No other metal exerts such a charisma on humans as gold. Already in antiquity there were pieces of jewelry made of gold, later it became irreplaceable for centuries as a constant means of payment gold ira custodians. Today, it is mainly a value investment in addition to jewelry production. In this capacity, it has already proven to be extremely stable in times of crisis and inflation.
When should you invest in gold?
The answer is: anytime. It is always advisable to invest part of your assets in physical precious metals to spread the risk. In times of inflation or currency reform, printed money would lose its value completely. But not so the precious metals. Of course you should keep an eye on the course before investing. But just who does not have any gold reserves, should not necessarily be deterred by a higher price and invest at least a small portion of its assets in gold. A high current gold price does not mean that the price will not rise any further. Analyze the history of the gold price, the factors that influence the price, and ask experts for advice.
However, as precious metals do not yield current profits, you should not invest more than ten to twenty percent of your assets. In times of low interest rates on investments – as is currently the case – a gold investment is worthwhile to a great extent, because then the current profits for savings etc. are very low in comparison and the higher risk on these investments outweighs the interest advantage. But you should only invest in gold if you can afford it. An investment in gold is always designed as a long-term investment. Therefore, use only financial resources that you currently have on the high edge.
At what time should one repel his gold reserves?
Gold is usually a long-term investment. It is usually bought as a protection against inflation and crises, gold coins also often have a collector’s value. For this reason, you should always leave a portion of your reserves untouched. However, if you want to make money from your gold investment, you should buy gold when the price is low and sell when the price has gone up.
What is the risk of buying gold?
Of course there is always the risk that the price of gold falls and falls below the purchase price. That is not dramatic, though. Because the value of gold has risen again and again. Nobody can predict exactly how the gold price will develop. Usually it rises sharply in times of crisis. He reached its historic all-time high of US $ 1,920.65 per troy ounce as a result of the global economic crisis in September 2011. In the wake of the Greek crisis, many experts therefore again forecast an increase in the price of gold. This was missing, however. On the contrary.
These factors affect the gold price
Various factors can cause the price of a troy ounce of gold to rise or fall:
- Economic crises: In economic crises, the gold price usually rises, as people then seek a secure investment.
- Low interest rates: Low interest rates favor the price of gold as investors prefer to invest in precious metals rather than settle for low interest rates.
- Currency effects: As the price of gold is expressed in US dollars, European investors should keep an eye on the euro-dollar ratios.
- Scarcity: The scarcity of gold makes it valuable.
- Fears of inflation: In times of high inflation, investors like to invest in gold in order to secure themselves financially.
- Gold industry: The demand of the jewelery industry influences the price.
Is the investment reverting to other precious metals?
Other metals can be interesting for a financial investment. In addition to gold, especially silver, platinum and palladium are traded on the precious metal market. Unlike gold, these precious metals are also influenced by other factors. Because these three metals are used in industry, including in the automotive or medical industries. Their value is therefore also influenced by crises or upswings in certain industries.
How should one invest?
Anyone who has decided to invest in precious metals must not only decide between gold, silver, platinum and palladium, but also between bars and coins. It makes the most sense if you invest as versatile as possible. For example, you could focus your investment on gold, but also buy some silver. Furthermore, it is recommended to invest in the largest possible bars. These are cheaper in ratio. For example, a 100-gram ingot is always cheaper than two 50-gram ingot, because with two ingots the cost of embossing is higher. In addition, however, smaller bars or coins should still be purchased. These are easier to resell and remain liquid. Also, you should pay attention only to globally recognized coins, for example Krugerrand or American Eagle, to buy. Only then can you be sure that you can easily resell your coins. In addition, you should only buy products that have the highest possible fine weight. Collector coins, which you can often buy on television, should be handled with care. For these you have to pay more money than for an ordinary coin, but no one can guarantee that you take this extra money when reselling again.