Is Buying Gold a Good Idea ?

Buying Gold is often viewed as a safe haven in troubled times  .

The price of gold has risen from $1106 per oz in Nov 2009 to  around $1,481 per ounce in Nov 2019.

Back in Dec 2015 the price was $1,054.18 Today – November 2019 – it stands at about $1491.

The price of gold peaked at $1805 in Sept 2011 .
Any investor who spent thousands of pounds on gold at its peak in 2011 will have lost a considerable amount of money . The price of gold does fluctuate and it is therefore possible to choose the wrong moment to invest, causing you to lose money.

Gold should be seen as a long term investment , as a means of providing some  protection from an unpredictable economic environment, rather than a mechanism for short-term gains. Many advisers recommend having 10% to 15% of a  balanced portfolio  held in Gold .

How to Invest in Gold

One of the simplest ways for first time investors to make a low cost gold purchase is to buy by the gram.

Because you own grams of a bullion bar and not necessarily the whole bar you cannot have it delivered  -so  it  is stored in a bullion vault. You can sell your gold grams at any time  (less some fees) so it is instantly accessible. They deal in Silver too .


Exchange-traded funds (ETFs)

Gold ETFs are  gold securities that are traded on the London Stock Exchange and you can buy and sell shares in them. They essentially track the gold price and can be traded daily through a stockbroker . See more here about buying shares and ETFs in Ireland

Coins

One popular way to own gold is by buying gold coins such as  22-carat gold sovereigns or  South African Krugerrands.   Coins can be an appropriate gold investment method for smaller investors –  especially for people whose view is long term and for whom physical possession is important . Don’t forget to store them somewhere secure and get them insured.

Jewellery  : manufacturing costs and the jewellers’ markup mean that jewellery usually sells for a fraction of the purchase price for the first few years of  ownership. It should not really be considered as a serious investment. Security is also an issue.

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