Investing in gold
Gold hit record levels during 2020 and with so much economic uncertainty as a result of coronavirus it could remain high and even exceed 2020 levels. What are the factors to consider when investing in gold? Here are my thoughts.
1 Do not place all of your eggs in one basket; that is do not invest your life savings in gold. If you have never invested in gold previously it is a good idea to find a way to drip feed money into gold. Do a google search to find a dealer in your own country.
2 It is a good idea to use discretionary income for investing in gold during the learning phase to get a feel for the markets.
3 Investing in gold coins is the easiest way to invest in gold; you can find these listed in online auctions such as ebay, however, you have no guarantee that the listed price is its real value. (buyer beware)
4 Investing in companies that mine gold is another way to get involved in gold but you need to do your homework first and only invest in companies that actually mine gold and not just exploring for gold.
5 Gold is a long term investment; it is not something you buy and sell regularly.
6 Factors that have an influence on the gold price are inflation, weak US dollar, US government, and unemployment.
7 Beware of counterfeit gold coins. Try the magnet test. If gold is attracted to gold it is counterfeit because gold is not magnetic.
8 Gold can be easily converted back into cash which makes it a convenient investment.
9 Gold is a tangible asset, you own something you can touch which is not the case with other investment types.
Getting involved in different types of investments broadens your financial literacy, there is so much information on the internet to help you on your journey. Check out the link below for valuable information on investing in gold: