Investing in gold for beginners shouldn’t be scary… because it is one of the easiest things to do. It is also a relatively safe investments and good stepping stone.
Gold has long been seen as a universally accepted form of “money”. It holds intrinsic value and has a finite supply.
That is why it has always been a popular investment option for many.
There are four reasons for one that investing in gold for beginners is a good idea:
- As a store of value in the face of uncertainty;
- As a safe haven against inflation;
- As a method to diversify your investment portfolio;
- As an investment to profit from price fluctuations.
So, unlike investing in stocks or cryptocurrency, where you have to constantly monitor its price fluctuations, gold is a lot more stable.
Having said that, gold isn’t exactly a walk in the park. It is also volatile and its price changes can be subject to supply and demand, inflation rates and geopolitics, to name a few.
Investing in gold for beginners: Long term or short term?
Gold is overall a good asset to hold onto. But gold tends to work out in your favour if you’re in it for the long term rather than the short term. Central banks hold on to gold reserves just in case of a monetary crisis. So there isn’t any reason why individual investors shouldn't do the same.
In the face of a personal crisis, like a retrenchment or an emergency, gold can be cashed out into cash very quickly. It is an asset that is easily sold.
Many experts, however, only suggest putting about 10% or less of your investments into gold.
Gold can be acquired through many channels and most of the time, the barrier to entry is very low. What this means is that you won't need to come up with a large sum of money to start investing.
According to BullionStar, Singapore is the best place in the world for buying and storing gold as there are no taxes for bullion and no reporting requirements. Plus, it's the world's safest country with a strong rule of law.
Are you ready to start investing in gold? Let us know in the comments.
Here are some other gold stories to get you started.