Investment gold is considered the safe haven asset
par excellence: in fact, its listing is unique all over the world and, unlike
currencies, bonds and stock market shares, it does not lose its value even
during the worst financial, economic or political crises. . On the contrary,
gold is more appreciated during periods of instability precisely because of its
characteristics. In fact, in these moments, investors prefer to turn to
safe-haven assets rather than classic forms of investment, which are much more
exposed to sudden crashes and losses in value. The gold price is determined by
the London Billion Market twice a day by comparing the relationship between
supply and demand and the global geopolitical, currency and financial
situation. So the London Stock Exchange valuation is applied in real time to
all markets that trade gold in any form.
It should be borne in mind that the value of the
gold metal has a close relationship with that of the dollar as the price is
expressed in this currency. However, each country then converts the valuation
into its own national currency: for example, in the European Union the formula
euro per gram is used. Consequently, when the dollar devalues, the price of
gold tends to rise, also due to the effects that this trend has on the
financial markets. Conversely, when the US currency strengthens, the price of
the yellow metal tends to fall.
For all these reasons, it is necessary to carefully
follow the golden fixing trend on the stock exchange when investing in this
safe haven asset. At the same time, some measures must be developed to obtain a
good profit from these commercial operations. First of all, you have to buy
investment gold when the price of the metal is low. So you need to wait for the
price to rise to resell the gold. In particular, it is important not to be
infected by the frenzy of the markets, buying when the golden fixing is rising
at a rapid pace.
Secondly, keep in mind that gold price is a medium to
long-term investment: if you opt for this solution, you should not expect to be
able to resell it quickly and obtain a good profit. In fact, this safe haven
asset is characterized by good long-term stability and great short-term
volatility. Precisely due to the fact that the golden fixing is determined
twice a debased on such a large number of factors it is easy for the value of
gold to rise or fall by a few cents over the course of the same day. However,
these are minimal variations, which do not allow obtaining sufficient earnings
to make the investment worthwhile. Consequently it is necessary to wait two or
three years, sufficient time for the price of gold to rise by tens or even hundreds
of dollars per ounce. In fact, in moments of the worst economic crisis, the
golden fixing exceeded $ 1,300 per ounce.
When making this type of investment, keep in mind
that investment gold is exclusively 24-karat metal. These are very different
solutions from classic jewels and goldsmith objects, which instead are in
18-carat alloy. Consequently, it is necessary to contact a professional gold
operator, the only figures authorized by law to deal with investment metal.
This is found in the form of plates of at least one gram or in ingots of
various sizes, so as to be able to satisfy all the requests of investors.
Alternatively, you can opt for precious coins similar to investment gold: To
find out which businesses you can contact, simply check the appropriate list on
the Bank of United Kingdom website, the body responsible for granting this
qualification. In most cases it is a metal dealer and all operators must
guarantee particular requirements of integrity of staff and members, financial
security and transparency.
Read Also: Gold
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