Is buying physical gold a good investment?

Although the price of gold may be volatile in the short term, it has always maintained its value over the long term. Over the years, it has served as a hedge against inflation and the erosion of major currencies and is therefore an investment worth considering. Investors like gold for many reasons, and it has attributes that make this commodity a good counterpoint to traditional securities, such as stocks and bonds. You may want to trade in ingots rather than coins, as you're likely to pay a price for the collection value of a coin and not just for its gold content.

Unlike brokerage accounts, bank accounts and payment services, such as credit cards, gold bars are beyond the reach of hackers and identity thieves. Samuel Mather-Holgate, advisor to Mather and Murray Financial, says that gold has been an intrinsic store of value for centuries, making it a useful hedge against inflation, and a reference asset in times of uncertainty. With inflation rising and the stock market price well below its highs, some investors are looking for a safe asset that has a proven record of earning, and that's gold. The biggest advantage of using futures to invest in gold is the immense amount of leverage you can use.

However, it warns that gold remains vulnerable to the increasing competitiveness of the returns of other financial assets. Investigate, since the difference (or differential) varies depending on the content and weight of the gold, who you buy it from, and current supply and demand. If you want a way to spend your gold, applications such as Tally or Glint allow you to buy gold stored in Switzerland, which is then converted into credits that can be used to make purchases with the application or with a branded debit card. Fear is what leads people to a crisis, so the greater the concern, the more gold is sought and the more its price rises.

The purpose of these ETFs is to match the return on the price of gold minus the ETF's annual expense ratio. If the dealer you bought from doesn't offer a buy-back program, you'll have to look for another one to buy your metals. You can buy rare gold coins, but this is the collector's world, which most investors should avoid.

Christine Raiford
Christine Raiford

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