A safe haven par excellence, gold is until today a financial asset appreciated by informed investors and seniors. It arouses more and more interest, because it has various advantages. Among other things, it allows you to protect yourself from a drop in major currencies and to face economic uncertainties without risk.
Gold is a secure investment, on which fluctuations in the financial markets and economic uncertainties have little influence. In times of health crisis, trade tensions and when the threat of a recession looms, gold is one of the most secure investments.
A more indirect way to invest in gold is through mining companies. You can buy stocks in mining companies or a mutual fund or ETF that focuses on companies that extract precious metals.
The fact that gold retains an important place in the economy is mainly due to the fact that it is an investment instrument.
Since this metal has historically been a safe haven, investors turn to the gold market to diversify their portfolio, to grow their savings, or to protect themselves from the downturn in the financial markets.
An ETF (Exchange-traded fund) is a fund designed to follow the movements of a particular group of stocks, bonds, commodities or other instruments. Gold ETFs are an accessible way to invest in the precious metal, another way to invest in gold is through best gold investment scheme in India.
Gold has traditionally been seen as a defensive asset in which to sit out turbulent times. This reputation has developed historically, and is currently supported by world central banks, which keep part of their reserves in the metal. About 40% of all demand for gold is investment demand, which increases during periods of market volatility.
The second wave of the spread of Covid-19, the introduction of new restrictive measures in a number of regions and the uncertainty of the impact of these events on the global economy continue to support the demand for the precious metal.
How to invest in gold?
There are several options for investing in gold, each of them has its own advantages and disadvantages, so it is important for an investor to proceed from the strategic goals that he strives to achieve.
This can be the purchase of physical gold – gold bars, investment, commemorative and commemorative coins. However, it should be borne in mind that they will not be able to speculate due to taxation and spreads. It makes sense to use bars and coins if you plan to sell them in a few years or even decades.
In the stock market, you can invest in gold through derivatives and best gold investment plan. This option is recommended for experienced investors who know how to work with margin lending (leverage) with high volatility and are well versed in the mechanics of this process and are aware of the risks involved.
As we have seen, the price of gold can be quite volatile at times although it is considered a safe haven. Many investors add gold to their portfolio, as insurance against the downfall of other markets.
It is generally recommended to have 5% of your entire portfolio in gold. Some analysts even consider that senior investors should not hold more than 3% in gold in their portfolio.
However, these figures should be put into perspective. The more volatile assets such as stocks are made up of your portfolio, the more gold you can afford to add to your portfolio.