Investing in gold has become one of the most popular retirement investment strategies among retirees.
It seems like everyone wants to invest in gold these days. And why wouldn't they?
After all, gold prices have been rising steadily since 2008. That means investors can expect to reap big profits if they invest in gold.
However, investing in gold isn't right for everyone. If you don't understand the risks involved, you may find yourself stuck holding onto an asset that doesn't perform nearly as well as expected.
That's why it's important to learn everything you can about gold investing before you dive headfirst into the world of gold.
In this article, we'll discuss the pros and cons of investing in gold and explain why it makes sense to invest in gold instead of stocks or bonds. We'll also share our top 3 tips for choosing the best place to store your precious metals.
Let's dig in!
Pros & Cons of Investing in Gold
Before you invest in gold, it pays to understand its benefits and drawbacks.
Here are the main advantages and disadvantages of investing in gold:
Advantages
• Gold is considered a safe haven investment. This means that it tends to rise in value over time.
• Gold is often used as a hedge against inflation. Because gold prices tend to rise over time, it becomes a better option than other investments when inflation rises.
• Gold is a form of currency. As such, it's accepted worldwide as a medium of exchange.
• Gold is portable. It's easily transportable and can be stored safely without fear of theft.
Disadvantages
• Gold is expensive. Buying physical gold is expensive. However, you can still invest in gold using paper certificates.
• Gold is volatile. Its price fluctuates wildly.
• Gold is limited. There's only so much gold available in the world. Once it's gone, it's gone forever.
Why Invest in Gold Instead of Stocks or Bonds
There are two main reasons why investing in gold is a smart choice compared to investing in stocks or bonds.
First, gold is a tangible asset. Unlike stocks and bonds, gold is something you can touch and feel.
Second, gold is a stable investment. Gold remains relatively constant, unlike stocks and bonds, whose values change daily.
This stability makes it easier to predict future returns.
When you compare gold to stocks and bonds, you'll notice that gold performs better than either of those assets.
Stocks and bonds are risky investments. They can go down as well as up. But gold is a safer bet.
Because of this, you should consider investing in gold instead of stocks and bonds.
How to Choose the Best Place to Store Your Precious Metals
Now that you've learned the pros and cons of buying gold let's talk about where to store your precious metals once you buy them.
Choosing a storage location is critical. After all, you will store your precious metals for years.
So, what kind of storage facility do you choose? Here are three things to think about when selecting a storage location:
Location
• How far away is the storage facility from your home?
• Does the storage facility offers 24/7 access?
• Is there security?
Risk Management
• What type of insurance does the storage facility provide?
• Will the storage facility accept liability for any damage caused by fire, flood, earthquake, etc.?
• Are there any fees associated with storing your precious metals?
Storage Facility
• Do you trust the storage facility?
• Can you verify that the storage facility is legitimate?
• Is the storage facility open 7 days per week?
• Is the facility clean and free of pests?
• Is the staff friendly and helpful?
• Is the location convenient for you?
Once you've decided on a storage facility, here are a couple of suggestions for keeping your precious metals secure:
• Use a combination lock.
• Don't leave valuables unattended.
• Make sure you use a reputable storage facility.
• Ask questions about their policies and procedures.
Conclusion
As you can see, investing in gold is a very viable retirement strategy.
But before you jump in, it pays to research the topic thoroughly. By learning all you can about gold investing, you'll be able to make smarter decisions.
Learn more about gold investing by reading our articles
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