- Posted by GBM Blog
- On October 1, 2014
- 0 Comments
A lot of people see Gold as a safe investment. There are ways that you can get a better yield by investing in other things, but Gold does tend to be a fairly stable investment. When investing in Gold, you can either invest in physical Gold, meaning gold that you can physically touch or you can invest in Paper Gold or ETF’s. An ETF is an Exchange Traded Fund, which is where Gold is the only commodity which is traded.
If you cannot touch it, you do not own it
This statement is very true and is also very relevant in today’s investment markets. A good aspect of investing in an ETF is that with a few clicks of a button you can buy or sell your investment with relative ease, much easier than selling your physical Gold. When you invest in an ETF, you are placing your investment in the hands of a third party. You will have to accept the rise or fall in the value of your investment, and choose the best time to cash this in. When you invest in physical Gold, your investment corresponds directly to the commodities market. Although you can see changes in your investments value, the fluctuations will generally be smaller than you will see in the value of an ETF.
Spreading your Investment
When you are looking to invest your hard-earned money, you will be best-advised to make sure that you spread your investments about. By putting all of your eggs in one basket, you could end up losing a significant part of your investment portfolio if the market goes against you. A good figure to aim for would be to invest about 10% of your investment assets into physical Gold, and diversify your portfolio by investing in other short and long-term investment vehicles.
Looking after your physical Gold
One drawback with investing in physical Gold is how do you look after it? Do you keep it in a draw at home, under your bed, get yourself a safe for home, or even invest in a safety deposit box? With the first two options you could lose everything if your home gets burgled, and with the other two options you will find that there are costs involved. You can get a cheaper safe and have this installed in your home, but by far the safest approach would be to invest in a safety deposit box with a reputable bank that offers them. The price for these does vary, but for that added piece of mind that your investment is safe, it is definitely worth it!