Oxford Gold Group – What Does It Mean to Invest in Gold?

In what ways are Scrooge McDuck and King Midas similar, folks? We’re here to tell you that it’s not a diversified portfolio, that’s for sure. They’re both basically obsessed and invested with gold.

Believe it or not, gold has had a fantastic 2023, starting the year at a six-month high. The awesome thing is that many analysts believe the metal will continue to rise throughout the year on the back of mounting worries about bank solvency, a worldwide recession, and sustained stock market volatility.

Investors flee to safety in commodities like gold when they lose faith in other investments or the economy.

Gold may be a good hedge against a falling stock market, and it certainly has a cool cachet, but all of you investors need to tread carefully! Take a peek at this link for more info https://www.telegraph.co.uk/investing/shares/beware-of-gold-as-it-surges-towards-a-record-high-shares/.

So, what are the four ways you can invest in gold? Stay tuned for more details below:

Physical Gold

Talk about treasure chests filled with this yellow metal. The truth is that when someone says physical gold, our minds immediately go to treasure chests.

We want you to know folks that it’s the most thrilling way to put your money into gold, but it’s also the most difficult to buy, store, and sell. You can decide to invest in gold bars, coins and even hunks of pure gold!

But, what about gold jewelry? It’s true that some pieces can become more valuable with time, but it’s not easy to determine how much anything is worth and there’s no guarantee you’ll get back more than you paid for it when you want to sell it.

Oh, and many customers who buy jewelry from a store are interested in making a return to the company. Why? Well, because they suddenly have a change of heart and want to sell it. Jewelry has a high markup, and its resale value is far below the purchase price.

Gold Stocks

Gold mining stock purchases carry the same inherent dangers as any other stock purchase, but also the added benefit of allowing you to pick and choose which gold mining firms to back.

A gold mining firm with an awesome reputation for environmental protection, for instance, would attract more investors than one without such a track record. Although stock ownership isn’t quite like having physical gold in your possession, it does give you access to a liquid asset.

Gold Funds

We want you to know that folks who invest in gold mutual funds do not directly own the precious metal itself, but rather a collection of stocks and bonds from various companies involved in the mining and processing of gold. Rather interesting, right?

Gold ETFs and mutual funds offer diversification and greater liquidity compared to solely owning actual gold. But, you should also bear in mind that some funds may charge a fee for managing your investment. Find out more on this page.

Gold Futures

Contracts for future delivery of a specified quantity of gold are known as gold futures contracts. The important thing to know is that what is actually exchanged on a market is the contract itself.

Unlike real gold, gold futures do not incur any management costs and are very liquid, however certain brokerages might charge a trade fee (also known as a commission) on each contract you buy or sell.

So, How Should I Buy Physical Gold?

Well, the first thing we want you to know is that buying and selling gold can be low-key problematic for a lot of newbie investors, from dealing with pushy salespeople to falling for frauds.

Oh, and do you know what else? The worth of the object being sold can be inflated, and the buyer’s sense of urgency can be through the roof because the salesperson is breathing down your neck to make the purchase. So, folks, preparation is the key to avoiding a poor investing decision. In other words, you need to find a reliable and reputable dealer who won’t make you uncomfortable in your decision-making process.

A very wise idea is to check out companies like Oxford Gold Group to find out more about your investing options! Doing research and reading reviews on different companies is a must folks!

Moreover, you should watch out for them fees! The last thing you need is for the fees to break your bank. The price at which gold is traded on the commodities exchange, known as the “spot price,” is often higher than the price at which gold is sold by gold dealers.

A dealer’s commission and costs associated with production and shipping make up the bulk of this surcharge.

Since this precious yellow is making people low-key obsessed with it, and its physical nature makes it vulnerable to theft, a lot of newbie investors joke about burying their wealth so no one can get their hands on it.

This might sound funny, but it’s vital to make plans in advance to keep your precious little treasure chest safe, be it in a home safe or a bank safety deposit box. But, be aware that gold storage can be quite pricey.

However, nothing is more important than the protection for your yellow metal!

Last but not least, having actual gold also comes with the additional cost of insurance. Make sure the insurance you buy applies to the specific assets you have.