When there is a poor response in the market many people are pushed towards the gold market. This area seems to be the first place that investors assume is going to be the option that is going to be the safest bet.
Gold has been the staple for many years as the commodity that is great to invest your capital in; you have the gold rather than a share in a company. However, is this still true, is gold the market that is the safest option when the market performance seems poor?
Obviously, it is going to be an individual choice and not an option that you should choose without doing the necessary individual research, to determine if this is going to be the way that you would consider proceeding.
Disadvantages to gold
There are obvious disadvantages to the gold market compared to the stock markets; investing in precious metals is going to have the benefits of an actual product rather than just a percentage of a share in a company.
But you will need to store your gold if you are considering to hold onto the gold for a period of time. This has its own risks that you will need to take into consideration, storing these at your home would need to be covered in your home insurance and this can increase the policy quite considerably. The alternative is to store them in the bank in a safety deposit box. This isn’t going to be free; you are going to need to consider the price of storage of this method.
Another option is to buy and sell your gold through a broker; this could be the best bet because you might not even need to see the gold or precious metal that you have purchased. This is great if you are looking for an option that is going to allow you to invest in the precious metal market, but without the headache associated with the storage of the commodity as well.
But trading in this manner could give you the best option, you are buying a certificate for the gold that you actually own without the need to consider the storage, insurance or the potential of becoming a target of theft.
Is it a great investment
Gold and precious metal is the basis that the developing world has grown upon. It is indicated in the American Declaration as one of two options that are considered legal tender, the other being silver. It is not going to go out of existence in the near future, but there is no guarantee as to the price of the commodity in the future; the price of gold and other precious metals fluctuate, which is very similar to the stock market with the ups and downs. Whilst you will still have the actual gold, you might lose some of the market value with the dips in the value of gold per ounce.