Did you know that gold had a 24.6% investment return rate in 2020?
There are at least 54,000 tons of gold underground, and the current price of gold is $1,866 per ounce. Gold prices are predicted to reach $8,732 per ounce by 2030.
That adds up to a fantastic investment opportunity for you! This helpful guide will explain why people are investing in gold, how to buy it, and how to sell it.
Benefits of Investing in Gold
Why invest in precious metals like gold? Because they are historically special and valuable commodities. Paper money, coins, and other assets may lose value over time, but gold has always maintained its value.
Stocks have plunged over the past 50 years when the cost of living has increased, but gold has risen during inflation. Likewise, gold has risen during deflation periods like the Great Depression and the 2008 financial crisis.
People buy gold when there is geopolitical uncertainty. It has been known as the “crisis commodity” because people find it safe in times of world tensions. That is why gold typically outperforms other investments at such times.
How To Buy Gold
When you buy precious metals like gold, it can be in both physical and nonphysical forms.
Some physical examples would be jewelry and gold bullion in the form of bars and coins. All of those options can all be purchased online and often times locally. Make sure you’re buying from an authorized and reputable dealer.
If you don’t want to have physical gold, you can also buy gold mutual funds or exchange-traded funds (ETFs). The funds trade like stocks and represent gold-backed assets. This is also a great way to diversify your stock portfolio.
Buying gold futures and options is another way to invest, but this is only recommended for experienced investors.
You can also buy gold certificates from banks that hold gold. Although, the bank will owe you the value of the gold, and you will not own the gold personally. This can be risky if the bank goes under.
How To Sell Gold
You can sell precious metals like gold online to buyers. These businesses offer free estimates and shipping. You get paid once they receive your gold.
Pawnshops and cash for gold locations are good ways to sell if you prefer an in-person transaction. Coin dealers and jewelers are ideal for gold coins and jewelry.
Always do your own research and make sure you’re getting the correct value for your gold. Also, check reviews when possible and make sure you’re dealing with reputable buyers.
A Golden Investment Opportunity
Now you know the benefits of gold and why it’s a wonderful investment opportunity. You also know several different ways to buy gold, and several different ways to sell it. It’s time to invest, ready, set, gold!
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