Why Buy Gold Bars? Affordable Investment Tips and Answers
Buy gold bars to form a hedge against currency fluctuations, volatile markets and inflation. Indeed, if you are looking for an affordable investment vehicle then gold bullion is certainly the answer. We have answered a few of the commonly asked questions below about buying gold bars and why gold bullion is considered an affordable investment vehicle.
Should I buy gold bars or Krugerrands?
Gold coins such as the Krugerrands available from ISA Gold are ideal investment vehicles if you are looking for the most affordable means to invest in gold bullion. If the plan is to create a hedge against financial risks you will benefit most from investing in Krugerrands. If, however, you want to invest considerably in gold bullion for long-term security then gold bars from reputable traders, such as ISA Gold, will be the best option.
When is the best time to buy gold bars?
The best time is whenever you need it and that is just about all the time. Gold is an excellent insurance vehicle if you want to ensure that your savings will be secure irrespective of the stability of financial institutions. Gold bars are more expensive than the gold coins, heavier and not as easy to store. However, the gold bars are considered as the ultimate way to own your own gold. The secret to any type of investment is to diversify. Invest partly in gold bars and gold coins with also investing in normal stocks, growth funds, properties and collectables. This will help you to minimise risk of financial loss. The 2008 economic crisis highlighted the need to diversify investments and gold is an excellent vehicle for the purpose.
Why should I buy gold bars now?
You can wait until you see a financial crisis unfolding and then invest in gold, but this may prove to be a disastrous strategy since everyone will then jump on the gold wagon, pushing up prices fast. Buying gold during the stable times will help you curb the effects of economic downturn during turbulent economic periods. Buy gold when you have the money since it is a long-term investment.
Why is gold considered as a type of insurance?
Wealthy aristocratic families across the globe have always invested in gold as a means to build family wealth. Their families have inherited all the gold from the previous generations, helping them to build upon the riches of their forefathers. This same strategy has helped them to have immediate funds in times of crisis, liquidity and the necessary reserves to maintain family wealth during depression years, wars and periods of economic instability.
Gold, unlike other capital assets, is not reliant on another person’s ability to pay their debt. Whereas stock markets can crash, banks close and currency can lose its value, gold stays stable. With it being a limited resource, rare, beautiful, and highly functional and sought-after, gold retains its value and thus provides for the needed security in a world where financial security is never guaranteed.
Where should I buy gold bars?
Unlike with the Krugerrands, only minted in South Africa according to strict standards, gold bars differ in shapes, sizes, and the content. It is essential to buy from a reputable gold dealer, such as ISA Gold, since you will want to avoid scams. By doing business with a reputable company that only gets gold from the Rand Refinery you also eliminate the risk of getting gold from conflict areas. Select the gold trading firm based on its track record, location, association with reputable refineries and the information it provides. You will notice that ISA Gold meets all the requirements, ensuring that you will get value for money throughout.
As mentioned earlier, gold bullion bars come in various sizes. We recommend always buying within your budget range. If you have the safe space for storage of the bars and have the capital available, you will find the bars to be an affordable investment. If you are still new to gold bullion, start with investing in gold and silver coins and smaller bars. As a rule of thumb for investment, do not put all your money into a single vehicle. View our full portfolio of gold bullion and contact us for more information on how to buy gold bars as an affordable investment.