Are you thinking about diversifying your investments by purchasing physical gold, so you can secure your savings, but you want to find out more before taking the plunge? Here below you will find some useful information and insights to help you correctly assess and plan your investment in and purchase of physical gold whether it is gold cast bars or coins.
Firstly, it should be pointed out, for the sake of completeness, that in economy, the term “diversification” indicates the process of increasing the number and type of products available with the aim of reducing financial risk.
Investing in physical gold is, in fact, a very valid, safe choice which is why it is recommended for anyone who wishes to diversify their portfolios and secure their life savings in precious metal. Without having to worry about fluctuations and financial crashes, as has occurred, however, in recent years all over the world.
Unlike many other types of investment, for example shares, it is no coincidence that physical gold is the only resource that can guarantee the investor real market prices, at any time. Unlike financial gold, which could be restricted as a result of excessive increases, thus penalising the investor.
Anyone deciding to buy physical gold to diversify their investments, has two opportunities in the form of gold coins and cast bars. If you decide to opt for coins, you should be aware that, to determine the value, you will only have to consider the quantity of gold in each coin, thus excluding any possible added value given by the rarity of the piece itself. This is because anyone wanting to diversify their investments by buying gold coins is not going to look for collector’s items (which is what collectors and fans of numismatics do by definition). For this reason, to be able to understand the purchase price of a coin, you need to know the price of gold in that precise moment by multiplying the grams of gold present. Plus, you will have to add the dealer’s commission for the service rendered.
The question of gold cast bars, however, is slightly different because they represent the purest form of gold on the market (which is why they are more popular with anyone who wants to diversify their investments). According to the standards, each cast bar is defined as pure at 999.99 per thousand and although we are all accustomed to thinking that cast bars are always large, weigh a lot and are difficult to manage, in actual fact, the smallest size of cast bar is just a few grams (and, therefore, very compact). This also means, of course that small savers can make this type of investment for a few hundred euros.