The Pros & Cons of Investing in Physical Gold

PUBLISHED Nov 4, 2022, 12:27:12 PM        SHARE

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It is no secret that gold has been historically valued from ancient times until today. Just by describing why people appreciate it, you will already see the pros of this precious metal.

People used gold in trading for a long time, and today, people are storing metal as a valuable investment.

A lot of us agree with experts and investors that it is an excellent store of value. We can buy gold and save it like typical savings but in a more secure and higher-rising-value form.


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What can I use Gold for?

You can buy gold now and slowly add more of the metal until you grow your collection. Then, when you retire, you can sell it for cash and live a beautiful vacay life. Or, you can pass it on to your heir. Your recipient can keep the collection and add more to it or exchange it for money to use for education or business.

However, there is a reason why experts say that not only your Portfolio but also your precious metals inventory should be diversified. While gold is well-rounded and can even protect you from inflation, there are things that it cannot do for you.

There are situations that this metal cannot help you. While they are minimal, it’s still valuable and useful knowledge for you to learn the disadvantages.

Here are the PROs and CONs of your gold investment.

On Value.

PRO: Everyone values gold organically.

Gold is treated by society like it treats religion, and because of this, governments and institutions put value in it. For millennia, humanity’s attraction to this precious metal is evidently significant. We have been using it as a symbol of wealth, power, and status.

There are gold items that you can collect that are valued more by their sentiment and historical merit like commemorative coins. Some gold items indeed have raised values because of their added novelty.

CON: It can lose its novelty. Nobody knows when this will happen, but when it does, gold owners will suffer loss. Humanity’s millennia-spanning crush on gold is emotion-based. Once we have a leap in knowledge, we might see it for its practicality. However, experts believe this will not happen just yet. We can still trade gold for centuries to come. Good for us, this con’s possibility is almost impossible to happen.

On Utility

PRO: Aurum has many uses.

Aside from being jewelry, medals, and statues, which are more novel uses, gold is used in dentistry, electronics, and computers.

It is the best filling for cavities because it doesn’t corrode and doesn’t react when mixed with other metals. Its ductility makes it very easy to shape, and nobody is allergic to it.

Gold is one of the best conductors. It can be used in small portions for smartphones, TVs, and GPS devices. It also helps in the speeding up of data transfer in computers.

CON: It’s too expensive to use practically.

It is impractical to use Aurum in technological industries simply because it is too expensive for its working value. Companies have no reason to use gold substantially when there are cheaper alternatives like silver and copper.

Just take, for example, the use of gold in food. It isn’t added to the fancy dish because it makes it taste better or more nutritious. The gold flake topping is just there to make the food look “fancier,” and so it can sell at a higher price.

For now, the use of gold for investment is mostly based on people’s “placed” value in it. It is expensive because we think so and not because we know it is useful.

Gold Exchange Traded Funds (ETF)

PRO: You can own gold digitally.

You can sign up and exchange your money for digital gold. There are online companies with physical reserves of Aurum, and you can own a part of that stock. When the market situation is perfect, you can buy more shares for lower values or sell your stocks for an excellent profit.

CON: You don’t actually own that gold.

When you sign-up for an ETF, you have shallow control. You have no access to the physical reserve, and all you have in your hands is a sheet of paper.

If the company you are partnering with fails in its system, you can say goodbye to your stocks.

Physical gold

PRO: You have full control of your gold.

When you collect gold physically, you have your investment in your hands, and you have full control of it.

You can add to it, sell part of it, and do anything that you find will bring your financial advantage at once.

This is the classic no-frills proven way of owning gold, and many experts endorse this way of investing more than any method.

CON: Security costs. Owning high-value items in your house is a risk for crime. You will have to fortify your storage with all the security technology that you need to mitigate theft.

Security devices can be costly, but you have to buy them, or else you risk your investment and the lives of your family and you.

Should I invest in Gold?

Yes. Yes, you should. Most of the cons of gold are just threats to the security of value, control, and storage, and they can all be mitigated by investing the right way.

Experts highly recommend that you own physical gold. And the good news is that there are sites that make it easy and safe for you.

You can own gold with a touch of a finger and, even more than that, you can have other items like silver, platinum, and copper in all forms. You can get precious metals in the form of Bullion, coins, numismatic, commemorative, bars, rounds, fractional coins, and others.

Find the right subscription for you. There are sites offering Bullion boxes or monthly mystery crates that are pre-curated by experts. With this service, you will be able to grow a collection that will give you many opportunities to profit.

This informative post was contributed to Leisure Freak by Charles Stevens of Bullion Box.

Author bio- Charles Stevens, Chief Operating Officer of Bullion Box Subscriptions.Charles oversees operations at Bullion Box Subscription, an industry-leading precious metal retailer, curating gold, platinum and silver bullion and coins.

Leisure Freak received no payment for this contributed article nor any commissions if readers decide to use Bullion Box services.

Originally Posted in Leisure Freak

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