Form Gold Investment Clubs!

PUBLISHED Aug 18, 2022, 7:41:55 PM        SHARE

img
imgpiggybank advisor

The Reserve Bank of Zimbabwe has now introduced gold coins to the market with a strategic intent of boosting savings and investments in the broader economy. The gold coins are available in both local currency (ZWL) and United States Dollars (USD) (and other foreign currencies) at a price based on the prevailing international price of gold and the cost of production. Piggy believes that it is a positive development since it broadens the universe of investable assets for investors. The Mosi-Oa-Tunya Gold Coin should be seen as an alternative investment to USD, stock market and properties market. However, a key concern is access. A single coin sells for approximately cUSD1,800 which makes it very difficult for the retail or unsophisticated investor to participate. That said, PiggyBankAdvisor has set up a framework for Investment Clubs that are focused on different asset classes, including gold.

Investment Clubs are an important vehicle for one to invest in different asset classes such as commodities (gold), shares, and properties. An investment club is nothing more than a small group of individuals, generally consisting of between 10 to 15 members and usually comprised of friends, co-workers, church members, neighbours, or family members. These people then pool a set amount of money and meet on a regular basis (usually monthly) to invest in a combined investment club portfolio. This has the advantage of bringing a diverse group of people together, each with his or her own insights, experience, and investment knowledge, which might not all have been available to you on your own. Investment clubs are a great way for new investors to learn more about investing without risking a large amount of money. The following are some of the reasons why one might want to be part of a PiggyBankAdvisor Investment Club;

  • Social An investment club makes investing sociable. Meetings take place at members’ homes, in restaurants or at pubs, where you discuss investment ideas. This is far more fun than agonising over decisions all by yourself.

  • Education In an investment club you pool your knowledge, brainstorm ideas, and get everyone’s input when you make a decision. This is one of the best ways to improve your investing expertise.

  • Diversification A key principle of investing is not to hold all your eggs in one basket. In an investment club, however, your money is pooled with others. This means that the investment club can invest meaningful amounts in a properly diversified portfolio.

  • Informed Investments The collective brain power and experience of people who each have knowledge and experience of different market sectors will produce opinions and information that will guide you to sensible decisions.

  • Profit opportunities Research shows that collective investment decisions based on discussion and democratic choice are more likely to produce sustained profits. By pooling your money with others, you can also own a wider range of shares.

  • Spreading the workload Research and analysis into potential investments can be structured and spread between club members.

  • Low risk Pooling a relatively small amount of money with others every month will be an ideal way to gain hands-on experience of how the stock market works.

Piggy notes that there is a need to choose an appropriate legal structure for your Investment Club. The setting up of a voluntary association is recommended. This is a group of individuals who come together to share a mutual interest, but without forming a legal entity. As the club is not a legal entity, any contract it enters must be done by a member on behalf of the club. Forming a voluntary association requires only that three or more people agreeing to achieve a common goal. It is recommended that investment club members adopt a formal written document called the Investment Club Constitution and Rules.

Advantages of a Voluntary Association

  • Simplicity There are low or no set-up costs and it is the least bureaucratic structure. It is also relatively cheap.

  • Easy administration There are no formal registration requirements or the need to notify any public register of the people serving on the management committee.

  • No statutory procedures There is no set process to be followed for members’ meetings, etc.

  • Tax benefits Your club will not pay income tax. Instead, all members will be taxed on their profits at their personal tax rate.

Disadvantages of a Voluntary Association

  • No separate legal personality The ownership of club assets lies with the individuals acting on its behalf.

  • Contract requirements Formal contracts must be drawn up for office bearers. This can cause technical difficulties when office bearers change.

  • Personal liability The management committee could be personally liable for debts if the club is unable to meet its debts and liabilities.

Overall, gold is viewed as a haven asset and has successfully preserved wealth throughout thousands of generations. Investing in gold coins through an investment club is definitely a good way to save money and build wealth over time. To set up or join an existing Investment Club, contact us on +263 78 358 4745.

Originally posted on PiggyBankAdvisor.com


Sound investments
don't happen alone

Find your crew, build teams, compete in VS MODE, and identify investment trends in our evergrowing investment ecosystem. You aren't on an island anymore, and our community is here to help you make informed decisions in a complex world.

