Why shall we attach importance in gold as an investment? Because we want to protect ourselves from inflation, deflation, and a systemic crisis in the financial markets. The main concern of significant economies is to fight against deflation. Their goal is to boost consumption to stimulate growth, with low-interest rates and massive monetary issues. Now let's answer to simple questions. Where can I invest in gold? Buy gold and sell gold, how to evaluate the best time to trade?
Gold is a haven for many reasons
The problem with the money injected into the monetary system does not benefit the real economy. Global growth keep struggling to take off, and individuals see their savings shrink, and with the new tax reforms, are profiling in France. There are few investments that today combine performance and security. Unless you invest in both productive investments and gold for The gold.
Gold represents the oldest currency in the worldRare but in sufficient quantity, stainless, malleable and durable, gold has ruled for 6,000 years as a bargaining chip for trade. The first minted gold coins date back to around 600 BC Yellow metal has been trusted for centuries. Unlike currency issued by the states, gold is not printable to infinity. The world gold stock has a well-defined mass. Regarding inflation, the value of gold is very stable over time, unlike the dollar which lost 98% of its original value.
Invest in Gold to Protect from RisksGold should not be considered a traditional investment. It's an unproductive asset that does not yield returns, and that's not what people expected from it. One invests in gold to protect one's assets and to cover possible financial losses with other riskier assets. Before looking where I can invest in gold, let's consider the product itself.
Gold, which is more physical (coins and bullion), must be considered as the fire insurance of its heritage, it is a precautionary saving. In 2008, and again in 2011, physical gold played its role perfectly well when all the stock market assets went down. Including the "paper gold" price, there was a very strong demand for investment gold coins, whose price soared with the increase in their premiums (80% for the half-Napoleon) — those who had a good idea to buy at a reasonable price before the crisis has been able to absorb the losses generated by other assets — the best patrimonial insurance.
The best weapon against inflation and deflationAccording to an inverted pyramid defined by the American economist John Exter. Gold is the most reliable and liquid asset in times of deflationary crises. At the pick of the pyramid, you will find the least liquid assets, such as real estate and riskier ones, such as derivatives.
Conversely, in the case of high inflation, the price of gold increases. And it is much faster than other rates, so it offers good protection. In deflationary times, at best it outperforms, at worst it retains the purchasing power.
The liberating power of goldGold is one of the assets, with currencies legal tender accepted in the context of a commercial transaction or the settlement of a debt, this is called the discharge power.
Where can I invest in gold?
Physical gold as an investment: buy gold coins and gold bullionPurchase of bars and coins. You can choose to store them yourself or to appeal to a third party. Several companies offer this service among like Goldbroker for example.
Paper gold via ETFs and derivativesWhere can I invest in gold? You can choose to invest in gold via ETFs or derivatives. It is possible to invest gold in the form of ETFs (or Exchange Traded Funds, contracts that replicate the gold index). But paper gold does not have the same fundamentals as physical gold at all. It represents the same volatility risks as any other stock, such as any speculative support, and is not exempt from the bankruptcy risk of the issuing company. ETFs or ETFs are exchange-traded index funds that are bought and sold as equity. Their goal aims to replicate the performance of a benchmark index. It can be the gold index or the commodity sector index. Derivatives, for their part, are aimed at experienced traders who, thanks to these simplified products for individuals, will be able to speculate directly on gold.
UCITS and shares of companies in the gold sectorWhere can I invest in gold? Also, you can invest in stocks of companies directly related to this market, such as gold mining companies such as Dundee Precious Metal or Argonaut Gold, for example. UCITS make it possible to invest in mining companies. Indeed only by delegating management and the choice of companies to a commodity manager.
The gold bar for sale and gold coins market
Buying gold coins is the first precaution to take when investing in gold. First, because they are accessible, liquid (can be exchanged quickly and quickly for cash), they are simple to understand products and for which there is an official international course.Unlike bullion, a bonus applies to coins — this difference between the price of the precious metal contained in the currency and the price at which represents real leverage. If you sell the parts at the right time, when the premium is higher than the purchase, you can make some new profits.
Finally, buy gold coins such as Napoleon, Kruggerand, British Sovereigns. They represent the best possible investment in physical gold.
The best way to invest in gold is to buy it on a regular basis. Then, to avoid the sale of it only in the event of a systemic crisis. The time to sell gold or to consider the gold bar to sell must be analyzed very carefully. But in the end, we can be sure that it is a winning plan, especially if we buy parts.