- 04 Jul 2021
- Greg Morrison
- Precious Metals
- Comments: 0
Investing in physical gold is a wise moves that offers a number of excellent benefits. Gold has been the most prized precious metal in the world and was a desired possession ever since early humans figured out how to get it out the ground. People's desire to own this shiny metal has continued to grow over the centuries and it’s value keeps on increasing.
With the decline in value of the American dollar and volatility of other currencies all around the world, people trying to protect their wealth and secure a stable economic future see investing in gold as a safe way to do it.
A Tangible Asset
Many people invest in gold because it's a tangible asset. Approximately 25% to 35% of Americans believe gold is a safer investment vehicle than stocks, bonds, real estate or savings accounts. They know as currencies worldwide become devalued and volatile, gold will continue to hold its value. By converting at least a portion of their wealth into this tangible asset, they know they will be in a better financial position having gold, a globally accepted medium of exchange.
Different Types Of Gold Investments
There are many type of gold investments. People can invest in direct gold ownership by buying gold jewelry, coins, bars or even gold bullion if they want physical gold they can hold personally. There's also gold mutual funds, ETFs and gold exchange-traded funds. These are forms of mutual funds which are traded on the stock exchange. Gold mutual funds often hold portfolios containing gold mining or jewelry company ownership or forms of gold related stocks.
Some Benefits Of Investing In Gold
There are many excellent and diverse benefits of investing in gold. Some of them are:
Here is a closer look at these benefits:
1. Simplicity
The simplicity of owning gold is one reason it has been an enduring sign of wealth for centuries. Gold is relatively scarce, indestructible, cannot be manufactured nd is a true global currency. It's a very simple investment to understand. It has a clearly established and internationally known price per ounce value unlike many of the much more complex investment products being offered by brokers worldwide.
Buying and selling gold is easy and there's always an excellent market for it. Plus, gold's price is consistently rising and it can be traded anywhere in the world.
2. Value
Gold has been considered a valuable commodity for thousands of years. The wealthy and the wise invest in gold because it always has a high value. Unlike national currencies that are plagued by volatility and can lose its value during economic uncertainty, the value of gold remains consistently high.
Plus, during recession, depression or national, regional, or global economic turmoil, gold is one medium of exchange that holds or increases its value.
3. Low Volatility
The world has a finite amount of gold and more can't simply be produced when demand for it increases. This reduces the risk of gold losing its value. When demand increases, it creates exponential price rises. It's a natural result of the supply/demand dynamic.
There is no risk gold's price will become devalued because of lack of demand. There's always a strong demand for gold worldwide. This creates stability, reduces volatility and naturally fuels increases in the price an ounce of gold commands globally.
4. Provides Portfolio Balance
One important benefit you get from a gold investment is it’s a very safe product that can help you create a balanced investment portfolio. Other investments like stocks, bonds, real estate, ISA, pension funds and cash can lose value because of the effects of economic downturn, rampant inflation, political instability and other factors and forces. Investors have always tended to turn to gold as a hedge against the losses to the value of their financial portfolio and to help to create balance.
5. No Counterparty Risk
When an investor holds gold in its physical form, there's no counterparty risk of any type. This is particularly relevant today's financial world where your money isn't safe even when it's in the bank. Investing in physical gold benefits you by helping avoid the counterparty exposure which often exists in investments in things like gold stocks, gold futures as well as gold options.
Those all have the potential risk of fraud. Many investors who want the peace of mind of knowing they don't have any counterparty risk, buy physical gold.
6. Tax Advantages
Another great benefit of investing in physical gold is you don't have to pay any value added tax on your gold investment. Plus, unlike many other investments, you don't have to pay capital gains tax on the profits you earn when you invest in any of the gold coins that are considered legal tender. You can also get tax relief of as much as 45% when you invest in qualifying gold bars as a key part of your pension plan.
These tax advantages put more money in the saving that your have earmarked for use in retirement. This can add up to thousands of dollars based on the amount of physical gold you buy.
7. Predictable Liquidity
Gold is a medium of exchange globally recognized and trusted since ancient times. There is a global network of dealers who are available 24 hours a day to provide you current prices for both gold coins and gold bars. One way to enhance the liquidity of all the physical gold in which you invested is to select gold bars that tend to be smaller and flatter.
