When people decide to invest their money, they do research about their options. After a thorough reading about what’s best, they make a decision. Investing in gold is always a good idea, but just like everything in life, it has some good and bad sides.
If you’re about to invest, please read on to see a part of our research and experience gained over the years. We found out that there’s no good or bad investment, just an investment that will give you one or another kind of results. Here’s what we think about other options and some more on the pros and cons of investing in gold bullion coins.
Alternative options
Some of the most popular other investment ideas are real estate, bonds, shares, and the trading market. All these offer some pros and cons too. It’s a matter of personality and will what you like the most. Some people like to play safe and others prefer a more bold approach.
Basically, those that like fast turnaround invest in the market and in shares. People who like to play safe, invest in real estate and bonds. The first one risk to lose their money, or make a lot of profit. The second ones enjoy waiting for time to show if their investment was the right thing to do.
Pros
Investing in gold would go under the safe investment category. The best part of investing in gold is the safety of it. Gold always keeps the same price on the market and over history it was never too high or too low. Turning your savings into gold means that you can be sure that you won’t ever lose it. For example, a normal gold bullion price would be somewhere around $1500 for the finest 24K coins.
Unlike other options, gold is a precious metal that is pretty much indestructible by natural forces. You can keep your money in a piggy bank but if a fire or a flood happens your investment will be gone in seconds. Gold coins and gold bars don’t have this problem. Fire isn’t melting them and the floods won’t harm them too as gold isn’t oxidizing not get damaged under water.
Another very important thing is that its value can’t go down like the value of the currencies. People often think that the US dollar is a strong currency, but this has proven not to be true. In case of a war, terrorist attacks, or even natural disasters, many currencies lose from their value. Gold always stays the same.
Cons
When people invest, they expect their investment to have a turnaround and profit. When gold is in question, profit might not be possible. As we already said, the gold price always stays the same. No matter the fluctuations in society, you can’t expect its price to reach a level after which you’ll sell it and make a profit.
This means you can’t make money out of it. It’s an investment that mostly keeps the value of what you earned rather than using it to make more money. If you want to profit, it wiser to invest in something else.
Another thing is the burglar problem. Thieves love gold. Just a small amount of it is worth a lot of money. Just an ounce of gold is worth 1316 US dollars at the moment. Imagine how much a pound is worth and if you have a gold bar of a pound in your home, the burglars will just place it in a pocket and run off. That’s around $20.000 lost in just one move.
Gold as a precious metal
Gold is one of the most amazing precious metals on earth. The melting point is set on 1943F degrees and a Bullion with 1.287 inches in diameter weights 1 ounce. These features make the gold coins and bars the most wanted between all of the precious metals. Learn all about gold here.
Also, gold production in the world is dropping lately. The gold mines are producing less and less gold which means that its price might start going up very soon. People that need to protect their earn money find gold as the best option because of this. The price of gold can’t go down, it can only go up.