When it comes to investing in gold and other precious metals, people have reservations about it, which is usually down to not understanding this type of investment. However, many of these myths about investing in gold, silver, platinum, and other precious metals are inaccurate and often baseless. Below are some of the common myths about gold investing that are untrue, and we put them straight to give you a clear picture and understanding of the world of gold investments.
Investing In Gold Is High Risk
Ultimately, any investment is not without risk, but when you choose precious metals, they are at a much lower risk than other investment vehicles. If you look at the value of gold, it has increased in value over the last twenty years above the inflation rate, and it is a much safer option than investing your money in the stock market. Whatever you decide to invest in, you should always ensure you do not commit more money than you can afford to lose. All investments carry risk, which is something you need to understand before committing your money.
You Have To Be Rich To Invest In Gold
It certainly will help if you are rich to invest in gold, but it is not exclusive for the rich. There will be no need to buy a 1kg gold bullion bar, as there will be many more affordable options available, including gold coins. You can start buying gold in Brisbane through City Gold Bullion or through a reputable gold dealer near you. These dealers will have lots of options available to you.
It Is Hard To Buy & Sell Gold
Again, this is false, and once you have a reputable precious metals dealer, you can purchase over the telephone with them. If they are also storing your investment for you, you can also get them to liquidate your investment and sell it off when you want to. Some dealers are better than others, so you will want to do plenty of research before selecting which one to use.
Paper Gold Is Better As It Is Less Hassle
When you invest in paper gold, as it is called, rather than physical gold, you are open to more risks. You will be affected by the market value of gold and the company’s performance you are investing in when buying paper gold. If you are looking for the safest options to invest in gold, ensure you invest in physical gold rather than paper gold.
Cash Is Better Than Gold
When you need to spend money quickly, cash is better than gold, but your cash will not increase in value above the rate of inflation like gold does. It is always worth keeping some of your asset’s liquid if you need them, but gold is much better to have over the long term than a pile of cash.
Gold Is Outdated
Although we do not use gold much as currency anymore, there will always be a use for it, whether to store value or for a more practical reason. Gold can be smelt into bullion or coins or used in jewellery, but other uses will help it retain its value. Technology often uses gold in small quantities, such as your smartphone, and you also find it used in medicines, so most likely there will always be a demand for gold.