Gold hits a record high
Gold has hit a record high and one wonders how high it will go before it starts falling but with interest rates so low and coronavirus not going away anytime soon it could reach dazzling heights. It is important to take a step back and not get carried away because the fundamentals of investing still need to be observed.
Whenever there is an opportunity for capital gain there is an opportunity for capital loss therefore never make speculative investments with money you cannot afford to lose but rather, use your discretionary spending for this purpose whether it be money you would have otherwise used for nights out or holidaying.
You do not necessarily have to purchase gold bullions to take advantage of the rising gold price. Investing in gold companies on the sharemarket is one option. You need to do your homework on the company and only invest in one with a proven track record.
In New Zealand small investors can drip feed money into the sharemarket through Sharesies. This is not the only share trading platform but with Sharesies investors are able to invest money into individual companies.
I think investing in companies which mine gold may not necessarily be a good long term strategy because gold is likely to start failing at some point but nobody knows when that day will come. What is likely to happen is investors will see their gold and invest the money elsewhere.
Investing in gold coins is another option providing you have a safe place to store it.
You can easily purchase these from ebay or other auction sites.
The beauty of owning gold coins is they can easily be converted back to cash.
Something is only worth what others are prepared to pay for and that is applicable whether it is gold, silver, property, art, or whatever it is.
It pays to do your homework and not invest in something unless you know something about it. Goldco has some informative articles on it’s website, you can find out more here: