Gold is one of the few materials in this world that provides perpetual value no matter the economy’s current state. While it isn’t exempted from variables like inflation, it is still one of the safest investments to-date.
Investors who want to diversify their portfolio and reduce their risk can use gold as a silver lining in a down economy, making it a key asset in the event of a recession, inflation, and geopolitical uncertainty. With its never-ending value, there’s no doubt that investors would find it well-worth to invest in this 2021.
For investors who are wondering how to invest in gold, read on! We’re here to give a rundown on the three popular ways to do it:
Different Ways to Invest in Gold
1. Physical Ownership
Purchasing physical gold is significantly easier since people can access it either using gold jewellery, coins, or bullion. It’s the kind of asset that has a wealth of benefits compared to other types of gold investment, one of which includes having no cost of ownership.
The lack of tax profiling and little-to-no counterparty risk makes it the safest gold investment for beginners, but owners will need to protect this golden asset by storing it in a proper safe. With that in mind, you can buy physical gold in trusted online stores like the London Gold Centre, where you can buy a wide selection of gold pieces, jewellery, bars, and more.
Moving forward from the 2,000 EU Gold Directive, physical gold is an attractive option because it is tax and stamp-duty free in the UK and the EU.
2. Gold ETFs
Just like how you invest in stocks, exchange-traded gold funds (ETF) is a type of gold investment that involves putting your eggs in several gold-trading giants in the industry. This allows you to diversify your portfolio, making it a conservative way to maximise your investments since it offers lower risks with a higher guarantee of retaining your liquidity as the trader.
Since the value highly depends on gold’s current market price, expect to deal with hefty fees for insurance, storage, and more. Opting for ETF gold funds is the right choice for those who want the convenience of not having to store physical gold.
3. Allocated Accounts
Buying physical gold is definitely more straightforward, but for those who don’t want to deal with the hassle of storing it, then it’s worth allocating a gold account. Having one leaves you the option to buy gold and deposit it in a bank account for safekeeping.
It’s one of the safest and fastest ways to invest gold, though you do need to consider your credit rating, net worth, and more to qualify for an allocated gold account.
The Bottom Line: Finding the Right Way to Start Your Gold Investments
Whether you’re interested in gold investments as a hedging asset, diversification, or as a safe haven during uncertain times, understanding the different ways to do so should ensure you choose a suitable method that brings the most value out of your chosen assets.
Why Choose Us?
If you’re looking to sell your gold and jewellery at the best possible deal than your typical retail prices in London, UK, check out London Gold Centre. From pure gold, old gold coins, bars, diamond jewellery, gemstone rings, ruby rings, and more, we’re the top Hatton Garden metals buyer in London that can slap on the right price that’s worth its weight for you and our company. Get in touch with us today to see how we can help you!