Investing in gold: pros and cons

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Gold is a symbol of wealth and prosperity. Possession of this precious metal is respected today, was respected yesterday and 1000 years ago.

However, let’s evaluate it as investors. Is it profitable to sell gold or store your savings in it. Anyway, is it worth investing in gold? It’s time to figure it out.

Like any asset, gold has its advantages and disadvantages.

Let’s start with the advantages. Precious metal is considered a protective asset. When crisis rages around, the national currency depreciates, investors buy gold amain.

Gold can also be considered a universal “currency” – it will have its own intrinsic value relative to national money. You can always use gold price calculator to be aware of its price. Gold gradually rises in price over time, not as active as many investors would like, but the tendency is obvious.

Now about the disadvantages. Physical gold (bullion) is not very liquid. Of course, you can sell it to jewelers, a bank or put it in a pawnshop, but with a large discount to the exchange price. If you decide to buy it after selling, the price will also be disadvantageously different from the exchange one. You will have to wait a very long time to “break even”.

Bullions must be stored somewhere in a secluded place. Bank or home safe, grandmother’s garden for storing have their drawbacks. In any case, you will have to worry about the safety of your investments.

Buying a coin from gold or a gold bullion is almost the same thing, except high quality requirements on coins. A small dent on the bullion does not affect its value, but any physical impact for coins, even opening the container, reduces their value.  Investment coins also have numismatic value. They may belong to rare series, but only experts will be able to determine their added value.

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