How To Invest In Gold
If you’re ready to start your gold investment journey, congratulations! Gold makes an excellent investment thanks to its stable value, economic resilience and availability. This article will teach you all you need to know to begin investing in the world’s most valuable precious metal.
To get your gold investment portfolio off to the best possible start, we’ll explore:
- The difference between gold investment options (bullion, coins and jewellery)
- The pros and cons of investing in gold
- The price of gold over time
- How to sell your gold investment
- FAQs on how to invest in gold
The difference between gold bullion, coins and jewellery
Investment gold comes in various forms: bullion, coins and jewellery. It’s important to understand the difference between these before you make an investment, as each has different features, pros and cons.
Gold bullion
When you think about investing in gold, it’s likely an image of gold bullion instantly comes to mind.
As a classic form of gold investment, bullion’s value is primarily determined by its physical gold content, measured by troy ounce. Investment-grade gold bullion bars typically have a purity of 99.9%, i.e. 24-carat gold.
The bullion’s brand can also affect its appeal and value. For example, Swiss bullion bars are particularly coveted.
Additionally, the price and popularity of bullion bars can vary depending on their size. Smaller bars are more expensive to produce and are more popular than larger bars, resulting in higher premiums.
When selling gold bullion to buyers, such as Cash4Gold-Now, only the purity and weight of the bullion are taken into account. The value is also impacted by gold’s market price, which fluctuates daily, so be careful to sell on a day when the price is higher.
Gold coins
Minted by different countries globally, gold coins offer the benefits of investing in gold akin to bullion, but in a smaller package. The choice between gold coins and bars can often be a matter of personal preference.
One difference between gold coins and bullion is coins tend to be more expensive per ounce. This is due to the intricate craftsmanship involved in their production.
Another benefit of gold coins vs. bullion is their smaller size, which allows for selling smaller quantities at a time, thereby facilitating greater selling flexibility.
Finally, gold coins offer extra appeal due to their cultural and historical significance. Throughout history and across the world, gold coins have represented a unique moment in time, perhaps coinciding with significant historical events. They bear national emblems and figureheads reflecting the values, culture and notable figures of a part of history.
These factors combined bestow gold coins with additional value and meaning beyond their gold content alone. If you’re looking to invest in assets offering both financial stability and a touch of history and culture, gold coins may be the perfect choice for you.
Gold jewellery
Gold is the most popular precious metal used in jewellery. And it’s more than just a fashion item: gold jewellery can be a viable investment too.
When investing in gold, it’s important to remember that purity is of the utmost importance. High-purity solid gold investment jewellery can yield a worthwhile return, but gold-plated jewellery is not considered an investment item.
While gold content is the most important factor influencing the value of gold jewellery, rarity and design play a part too, differentiating gold jewellery from bullion and coins. Owning a piece created by a luxury brand can also add extra clout to your gold jewellery’s value.
If you have a jewellery box of vintage gold jewellery, but you’re worried that it’s seen better days, never fear. The condition of your gold jewellery doesn’t significantly impact its value. The purity and quantity of the gold is what truly matters. Even if you possess a piece of jewellery that shows signs of wear and tear, it won’t diminish the amount you can receive when selling it at Cash4Gold-Now.
Pros and cons of investing in gold
Here’s a table summarising the pros and cons of investing in gold to help you make an informed choice for your investment strategy:
| Pros | Cons |
| Gold is consistently a highly valuable commodity. | It’s difficult to store gold due to the risk of theft and its size (particularly in the case of bullion). |
| Gold is considered a safe and stable investment, even during uncertain times. | It’s difficult to release income from gold as it’s not a liquid asset. |
| Gold acts as a hedge against inflation, protecting wealth. Even if your local currency depreciates, gold will retain its value. | Gold offers lower capital gains compared to other investments like stocks or shares. |
| It’s easy to start investing in gold and purchase options are readily available. | There are tax implications for gold, varying from country to country. |
| Gold offers investment portfolio diversification, protecting you against extreme or volatile economic situations. | You’ll always pay a premium cost when purchasing gold. |
Sources:
https://www.acquisition-international.com/the-pros-and-cons-of-investing-in-gold/
https://www.enrichwise.com/what-are-the-pros-and-cons-of-investing-in-physical-gold/
https://thesmartinvestor.com/banking/investing/physical-gold-pros-cons/
Gold price over time
The price of gold has experienced both stability and fluctuations throughout history.
For almost two hundred years, between 1717 and 1914, the price of gold remained remarkably steady, with minimal changes except during the Napoleonic wars. In the United States, the official government gold price has undergone only four changes from 1792 to the present day.
In 1968, a two-tiered pricing system was introduced leading to more gold price fluctuations, but with an overall steady climb in value.