These can more easily be sold and fuels short term-liquidity. Some buyers require this when you want to use your gold bars to make an investment in another asset class. One example of a gold coin that has consistently been easy to liquidate because it attracts many buyers is the one-ounce American Gold Eagle.
8. A Great Heirloom
Buying physical gold is more than simply an excellent investment, gold coins are a part of the historical heritage of any nation. This makes them a great addition to your numismatic collection. If you are an investor who collects and takes a great deal of pride in your gold coin portfolio, preserving them within your family for more than a couple generations, is an excellent way to create great heirlooms people in your family will prize for generations to come.
Plus, with the limited supply of gold coins on the market, the value of the gold coins will increase exponentially. It's a great and valuable heirloom to gift your future generations.
9. Better Than Having Cash In A Bank
With the low and falling interest banks pay on money you deposit in a savings account, you can end up having less money than you put in. Plus, there are rumors of a looming global banking crisis that will forever change banking's very fundamentals. The banks' perception as offering strength and safety is now an element of banking's past.
In places like the United Kingdom, a number of the large banks on famous High Street are now partially nationalized. Returns you get on your bank deposits are negligible. Investing in gold now offers the healthy returns and safety once offered by the banks.
A More Secure Financial Future
Investing in physical gold can help you to have a more secure financial future and help you to grow your wealth. Gold maintains its intrinsic value over time. In countries around the world, gold is used in many sacred and meaningful ceremonies because of its perception of purity and value.
When you buy physical gold today, you can rest assured it will continue to have a high value decades, even hundreds of years from now. While the value of global currencies may fluctuate wildly, you can depend on the cash value of gold to rise consistently and help you to enjoy a financial future that is more secure than holding on to money.
A Safe, Practical Choice
When you invest in physical gold, you can be confident you are making a safe, practical choice. While there are many investment choices that are available to you, none of them are safer and more practical than physical gold. Spending money on physical gold is one of the safest investments you can make.
Gold is a rare precious metal that is in great demand the world over. When you spend money on gold coins, gold bullion and other types of physical gold, you are virtually guaranteed to get more for it than you paid should you decide to sell it. Gold is a very practical investment because of the many markets worldwide with millions of people than are always looking to buy it.
An Inflation-Proof Investment
When you buy gold you are using today’s dollars. In the future, when you decide to sell it, the buyer will pay you with tomorrow’s currency. With the value of the currencies around the world regularly falling because if inflation and the fact that gold's value is consistently rising means you are sure to get a lot more for your physical gold than you paid for it.
In fact, gold is not only inflation-proof, inflation actually causes the value of gold to increase. While inflation chips away at and devalues many things you can invest in over time, physical gold is not subject to those forces. It's a limited resource that holds its value well.
You Can Take Physical Possession Of It
If you invest in stocks, bonds and other securities, an electronic blackout or a stock market crash can make your investments vanish. When you invest in physical gold, you take possession of it. You can take it with you, protect it and use it as you need to in times of social and economic turmoil and other types of emergencies.
There are few other investments which enable you to take possession of them and use them as a medium of exchange. Physical gold is a form of 'financial insurance' because you can hold it carry it with you and exchange it for good, services or money anywhere in the world.
Owning Physical Goal Empowers You
When you buy and possess physical gold, it empowers you and it gives you an additional major responsibility. It puts you in control of a source of great wealth if you manage it properly. You are responsible for deciding whether and when you should buy and sell physical gold.
Having physical gold empowers you to potentially increase your wealth by the way you manage the gold you have. If you so desire, you can transform a very large portion of your investment and portfolios into gold. You have the power and opportunity to parlay the value of the physical gold you own into a huge nest egg for retirement.
Exception To The Boom/Bust Cycles Of The Investment World
A historical analysis of the world of investing reveals that it moves in cycles. After a period in which one type of investment or financial asset class does well, the asset class performs poorly and may even yield losses. However, it is nearly impossible and very risky to try to anticipate which asset class will be the next one to do well and invest your money in it. Gold is the exception to this rule.
While other classes of investments go through boom and bust cycles, gold consistently has yields lucrative returns. While diversifying your investments among many asset classes protects your investment portfolio's value, investing in gold can supercharge it.
