Is buying gold a good investment?


It is considered the safe haven par excellence. But it's not always true. Here's when it's convenient and what to buy

The gold rush is  back . 2019 opened with a 3% rise in prices compared to the previous month and many argue that it is the right time to invest your savings in precious metal. "Physical gold can still be considered a safe-haven asset because it is really difficult for its value to plummet.
However, it should be considered that there are no armored investments , even the value of a house can drop in a few years. «Those who buy metal must keep in mind that its prices are volatile and, especially in the short term, they can fluctuate . Just think that compared to 2012, when the prices were at the maximum, its value fell by 20% »underlines the expert. Here is a short guide to understand who should buy gold and in what form.

Ingots or coins

"Buying them is a good idea if you want an asset to leave to your children and are afraid of investing your savings in financial products, " says Alma Foti, financial advisor and member of the executive committee of the National Financial Advisors Association. " Should I buy coins or bars ? «Better the first. Ingots are more difficult to resell and commissions can go up to 10%. The coins, on the other hand, have lower top-ups, are bought by the piece and are more easily resellable »advises Rossi Gaziano. The ingots can be purchased in some banks or from specialized operators: the list is on theBank of Italy ; here are also indicated thereliable numismatic shops for coins.

Funds

They are managed by companies that select shares of mining companies . Be careful, however: they do not exactly replicate the trend of metal on the market, but tend to amplify gains and losses , up to double them »explains Alma Foti. Better then to focus on ETFs . "They are a type of fund that is easy to buy and resell at any time at any bank because, like shares, it is listed on the stock exchange and has up to 80% lower commission costs than traditional funds," says the expert. "And the returns over time are often better."

Not to risk it

«Investments in gold-related financial products are suitable for people who are familiar with the world of finance» explains Alma Foti. Here are 3 rules for avoiding mistakes.
1. Account not to resell the funds for at least 5 years.
2. Don't be frightened by the first drop.

3. To avoid too big risks, diversify your investments and ask the consultant to include in your portfolio a part of products related to the gold market that does not exceed 5%.

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