Why should you invest in gold bullion

When investing in gold, there are a range of options. Investing in gold bullion is a great way to start investing in gold, especially for beginners.

Why should you invest in gold bullion

If you are looking to extend your financial portfolio without taking too big of a risk, you could explore investing in gold bullion. Here are some excellent reasons to invest in gold bullion today:  

Gold as a hedge Against Inflation and Currency Erosion  

Gold bullion has historically been an excellent long-term hedge against currency erosion and strong inflation. If the dollar loses its value, gold bullion has often become more valuable. Unlike various world currencies, gold is a finite asset and has hence held its value. People invest in gold bullion, as they look to protect their wealth when currencies reduce in value over time, compared to something like a savings account.  

Selling gold

If you need cash in a hurry, it is always easy to liquidate any gold bullion that you happen to own, compared to things like real estate. Selling gold bullion is generally a straightforward process. It is easier to sell gold bullion than to liquidate ISAs, as gold bullion can sold over the counter, or in app with us. Moreover, gold bullion is typically marked with the weight and purity of the gold, so it's easier to determine its precise value. However, many gold dealers will try to reduce the value of your gold bullion before buying it, to make a profit, so make sure you hold your ground whenever you sell gold.  

Historical Performance of gold

Although gold doesn’t rise 500% in days like some cryptocurrencies, people have relied on gold more when currencies are underperforming. Gold has outperformed even the S&P 500 in the last 20 years, and rose further in the wake of Russia’s invasion of Ukraine. Making gold attractive during political and economic uncertainty. Given the increasing prospect of inflation and economic instability, more and more people are exploring gold.  

Gold as a Tangible Asset    

Gold is one of the few tangible assets, meaning you can physically hold it in your hands if you wish. Additionally, it is comparatively easy to purchase gold compared to other tangible assets, such as property. Whilst there are also gold stocks, and ETFs which only give you exposure to gold, gold bullion is a proper, tangible asset. Furthermore, it has historically offered greater security than even pensions, a lot of which gold wiped out in the 2008 economic crisis. Therefore, people have been keen to safeguard both their wealth, and ensure that their investments are protected from any external factors.  

Greater Privacy  

Many assets do not offer much privacy. For instance, investing in Bitcoin has been popular for a while. While it's anonymous, it is still possible to track every Bitcoin token from the moment of its creation to its present owner. Gold bullion is different. While you must declare any profit you make on gold bullion you own to HMRC if you need to pay tax on it, nobody needs to know that you own it. With your money and savings account, both banks and the government have full knowledge on your holdings. Whereas people will only find out you own gold bullion if you decide to tell them. This extra privacy makes gold bullion a desirable investment choice if you prefer to keep your wealth confidential, and value your privacy more.  

If you decide to invest in gold bullion, you can store it in secure vaults. Having gold in secure vaults protects you from crime, and keeps your household secure from any potential breaches. Having gold bullion means that even if the government froze your bank account or took away your funds, a portion of your wealth would still be safeguarded.  

Getting Started with gold investment  

There are two or three ways of investing in physical gold, such as bullion, in the UK. The easiest way to invest in gold bullion is to use a reliable, licensed online dealer, or hop onto Metfolio and get started from just £1! You can also turn to a local gold bullion dealer in your area, but ensure that they are reputable and have good reviews. Alternatively, you might want to see what is available at your local pawn shops, as if you are not concerned with buying brand new bullion, then you may get a good deal on pre-owned bars.    

Before making any investment in bullion, always check the current price of gold. Knowing what gold costs helps to ensure that you pay a fair price for your gold bullion, without paying too many premiums.

Gold as a long-term investment

The price of gold can be volatile in the short term, but it has always performed as a long-term investment because it tends to hold its value. When you look at politics and the economy, you can see that these are rather scary, unsettling times. Nobody knows what's around the corner. Investors have believed that gold bullion offers them more security in more turbulent periods. However, always ensure that you do your research before investing in anything, and always make sure that gold bullion is a suitable investment for you before buying.