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For hundreds of years gold has been the "go to" metal for people from many countries, cultures and religions.
Its purity, beauty, stamina and inherent separation from economic cycles have preserved the valuable metals attraction.
In more recent times, gold has become a part of many a successful investor's portfolio, and there are now various way to investing in the yellow metal.
A thriving investment portfolio is about diversification and achieving a range of asset classes. When considering purchasing gold, you must first consider what your purpose have been in regards to investing. It's also a good idea to jot down all your liabilities and assets so that you are aware of your present budget.
Most investors hold between 5% - 30% of their total net assets in gold, the safest method to invest in gold will firstly be to decide your motive behind an investment, whether you are using gold as a kind of financial insurance, savings plan or in pursuance of the diversified portfolio.
Physical gold bullion in the form of gold bars and coins attains the least amount of risk, with central banks around the globe all hold varying amounts, due to gold's value as a finite currency. Gold may be the ultimate safe haven asset and provides a hedge against inflation, which is very important in the present economic system.
Gold has soared recently, and in particular there has been a noted rise of bullion coins and bars. When choosing to invest in physical gold a benefit is you take actual ownership, if you would like you can take receiving the gold or you can decide to have the gold stored safely within insured vaults. It is advisable when purchasing larger bars to have the gold kept in secured storage facilities.
A riskier way to invest in gold, however with the possibility to yield a higher return is digital gold also referred to as paper gold. Some companies provide the opportunity to easily purchase and sell your gold similar to foreign exchange. An essential point is however, this kind of investment does not need to adhere to banking regulations and as such may leave you available to risk. Therefore if you are thinking about purchasing el born area it is advisable to execute a tremendous amount of research into the market in advance.
At the top of the risk per investment is purchasing gold like a derivative, this method can also include spread betting and futures / options involving a speculation around the future cost of gold. Purchasing gold this way, means you don't own the gold directly and therefore don't have any to take possession of the gold.
This method of investing in gold is suggested for professional investors only, as although on one hand your initial investment could make fantastic returns through leverage, however the extent of losses could be disastrous.
As demonstrated, there's more than you would think when purchasing gold, based on your motive and available resources determines your options.
What remains clear, is the need for using a diversified portfolio and ensuring gold is part of this portfolio.
Gold protects you against unforeseen macroeconomic disasters, geo political risks for example wars, and political instability so when taking into consideration the past 5 years with regards to the economic climate gold continues to increase beating many other investment options.
