Benefits Of Physical Gold

Benefits Of Physical Gold

Millions of Americans have become uneasy about the decline of the dollar and the economic future of the United States, so many have chosen to establish a more stable future by investing in gold. There are a variety of ways to invest in this tangible asset, including direct ownership, gold exchange-traded funds and gold mutual funds. Direct ownership simply means investing in physical gold, such as jewelry, coins or bars. Gold exchange-traded funds, or ETFs, are a type of mutual fund that trades on a stock exchange, just like any other stock. Gold mutual funds often hold portfolios of gold related stocks like mining and jewelry companies. According to a Gallup poll conducted in April 2012 , approximately 28-34% of Americans believe investing in gold is a safer option than other types of investments like real estate, bonds or savings accounts.

But with so many choices on how I can invest in gold, which is the safest and most profitable choice?

Benefits of physical gold can be a practical choice for a number of reasons:

First, gold has been, and always will be, the world’s most prized precious metal. It’s been a desired possession since early man figured out how to pry it out of the ground, and our appetite for this shiny metal has not slacked over the centuries. If anything, it’s increased.

Secondly, gold is an inflation-proof investment - when you buy gold with today’s dollars, you can sell it with tomorrow’s currency, and recoup the changes. This is unlike other purchases, which are devalued as inflation chips away at the value of the currency. If you bought a car for $300 in 1960, you might be able to sell it for $300 today–at junkyard prices. Gold doesn’t have that problem.

Additionally, gold never loses its intrinsic value. The history of this metal has proven that it will always be in demand. Even if there were a domestic or international crisis, you would be able to sell your gold. It has an undeniable attraction around the world, making it the only “true” international currency. Whether you’re in Alaska or Zimbabwe, your gold will hold value.

Combined with these other reasons, one of the benefits of gold is that you can physically take possession of it, making physical gold one of the most secure investments. In the event of a stock market crash or electronic blackout, all your investments in companies would vanish–they are only digits in a computer. But you can hold your gold, take it with you and protect it during an emergency. You would be hard pressed to find another investment with all these characteristics. If you invest in ETFs of gold mining equities, you won’t realize many of the benefits of physical gold. Should unforeseen social or political catastrophes strike, physical gold provides a “financial insurance” that will not be affected. Gold also offers protection against future inflation and dollar devaluation that other investment options cannot.

The bottom line is, when you possess physical gold, you have the responsibility. You can decide when to buy and sell. More importantly, you are in complete control of your own wealth. And that’s a powerful feeling

Gold Investments and Live Gold Prices

Gold has long been one of the most prized metals on Earth. Valued highly by ancient royalty for its malleability, beauty, and rarity, it continues to be one of the most valuable metals on Earth. If you are considering investing in physical gold, there are many benefits to be had.

There are also a few different ways to invest in gold, so make sure to take the time to find which one may be right for you and your portfolio. Here you can find some of the benefits of gold trading, as well as the benefits of investing in physical gold, and different ways to invest in gold.

Benefits of Investing in Physical Gold and Gold Trading

Investing in physical gold can be a practical choice for anyone looking to diversify their investments and provide themselves with some extra security in the current economic climate.

One major benefit of physical gold is that it is an inflation-proof investment. If you buy gold with today’s currency, you can resell it with tomorrow’s currency and recoup the difference. Unlike other purchases, such as buying a car, for instance, gold is resistant to devaluation.

In addition, gold will most likely never lose its intrinsic value. It has always been in demand, and if there happens to be a global or economic crisis, you will still be able to sell your physical gold if needed.

Another large benefit of having physical gold is that you can physically take possession of it. As our world becomes more and more digital, it is beneficial to have physical, strong, globally accepted currency at hand. That way, in the case of any unforeseen political or economic crisis, having physical gold at hand provides a certain amount of financial security that may not be available with normal money in a bank account, for instance.

Ways to Invest in Gold

As stated above, one way to invest in gold is through owning physical gold. Investing in physical gold is called allocated gold, but there is also unallocated gold, which is the most common form of gold investment. Investing in unallocated gold means that you do not physically own the gold, but rather your investment is backed by a bank’s physical gold reserves.

As the unallocated gold is the property of a bank, the premiums are slightly lower, and as there is no physical gold actually held by the investor, this is a much cheaper option than owning physical gold.

It is also possible to invest in a gold ETF (exchange traded fund), which is able to be traded on the stock market exactly like a stock, unlike a mutual fund, and may consist of a group of stocks having to do with the gold industry, such as mining companies, jewellers, etc.