For quite some time, investing in gold has become the best option in times of great turbulence in the equity markets since its value shows less volatility than other types of assets. Of course, it is not about pieces of the precious metal but about the acquisition of ingots verified by the London Bullion Market Association, whose price will depend both on market conditions based on its price and size, or better Said the weight, of the piece that you want to acquire.
The question that more than one can ask is how you can buy those ingots. The routes are so diverse that, at present, there are vending machines for precious metal similar to those in which you can get a chocolate bar, a soft drink, or a bottle of water.
Of course, these vending machines are not found anywhere, and the commissions that apply are much higher than through other channels. However, the purchase must be made with a credit card and not with coins, as if it were a ‘snack’ vending machine.
The most common means for acquiring a gold ingot go through those certified entities that guarantee, from the outset, the weight and quality of the gold ingot they offer. As the saying goes, all that glitters is not gold, so you should be careful when purchasing it.
If, in the end, one goes to a bank or one of these certified entities, one must determine the piece of gold that one intends to acquire, both based on the price and the profitability that can be obtained with it. Due to these variables, the trustworthy advice of our bank manager is necessary to avoid incurring an investment that, despite the expected initial security, is disappointing in the end.
The procedures for acquiring the ingot can be very different between the investor’s own bank or one of the entities certified for the sale of these pieces, especially if the physical delivery takes place. As before with vending machines, the main difference lies in the commissions that apply.
Some trading companies also have an offer for the ‘online’ purchase of gold bars. As in any other transaction, this formula is much more comfortable, safe, and fast for an investor interested in getting hold of a gold ingot.
The three main advantages of this investment are these:
- Security of investment in gold: First of all, buying gold facilitates investment security since it is a value that has not ceased to be weighted throughout history, whether we invest in gold coins, such as the South African Krugerrand, or if we do it by buying bullion from private companies or public banks.
- Prestige recognized throughout the world: It is an asset that can be sold in absolutely all markets globally, where it is always valued appropriately. There are even markets, such as China and Asia in general, in which investment in gold is more valued than in Western markets. This means that wherever we are, we can always sell them.
- Stability of value: Although obviously, the price of gold in coins or ingots fluctuates over time, its value maintains greater stability than the stock market values of most of the world’s markets, since its variations up or down tend to be softer than those of other assets. This is verified especially if we analyze the value in long periods of time, where its weighting shines for its stability.
The investment in a gold ingot, as indicated at the beginning, is a refuge value in turbulent economic and stock market times. Of course, it must be taken into account that its acquisition supposes a much higher outlay than the acquisition of some other assets. For this reason, it is convenient to choose the most appropriate and secure channel before getting hold of one of them.