Metals like gold and silver have been used as a store of value for hundreds of years. The value of gold does not depend on any single currency, government or company, so buying gold is a way to protect against losses on other investments like real estate, stocks and bonds and the effects of inflation. Investing physical gold in the form of bullion coins has several notable advantages and disadvantages.
Pros and Cons of Gold Bullion Coins
Pros:
Assurance– The major reasons why investors consider adding gold to their portfolio is because of the Assurance of knowing that the price is going to regularly rise over time. While you may have to ride through some dips in the price of gold, it generally always goes back up.
Escalation– One of the biggest worries we have when it comes to the money in our bank account is how escalation is going to impact the value of a single dollar. Over time, the obtaining power of the dollar declines.
Naturalness of the investment– If you are worried about where you are going to store your valuable gold, you do not need to fear anything. A simple deposit box at a bank is competent to store your gold safely and securely. As you acquire more gold over the years, you can request additional boxes so that all your gold is being kept in the safest manner possible.
Investing in gold is incredibly above board, even for someone who may have next to no experience with investing their money.
Interest for Gold – As the world’s society continues to grow, and many third and second world economies begin to show their financial muscle, the interest for gold is continuing to rise at sharp rates.
Cons:
Quiddity- Gold is a incredible long-term investment, but it is not the best way to store your funds in the short-term. When you are buying physical gold, you are buying it from a dealer, which means paying slightly over the market price of gold at the time. And the process is the same if you want to sell gold, and dealers usually pay a little less than the market price when they are buying your gold, because they consider it their commission.
Official climate- Like any other investment, gold is impacted by the official situation in the world at any given moment. There are particular areas in the world where gold mining is especially advantageous, and any official strife in those regions may impact the price of gold impermanently. In addition, concerns about whether a central bank or national government may sell a large portion of their gold supply can prompt fears that the price of gold is about to crash.
Essential Improvement Over Market Balance- One of the benefits to gold investment is how it guard against a market bankruptcy. But in the same vein, gold prices usually do not display compelling gains during periods of market balance or progress. When investors have a great deal of confidence in the financial markets, they are less likely to put their money in gold, which means the supply of gold in the world increases, which can either drive down prices or keep them at a stable level. While you are very unlikely to lose money on a gold investment over a ten or twenty-year period, if the said period coincides with a time where the markets perform very well, your investment may not produce as great a return as you were expecting.
Buying gold bullion is now cheaper and easier than ever before. And it’s still, by a long way the safest way to own gold. Contact Xavier coin today to find out how to invest in Gold and Silver Bullion!