The global currency for all of recorded history—gold. Even now, it’s still one of the most widely-accepted forms of currency no matter what. Who wouldn’t accept gold bullion? But there’s a flip side. People are now investing in paper gold, and it’s as ridiculous as it sounds. Still, it has its benefits. Let’s get into what paper gold is versus physical gold, and what you should take into consideration when deciding between the two.
What Is Paper Gold?
Think of it as a certificate program. You’re not actually going to hold your gold bullion in your hands, but you’ll know that it’s safe and secure in a facility where it can be traded immediately. Inherently, you’ll also end up paying less due to no shipping fees, or high-security processing and handling. This is the choice of those who wish to trade more often than not, instead of those who are purchasing gold bullion to secure their future.
Just like every commercial shows you—coins and bullion that arrive via an armored truck—that’s physical gold. It’s the gold that you can throw into your safe, and actually maintain in case of economic uncertainty or another crash. It’s security that you can hold in your hands, with no drawbacks. If you’re looking to invest in gold bullion—physical gold that you can get your hands on—then you’re investing in your future. One of the problems with paper gold is that when you request it, if everyone else is cashing in on their paper gold, you may not be able to actually get your hands on the metal. When it’s physical, you have nothing to worry about.
Benefits and Drawbacks of Paper Gold
You want the freedom that purchasing gold gives you. Even though you’ll save money on delivery, processing, and handling, you’ll still end up paying a brokers fee if you want to trade your paper gold, sort of like when a stock is traded. In the end, you’re not going to be able to avoid fees.
If you’re looking to trade, or the price suddenly spikes to a level that you’re happy with, you won’t be able to handle that with physical gold. Paper gold is the number one way to trade quickly, and turn a profit, if that’s what you’re into the market for.