More Reads
The Top 3 Dividend Aristocrats Now
Image

When it comes to finding ways to compound wealth over time, we believe the best way is to buy high-quality dividend stocks, reinvest dividends, and hold them for the long-term.

Will Meta Stock Go Up? Panic, or not to Panic, That is the Question
Image

Will Meta stock go up? Many investors have become skeptical about the future of Meta Platforms due to the continuous loss of share price and advertisement revenue.

Due For A Pull Back
Image

Stock Market Commentary

Cisco Systems: Time To Buy
Image

The bear market is making retail and professional investors nervous, but the market will not be down forever.

Medical Properties Trust (MPW): Undervalued and 7%+ Yield
Image

Medical Properties Trust, Inc. (MPW) is one undervalued company I bought recently because it has been down over 40% since its high in the ~$24 price range.

Comcast (CMCSA): Undervalued and 2.5% Yield
Image

The markets have recovered a little over the past three weeks. But the market is still down for the year. Thus, the market has brought down many stocks with it. Over the past three weeks, the market has been up a little over 7.5% from this year’s lows.

Will Appian Stock Go Up?
Image

Most Appian investors are getting edgy and wondering, will Appian stock go up? The stock drop has caused anxiety among investors in recent months. However, the trend may change acoording to analysts forecasts.

Apple Earnings Per Share – Why is Apple Dividend So Low?
Image

If you are wondering why is apple dividend so low and what is the expected apple earning per share in the next quarter, read this informative article.

Anticipation
Image

Stock Market Analysis & Commentary

GOOG Earnings Hit Slightly By the Current Economic Slowdown
Image

Goog Earnings have been affected by the current economic activity, yet the revenues are still higher.

Tesla stock prediction as Sell-off of Bitcoin
Image

What will be the price of TSLA stock in the coming months and years? Will it recover its position after this recent dip?

Nvidia Stock Price & Forecast | NASDAQ: NVDA
Image

NVIDIA Corporation (NASDAQ: NVDA), the company invented GPU in 1999 which help the growth of the PC gaming market.

The Case for Buying the Dip
Image

The case for buying the dip is based on the availability of undervalued assets in a market that has suffered indiscriminate selling.

Berkshire Hathaway Forecast ahead of Quarter 2 2022 Earnings Report
Image

Berkshire Hathaway announced its Quarter 1 2022 earnings on 30th April. During the first quarter, earnings declined due to slowing economic growth and stock market pullback. Berkshire Hathaway quarter 2 2022 earnings are expected to be published on 5th August. Let's look at the current market trends and Berkshire Hathaway's performance to determine a possible outcome of the quarter 2 2022 earnings.

What Happened to Netflix Stock? Stranger Things About the Netflix Stock Drop in 2022
Image

What Happened to Netflix Stock? A Horrible Series or just a scary episode of the Netflix Stock Drop in 2022? Let's explore everything!

Mrmd, bros
Image

Headed for substantial growth

Bank of America Stock Price Today - BAC Making Huge Revenues in a Bear Market
Image

Are you hunting the high-value stocks to make high returns even when the pessimism prevails? Bank of America Stock Price Today is just at the lowest level.

Why it’s Time to Start Buying TESLA Long
Image

Is it possible to sell Tesla, the most shorted stock globally, as a potential long buy? On 21 July 2022, Tesla’s stock surged by 10%, attributed to its strong earnings in its Q2 2022 results. The surge was an unpleasant surprise for short traders, who made an estimated mark-to-market loss of over $1 billion.

Estimating Future Stock Returns, March 2022 Update
Image

Well, finally the bear market… at 3/31/2022 the S&P 500 was priced to return a trice less than zero in nominal terms.

Feeling Risky? Marijuana Stocks May Jump From Legislation
Image

Senate Democrats Working on Bill to Decriminalize Marijuana

Resources for Publishers
Resources for New Investors
Boosted with BossCoin
Top Investors
user_profile
Tom Hamilton
user_profile
Wise Intelligent
user_profile
Mark Robertson
user_profile
Kevin Matthews II
user_profile
Akeiva Ellis
user_profile
Brendan Dale
user_profile
Kenneth Chavis IV
user_profile
Sharita Humphrey