Mr. David Chemtov
Language spoken: English, French, German
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.
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.
Whichever way you decide to invest in gold, there are options available for any and all investors, should the interest arise.