The Best Ways to Buy Gold: A Complete Guide

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Investing in gold has long been a safe option for investors, especially when the stock market seems jittering and dollar value sees a nosedive. These are times when investors look for safe assets to protect their money.

There are many reasons why buyers and investors like gold, and there are many attributes that make gold a preferable option ahead of bonds and stocks. Visit websites like goldbullionaustralia.com.au to buy or sell gold online. All the coins, bars, and bullions available on the site are LBMA certified and are refined in Australia.

You may buy gold in two different ways:

Physical Gold:

Gold coins, bullions, and bars are the best way of owning gold. Gold bullion comes in bars ranging from a few grams to 1 Kg that can be locked away in a vault and grow in value over time. Collectible coins, such as Perth Mint and Royal Canadian Mint, are the most widely available type of gold coins.

There are several benefits of investing in physical gold. Some of them have been discussed below:

  • Protection Against Inflation:

Inflation can significantly impact your investment, as your money loses value over time based on the inflation rate. Investing in physical gold can protect against such risk. In fact, you must have noticed that gold prices shoot high during times of global emergencies, equity market turbulences, and political tensions between countries. So, you can cash your gold during such times and earn profit instead of seeing a loss.

  • Excellent Future Asset:

While you are working and earning, you must save enough for your future. If you are ready to invest small amounts only, physical gold can be a better option than real estate and other assets. This is a great way to save your money for the future and get good returns later. Gold coins are certified so that you can be sure of their quality and authenticity.

  • Easy Buying and Selling:

You can buy physical gold from any jeweler or gold dealer in your neighborhood. However, it is vital to buy them from trusted service providers who guarantee their product with a certificate of authenticity. By doing that, you can be sure of their quality. Since the demand for gold is always high, you don’t need to worry about selling it either. So, physical gold can be a great source of instant cash during times of need.

  • No Maintenance Required:

Unlike real estate and other assets, physical gold does not require any maintenance. Once bought, you can keep them safely at a place for decades.

  • Can be Mortgaged for Loan:

Emergencies can arise at any time in life, and having physical gold in your locker can keep you financially prepared for handling them. At times of need, you don’t need to sell your physical gold for money. You can keep them as collateral at a financial institution and get a loan against them. Once you repay your loan, you can have your gold back. Interest rates for such loans are also low since these are secured loans for which you are mortgaging your asset.

  • Does Not Get Damaged with Time:

No matter how old your gold coins or bars are, you will get the same value from the market just as the new ones even decades later.

Digital Gold:

You may buy digital gold in the form of ETFs and gold mining companies. One option is to buy gold-backed ETFs or Exchange Traded Funds. In this option, you own fund shares, while the physical gold’s owner is the fund.

You become the gold’s owner without worrying about its buying, selling, and storing. You can find such ETFs as shares on stock exchanges.

Apart from ETFs, you can also invest your money in firms that are involved in mining gold. Even though you do not get any exposure to the market, the stocks you buy are closely related to the gold price.

While you may think that digital gold is the latest thing that can bring you profits in the long run, there are several cons of investing in it.

  • One of the most significant disadvantages of buying digital gold is that you don’t have access to your gold, and it cannot provide instant returns when needed.
  • You can make money from it only after selling it. There is no option of borrowing or mortgaging.
  • Under extreme conditions, the price of digital gold contracts fluctuates, and you may not be able to sell it during market crashes or global tensions.

Such service providers allow you to buy physical gold in different forms, including coins, bars, and bullions in different sizes, designs, shapes, and weights. Look for a firm that offers delivery and vaulting services as well, as they ensure your asset’s safety under all conditions.

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