Is it a good idea to invest in gold?

One of the main characteristics of gold is its value in times of crisis, this is because it is not backed by traditional currencies, such as the dollar; On the contrary, the less the dollar is worth, the more gold is worth. The same thing happens with inflation, if the money in circulation increases, gold will also do so, only it does so with a few months of delay. All this provides the investor with a lot of security. It is usually associated with a refuge asset, since in the long term it is difficult for its value to decrease, in all the years that gold has been a constant asset in society, its value has always been quoted on the rise.

All this does not ensure that its value cannot suddenly fall, like any currency, its price will drop if there is a lot of demand for it. But under all this context it does not seem like a bad idea to invest in gold today, usually this investment is not made in search of revaluing money in broad strokes, rather it seeks to preserve capital against monetary inflation. Here are the best ways to invest in gold today:

Gold bars: Investment in gold bullion is the most classic gold investment of all. It is about buying a certain amount of gold (measured in grams or ounces) physically, and keeping it to later sell it. The biggest drawback of this method is the storage of gold, being such a precious asset, it must be protected against theft, fire or natural disasters. Protecting you against these events usually comes at a cost, so it’s an add-on to factor into your investment tuition.

Gold jewelry: This is a highly speculative investment, as not only is the gold valued but also the jewel itself. Not to mention that the degree of purity of gold is not the same in ingots as in jewelry, so its sale price may be reduced.

Gold ETFs: ETFs are exchange-traded funds that are backed by the price of gold. This has become the most common method of investing in gold today, by making a person own gold without the need to physically store it, in this way the gold is stored in an investment portfolio, being able to speculate on its price much more easily and without worrying about storage and moving costs.

Gold mining companies:This is one of the riskiest ways to invest, as the money would not go directly into the price of gold, but into the shares of a gold mining company. That is, if the company goes up in value, profit is made, but if the company goes down in price, money is lost. This is considered an investment in gold since it is assumed that the actions of the company go hand in hand with the price of this precious material.

Invest wisely

Of course, it is important that before any investment you carry out adequate research, understanding the current market in order to see if it is convenient to make the investment. The basic rule is not to invest more than you are willing to lose, which is why it is convenient to start with low amounts of money and gain experience from there. Gold is definitely a reliable investment source, but it is not exempt from complications and risks, it is best to analyze its possibilities and needs in the short and long term to determine if it is a good investment option for you.