Owning Gold Reduces Overall Volatility
Owning physical gold can help to reduce the overall volatility of your financial and retirement portfolio. In uncertain times, investment experts recommend you have gold make up about 20% of your investment portfolio. If economic times are good, the experts recommended between 5% and 15% of your investment portfolio consist of gold.
It is always a good idea to have a variety of assets in your investment portfolio to offset any potential losses. However, the more gold your investment portfolio contains the greater the likelihood it will produce good stable returns that reduce volatility.
Commodity, Currency And Economic Hedge
Many people consider gold to be a commodity and others label it as a currency. A third group considers gold to be a hedge against economic instability. The popularity of the stock market has increased in recent years. Those markets tend to be very sensitive to all types of macro-economic impact.
The value of the stock market reacts to all types of national and global incidents. Some people say the stock market reacts based on the emotions of the masses and not on logic. Gold's low correlation to the stock market can insulate it from movements of the market. It doesn't shoot up like tech stocks, but, gold exhibits the steady growth and liquidity investors find very attractive and safe.
Three Reputable, Reliable Sources Of Gold Investments
Once you have made the decision to invest in gold, it is vitally important to find the right source of high-quality gold investment products. The following are 3 companies that have earned a reputation for being reputable, reliable sources of gold.
#1. Goldco
Privately held Goldco is among the investment services industry's best known and most trusted Gold IRA rollover companies. Their goal is to help their clients to accumulate wealth and then protect their assets. With a Triple A Business Consumer Alliance rating and a Better Business Bureau A+ rating because of their track record of using only the most ethical business practices, Goldco has established itself as a company you can put your trust in.
They specialize in helping individuals to rollover their existing IRAs into Gold IRAs or self-directed IRAs. Purchasing Gold IRAs from Goldco is the perfect way to both invest in precious metals and enjoy the tax benefits associated with a good retirement savings plan.
High Purity Gold Products
Goldco follows the specific rules set by the IRS regarding purity of its gold products and only offers gold that is at least 99.5% pure. Some gold items they offer include:
They offer gold bars from trusted sources like PAMP Suisse as well as the Perth Mint.
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Augusta Precious Metals is another top gold IRA rollover company. Founded in 2012, this company has gained a great reputation within the gold investment industry very rapidly. The Better Business Bureau gives them an A+ rating and their Business Consumer Alliance rating is Triple A.
Plus, on countless rating sites including Facebook and Google, the company get very high reviews. Augusta Precious Metals helps you to rollover existing retirement accounts and purchase Precious Metals IRAs. This enables you to reap all of the tax advantages and other benefits available when you invest your money in gold.
Knowledgeable, Well-Trained, Self-Directed IRA Custodians
At Augusta Precious Metals they make rolling retirement accounts into Gold IRAs simple. Their knowledgeable, well-trained, self-directed IRA custodians work with each client to prevent IRS penalties because of the transfer process whether you want gold bars or gold coins. Some of the IRS-approved gold coins the offer include:
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#3. Birch Gold Group
Another well-known and trusted precious metal dealer is the Birch Gold Group. Founded in 2003, the company's goal is to ensure that each of their clients is able to learn the information they need about investing in gold to be able to make the best and most informed investment decision when it comes to your future financial success. The Birch Gold Group not only has a Better Business Bureau rating of A+ and a Business Consumer Alliance Triple A rating, their staff is made up experienced, highly skilled financial services professionals who formerly worked at Citigroup, Dun & Bradstreet and IBM.
A Top Choice
The Birch Gold Group is a top choice when you want to rollover your existing retirement plan and turn it into a Gold Ira. Their team will help you to determine the eligibility for a rollover of your current plan if you have a traditional IRA, Roth IRA, SEP IRA, 401(k), 457, TSP, or a 403(b). Some of the 99.5% pure gold products they offer include
gold bars, bullion, rounds and coins like:
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Why Buy Gold Right Now
Gold's Spot price has steadily increased while the value of currencies like the US dollar, Euro, as well as the Japanese Yen have fluctuated. Many investors buy gold not because of its rarity and beauty or that it symbolizes wealth, status and power. But because its value is stable in times of social and economic turbulence. Want to protect your wealth? Consider investing in gold.
Father, Husband, Investor, Entrepreneur.