You will never misjudge while investing in gold
Everybody has heard that gold is the finest and safest asset to invest in. In times of crisis and unrest, it makes sense to put money into gold rather than other risky investments. Furthermore, the price of gold tends to climb during moments of market drawdowns. Knowing all that you might want to know, what is the best way of buying gold? Should you buy gold jewelry and gold bars or better invest in an ETF? Let’s have a look and see what are the options available.
Many people buy or already have jewelry that was acquired as a gift for special events, but it can also be used as an investment. However, it is only feasible under specific circumstances. For instance, if the jewelry piece has a high level of aesthetic merit. The piece is handcrafted by a renowned artisan and is not from a mass market collection. If it is made only with high-quality materials, including precious stones and finally if there is a particular history, to the piece, like if it was owned by some renowned person before. If you think this is a big complicated, then simply buy gold bars or gold coins.
If you are not a collector, jeweler, or art aficionado, it might be difficult to determine the artistic worth of a piece of jewelry. Additionally, there is always a risk that you will come across fake pieces, losing all your money. Are you willing to take a chance of this very risky gold investing method? Decide yourself. If you are not an expert, you can select many other available alternatives like buying investment gold bars or coins, open a metal account with your bank, buy an ETF or a mutual fund that specializes in gold, invest in mining stocks. Who would not want to store a gold bar and set up a tiny Fort Knox in your house?
You can buy gold bars at many jewelry stores and banks. Depending on the country, you will have no need to pay value added tax, saving a lot of money. For these reasons, Switzerland and Dubai are very popular as they have no taxes related to gold trade, making these countries the biggest gold sellers in the world. If you will pay VAT tax, it will force you to pay the amount equal to the tax paid just to break even.
Another consideration is the expense of storage. It might give you a headache thinking about how to store all your gold bars. Selling an ingot at the same can take a good amount of time and you will have to get around some jewelry stores who buy them out. If you decide to sell your gold bars back to the bank, keep in mind that the price of the bars may fluctuate depending on whether you are selling or purchasing them. Moreover, if you will lose your certificate of authenticity, some places might not even accept these bars or will charge a gigantic fee for that. This adds up to the storage problems as it might be hard to store documents at your home if you plan to hold gold bard for decades.