Should I Buy Gold? What Are the Pros & Cons of Buying Gold?

Gold prices have risen and fallen over the past few years, and many people are wondering whether it makes sense for them to invest in precious metals.  “Why should I buy gold?” is a concern new investors are struggling with.

If you want to know if it’s a good investment, you first need to understand what gold really is. Gold is a metal that has been used since ancient times. It is one of the most valuable metals because it is very rare and durable. It is also considered a safe haven during economic turmoil.

The Pros of Investing in Gold

Along with being a safe haven during times of economic uncertainty, gold is one of the most stable assets available today. There are several other equally important reasons why you should buy gold.  It is considered a hedge against inflation, an alternative to other investments such as stocks and bonds, and it is a form of currency.

New investors, as well as seasoned investors, purchase gold because it is an investment with a high rate of return potential. The cost of gold typically moves in the opposite direction of the US dollar. This means that your investment tends to increase during inflation or other uncertainty caused by global events or geopolitical instability.

If you want to learn more about investing in gold, then you should read our article on Long-Term Assets:  How to Invest in Gold for Beginners (link to:  https://www.cmi-gold-silver.com/long-term-assets-how-to-invest-in-gold-for-beginners/)

We will tell you everything you need to know about investing in gold to help you determine which type of investment is best suited for you.

The Cons of Investing in Gold

However, there are some downsides to owning gold. First, it is expensive. The spot price of gold changes minute by minute.  Click here for live gold prices (spot prices).   (link to:  https://www.cmi-gold-silver.com/gold-silver-daily-spot-prices/). Second, it does not generate interest.  Third, it is subject to inflation or recession.  Fourth, it is not easily portable.

Additional drawbacks to investing in gold are it is not as liquid as other investments, typically you will pay taxes or fees when you sell, and it requires a lot of research before you start buying gold.

Should I buy gold?  More Things to Consider

If you’re looking to invest in gold, you’ll need to decide between purchasing bullion (bars) or coins. Bullion is the most popular form of gold ownership. Coins are easier to transport than bullion, but they are less liquid.

While huge amounts of wealth can be stored and concealed in gold bars, you may also want to consider gold coins.

There are two main types of gold coins available today: bullion coins and numismatic coins. Bullion coins are minted specifically for investors who want to hold physical gold. Numismatic coins are minted for collectors and are usually less expensive than bullion coins. Both types of gold coins come in different sizes, weights, and designs. The price of gold coins varies depending on the size, weight, and design.

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