Citizens of UK are having trouble with the rapidly declining value of pound. With their economic future uncertain in the face of Brexit , people are now investing and hedging in gold. They can invest in this tangible asset in four ways: physical gold, jewellery, exchange-trade funds, and gold mutual funds. Investing in any of these gold schemes gives you the safety net, which a cash bank account does not. Below are the reasons why should invest in gold:
Direct Ownership Gives You the Opportunity to Get Cash Immediately
In London, the premium on gold has barely changed in the past several years. When we talk about physical gold, we are referring to gold coins and bars. The premium on a coin depends on its weight as well as its quality. The premium on gold bars is significantly lower than that on a coin. Big gold bars have low premium as compared to small gold bars. The premium on a gold coin depends on its gold content rather than its rarity. Though owning big gold bars do not give you the flexibility of quick liquid cash, it is still considered one of the best investments in direct ownership. https://www.youtube.com/watch?v=x7f01doeqYc
Easy to Sell
As compared to gold coins and bars, jewellery is much easier to sell. The price of the jewellery also depends on its design too. Newly designed jewellery will give you more cash than high carat jewellery. However, in most countries, jewellery price is based on its carat.
Safer Than Stock Market
Just like the stock market, an exchange trade fund allows you to trade your gold in the market. The reason you should go for this is because the gold in your possession legally belongs to you and has less risks from other parties. There is no insurance or storage cost and you can start trading whenever the gold price reaches its peak.
You Get a Better Bargain than Stock Market
Gold mutual fund gives the investor the opportunity to invest directly in the gold stocks that are the mining companies. These companies oversee investments of gold that are to be made in equities or bullions. A gold mutual fund also gives you a diverse portfolio as compared to investing in a single stock. Investors do not need to keep track of the changing rates. All they need to do is invest in their preferred mining company and the fund manager monitors the gold’s movement.
Gold Will Never Lose Its Value
For centuries, gold has been the center of attention and still is. No matter what country you are in, your gold investment will pay you more than you expected. With gold, you have the opportunity to hold it physically in case the stock market crashes. Investing in physical gold comes with a huge responsibility. Even though you do not need to worry about the gold market, you need to take a decision where to store it safely. Bottom line is, owning gold will give you that powerful feeling that you are making your future financially secure.