The Rise of Gold Investing: A Double-Edged Sword for Savers?

As tensions rise and inflation fears intensify, the price of gold is on the rise. This has prompted many savers to turn to coins and bars as a way to invest in the precious metal. Despite its increasing popularity, gold may not be the best long-term investment strategy.

Financial advisors recommend that investors allocate a small portion of their assets in gold, typically between 3 to 10 percent. There are various ways to invest in gold, including funds, structured products, and physically backed ETFs. However, some investors prefer to own physical gold in the form of coins and bars.

When buying gold, it’s important for buyers to consider price ranges as there are no real bargains in the precious metals market. Gold dealers typically have buying and selling prices for bars and coins, so buyers should be aware that they may initially be in the red after purchasing. Popular gold coins like the Maple Leaf, Krugerrand, and Vienna Philharmonic are widely used and easily sold.

It’s crucial for buyers to purchase gold from reputable sellers to ensure authenticity and reliability. Buyers should also pay attention to storage costs and consider how they want to store their precious metal. Gold bars should have the LBMA label to ensure they can be traded in Switzerland and other European countries. Additionally, buyers should be aware of the VAT exemption for gold coins and bars in Switzerland.

In summary, while investing in physical gold can be an attractive option during times of crisis or inflation, it may not provide long-term wealth building opportunities. Financial advisors recommend allocating a small portion of assets in gold while keeping an eye on prices and storage options.