Buy gold – this is why precious metals are the right investment in the crisis
Buying real gold can be an excellent investment option. Although its value is sometimes subject to violent fluctuations, it is a long-term and safe form of investment. As such, gold is an ideal addition to your investment portfolio and lowers the risk that is ubiquitous with other investment strategies. Especially in times of crisis, owning gold coins is a proven hedge. It is not without reason that gold and other precious metals are a central pillar of asset management according to the well-known three-spoke rule.
Buying gold and silver: This is why it makes sense to invest in precious metals
The purchase of coins from gold has enjoyed great popularity for many years. In fact, the millennia-old three-spoke rule already says that you should hedge part of your assets in this way. Of course, you have several options when investing in precious metals: So you can buy gold and silver as well as palladium. Nevertheless, it is mainly gold that has attracted people for many centuries. There are good reasons for this. When you buy gold, you benefit from the following advantages, among others:
- Gold is a crisis currency. It survives wars, depressions and currency reforms alike. At the same time, it serves you as inflation protection.
- Especially when you buy real gold, you lower the overall risk of your portfolio. It is a stabilizing element that supports your investment in the stock market or existing paper money. Therefore, it generally reduces overall risk, while its value often moves in the opposite direction to the securities market.
- Buying physical gold means that you are investing in a scarce commodity Unlike paper money, it is not possible to increase its quantity at will. Therefore, increased demand automatically causes your investment to increase in value at such times.
Important: According to the three-spoke rule and similar investment models, you should always invest wisely. Due to the properties of gold, it makes sense to invest only a portion of your assets in this area. Thus, you should definitely not put all your financial resources into precious metals.
(Physical) Buy gold: Gold coins, gold bars and co.
You have decided to invest in gold? Then you basically have several options for your investment. On the one hand it is possible to buy physical gold, on the other hand you can invest in shares or other securities.
Gold coins and bars
The classic, if you want to buy gold, are gold coins and gold bars. They are both in physical form and can be stored in a home safe or a safe deposit box. So unlike other strategies, you can actually hold your investment in your hands: for example, in the form of valuable gold coins from Australia, Russia or South Africa. If you are interested in gold coins from South Africa you should be familiar with the SA Gold Coin Exchange (short: SAGCE) for the valuation and certification of coins.
By the way: Gold coins can be easily checked for authenticity using a GoldScreenBox. If you are unsure whether you have a real specimen in your hands, this box is a perfect helper. On the other hand, if you want to find out how much your gold bar is worth, it is best to consult an expert.
Besides gold bars and gold coins, there is another way to acquire gold in physical form: you can, of course, invest in valuable gold jewelry. However, you should note that jewelry is almost never made of fine gold. Instead, it is an alloy with other metals, which noticeably affects the value.
Gold funds, gold certificates and gold ETCs
Instead of bars, coins or gold jewelry, you can also buy gold shares. In this form, you can indirectly purchase gold from the bank:
- With gold funds , you invest in a fund that takes into account the development of the gold price.
- With a gold stock fund, you invest in companies that mine gold.
- Gold ETCs stand for Exchange Traded Commodities and thus refer to exchange-traded commodities. In purely legal terms, this is a debt security, which is why this investment is similar to certificates.
Important: When you buy gold, the prices are not necessarily identical to the cost of shares or certificates. The reason is that it is not gold per se, but an entirely different investment strategy.
Gold Savings Plans
If you don’t want to keep physical gold or invest in individual funds or stocks, a gold savings plan can be a good alternative. These plans work similarly to when you buy gold from the bank. The basis for this is a savings plan into which you pay a predefined amount each month. With these paid-in capital amounts, you gradually acquire gold, which the provider stores for you.
Gold price development: Is it worth buying gold NOW?
Even though gold is generally a good investment, the question is: Is it worth buying gold now? When buying gold, you should always keep an eye on the current development of the gold price:
- In recent years, the prices of precious metals have risen steadily. This applies to the value of shares as well as gold bars or gold coins from China, gold coins from Russia, South Africa or other parts of the world.
- Now, the gold price is currently going through a downward price trend after its record high in August 2020. This makes buying gold a sensible investment at the moment, especially buying coins or bars.
- Although the price of gold fluctuates regularly, buying gold coins from Australia or gold coins from China will provide you with some stability in your portfolio. In the current turbulent times, they are an important factor that helps you achieve greater security.
By the way: Although you could buy gold anonymously in previous years, this is no longer possible since the beginning of 2020. Due to the Money Laundering Act, precious metal dealers are obliged to see your identity card when you reach a certain purchase price. Only for amounts below 2,000 euros you can continue to buy gold anonymously.
Buy gold: Where to buy the precious metal and what to consider when buying?
If you want to buy gold locally or online, there are a few things to consider. At first glance, it makes no difference whether you buy gold and silver coins or gold leaf. In any case, it may be worthwhile to compare several offers.
1. the right time matters
When buying gold, it always depends on the right timing. It is not only investor demand that determines the price. As with all precious metals, economic trends affect whether you can buy gold cheaply. Put simply, a healthy global economy ensures that more gold is mined. This initially increases the price. After some time, however, it levels off again due to the saturation of the market. Then you can buy gold cheaply.
2. buy gold – best only from professionals
It goes without saying that you should always compare the individual providers before buying gold. This is always the first important step – whether you want to buy Russian gold or buy a single gold ounce. However, it is equally important that you consult an expert when doing so. Ideally, you should look for a dealer who is a member of the Professional Association of the German Coin Trade.
3. choose the right shape
In what form and quantity you buy gold is an individual decision. However, bars, for example, are significantly more expensive than the coins you can buy here at Rarecoin. However, this is solely due to the mass. In fact, bars are significantly cheaper when you consider the sheer amount of gold. The reason for this is that the additional costs for embossing are eliminated.
Although gold jewelry and collectible coins invite investment, caution is advised at this point. It is not the pure material value that is important, but likewise the intangible collector’s value that helps to determine the price. Especially when buying gold coins, it can be useful to have the value of the coins estimated in advance. A professional like Rarecoin will help you determine the value. Alternatively, a device such as the Goldanalytix GoldScreenCard can help to check the material for authenticity.
Important: The price of gold is given either in grams or in ounces. One ounce is roughly equivalent to 28 grams.
Buy gold (online): Exclusively at Rarecoin
In our shop you will find a wide range of interesting and valuable coins from all over the world. It doesn’t matter whether you are looking for a valuable circulating coin, historical gold coins or a special commemorative coin. They all attract the attention of passionate coin lovers. Of course, the globally recognized bullion coin, the “Krugerrand”, must not be missing from this assortment. Besides special gold coins, you can also find coins made of other materials.
Besides buying special gold coins, you can additionally have your coins valued at Rarecoin. This way you will know how much your collection is worth at any given time. In addition, here you will get all the care and storage accessories that will keep your treasure in perfect condition in the future. This includes sleeves, capsules, coin cases as well as presentation frames to skillfully showcase your collection.