Precious metal investors believe in the age-old adage that you shouldn’t stock up on summer or buy a straw hat in winter. Gold like any investment asset performs better during certain seasons. Gold might be up but investment analysts know that nothing goes up and stay there; it has to come down eventually. The trick is knowing what drives the gold price up to and what would send it tumbling down. If we were to look at seasons, the markets and the economy tend to slow down in winter and pick up in summer. However, with investment assets like gold, this might not be true. The gold price movements can be triggered by virtually anything. The gold market can change quickly and dramatically.
There are a few things you need to know as you delve into the gold investment.
#1. What exactly are the global events that will affect the gold market?
Our current world is made of paper assets, currencies that are not stable, and obscene spending by the government. Physical silver and gold are not similar. They stand alone as real money, in a world where nothing else is. This has been the case for centuries. When the world titters on the brink of financial or economic difficulties, gold and silver tend to move in the opposite direction.
In today’s world, we use paper currency. These currencies are not stable. Gold on the other hand is not like currency. Its value is affected by several factors. When the world is experiencing financial difficulties, a lot of people turn to precious metals like silver and gold because they will move in the opposite direction to stocks and bonds.
#2 How much gold jewellery is good enough?
Different buyers have different preferences. Some will only buy gold Brisbane that is in good condition, some will buy scrap gold others will only buy high purity gold like gold bullion coins or bars.
#3. Preparing for the rising inflation
A lot of people have said that high inflation is only transitory. However, despite what mainstream media believe most people are doubtful because the Consumer Price Index (CPI) has remained too high.
The bottom line is that regardless of whether you believe inflation might be high for a long period of time or not, it’s helpful to have some gold stashed away to help you pull through tough financial periods. During times of inflation is usually a sign to buy gold Brisbane.
#3. Gold vs. Silver?
Gold and silver share a lot of characteristics. They are tangible, portable, and can be sold anywhere in the world. The price of gold goes up in a recession but the silver price falls. The yellow metal rises when the stock market markets struggle, by the silver price tends to struggle a bit to meet the rise of gold. Central banks will usually prefer to buy gold bullion because it is less risky and as a long-term investment, you are bound to make some money regardless of when you decide to sell or buy. Silver and gold are different, their costs are different too. Each metal has distinct advantages. The best thing you can do as an investor buying precious metals is to buy both metals. If you are exposed to either one, you can withstand most events.
#4. Keeping your gold safe
There are a lot of things that can happen to your precious metals. You need to store them safely and make sure that you don’t lose them or put them in a situation where they are likely to be damaged. Earthquakes, floods, and fires not only threaten your home but can also threaten gold stored in your house. Besides that, you want to keep your gold or silver far from the public. Make sure that they are secure against theft.
Having gold bullion can help you get through emergencies. So, it is a good idea to have gold at hand.
#5. What’s your exit plan?
It may feel odd to discuss this topic when gold and silver prices are going nowhere. But you need to formulate your plan now so that you’re not scrambling to figure it out when an economic or market emergency strikes.
You need to have an exit strategy. This means you should have a specific goal for why you are investing in gold or silver. Different investors use different indicators. All those can be confusing for anyone new to investing in gold. Plan an investment strategy, once you have done that you will be operating from a position of power rather than just floundering aimlessly.
