Invest In Physical Gold Or Paper Gold ~ The Gold Blog


Invest In Physical Gold Or Paper Gold

I am an advocate of investing in physical gold. The main reason for this preference is my goal of investing in gold is wealth preservation. If my investment in physical gold gives me a return then that’s a bonus. I know some people who invest usually invest for the highest return. Investing in gold is like any other investment when it comes to the aspect of risk to reward. Usually the more risk you take the more reward you will have a chance of getting. Investing in physical gold (gold that you have in your possession) is less risky than paper gold (gold stocks, ETFs, mining stocks, anything that the physical metal is not in your possession).

The only way to know if to invest in physical gold or paper gold is to know your main reason of investing and how much risk you are willing to take. The good thing about physical gold is even if gold goes down significantly, you will never lose all your money overnight. Physical gold will always have value to it. The downside is if physical gold goes up and your main goal was getting the highest return, chances is you would probably of gotten a higher return if you invested in the right forms of paper gold.

Paper gold can usually give you a higher rate of return compared to physical gold. The downside to this is if you invest in the wrong companies you can lose money even if physical gold goes up. The true answer to the question, invest in physical gold or paper gold is up to the individual. If you can’t make up your mind you can always invest in both. The most important part is that you do your research and know if your investments coincide with your main reason of investing in the first place.

1 comment:

Anonymous said...

Thank you for your informative blogs! These have been very valuable as I have been doing some research for a while as to how to invest in physical gold. Recently, I bought rare European gold coins, some British Sovereigns and Swiss Francs. I also bought a junk silver bag. After researching the gold comapnies to buy from, I bought my investment grade coins from Precious Metals Brokerage Group. The representaive at PMBG was very helpful and professional in helping me understand investing in gold & silver.

Invest In Physical Gold Or Paper Gold ~ The Gold Blog