2017.08.11 09:30 | David Scharf
People turn to gold dealers in times of uncertainties. For centuries, gold has been synonymous to wealth and money. At present, gold is seen as a luxury item and has lost its place in the global economy, but that doesn’t mean people stopped buying gold. There are several reasons why gold is still considered a solid investment.
Gold is one of the best investment options today, especially when you are looking for value. Stocks of mining companies are known to have deep value and had a good run over the past couple of years. However, their value started to slip and have lost a lot of their value. This marked the end of the commodity boom, and it is the right time to look for value on the market. It is vital that investors find out who will be winners in the long run. It is important that one picks the winners before the cycle turns again.
Most investors recommend gold because its value can rally for a lot of reasons. The value of gold is unaffected by economic activities. The only factor that can influence its value is the stability of worldwide politics. That’s why investing in precious metals services is recommended for people looking for an alternative investment opportunity.
A lot of investors who want to diversify their investments want to know where to buy gold bars. Some financial experts recommend having five percent of one’s investments in gold. There are some investors who think that’s too high of an investment and only wish to invest around three percent of their portfolio in gold.
Price of precious metals doesn't rely on bonds and stocks. Even if bonds and stocks drops, price of gold is unaffected. During an economic downturn, your gold investment can be the only bright spot in your portfolio. Its low correlation to other assets makes gold ideal for diversifying your portfolio.
A lot of people today are poorly diversified, and that’s why their portfolios do poorly in the market. Diversifying the portfolio will secure one’s investments, and it is best to contact gold dealers today.
Price of Gold
The price of gold is around the cost of the product, and below the cost of its production for most of the current supply on the market. When buying any commodity, you should buy it when it is below the replacement value. You should consider waiting when the price of gold is below the cost of its seasonal production.
During the boom of the gold price, the cost of its production also increased along with the prices. As a result, mining companies increased their production. Unless the price of gold increases or new technology is developed in the near future, production of the precious metal will continue to drop. However, the price of gold will remain stable as long as the demand remains the same and the cost of production continues to go up.
Gold is a very good financial instrument. Make sure that you contact gold dealers when the price of gold is right. Owning gold can be private. While any gain must still be reported on your income taxes, gold is one of the very few investments that can be held in anonymously. No one will know that you own gold bars. It is easy to store and has low maintenance. There are precious metals services that provide professional storage with affordable vaulting charges.
Buying gold is simple. What’s important is you choose an established and reputable precious metals company. When it comes to precious metals services, one of the best is J. Rotbart & Co. They offer various services that include procurement and liquidation, storage, and transportation. They allow investors to buy gold in a safe, secure, and discreet manner.