Investing has become much easier in the digital age. People can simply log into online accounts and transact large sums of money in an instant.
The popularity of brokerage apps like Robinhood make stock, options, and even crypto trading easy for enthusiastic investors.
Digital investments do not need to be stored, are highly secure (assuming an investor is using a legitimate platform), and often feature cost-competitive fees on transactions and trades.
With the ease of investing virtually, some wonder why people go through the hassle to Buy Gold Online and store physical bullion.
Gold bars can be heavy and pose a significant security risk if stored at home. People who choose to have their bullion investments secured in a bank must trust the institution and their security measures, especially if the entity is far away.
Even in the modern era, purchasing physical gold has several advantages. Gold has long been seen as valuable by countless civilizations and the yellow metal still remains desirable in the modern age.
Gold prices have surged across 2020 due to low interest rates and activities by central banks to stimulate the economy.
Many are adding bullion to their portfolios as upward momentum keeps gold prices strong during this time of economic uncertainty.
The Many Benefits Of Buying Physical Gold
One of the strongest advantages of buying physical gold is its tangibility. Gold bars, coins, and rounds held in a person’s hand are a unique investment. They are not able to be destroyed by the natural elements and can not be hacked or digitally altered (like some investments in the virtual world).
In times of crisis, gold bullion can be a literal lifesaver as it is extremely liquid and seen as a stable store of value.
Gold is one of the only assets that is not a liability at the same time for another entity. No contract is needed to make a gold coin, bar, or round valuable.
Privacy is another advantage of purchasing physical gold. Most investments, especially those made digitally, are tracked and traced. Other people who have access to a digital portfolio could then see a person’s estimated wealth.
On the other hand, physical gold can be purchased anonymously. It remains one of the few assets that can be bought and stored in a completely private manner. This is a huge advantage for those interested in keeping their investment practices hidden.
The portability and simplicity of gold storage (if willing to do so) is a third reason why people often purchase physical gold. One can hold thousands of dollars worth of gold in the palm of their hand and store it in a small safety deposit box.
Stacks of bills can quickly become overwhelming and hard to manage. Other physical bullion options, like silver, do not pack as much value in a small space like gold does.
The value-density of physical gold gives significant advantages to purchasing bullion.
Finally, an advantage of purchasing physical gold is the lack of specialized knowledge required. Stock trading often takes research and practice to become at ease with. Even the most experienced traders still spend time honing their craft.
More research and knowledge are often required for investments like cryptocurrencies and stock options due to their specialized nature.
Buying gold bullion does not require any special knowledge other than understanding the day’s spot price. No speculation or price predictions are needed. Gold bullion is easily recognized and can be bought in just a few minutes by even a first-time investor.
In a complicated financial world, the simplicity of physical bullion can not be understated. Buying ‘digital gold’ like gold ETFs or gold-backed cryptocurrencies are more complex.
Buying Gold Bars, Coins, And Rounds
The best types of physical gold investments are bars, coins, and rounds. All three are easily accessible and recognized across the world. In general, buying gold coins is the best option for investors. Coins are easy to sell or trade when needed and often are sold at a higher premium than bars or rounds.
Larger investors should opt for gold bars. The premiums on bars lessen as the value grows higher. One bar is also much easier to store than a multitude of coins.
Physical gold rounds are another option for investors. While rounds do not have the desirability of gold coins, some mints create beautiful rounds with unique designs, making them popular collector items and investments.
Buying Physical Gold Is Still Popular In 2020
Investors should not shy away from purchasing physical gold. Bullion is a smart choice to hedge against economic uncertainty and diversify a portfolio.