There are so many investment opportunities. However, investing in gold is not as simple as one might think. There are a lot of scams out there and it is important to avoid them with a good built up knowledge base. Remember, that doing research before you jump into any investment is important. You don’t want to invest in something that is a complete scam and there are a lot of them out there. When you are looking for an investment company, be sure to do your diligent research. Devise a plan and take notes along the way. The internet is full of information, but be wise as to what information you are reading as well. It is the wild wild west out there with no real regulations on what people put on their own personal websites and blogs. Do your homework and follow some investors that have been around a while.
In 2007, you might not be aware, but the gold surge had begun. According to Equity Trust Company, gold started at about $500 and did a huge spike when the markets were crashing. This is one reason why people want to invest in precious metals such as gold and silver. They are a great way to buffer your portfolio should you have other investments that crash. This helps even out those highs and lows for a more even ride. It is important to understand that investing in something doesn’t mean that you will see riches overnight. This is for long term goals and you should hope to see everything slowly increasing.
Gold is more valuable than paper money
As paper currencies inflate and many are no longer backed by gold. There are regulations and policies in place that are there to help not have currency falls. However, this isn’t always the case. If the currencies get out of control, gold will still be of value. It has been around and been traded since the beginning of time. This is because there is very little of it and it is hard to mine. If you invest in gold, your overall worth is backed by something that has value and will always have value. Gold prices may go up and down, but they are not tied to the financial institutions and they are different than that of paper money.
Some cons of investing in Gold
Gold has a terrible historical return. Overall if you were to invest in gold, bonds, and stocks 200 years ago, you would have huge differences in the return. Let’s say you invested $10k in each. Gold would bring you in five figures, bonds 7 figures and 10 figures. Yes, we said 1,000,000,000. Actually, more but we are not going to get too hung up on the actual numbers. The point is that gold is slow to return investment.
Gold is worthless if things get really bad. You cannot eat it, heat with it or make anything out of it. Again, there are things in place to prevent this from happening. However, have you heard of the Great Depression? It can happen!
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