Investing in physical gold can be an interesting strategy to diversify an investment portfolio and protect your assets in times of economic or geopolitical crisis. However, it is important to understand the different ways to actively invest in the yellow metal and to educate yourself on the different options.
Here are some things to consider when you want to actively invest in physical gold.
A°) Gold : as a long-term financial investment asset
Financing your investment portfolio through the acquisition of precious metals can be profitable in the long term.
For example, buying gold bullion, investment gold coins or bullion coins will allow you to own physical gold and decide on their storage yourself.
Similarly, investing in ETFs will allow you to own part of a gold portfolio without having to buy physical gold. They are listed on the stock exchange and can be bought and sold like shares. However, it is important to consider the management fees and share price fluctuations associated with ETFs.
B°) Diversifying to protect against currency liquidity risk
It will be virtually impossible to fully protect against a liquidity shortage. That is why it is generally accepted that a diversified portfolio can reduce this risk.
In this respect, investing in precious metals such as gold, platinum or silver is always a preferred option. As a safe haven and a stable asset, gold is known as a diversify that can balance an investment portfolio. However, gold is mainly perceived as a very liquid asset, easily sold and which could quickly pay off debts in times of uncertainty.
As a result, more and more investors are focusing on gold in their tactical asset allocation. Several formats are therefore possible, from 1kg gold bars to 100 gram gold bars.
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