Once you’ve chosen to go gold, you have to face other decisions. A classic question that you all have to ask yourselves: how am I going to make my investment? Know that there are various ways to invest in gold. This article will aim to enlighten you on this subject.
One way to invest in physical gold is to do so with gold coins. Many amateurs are lost among all the different pieces that exist. Rest assured, you are not alone. Have you ever typed “golden sovereign or even “Napoleon gold coin” on Google to find out what it was? If this is the case, you want to know more about the different gold coins that exist. Be aware that by going to the websites of specialized brokers such as AuCoffre.com, you can find out about the different coins and buy them directly online. Moreover, gold coins have many advantages such as more available cash, easier storage, a tangible asset that can appreciate in value over time, and many more.
One of the main forms of investment in physical gold is gold bullion. It has several significant advantages. One of the major advantages is the wide variety of gold bars available to investors. For individual investors, there are ingots in smaller formats: from one gram to one kilo. These smaller ingots have a different manufacturing process than larger ones as they are made by stamping gold foil rather than casting the metal into molds.
The great diversity of sizes will allow small investors to make use of this interesting asset from a modest entry price (a one-gram bar can be produced for less than 60 euros). In addition, there is the advantage of being exempt from VAT in the European Union since it is investment gold. Of course, when you invest in bullion, you have to be careful about where it comes from: trust a company that offers the right guarantees.
The term “paper gold” refers to gold that does not confer ownership of the metal on the investor. This type of investment is made using different formulas (ETFs, certificates, etc.), under which the issuing entities allocate a certain amount of gold to each of the contracts. If you invest in paper gold you will therefore have a contract in which a certain quantity of gold is recognized but your gold will not be tangible.
The main disadvantage of paper gold is therefore that it is an unrealistic market that can be exploited at any time. To sum it up, if you want to claim delivery of your gold, which is what your contract stipulates, the entity will force you to accept the cash value. In fact, it is said that it is an unrealistic market since the quantity of gold circulating, in the contracts, is in reality much greater than that actually held by the issuing establishments in their coffers.
New technologies such as blockchains and the emergence of cryptocurrencies have led to the appearance of new formulas for investing in digital gold. Blockchain technology enables the emergence of a new gold trade in a digital environment, backed by physical gold, which will allow you to trade between you, investors, without going through an intermediary and to invest from very small sums.
It’s a fairly technical subject that will require some knowledge of these technologies before getting into it.
Finally, it is also possible to invest in gold indirectly, through mining companies directly. This option is a kind of investment in paper gold.
These are shares of mining companies, which are listed on the capital markets, with the volatility and risk that this entails. It is therefore not the preferred solution for those seeking the peace of mind and security of a safe haven such as gold.