While share prices are frequently subject to unpredictable fluctuations, Bullion has maintained an overall upward trend and is favoured by many investors. The stock market is similar to a lottery. For a small investment, the latter could earn you a seven-figure jackpot. However, you would need to invest far more in a share portfolio to have a chance at such profits, while investors risk losing every cent they deposited.
Nevertheless, many shareholders who have made their fortunes with the help of a knowledgeable broker still recognise the value of Gold as a hedge against possible losses during turbulent times. However, for those of more modest means, the high cost of participation coupled with the risk of loss remains a deterrent. For them, rather than investing in mining shares, it makes more sense to purchase the mine’s product.
Why Bullion is a More Reliable Investment than Shares
Numerous factors can lead to an increase or decrease in stock prices. The death of a CEO or the loss of a major customer can set a company’s share price tumbling as soon as the news breaks. Conversely, a newly approved patent for an exciting new product or news of international expansion could result in a record high. In addition, inflation, world events, consumer spending, large sales and purchases by major investors could see others scrabbling to buy or sell as necessary. Furthermore, we now face the ever-growing danger of fake news and its potential to prompt inappropriate actions.
Contrastingly, factors that may jeopardise share prices often have the reverse effect on Precious Metals. For example, shares in a mine forced to close its doors would lose all their value. However, any resulting shortage of Gold or Silver will automatically increase its spot price and guarantee a corresponding profit for investors. Also, the demand for these metals remains pretty consistent, so prices are only subject to relatively minor fluctuations. Many see this option as the smart way to cater for their family’s future.
What’s the Best Way to Invest in Bullion?
There are several options, but it may be advisable for first-time buyers to focus on Gold and Silver and avoid the more exotic metals like Platinum and Palladium, for which the demand tends to be more variable. For South Africans, there is a choice of minted coins or minted and casted bars.
The iconic Gold Krugerrand is a favourite with investors worldwide, and if you cannot afford the one-ounce coins, the half-, quarter- and one-tenth-of-an-ounce options are more affordable. Also, the Silver version minted for the Krugerrand’s 50th anniversary is sufficiently affordable to consider purchasing a few every month. A single one-ounce Gold coin could go a long way towards paying for a young child’s university fees, wedding, or a new car in ten or fifteen years
Bullion bars are markedly more expensive and include 10-, 50-, and 100-gram minted Gold bars,100-gram, 500-gram, and one-kilogram cast Silver Bars. If you are worried about security, we offer a safe-custody service for your peace of mind. It’s never too early to secure your family’s future, so why not view our Bullion products today? Contact the friendly team at Mr K if you are ready to make a smart choice by investing in Bullion.
DISCLAIMER: The information above was derived from reliable sources and deemed accurate at the time of writing. However, changes following publication may have affected its accuracy. Such changes may occur without notice, and Mr K cannot be held liable for inaccuracies in this article’s content or how a reader may choose to interpret it.
