With the whole Brexit topic I got a lot of questions about how to invest in gold, which is traditionally a 'safe haven' asset when there is uncertainty, volatility or crisis.
The first myth to break is that gold is a very stable, safe asset that always rises in value. None of that: gold can lurch, go up and down gold ira, like coins or the bag.
Check the graph of how the price of gold has moved since the beginning of the century:
In fact, in the 1990s, gold fell so much that some mining companies closed due to the market price.
What is indisputable is that when there is turmoil and investors get nervous, it is the first thing they turn to. In fact, on Thursday, as soon as the result of the referendum in Great Britain was announced, where the exit of England from the European Union was winning with 51.2%, gold hit a rise from 1,240 dollars to 1,340 dollars per ounce:
The mistake that we must avoid is fair to buy when everyone is in a panic and it gets more expensive because then we end up losing because when fear also lowers the price. This is the same as what we had discussed regarding the dollar: if you buy it for strategy and diversification it is fine, but not all your savings or just when you hear the news that it rose.
How do I go about investing in gold?
The two options for investing in gold are:
In physic
They can buy coins of different denominations and store them. In addition to the famous centenary there are other denominations with less metal that may be more accessible, such as the hidalgos.
There the issue is security: you have to have a deposit box in the bank, a safe, vault or a large hiding place in your house so that they do not evaporate at room temperature.
In this mode, some well-preserved coins (that's why they sell capsules), apart from the weight value, can have a numismatic value, but let's say that is already known about another market, not just metals.
You can buy coins at banks, exchange houses, exchange centers and at the Mint (although for some reason their online store does not work right now, but you can call their 01800, they have home delivery).
A disadvantage is that there is a spread or difference between the purchase price and the sale price, so you have abused how much you bought and how much the purchase price has to rise for you to win.
Through financial instruments
Exchange Traded Funds (ETFs) are instruments that "replicate" the behavior of the price of gold, silver, indices of a stock market or whatever you choose and that you can buy and sell at any time you want, without having the metal.
You can buy them if you have a contract in a brokerage house with access to the International Quotation System (SIC) of the Stock Exchange and they have the advantage that the buy and sell spread is smaller than if you buy physically.
Just watch out! There are ETFs that do physically invest in the metal, but there are others that are "synthetic" and do it indirectly through derivatives, so they have more risk.
Obviously you are not going to open an account just to buy these ETFs but to have more investment options, but just so you know that it is not unattainable or for millionaires only.