Guide to Investing in Gold

Investing money is essential, and that is why in this article I will give you my opinion about one of the options that surely have come to your head to do so, investing in gold.

Not only am I going to tell you the type of how to invest in gold and the best time to do it, but I am going to tell you about its advantages and disadvantages.

I will give you my honest opinion on investing in gold, and I will tell you now that in the end, I will recommend that you DO NOT invest your money in gold.

In my opinion, the world of money has 3 very important pillars, and if any of the 3 fails you, your economy suffers.

These are making money, saving it, and investing it. You can earn a lot and save a lot, but if you do not invest it, you are not getting a return. But you don't just have to invest. You have to do it in the best possible way.
Although I focus on investing in gold, what I am telling you here applies equally to other precious metals, whether silver or any other.

If you want to invest in gold you have 2 main options. BUY PHYSICAL GOLD - BUY GOLD BARS OR GOLD COINS.

It is the easiest option for most investors. Today you could buy physical gold, either in the form of coins or bullion. If you go to buy gold, you can buy gold bars or gold coins instantly.

Normally the price of gold refers to one ounce and is currently around $1,500. However, its price changes from day today. Depending on your demand, the price will be higher or lower.

Of course, it is very important to be clear about where you are going to buy your physical gold. There can be a lot of variation depending on where you buy it, so before doing so you must be clear about the market price and compare prices in different places. The same ingot could be much more expensive in one place than in another.

Buying physical gold and silver is not the only option, although it is the easiest. The other option is to use financial products, such as ETFs, mutual funds, and certificates. This is a much more practical option since if you buy an investment fund that invests in gold you will not even have to leave your home. Also, very importantly, you will not have gold bars in your home and you will eliminate the worry of having to hide them.

is it profitable to invest in gold? This is THE BIG QUESTION that any investor considering investing in gold should ask. I have done quite a bit of research to write this article, and I must say that most sources I have seen show gold as a profitable investment.

Very important - The price of gold in the graph shows prices adjusted for inflation, that is, taking into account the rise in prices of everything we buy every day.

If you look at it, someone who invested in gold 100 years ago would have multiplied their investment between 2 and 3 times, taking into account inflation. Much better than having the money in a mattress, of course, but not a great return. To compare this figure, I leave you below a similar graph with the evolution of the price of the Dow Jones, the US stock index.

Look carefully, in the same period someone who had invested in the stock market, without a doubt my preferred form of investment, would have multiplied their money about 15 times. Therefore, to the question is it profitable to invest in gold, my opinion is clear. Investing in gold is not nearly as profitable as other types of investments.

I told you at the beginning of the article that in my opinion investing in gold is not your best option.

I am going to tell you now the advantages and disadvantages that I see in this form of investment, and then I will tell you my conclusion.

ADVANTAGES OF INVESTING IN GOLD

You can invest in gold in many different ways:

As you have seen before, you can buy physical gold, acquire ETF's or investment funds on gold, certificates of deposit, futures.

It is not necessary to have deep knowledge or spend months looking for someone to sell you the gold. If you wanted to invest in art, for example, the difficulty would be much greater.

It is a liquid product:

Liquidity is essential in an investment. A liquid investment allows you to sell quickly if you want to get your money back.

Although I fix that you do not get the best price, surely you have a gold shop less than 5 minutes from home because they reproduce like flies, so if you need money you can sell the gold at any time.

You do not spend on taxes or maintenance to have gold:

It seems silly but thinks about real estate for example and the taxes and repairs that go with it.

If you invest in gold you know that you will not have to practically deduct expenses from the gross profitability obtained when selling.

DISADVANTAGES OF INVESTING IN GOLD

It does not give any type of income:

Real estate can be rented, bank deposits pay interest, and stocks pay dividends, but the only money you can earn by investing in gold will be the difference between the purchase price and the sale price.

Physical gold takes up space:

Buying physical gold is an easy option, but it is a problem. You have to maintain it, monitor it, and keep it well.

If you buy bullion or some coins nothing happens, but if you want to have thousands of euros invested in gold you will need a large safe.

The profitability of gold is nothing to write home about:

Although it is often said that it never goes down and that it is a haven, gold is a very volatile product and in the long term, if inflation is counted, you may end up with less money than at the beginning. Buying gold and forgetting is not synonymous with making money.