In today’s market, gold prices fluctuate daily. This is influenced by global supply and demand for gold, particularly from central banks, which are the world’s biggest gold buyers.
Economic and political circumstances also play a significant role in shaping gold prices. During weak economic periods, inflation or falling interest rates, gold nonetheless retains its value, leading to increased demand and subsequently driving up its price even more. These factors, along with other global market dynamics, contribute to the day-to-day fluctuations in gold prices.
Selling gold
If you’re considering selling your gold, Cash4Gold-Now is a trusted option committed to making selling your gold easy and convenient. Simply order your free, tracked and insured gold selling pack to send your gold items to us. We’ll then provide you with a quote which, on your approval, we’ll pay via your preferred payment method within 24 hours.
Don’t just take our word for it — check out our positive reviews on Trustpilot. We pride ourselves on providing exceptional service and ensuring a seamless selling process for our customers. Nearly 8,000 satisfied customers have shared their experiences with us, giving us an impressive 4.8-star rating.
Whether you have gold bullion bars, jewellery, coins or other forms of gold, our expert valuers will give you the best possible price. If you’re ready to sell your gold and want to explore your options, visit our website to learn more about the specific gold items we buy and how we can assist you with selling your gold.
Please be aware that we don’t buy:
- Silver, including silver jewellery
- Costume jewellery
- Rolled gold
- Gold plated jewellery
- Copper coins
- Foreign currency
FAQs on how to invest in gold
What are the best ways to invest in gold in the UK?
When it comes to investing in gold, there’s no definitive ‘best way’. How to invest is ultimately up to you to decide in accordance with your financial situation, goals, wider investment strategy and personal preferences.
If you would like some guidance tailored to your needs, there are various avenues to help you navigate the world of gold investments and make informed decisions.
Firstly, you could use a gold brokerage. These gold purchasing experts can provide valuable assistance and guidance throughout the investment process.
Alternatively, you can reach out to banks that offer gold accounts where you can hold and manage your gold investments.
Seeking advice from a financial advisor is another viable option. These professionals can review your investment portfolio, understand your unique circumstances and help you devise a gold investment strategy that aligns with your goals.
What is the safest way to invest in gold in the UK?
Gold as an investment is relatively reliable and safe in terms of the return on your investment. Gold is a stable investment that’s shown to steadily increase in value over time, withstanding economic and political turbulence and providing financial assurance.
However, there are certain risks with choosing gold as an investment — most notably, buying an inauthentic product or your gold being stolen.
The UK gold bar market is largely unregulated. This means that if you’re buying gold bars online in the UK, you risk being scammed with an inauthentic product. To safely invest in gold, we suggest thoroughly checking customer reviews. In addition, be sure to scan for hidden costs, such as insurance fees and shipping costs.
Secondly, it’s essential to ensure that your investment, once purchased, is stored in a safe and secure place to avoid theft. A lock-enabled jewellery box is ideal for storing and protecting small gold valuables. Or if you’re storing larger precious metals, such as gold bullion, consider purchasing a safe.
How to invest in gold for beginners
When you first start investing in gold, you might want to begin by investing in mutual funds or exchange-traded funds (ETFs). These funds offer an easy and safe avenue to invest without directly purchasing gold.
Each share of these funds represents a fixed amount of gold which you can buy and sell in your brokerage or retirement account. They’re a great option for beginners due to their low initial cost and investment requirements.
For investors seeking a more direct gold investment via owning a physical asset, gold coins are a great starting point. Due to their smaller size, gold coins are easier to purchase and sell, offering a more flexible investment route than a whole bullion bar. They can also accumulate greater value over time thanks to features like their cultural and historical significance and design craftsmanship.
Learn more about coin collecting for beginners by reading our full guide here.
How do you buy gold as an investment?
Gold as an investment can be bought either directly — i.e. as a physical asset — or indirectly.
Physical gold in the form of bullion, coins or jewellery can be purchased from precious metal dealers and banks. Whatever type of gold you’re looking to buy, it’s important to use a reputable dealer by checking their reviews online.
Another option for buying gold is to invest in commodity funds via a professional investment firm. Specialist commodities, mining and exchange-traded funds (ETFs) can provide you with exposure to gold investing without the difficulties of trading and storing gold in its physical form.
Another indirect option for investing in gold is to buy shares in gold mining companies. The value of mining companies correlates with gold prices, although it’s important to note other factors are at play too, such as the company’s profitability, geopolitical risks and environmental issues.
Discover what your gold investment is worth
Sell your gold to Cash4Gold-Now and we’ll promise you the best possible price for your gold bullion bars, gold coins, gold jewellery and more. Visit our website to get started with your free gold valuation pack today.
