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Investing in Gold

Investing in Gold

Written by R. A. Stewart

Is Gold a good investment?

That is a question I cannot give you an answer to because it is a bit like a “How long is a piece of string?” question.

Whether investing in something is good or bad really depends on your personal circumstances and where this investment fits in with your objectives.

Is the money/investment needed in the short term, medium term, or long term?

Once you have answered this question you will have a better idea of whether gold is a suitable investment.

Problem with gold is…

That it does not provide investors with an income. All they can expect is capital gains; that is, selling gold at a higher price than when it was bought for.

The Share market provides a dividend to shareholders of the various companies and there is the opportunity to profit from the increasing value of the shares. 

Another problem with holding physical golds is the storage costs and this can mitigate any capital gains from selling it.

Different ways of investing in gold

There are several ways of investing in gold and there are pros and cons with each of them.

The easiest way of investing in gold is to purchase shares in a gold mine but this is very risky and should only be done with money you can fully afford to lose. Your country’s stock market may have listed companies of gold mines.

Purchasing gold coins is another way. You will find gold coins listed on ebay but the downfall of investing in gold in this way is that the seller will seek the highest price possible for their coins; and it may not reflect it’s true value.

Buying gold from a dealer is another way but this is beyond the means of a lot of people and then there is the problem of storage not to mention the risk of theft.

Collecting gold jewellery is another way of investing in gold. Just as collecting other items such as postage stamps, old comics, or barbie dolls, they give enjoyment to the collector and the items are worth something when it comes time to sell.

Investing in gold as an interest

Gold can provide an added interest to your portfolio. If you have discretionary money to spend then investing in gold can add an extra string to your financial bow and if the investment turns to custard then there is no damage done. After all, millions of dollars are lost in lotteries every year and no one blinks an eye lid. Giving up lotteries and use the money to build up your gold investments should be your best approach. 

The risk of investing in gold

There are risks with investing in Gold as there are with other types of investments but these risks can be managed. It is important for investors to do their research in order to understand these risks. 

Investing in gold should not be an alternative to contributing to your country’s retirement scheme.

The rules of investing

The rules of investing are just as applicable with gold as they are with other types of investments. Where does gold fit into your overall investment strategy? If you have some disposable spending money to invest then investing in gold is a good option. It will provide an added interest to you; that is interest in terms of enjoyment such as a stamp collector would derive interest from his or her hobby.

It is certainly not wise to just purchase gold with money which you can ill afford to lose or to invest your whole life savings into it. That is just asking for trouble. 

To summarise

Investing in gold can provide you with an interesting string to your financial portfolio, but it does have its pitfalls. It is important to weigh up the pros and cons and only invest money in gold which you can afford to lose. Read up on the subject and then decide whether gold is a suitable investment for you.

About this article

The opinions in this article are of the writer’s opinion and may not be applicable to your personal circumstances. You may use the content for your blog/site or ebook. Feel free to share the article on social media.

www.robertastewart.com

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COLLECTING GOLD COINS

Collecting Gold Coins  

 

People choose to become involved in various hobbies for several different personal reasons.  Some do it for the pure pleasure and fulfillment they get from the hobby itself (whether collecting, drawing, painting, writing, or some other hobby), while others partake of a specific hobby more readily for profit.  This is the classic divide between people in all aspects of hobby work, including the collection of gold coins.  Why would any individual choose to collect gold coins as a hobby over something more exciting and active?  Again, some people choose their hobbies based on their own ideas of pleasurable activities, while others simply aim to make a solid profit.

 

The reason an individual consider investing in a collection of gold coins can be influenced in several ways from many different sources.  Perhaps someone in this individual’s family – a father or a grandmother or even a favored aunt – collected gold coins throughout this individual’s childhood and simply built interest in the youth or eventually passed on the collection to the young one.  It was simply a matter of deciding whether or not they wanted to add more gold coins to this collection and based their entire decision on sentimentality.

 

Another way a collection of gold coins may have started in reality is through the receipt of a single gift – for a birthday or other special occasion this person received a gold coin from a relative or close friend.  From that small gift, the entire collection of gold coins began as a hobby.  In these cases, the person enjoys the game of hunting down rare gold coins more than actually acquiring them, or maybe he or she simply likes to display an impressive collection.

 

Others may collect gold coins to make a profit.  Some of these gold coins can be worth a great deal of money, especially rare gold coins, and often, such materials actually appreciate over time.  Often, a good collection of gold coins, especially one containing several rare or limited edition gold coins, can be appraised at a high price.

 

Hundreds of thousands of individuals across the world invest billions of dollars and hundreds of thousands of hours in the collection of gold coins, building huge lots that can be worth a great deal of money in the future.

 

Whatever item you are collecting it pays to gain knowledge about it by reading all you can about it because in this way you will be able to see something listed online at below its true value.

 

If investing in gold interests you or it is something you may want to look into then check out the website below:

 

https://affiliates.goldco.com/l/1VRW1MU2Q/

 

www.robertastewart.com

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ADDING A GOLDEN STRING TO YOUR FINANCIAL BOW

Adding new strings to your financial bow with discretionary income

Unless one is living from one payday to the next most of us have discretionary income which is basically what is left over after paying our fixed expenses. Rent/rates, power, phone, car running expenses, groceries, insurances, retirement savings are all fixed expenses. We do have some say in how much we are spending in some of these areas such as you can find ways to use less power, be more economical with your grocery shopping, or use the car less often.

What is left over is your discretionary spending. 

This spending money can be used for more speculative investments. If you lose your money then the loss of your money is not going to cause you undue hardship.

So where to invest this money? 

There are plenty of options such as crypto currency, investing in gold & silver, and the futures market.

Investing in gold is one option; there are different paths to take, they are:

(1) Purchasing shares in companies which mine gold

(2) Purchasing gold coins

(3) Investing in gold bullions

It is important to diversify but this may not always be practical for someone with limited means. Fortunately, Sharesies in New Zealand offers investors the chance to buy into the sharemarket with a minimal amount of money. If you are not from New ZEaland it is best for you to take a look at what options are available to you.

If you are going the sharemarket route then do your research on the mining companies and their track record. Also take note of whether the area they mine has met with opposition from environmentalists.

Knowledge is the key and if you do not know much about gold you can sign up here and learn from the experts:

https://affiliates.goldco.com/l/1VRW1MU2Q/

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