In these uncertain times, vigilance and risk awareness are important and systematic risks must also be considered. Success in investing is closely linked to diversification and risk management. In other words, do not put all your money in an investment instrument because the market can plummet and will be detrimental if you do not diversify your investments properly.
A sound investment portfolio should cover a wide range of assets consisting of various equities, stock investments, property, cash components including investment allocation in gold and gold bullion purchases. The key is to determine the exact amount of each type of asset and have assets that will survive inflation, deflation, stagflation and even hyperinflation. We will focus on gold bullion investment topic in this article.
Many people seek and buy gold bars because of their unique characteristics in terms of durability, beauty, scarcity and status as a medium of exchange and universal currency for centuries.
For the country, gold is an international instrument as well as an instrument to preserve wealth and increase the economic strength of the country. As for individuals, gold is used as an instrument of protection and guarantee of investment, decline in value of money, other macroeconomic and geopolitical risks and to store wealth. With all the advantages of gold, gold should always be included in your portfolio diversification.
The main factor of investment, especially buying gold bullion is not from the amount of funds, but how quickly you start investing in gold. The sooner the better.
Your motivation in buying gold will greatly determine the form of gold investment selected. Are you a speculator, investor or saver? Do you want to take a short-term, speculative position in gold? Do you invest for the medium or long term? Or do you diversify, store or use gold only as hedging / financial security (the main function of gold)? All these factors will greatly influence the style of investors in investing and buying gold.
As a basic guide, proper portfolio diversification should include a long-term investment allocation of between 5 to 15% in physical gold (buy gold bullion). Just as a family home can not be considered an investment, gold bullion can not be considered an investment, but rather as a financial guarantee and unsold savings. We do not sell insurance because we do not sell gold bullion which is a financial guarantor instrument.
For long-term purposes, the most appropriate time to buy gold bullion is anytime you have the money to buy it because of the tendency of gold prices to go up from time to time in the long run. The best strategy to invest in gold is to buy some gold regularly every month without seeing the price of gold at that time. For some investors, this strategy minimizes the risk of loss over time.
For short and medium-term purposes, investors can invest in gold by utilizing the techniques of gold gardening.
After determining your motivation to invest in gold, the next major consideration is the cost (both in and / or annual cost), proximity to your assets and perhaps the most important factor of risk. If you keep gold on a third party, make sure you have a direct relationship with the party without going through an intermediary party which certainly can increase the risk. Another consideration is the ability to surrender gold in the event of a thorough crisis.
Buying gold bullion and holding gold in a portfolio can provide real profit in the form of speculative profits, investments, hedging against macroeconomic and geopolitical risks or wealth maintenance.
Gold is money and a major asset that is reliable to sustain assets and pass on wealth to the next generation. Once the base of ownership of gold bullion has been reached in the portfolio, other gold investment instruments such as stocks and mutual funds or other more speculative forms of gold investment may begin to be considered.
Experienced and knowledgeable investors have long known that buying gold bars and other forms of gold investment can be a solid investment option. Gold is stable in times of global geopolitical imbalances, economic uncertainty, recession and depression. It is important to look at your investment portfolio as a whole. If done correctly, gold and related investments can be a very effective component in a well diversified investment portfolio.