Will It Still Pay to Invest in Gold?

Given the number of previously financially sound citizens, both at home and overseas, who now have concerns about their future, the need for a dependable investment vehicle has seldom been greater. With few exceptions, world stock market prices remain in decline following widespread disruptions in the wake of the pandemic. While some people are opting to hold on to their cash, others are looking for ways to grow it. Many may now wonder whether this might be a good time to invest in Gold.

Trading in Precious Metals and Gold, in particular, began millennia before the Dutch East India Company founded the world’s first stock exchange in Amsterdam in 1602. Almost two centuries passed before the New York and London exchanges opened, establishing stocks and shares as an international investment option. Since then, periodic market booms have made some wealthy overnight, and subsequent crashes have led to widespread losses and bankruptcies. Meanwhile, the comparatively minor fluctuations in the price of the yellow metal still prompt many to invest in Gold as a reliable alternative to more volatile options.

Coins cast and, later, minted from this Precious Metal were once a common form of currency. However, the metal’s value has increased to such an extent that this is no longer a practical option. Nevertheless, those coins are now prized both by collectors and investors. Despite occasional small dips in their price, their value never ceases to grow. One need only to look at the continued upward movement of South Africa’s Krugerrand price to confirm that anytime can be a good time to invest in Gold.

Today, buying shares in a thriving tech company might seem like a lucrative opportunity to enjoy a substantial return on your investment. However, one should not lose sight of the many successful companies no longer trading due to bad management decisions or circumstances beyond their control, like supply chain failures arising from lockdown restrictions. By contrast, Precious Metals are tangible and virtually indestructible assets. Their market price depends exclusively on changes in supply and demand. Prices fall or stagnate when demand is low. So, if you invest in Gold, you merely get more for your money. 

Furthermore, this Precious Metal has more uses than minting commemorative coins and Bullion bars or creating up-market Jewellery items. Due to its exceptional electrical conductivity and biocompatibility, you will find it in hearing aids, cochlear implant electrodes, pacemakers and many other electronic medical devices. The defence, automotive and aerospace industries also rely extensively on the metal’s unique properties to manufacture numerous critical components. In practice, around 11% of all the Gold mined is destined for use by these and similar industries. Although industry demand fluctuates, it’s growing, encouraging many to invest in Gold.

Having established some valid reasons to invest, we need to consider the best way to proceed. The one-ounce Krugerrand offers a convenient entrée for the cautious investor and is exempt from VAT. Those with a little more to spend might consider the 100g and 50g Bullion bars. Each has its merits, and, when purchasing them from Mr K, you can guarantee the highest quality products, minimal markup and the safest way to invest in Gold.

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.