a sure indicator of how wealthy or at least well to do an individual or an organization is. For this reason, the struggle that many people face in their daily life is the struggle to be financially viable since it is required to meet daily needs, responsibilities and to pursue goals. This is not just true for individuals; it is also true for organizations and countries even.
Wealth or financial viability does not just come out of thin air, it is either created (by creating value that people will pay for) or worked for. On the other hand, without careful planning and due diligence, it can be lost. To multiply wealth, preserve it or prevent future loss of it, people make investments.
What Is an Investment?
Investments are things of value (mostly financial value) called assets kept and managed in such a way and the expectation that its value will increase. The intention is that the asset(s) acquired will not be used immediately rather, they will be kept yielding an increase in the future. You can read more about it here.
What Is A Gold Investment?
In the light of the earlier definition of investments, it suffices to say that this is where the asset being kept or managed for increased value in the future is gold. This is done by investors to diversify risks because, as with every other thing in life, even the smartest investment plan can end up in disappointment due to no fault of yours. However, gold is quite reliable and provides an alternative option for an investor (there are statistics to prove this).
Common Misconceptions About Gold Investments
Though this form of investment is safe, a lot of people have misconceptions about it, even professionals. With these misconceptions, they scare away potential investors who might be willing to try it out. However, here are some of those misconceptions.
It Is for Wealthy People
This is the most common misconception that many people have. The sad thing about it is that they quickly write themselves off from ever trying their hand out in this area of investment. Well, this notion is wrong as anyone and any investor can participate and is suited for it, even the inexperienced investors. If this venture is to be done through a reputable investment firm (and it is important that you do) you would not need to be wealthy to invest.
It Is Too Risky
This is another misconception that people have although the evidence does not prove this; rather, the opposite is the case. This is because, its consistent value never goes down but it appreciates and thus, it serves as a hedge over other investments which are generally riskier than it is.
It Does Not Pay Dividends
Most people who invest aim to earn dividends from it and since you might not get to earn dividends from investing in gold. This general mindset is what discourages a lot of people from getting involved and investing in gold. They most times do not understand that unlike the speculative nature of the usual investments, this is more about storing value that never depreciates.
It Is Negatively Affected by Rising Interest Rates
There is nothing to support the assertion that interest rates affect the price or value of gold. On the other hand, the value increased greatly the last time that there was a great rise in interest rates. So there, another misconception debunked.
Mining Stocks Seem to Have Better Potential
They can be said to be on the same wavelength value-wise. However, when there are upheavals in the market, mining stocks do not respond well to it and at times like this, many will wish that they invested in real-life precious metals.
You can find out more about investing in gold at https://www.which.co.uk/investing-in-gold-explained
Evaluating A Gold Investment Company
Having decided to start investing in precious metals, the next thing that you should be careful about is the company you choose to invest with and through. This is crucial as it can determine whether you make gains and the extent to which you profit from this venture. You should evaluate the following:
Their holdings are a major indicator of the company’s ability to meet up your criteria. For this reason, you should check out their holdings and how much they have in physical precious metals.
Their Past Performances
You should also check out their past performances to be sure of their track record in handling these issues. If they by virtue of their records have been able to handle their affairs well then, you can go ahead with them.
The Fund Manager
This is the person that usually will make the investment decisions with your investments. Evaluating the capability of such a person is, therefore, not out of the question as you need to be sure that your interests are safe.
Every person going into any form of trade or business deal will always want to know the cost or fees to be paid. Different organizations have a different range of fees that they charge. Ensure that you are comfortable with their fees before you go ahead with the arrangement.
Registration And License
This is another crucial area that you should be sure of before going ahead with your investments. This is to avoid trading with an organization that is not recognized by law or one that is not sanctioned to function in the capacity that they are functioning in.
The point in all these above-listed points is for a willing investor to take care and not just to rely on the popularity of the company. For example, the Patriot Gold Group is quite popular but if you are to invest with them, you better start off asking ‘is Patriot Gold Group a scam?‘ and this will lead you to find out about their licensing, registration and all the necessary information that you need.
Making investments is one way of ensuring that you make some profit (dividends) in the future especially when you will not be unable to work or participate in your usual endeavors. It is also a way of raising capital for projects.
One thing that people always worry about is the possibility that they may have invested in the wrong things or that their investments will not yield dividends as expected. Gold insurance is one way to be sure about your investment.