Gold – How to invest in commodities

Gold has always been here. From the very first moment, people have realized the uniqueness and price of this precious metal. Due to its properties, it is used in jewelry, medicine, electronics, and also as an investment commodity.

Why is gold a good investment?

Investing in gold has many important benefits. With a long-term investment, it also produces a profit, which doesn’t depend on the political situation, because it is independent of government, politics, and economic developments. For centuries it is considered a universal currency.

Due to the fact that it is not possible to create it artificially and its stocks are gradually running out, its price will continue to rise. In addition, the cost of its extraction is still higher, which also increases the price.

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Physical gold

You can buy gold in the form of bricks or coins, which can also have artistic and collectible value. The purity of investment gold is 999.9 / 1000 and you can buy it from various companies or in specialized stores.

Gold ETFs

In addition to the purchase of investment gold, it is possible to invest in gold through various financial instruments on the stock exchange as Gold ETFs.

Benefits

  • It is highly liquid, which means that it can be changed and converted into money anywhere.
  • It has a great value in small dimensions, so it is easily portable.
  • Represents anonymous deposit of money, without registration in bank accounts.
  • It is easy to store because it does not corrode and does not take up much space.
  • It does not depend on any government, currency, or local economic factors. That is why it is the best tool for preserving value.
  • Represents a financial reserve for states and banks.

Who is suitable for?

This investment is especially suitable for conservative investors who want to achieve minimal risk despite lower returns compared to, for example, funds such as the S&P 500.

It is possible to buy it in small quantities and therefore it is also suitable for people who do not have the opportunity to invest a lot of money.

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Price

Although gold is considered a conservative investment, its price has been rising for a long time. As we can see in the following chart from the website GoldPrice.org from March 23, 2021, the price of gold is still rising.

Chart from GoldPrice.org

It’s up to you whether you decide to invest your money in gold or other forms of investment. In our next articles, you will find a lot of advice on how to achieve financial freedom or invest in ETF funds.

I hope this article helped you decide what you want to invest in and we will be happy for any feedback.

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