• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

My blog

Just another WordPress site

  • Home
  • About
  • Contact
  • Blogging
  • Budgeting
  • Business
  • Finance Blog
  • Life
  • Save Money

Investing In Gold – Myths Vs Facts

By Thomas on January 12, 2018

Most of the first time investors tend to stay away from investing in precious metals like gold. But, it’s not just an option for the wealthier investors. Interestingly, there are many misconceptions out there about gold investing. And, there are plenty of people who just do not have enough knowledge about this in order to make a solid decision. That’s why we’ve put together some of the most common myths and facts so that you can see why investing in gold really is a good option.

Myth: Investing in gold is a high-risk action

Investments based on paper currency valuation or those which are involved in the equity market heavily tend to be much riskier than gold investments. Gold is an in-demand and limited natural resource that is used by various industries that range from dentists to jewellery manufacturers and even the aerospace industry. What’s more, gold offers value as a hedge against some of the riskier investments, such as bonds and stocks.

Myth: You have to be wealthy to invest in gold

The fact is, you can buy gold in small increments, eliminating the need to hold stacks of gold bars or massive bags of bullion cons. You can also conduct easy and fast transactions at City Gold Bullion in Adelaide.

Myth: It’s just hard to invest in gold

This is probably one of the most common misconceptions, but it’s also an easy enough one to accept if we look at its recent history. In the past, gold certainly was not the easiest form of investment. But today, the method of investing in the precious metal and never even touching an ounce of the metal has become a reality. In fact, most storage facilities and gold brokers do all the work for you. So if you ever wanted to invest, it is achievable in life and easier than thought.

Myth: Gold will only increase in value when there’s speculation and fear

While is definitely a good hedge against market uncertainty, but there’s nothing fake about the need for a sceptical eye on the currency. For instance, America as over $19 trillion in debt and the dollar has lost a great deal of purchasing power over the past couple of years.

Myth: Stocks on gold mining is highly likely to do better than investing in gold

There are those mining stocks that have done pretty well over time, but it takes a quick look at the numbers to see just how gold will, as a precious metal, generally outperform the mines. For instance, between the years 2000 and 2014, gold soared in value by almost 40%.

Myth: Banks and governments control the price of gold, so no one can profit.

While there have been cases of banks trying to manipulate the spot metals prices, it has nothing to do with loss or profit. In fact, bullion markets are mostly determined by supply and demand. So, when there are plenty of buyers vying for gold, the price goes up. Both small and large investors have both made profits and endured losses in the gold markets.

Myth: Small investors battle to enter the metals markets

Gold and silver are actually suited to small investors. While there are certainly mark-ups on bullion bars, coins and rounds, anyone who is prepared to buy an ounce or more of gold will only pay a small mark-up over spot prices.

Tweet
Pin
Share
0 Shares

Primary Sidebar

About Us

I’m Thomas Stevens, a financial advisor who has a love for SEO. Anything numbers related excited me, so I started blogging about finances and budgeting. I also help others blog about finance – it’s always good to have a niche! Read More…

Archives

  • November 2022
  • October 2022
  • September 2022
  • July 2022
  • June 2022
  • May 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • July 2021
  • June 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • May 2020
  • April 2020
  • March 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017

Popular Posts

Recent Posts

  • How To Earn Real Money Online By Playing Poker
  • 3 Tips To Help You Get Out Of Debt Faster
  • 3 Tips For Paying Off Debts Quickly
  • 3 Ways To Get The Help You Need While Also Saving Your Business Money
  • 4 Tips For Cutting Back Your Business Costs

Facebook

Be a Money Blogger

Facebook

Be a Money Blogger

Let’s Connect

  • Email
  • Facebook
  • RSS
  • Twitter

I’m Thomas Stevens, a financial advisor who has a love for SEO.

Anything numbers related excited me, so I started blogging about finances and budgeting. I also help others blog about finance – it’s always good to have a niche!

Copyright © 2023 · Smart Passive Income Pro on Genesis Framework · WordPress · Log in