Most people are afraid to invest their money in the stock market. The way it works seems too complicated for the ordinary person. And only a few would risk their hard-earned money. Gold would be a sound investment because everyone knows gold will always be valuable. Before you go on a buying spree, however, don't take for granted some knowledge to guide you. Here are a few things you should be aware of when it comes to gold investments, according to Atkinsons Bullion.
1. Gold is for keeps.
You probably think of investments as something you buy and then sell. You should not think of gold in this way. The value of gold is stable, so the price will not change very much over a short time. The price does tend to go up, but very slowly. Buying gold is more of a way to preserve wealth than to increase it. You want to keep gold for a long time as a way to protect your money against factors such as inflation. You should only sell when you need the money.
2. Gold is cheaper from dealers.
You will want to find gold bars for sale — whether in the UK or US — from dealers because they usually offer them at lower prices. The only advantage of getting from the Royal Mint is you are sure you are getting solid gold of the right weight. However, if you find reputable dealers, you will get the same thing for less.
3. Gold investments come in many forms.
Buying physical gold bars is one way to invest, but there are other ways. You can buy investment-grade gold coins, which are tax exempt. You can also get shares in gold exchange-traded funds (EFT). Gold EFT companies track the price of gold, and you can safely buy and sell shares from them. Because the price of gold is stable, buying gold EFT is almost as safe as buying actual gold bars.
Diamonds may be forever, but the value of gold is much more reliable. If you want to invest, but do not know much about the stock market, gold bars is a good way to keep your money safe.