How to Invest in Gold?
The Tremendous Value of Gold
For as long as modern human beings have lived, gold has held a valuable position for thousands of years, from the times of the Egyptians to the modern 21st century. Since 20 years ago, the value of gold has increased 400%!
Do you know that the stock market has an inverse relationship with gold prices? When the stock market goes down, the price of gold goes up. So, during economic downturns and recessions, gold prices will shoot to the sky. What better time to invest in gold then now?
3 Ways to Invest in Gold
There are many effective ways to invest in gold. You can buy paper gold, physical gold or the best option, gold jewellery.
1. Investing in Paper Gold
Paper gold is a space-saving method of investing and owning gold. Basically, you do not get to touch the gold. It is just a piece of paper or a number in your trading account, which promises to be worth that amount of gold at any given time.
Gold ETFs (Exchange Traded Funds) are the best method to invest in gold. Basically, it is a fund that just buys gold. It works like a stock which you can buy and sell easily on the stock market, which makes it super liquid. For Singaporeans, SPDR Gold Shares ETF is said to be the best option to buy Gold ETF.
2. Investing in Physical Gold
Some people love the weight of gold in their hands. They literally buy gold bars or gold coins commonly known as gold bullion. They can be easily converted to cold hard cash. They are also quite easy to store. You will be surprised that 1kg of gold is actually worth more than S$65,000! But naturally, you have to weigh the risk of theft or robbery.
Always buy gold bars that have the manufacturer’s name, weight, as well as its purity stamped on it. You can buy gold bullion from reputable bullion dealers. Some popular bullion dealers are PAMP, Perth Mint, Royal Canadian Mint, APEX, and many more.
3. Investing in Gold Jewellery
In our humble opinion, gold jewellery is the best option for investing in gold. Why? With its wonderful qualities of malleability and shine, pure gold is crafted into the most intricate and exquisite jewellery in the world. Your investment is not just in numbers or paper, you can literally wear your investment.
However, when we talk about gold jewellery, a lot of us will think of our mothers with their ostentatious and chunky gold jewellery. Today, the designs have actually changed a lot. Gold is combined with other elements to give a variety of colours and designs. In fact, famous Korean stars like Song Hye-kyo wears unique gold jewellery with pearls.
Our mothers are very wise, insisting us to buy gold jewellery during our wedding. Diamonds depreciate the moment we step out of the shop. However, gold will hold its value and even appreciate. In fact, if we were to buy our gold jewellery just a year ago, our gold jewellery has already increased by 20%.
And you can actually trade-in your Mistgold gold jewellery for a new piece of gold jewellery at any given time. We will only deduct 18% off the prevailing gold price. Imagine after so many years, you can refresh your wardrobe without spending a single cent! And there lies the powerful value of gold.