Six reasons for Buying Gold Bullion


3. Practicality
Gold bullion can always find its market – it is easily recognised and traded. Many products during their existence at some point lose their market. Supply and demand for them vanish with the passing of time and they may disappear entirely. But can the same thing be said for gold? Not likely. Gold has always had, and always will have its own supply and demand driven market. Liquidation can be instant, unlike other asset classes such as property.
4. ETF
Initials for Exchange Traded Funds. It is an alternative way to invest in gold other than physical gold. These are funds that make trades on the stock exchange just like it is done with any ordinary share. It is a popular way to keep gold in an investment portfolio because it is cheap, although investing in physical gold offers other advantages.
5. Stability
In terms of trade in the modern market, it’s all about currency – dollar or euro mostly. However, the recent economic crisis is crucial evidence that currency is widely unstable. The economies of many countries have collapsed, choked by their dependence on currencies. Gold on the other hand has always granted a certain stability – a secure harbor for investments recognised everywhere in the world. A capable and smart investor will always maximise the numerous advantages that gold can offer. There is an old Chinese saying that it is better to live as a dog in peaceful times than as a human in turbulent ones. Considering the amount of turbulence that is battering the world economy, it is not suprising that China has been purchasing vast amounts of gold recently. It is obvious where their confidence lies.
6. Gold options
If you invest in gold options, you are speculating in gold prices, in either direction, of course. For example, if you buy a call, it’s in your best interest that prices go up. On the other side, if you buy a put, you want prices to fall. The option market is complex, so every investor has to be very careful when dealing with it. The greatest advantage is that you can control huge investments with a small amount of money. However, when a certain date expires, an option time value disappears. So, good timing and awareness are crucial in this sphere of business.
By Lisa Casagrande | https://www.goldbullionaustralia.com.au