3 Ways Physical Gold Is Better Than Its Alternatives
Stock markets saw many volatile price changes and uncertainty during 2020, causing investors to seek safer and more secure investment options to safeguard their wealth.
The uncertainty has continued in 2021, and many investors are still wary of the weak economy. In such a scenario, gold has emerged as a safe investment option.
The prices of gold in 2020 surpassed stock markets and is expected to continue growing in the New Year.
While there are several ways to invest in gold, physical gold makes the strongest case against its alternatives.
Types Of Gold Investments
Gold investors can purchase shares in a gold-owing fund to invest in exchange-traded funds without owning any physical gold.
Gold mining stocks are also a way to own stock shares in gold mining publicly traded companies. However, these may not perform as well as gold does.
While you can also invest in gold jewelry, it is not popular as a form of investment in the US, and you may not get the full value for your money.
Physical gold coins and bars remain the safest and most recognizable investment, allowing its owners to easily judge its purity, weight, and fineness.
Benefits Of Investing In Physical Gold
Investing in physical gold bars and coins provides many advantages. These include:
Physical gold is a tangible asset that you can touch and feel. This holds a greater appeal than other options since you can either store the coins or bars at home or in a gold IRA safely kept in a precious metals depository.
You can take it out at any time you wish instead of waiting for a corporation to pay you sometime in the future.
Less Counterparty Risk
While bonds seem like a good investment option closer to retirement, they include a counterparty risk if the bond issuer defaults on the bond. That means you lose your invested money.
Conversely, physical gold eliminates the counterparty risk since there is no other party involved. If you store your gold in a bullion depository, it remains there without being loaned out to another party.
Investing in gold is as easy as searching up its price and analyzing trends to see if it’s a favorable time to invest.
Gold buying can be done through any trusted company that you know will deal in real coins, without worrying about calculating EBITDA or reading endless ratios and balance sheets.
Orion Metal Exchange can help you invest in gold to make money. Our financial experts allow you to build your precious metals IRA account and store your gold in a private vault. Give us a call at 1-800-559-0088 to learn more.