These days there are all sorts of ways to invest you hard earned money from high interest back accounts where you are guaranteed a set amount of interest each year to higher risk accounts where you money is invested in stocks which can bring a higher rate of interest but carries a greater risk. I personally always think that it s a good idea not to put all of your "Eggs in one basket" and use different ways to invest your money off-setting some of the risk's!
Gold is just one of the most sought after precious metals in the world, can be used as a measure of wealth and can be easily traded the world over. Not only does gold have the above economic values but it is a pleasure to own, it is almost indestructible and is desired by many people. These are just some of the elements which affect the value of gold and its long term stability.
Average annual gold price increase
Some simple numbers!
Here is a simple calculation based on the average 8.6% price increase in gold over the past 35 years. If you bought 1 troy ounce of gold (thats the standard measurement for pricing) every year for the next 35 years, according to these figures you would have spent $130,000 on buying gold taking in consideration the price increase each year. But due to the average price increase on your whole investment it would now be worth an estimated $381,791 ! netting you $251,716 return on your investment! That is a fantastic return for a relatively small purchase each year, I must stress again that these calculations are based on the long term price increase and are not guaranteed!
You don't need to be rich to buy gold!
There are several ways to buy gold, from jewelry to gold bars and gold coins with each method having its pro's and cons. The best way to buy gold for long term investment purposes is to by gold in a form which is the lowest percentage premium over gold. If you wondering what the premium is its quite simple really, it is actually the percentage Over the intrinsic price of the actual gold. So for example, if you buy a gold coin, it may cost you $660 but the actual value of the gold contained within the coin will only be $650. The same applies for jewelry although you pay a much higher premium for jewelry as you are paying for the craftsmanship as well as the gold! A very basic rule of thumb is the lowest premium begins with Gold bars, then coins in varying premiums and then finally jewelry with the highest premium. My personal preference is the South African Krugerrand which are always minted to a high standard and are available in tenth, quarter, half and ounce flavors! This makes it ideal for investing just a small amount as you can buy a 1-tenth Krugerrand for under $100, other popular coins are the Canadian maple and British Sovereigns.
When to buy?
Over the long term it generally doesn't matter when you buy you gold, as long as you keep the frequency the same and stick within 2 years. One interesting study i did read about though was that gold prices dip on an annual basis during June and July for some reason. If you really want to squeeze the most out of your investment this is probably the best time to buy! For the full report check out this article: Gold seasonal trends
This is just a brief introduction on the benefits of investing in gold ,if you do decide to invest you must do your own research as this is just my own opinion from personal experience and is no way meant as guaranteed financial advice! I have to put this declaimer in for legal reasons but you're all clever people so you know that anyway! 
Tags:
1 Response to “Get rich slowly with gold!”