Here is what you need to know about Gold
With most economies around the world opening up after pandemic restrictions and many investment products showing unprecedented results (stock market doing increasingly well, Gold prices going up), this is back to being a great time to continue investing, or this year might be the right year for you to start your first. Although Stocks, Bonds, Mutual Funds, Crypto and even NFTs may be on your list, as a first-time investor, these sometimes volatile investments require preparation, education and some solid nerves! And since you are reading this blog, precious metals have now also been added for your consideration. It is the time to invest!
Luckily, our experience extends back decades when it comes to sitting down with first-time investors and exploring all of their options. Not surprisingly, Gold is always the first precious metal that someone would consider when making their first investment, and we agree entirely. Gold was, is and will be a solid investment in any portfolio. However, as your investors gain confidence and a little bit of savviness, their portfolios begin to include Silver, Platinum, Palladium and others. A frequent question we get asked about Gold vs other precious metals is whether one is better than another, and the simple truth is, there isn’t a straight clear answer until you begin to set a short and long-term plan into action. For instance, how much do you plan to invest in Gold, Silver and other metals? How long are you planning to hold them in your portfolio? How often do you plan to add to your portfolio, and so on?
Should I Invest via ETF (Exchange-Traded Fund)?
This is a question that comes up often. To define the acronym “ETF” (Exchange-Traded Fund), you can think of just investment funds. So it is a way that investors pool their money together for a specific investment. Many people prefer to invest in Gold via an ETF. However, there are consequences to going down this route. For one, by purchasing through an ETF, you don’t actually own the metal. Meaning you don’t have a claim on the Gold within the fund. So, if you would like to have precious metals in your physical possession, you want to buy your precious metals from an actual certified dealer, like Express Gold Refining. Physical possession provides you with comfort and security on your investment journey.
Coins Vs Bullion Bars
Most people treat Gold investments as a safe haven, a diversifying investment or a growth investment. Gold also has a significant liquidity market that is driven by investments, industrial usage, medical usage and a large demand for the jewellery market. This high demand makes Gold a safe placement against inflation. Now, the next question is, should you hold your investment in coins or bullion Bars? In short, both hold their value solidly, but you will pay a premium for coins as the process to refine, cut and printing the metal is expensive. However, coins are convenient for storage and trade, and limited editions can fetch a premium. For better value, you will want to invest in good-quality bars.
A Few Terms You Should Be Familiar: Karat and Fineness
As you begin to acquire more confidence and knowledge, you will encounter the question of quality and purity when dealing with Gold. The 24 karat is the purest, not having been mixed with any other metal. It means 99.99% plus is Gold, and the fineness is 99.99. You can see how important it is to buy from a reputable dealer that will take you through all necessary quality checks and be able to demonstrate the purity of the product you are purchasing. As another example, if you have a Gold bar at 14 karats, it means that your product contains only 58.5% of Gold with a fineness of 585 Fineness represents the total weight of the pure Gold in the product and the remainder is a mix of different alloys.
Once again, a dealer such as Express Gold Refiningcan shows you the testing process to determine the amount of Gold that is in the metal you are purchasing. Express Gold Refining possesses the technology to test, identify and determine the quality of the metal. That’s something not every precious metal dealer can vouch for. Yes, there are testing apps out there for PAMP Suisse and Royal Canadian Mint (RCM), but wouldn’t you like a face-to-face conversation with an expert that can walk you through the process? Especially if it is the first time, you are making a step toward investing
Gold has always been included as part of someone’s portfolio, and more often than not, it has been there safely throughout their entire portfolio. The word safely is not a word that you should take lightly. Over the years, many people have been incorrectly directed Into purchasing the wrong metals, at the wrong price and also at the wrong time.
It is clear that the more we have the opportunity to share our knowledge and expertise, the better the results for the industries involved and, of course, for the individual investors. We invite you to join us in a great partnership for your precious metals journey. Without any obligation, take a moment to speak with our industry experts at Express Gold Refining. Here you will have every question imaginable answered related to your precious metal investment.