In times of crisis, invest in gold. This is an old saying that has always been taken into account because gold, in theory, is hardly devalued. And we say in theory, because it also depends on the moment you decide to invest in gold. The price of gold is listed as any other raw material, so the business is exactly the same: buy gold when it is cheap and sell it when its value is higher regal assets.
Gold as a refuge value.
If something is true is that in times of recession, correction in stock markets or crisis, gold behaves as a refuge value where many savers and investors decide to bet on this investment in times of uncertainty? And it is that uncertainty that makes its value rise.
Advantages of investing in gold.
The main advantage of investing in gold, in addition to the aforementioned, is its liquidity. Gold is part of those considered liquid assets. This means that we can have gold and sell it at any time and in any part of the world at the current quoted price.
Another advantage of investing in gold is the ease in which anyone can invest in it.
Ways to invest in gold.
We can invest in both physical gold and invest through other investment products. Lets go see it.
Buy physical gold.
- Buy gold bars.
We can buy physical gold through bullion or coins. This is one of the most common alternatives chosen by many investors. The drawback or disadvantage of investing in physical gold is the possibility of it being stolen.
That is, if we have physical gold at home, and suffer a theft, we will have lost the investment. This leads us to many people resort to safe deposit boxes in banks to store gold, so they already have an added expense in the custody of gold.
- Buy gold jewelry.
Another very common option is to have gold in jewelry, but we face the same problem as the previous one, since it is still physical gold.
Invest in gold without having the physical gold.
This form of investment in gold is the one that is taking more force at the moment, although everything is said in passing, perhaps it is the form that is chosen to have the opportunity to speculate with gold as it is done with any other stock market value.
- Invest in gold through certificates of deposits.
Acquiring a certificate of deposit is probably the most advisable way to invest in gold, as we acquire the property of gold without having to have gold physically at home or in any bank safe.
- Invest in gold ETFs.
If you invest in gold thinking in the short term, this may be a good option for you. These listed funds replicate the behavior of the price of gold in the market of raw materials. It is the closest thing to buying stocks, but with gold.
- Invest in gold through Gold Futures
Futures are financial derivatives. They are a complex investment vehicle and must be perfectly understood before investing in it. Here we talk about buying with an expiration date, where if the operation is twisted, we must be pending for, as in the actions cut the loss.
- Invest through Investment Funds
In this case we talk about investment funds that include actions related to the gold market. That is, in these investment funds, mining companies that extract gold and may even be invested in other gold-related funds or ETFs, as well as other derivatives, may have in their portfolio. It is probably the option that I least personally advise, as there are too many factors that we do not control in this type of investment.