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Buying Gold: Is Buying Gold a Good Investment?

2019-12-19 17:59:16

Today we bring to you an article where we ask ourselves, is buying gold a good investment? , because Comprar oro could be.

Over time, gold has been an epicenter in the economy of several countries, and they have placed it as support in some specific cases, which is why there is room for the question: Is buying gold a good investment? , it could be affirmed that yes, since it has a strong enough investment with long-term goals, since this precious metal has been gradually incorporated as part of the economic portfolio in the markets, due to the enormous recognition that it has throughout the world.

In that sense it is worth noting that buying gold can be a good method, since gold itself has a long history that dates back many years, because if we go down the path of history, we can realize that it was a pattern used more than 1500 years ago, as we are commenting on the Byzantine Empire, and until very recently gold was well marked as a world reserve, it only ceased to be so to some extent by 1971 when Richard Nixon eliminated this pattern for the US UU., Who soon joined other countries, but even though since 1944 with the Bretton Woods agreement, gold had been replaced by the dollar, this metal was still used as a backing of currencies, which means it persists, and Therefore, it is real to ask: Is buying gold a good investment? .

Is buying gold a good investment?

It is important to be clear that this metal is not clearly developed as a currency worldwide, since it has certain economic reasons why it can be an investment, especially when we are talking about projects that are executable in the long term, in this way if it is feasible Comprar oro

What are the advantages of Comprar oro?

At the time of Comprar oro our first question or rather what we really need to ask ourselves is, is buying gold a good investment? , since nobody is going to buy something that does not work or simply has to wait long to see the fruits.

These are the advantages of buying gold:

  • ü Coverage against inflation: gold always has its price in US dollars, and every minimal negative detail in relation to the dollar, will lead to the price of gold simply rising, that is, that this metal increases in value as it takes hold inflation, therefore in that sense, fits perfectly our doubt about whether buying gold is a good investment? , because gold itself has more stability coverage than cash.

  • ü Diversification: gold does not regularly tend to move inversely in the stock market, therefore the currency stock market gives us an effective way to diversify, which offers us the possibility of adding different values ​​to our portfolio and reducing considerably the global irrigation of the investments made.

  • ü Universal investment: it is good to be very clear that Buying gold can actually be a universal commodity, since it has a different peculiarity, since it does not compete with anyone, because while some countries focus on selling their treasures, in some cases their futures currencies, or any value, that keeps them in political chaos, gold follows its normal course, without major inconvenience.

  • ü Maintains its value: this is perhaps one of the best reasons we have before our question about buying gold is a good investment? , since it is a metal that maintains its price with the passage of time, since when lowering the price it does not present a greater negative impact assessment, since gold is classified as a commodity, therefore it does not suffer effects, since the price of gold It is not really indicative of its value, as this is not a fiat currency.

  • ü Liquidity: it is good to know that gold has no parallel, which is why it has the ability to become cash anywhere in the world and this makes it attractive Comprar oro.

  • ü Gold as an input of products: gold also has its use in inputs, because with this metal different products are made, where we can observe jewelry, electronics, etc., which keeps the gold stronger, in fact it offers the possibility that it increases its value due to high demand.

Here are the disadvantages of investing in gold:

It is true that buying gold can be beneficial, as described above, but not everything is perfect and so crystalline, since it presents certain setbacks too, so it is good to ask, is buying gold a good investment?

  • ü Gold creates a bubble: it is clear that there are people who are willing to invest in gold, but tend to be a little scared, when they realize that this precious metal may be overvalued, since their investment could lose value and nobody works to lose, because this has an impact on turbulent economies, in the face of this type of inconvenience it is good to question, is buying gold a good investment?

  • ü Gold does not generate passive income: it is good to keep in mind that Buying gold has no interest or dividends as can be seen in other investments such as bonds or stocks, the only return or positive effect is visualized when this metal presents an increase in its value and obviously we decide that the best option is to sell it.

  • ü Increases in value do not coincide: it should be noted that many economists have made it very clear that the dollar increase only tends to occur when the dollar shows devaluation, or inflation grows considerably, because this metal itself does not offer returns in other markets, as The value of gold does not really coincide with the devaluation of local currencies.

  • ü Need for physical and secure storage: before reaching the question is buying gold a good investment? , be sure to choose what you want to buy, since real gold requires you to store it, and to insure it, since with the cost of buying Gold you don't want to be damaged or stolen.

  • ü High tax rates: one of the reasons why some believe that buying gold is not very feasible is due to the high tax rates that must be paid, because this is because the US considers this precious metal as a collectible, which represents that income tax rates are 28 percent, this in general terms reveals that it is much higher than the ordinary capital gains rate that reaches 15 percent, this is one of the negative effects and a reason why certain mining companies decide not to invest in this metal.

What is the best time for Comprar oro?

To solve this dilemma of whether buying gold is a good investment? , we must wait for the right moment to buy this metal, and that can happen when the level of inflation is strengthened, and make the national currency go down, for this it is important to be attentive to stock markets, another effect is political turbulence, Well, when there is a devaluation of the local currency in the future, it is an excellent indicator of making our investment.

The investment strategy cannot occur when the local currency is strong, because when this happens the gold does not rise, the greatest possibilities of investing in gold are when there are high demands, since some markets require gold for those in electronics and jewelry, that's where you can take advantage of price pressure, the ideal is to buy as long as gold is down.

What is the percentage that a portfolio can recover in gold?

Gold has well-marked trends, as the portfolios have a certain capacity to store gold, this is in relation to the market, as it may present volatility, since the amount of the portfolio must be given in relation to financial needs and time, here it is ideal when buying gold is to think of bullish or bearish trends, because our goal is to use it to complete an aggressive portfolio, and even make use of this portfolio for which we buy gold, to execute other different investments.

How to invest in Comprar oro

Before carrying out any operation, let's always review everything necessary so that our investment is the best possible, in this case the question arises: buying gold is a good investment? , so here we show you certain reasons to invest in this precious metal.

  • ü One reason to buy gold is to acquire shares of a company of this metal, since some shares have their value correlated to the value of gold, therefore they may pay dividends on the shares.

  • ü Buy Gold directly: one of the reasons why it is good to know if buying gold is a good investment? is to buy this metal directly, it can be in bullion or coins, as this presents us with physical quantities of gold, which can be sold later when they have another higher value, of course this presents a disadvantage and is that you will have to cancel by storage and storage.

  • ü Invest in a gold ETF. First of all it is good to know that an ETF is simply a publicly traded fund, whose objective is to specialize in the investment of gold securities, the best known ETFs are the iShares COMEX Gold Trust and the street TTRACKS gaold Trust.

  • ü Futures and options on gold: a reason to invest in gold can be given through financial funds, since they tend to specialize in gold investments where buying and selling stand out, so it is bought when the value of gold falls and it is sold once it increases, these also have their disadvantages and we can incur high losses.

In general terms, Comprar oro can be profitable, since considering that there are more advantages that exist, it is one of the few options that does not present devaluation and that is highly positive in a changing economy as it is presented today, so before the question Is buying gold a good investment? , the best answer is yes. So dare to make the change.

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