Have you ever asked yourself why your grandmother used to buy gold and store it? Mostly because she was thinking about the future. You should also think about the future. Your grandmother may not have known that, but that’s a kind of investment. But for a moment, what makes gold so special? There are many reasons, and we believe, after reading this article you will run to buy gold from the nearest place. Read on because we will tell you about a reliable place to buy gold.
Ways to Invest in Gold
There are several ways to invest in gold. You can either buy physical gold in the form of jewelry, alloys and coins, or buy shares in gold mines and mutual funds traded in gold and futures. Each of these methods has its own advantages, but in this article, we will focus on investing in physical gold.
But First, How Did the Gold Market Start?
Gold has always been a desirable precious metal, even in ancient times before the advent of money, where gold jewelry was widely used and recognized around the world. Gold began to be used as a currency for sale and purchase around 560 BC, when merchants wanted to create a standard and easy-to-use currency to simplify trade operations, and the solution was to create a stamped gold coin.
Hence, the importance of gold began to grow, until it became a symbol of wealth, and preserved its value and importance to this day. Being maintained in value, many investors use it today to protect their wealth and the value of their money from inflation and to diversify their investment portfolios as it is a safe investment. In the event of loss in some investments, gold remains steadfast in the face of market fluctuations.
Let’s Explore More: How Does Gold Protect Your Wealth?
As mentioned earlier, one of the most important features of gold is that it maintains its value. Unfortunately, we cannot say the same about money as long as it is threatened to lose its value due to inflation. Here’s a simple example to further illustrate:
For example, let’s say that your grandmother owned an ounce of gold at the beginning of the 1970s when the price of an ounce was about 30 dinars. Let’s also assume that your grandfather saved 30 dinars in a safe place. At that time, both an ounce and 30 dinars had the same value and bought the same things, such as a luxury watch or a luxury bag. But in our time, with inflation, the value of the dinar has decreased and the price of gold has risen. If your grandmother sold an ounce of gold today, you would get enough to buy the luxury bag. While if your grandfather now decides to get the 30 dinars out of his safe hiding bunker, the amount will not be enough to buy the luxury clock.
Who of them kept the value of his money in this case? Yes, your grandmother! Isn’t that enough reason to start investing in gold today? In addition to being an excellent tool for hedging against inflation and protecting your wealth, there are other advantages that make it a good investment, read on!
What Makes Gold an Attractive Investment for Investors?
- Profits: Let’s say you bought an ounce of gold when its price was 1,200 dinars, and a year later its price rose to 1,400 dinars. When you sell it, you will make profits of 200 dinars. The secret behind making the most profits is to know the best times to buy and sell, so you have to constantly monitor the gold market and its prices.
- Portfolio Diversification: One of the most important investment rules that you must follow to invest wisely is risk diversification. If you invest in high-risk stocks, gold will help you diversify risk as it is a low-risk investment, thus protecting your money from economic fluctuations.
- Liquidity: When you need money, you can sell gold and get money easily, and there will always be a demand for gold in the market. But beware of selling when the price of gold is low so as not to lose part of the purchase price.
How to Invest in Gold?
Investing in gold requires only two simple steps:
1. Find a Reliable Source to Buy Gold
Be careful not to fall victim to fraud by buying gold above its real market price, or even buying fake gold! We see many stores selling gold online through social media pages, and this is never safe.
For greater security, you can buy certified gold bars from any Etihad Bank branch. Whether you’re thinking of buying an ounce of gold as a gift to invest in the future of a loved one, or want to buy a kilo of gold to diversify your investment portfolio, all you have to do is visit your preferred branch!
2. Find a Safe Place to Store Gold
Make sure to provide a safe place to store gold and protect it from being stealed. And if you’re thinking of burying him in the garden of the house, think again that won’t grow a gold tree for you! You can either buy your own safe or rent a safe deposit box in some of Union Bank branches through our banking application to store your gold easily and safely. You will find the steps here.
How About Investing in Gold Jewelry?
If you choose to buy gold that you can wear to be two-in-one, know that investing in gold jewelry is not necessarily a bad idea, but it carries with it risks that investing in gold bullions does not carry.
In addition to the fact that you need to buy used gold jewelry from a reliable store and you have to keep invoices or certificates of purchase to be able to sell it again, you will also pay the design and manufacture fee of the piece as part of its price, which means that its price will be higher than the price of raw gold.
You should also pay attention to the purity of jewelry and gold caliber, as 24-carat gold contains 100% gold, and if the caliber is lower, this will reduce the purity of the gold, which will reduce the value of the piece if it is smelted.
We hope that you are now on your way to the nearest Etihad Bank branch to buy gold and start building a sound financial future. If you are interested in other investment instruments, we offer many of them in addition to proper financial planning and the correct execution of investing in a wide range of financial instruments to diversify your investments and increase your wealth. Click here to know more.