Gold has always been a popular investment throughout history, and especially in what some would call dire economic times, many of those who have investments in other sources such as stocks and bonds, find themselves wondering if they should invest in gold.
The answer is yes and no, and requires careful consideration of your current financial situation as well as where you will be in the future. If you decide you may want to invest in gold, you should do a lot of research before taking the plunge.
For one thing, unlike other precious metals, such as silver, gold is expensive, and when you invest in gold, you’re usually not buying small quantities like you may if you were buying something such as sliver coins or bullion. If you are seriously considering it, you should probably have a lot of capital on hand ready to sit in storage somewhere, because whether you store it yourself or pay a bank or financial institution to store it, that’s where it will be. Sure, it will look pretty, but does it really look as pretty as cash, which can be spent right now, without trying to scrounge up a fast buyer? Only you can answer that.
Remember that if you’re looking to invest in gold, or any precious metal for that matter, it’s best if you have the money available to appreciate over time. While a quick profit is certainly possible, you have to factor in costs such as storage and insurance, unless of course you can store your gold yourself. Many people do.
Many people look at the economy, think the dollar is on rapid decline, lose money on the stock market and think they need a new investment strategy, and for some that may be true. But it’s extremely risky to make any investment before doing the required research to ensure it’s sound, and also if you don’t have the capital to lose. While gold will always have some value, just as the dollar will, you have to keep in mind that there is always a risk that you’ll lose money, and knowing when to sell and for how much can be tricky.
Should you invest in gold? Only you can answer that question. For some, it’s a great investment choice or security for future generations. For others, it is a much riskier venture. Only you can decide if it’s the right choice for you.