invest in gold

The Definitive Guide to Investing in Gold in 2020

Throughout human history, gold has been one of the most precious commodities. It remains one of the most lucrative investments even in times of crisis. Today’s current climate is thought to be one of economic uncertainty, yet gold prices per ounce are on the rise, with some hitting all-time highs. In some markets, gold selling prices experienced a growth rate of almost 30%. 

The future, especially now, is rife with uncertainty. You might be wondering, especially with rising gold selling prices in the UK, if it is a good time to invest in the metal. The short answer: yes. If you remain unconvinced about gold as investment, read on. We’ll be talking about two major benefits of investing in gold and the ways you can pivot the market to your advantage.

1 - Gold is always stable

Even as a lot of economies plunge into recession, gold will survive. Time and time again, the market has been dubbed recession-proof. Historical data has shown that even times of great tragedy and economic uncertainty have not fazed market prices. In fact, demand for gold rises when there is some form of chaos in the world. 

2 - Gold is a good way to diversify your portfolio

One of the most important pieces of advice experienced investors will give you is to never put your eggs in one basket. To that end, it is important to maintain a diverse portfolio of investments, and one way to do this is through the various ways you can invest in both gold and the gold industry.

How Do I Invest In Gold?

If you’re interested in gold investment, the next logical question is: how? There are four basic ways to invest in gold, as discussed below:

Buy Stocks

You could invest not just in the purchase of the metal itself, but in gold stocks. Gold stocks are just as valuable in a crisis as gold is, and saves you the trouble of finding storage for bullion. This is a good choice for those who want better liquidity from their investments, as stocks are relatively easy to buy and sell on the market. 

Buy ETFs

ETFs and mutual funds are also a definite option if you want to save yourself the responsibility of part ownership of a company. This is often more recommended by investment companies, as this is a more diversified approach to gold investing. It also features a lot of liquidity, but there are often other conditions and fees attached which might be frightening to inexperienced traders.

Buy Futures and Options

Trading on the futures market is one great way to invest in gold. Futures are agreements to buy an asset, such as gold, in the future, for a certain price. This is a very popular trading market that is extremely liquid, and is better suited for those who want a quicker return on their investment. That being said, there is certainly greater risk on the futures market as it is more volatile than the previous methods. Make sure you have experience before investing in this market. 

Buy Physical Gold

The most straightforward way to invest in gold is to actually buy the metal, whether in gold bars, coins, or nuggets. With gold selling prices as they are during a crisis, it is a great way to keep protected wealth that is easily liquidated in volatile markets. The one caveat of this is that you have the issues of transportation and storage to contend with, which come with its own costs. 

Conclusion

Gold is always a smart investment, whether you’re purchasing the metal itself or buying and trading in stocks, ETFs and other aspects of the market. Especially since gold prices are on a sharp rise, you would be remiss to forgo this financial opportunity.

If you’re looking for a website that has the latest gold selling prices in the UK, send us at London Gold Centre a message. We have the resources you’ll need to navigate the market skillfully towards profits. 

1 thought on “The Definitive Guide to Investing in Gold in 2020”

  1. Is this the right time to invest in large quantities of gold? For me, investing in physical gold is the best option. Where can I find a 20 kg gold bar price online including add-on charges?

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