You can invest in gold whatever your salary Gold held above $1,400 an ounce on Friday; this is great news after the recent slump that saw the gold price drop 22% to almost $1,200. With gold prices below estimate and a capital appreciation of over 15% per year, the question on many people’s mind is, should I be buying gold or saving my money in a bank savings account? With that in mind, let’s take a look at the pros and cons of investing in gold. Investing in gold: There are many ways you can invest in gold, you can have savings accounts and pensions which are linked to the price of gold, you can invest in gold on the commodities market or you can buy physical gold from your local souq or jewellers. I plan to discuss investing in physical gold as it’s the most fun way. If you’re going to invest in gold then I think it’s nice when you can get it out of your safe and look at it. Buying physical gold in the form or gold bars or gold jewellery is also the quickest and most exciting way to get started. Timing is key to any investment: For those who don’t know, the price of gold tends to drop over the summer months when demand from India drops due to bad weather. In addition, the price of gold is currently well below most analysts estimates of around $1,700 and substantially below the most optimistic estimates of around $2,000 an ounce. So, where is the best place buy gold? That’s simple, if you’re looking to buy gold get in down to your local jewellers and start haggling. Those looking to buy gold in Dubai are in luck as we have the amazing Dubai gold souq which offers a massive array of gold rings, necklaces and bracelets, all of which are a great way to kick start your gold stock pile and all have negotiable price tags. Those with a little more money to invest can go straight for gold bars. The Dubai gold souq sells gold bars but if you’re on holiday in Dubai you don’t even need to step outside your hotel. There are two or three hotels in Dubai and Abu Dhabi which have gold vending machines- only in Dubai. The option to buy gold in the form of jewellery means that this highly successful investment opportunity is open to anyone. Even if you buy the cheapest ring in the store, if it’s solid gold then it should show you a positive gain on your investment over time. What goes up…….might just go down: Gold is a fantastic investment and has shown great capital growth over the years, however, you are buying a commodity which can fluctuate in value which offers a level of risk you need to be aware of and comfortable with. Think long term: If you’re looking for quick wins you might want to look at penny shares, if you’re looking for stable growth with a track record, buy gold. If you hold a stock pile of physical gold you will always have something you can sell or even trade. The price of gold will only go up over the long term but the next couple of years could be bumpy. Some experts have predicted a drop in the price of gold as banks start to offer more competitive saving rates. To the average person in the street, if you have money to invest or save, you want to make sure it’s as safe as possible and will offer at least a small return. Gold is likely to do that but isn’t guaranteed, bank savings accounts offer a guaranteed rate however small that rate might be. Lastly, just remember, unlike many other investments, gold will not offer you an ongoing payout, you are merely in it for the capital appreciation. That said, the entry barrier is low and latterly the cost of a cheap gold ring. I personally plan to start a small gold collection of my own but what about you? Do the potential gains outweigh the possible risks? Let us know what you think.
Posted on: Fri, 21 Mar 2014 21:50:45 +0000
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