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3 Key Points and a Recommendation for you to Start Investing in Gold

If there is something gold has, it is that its shine shines even in the most difficult times, hence the importance of investing in it. "It’s good to have gold when conditions get extreme," says Jeffrey M. Christian, Managing Director of CPM Group.

Sienna Juteau
Sienna Juteau

The first step is wanting to do, and the second is saving to buy your first ounce. Its advantages: its value is maintained over time, not stocks or currencies, which can lose their value in a moment. Jewelry is an option but not just any piece and experts suggest one-ounce coins to start with.

Gold is not just pretty jewelry to pawn in tough times, it’s also a way to invest your money in times of pandemic. The best part is that you don’t need to have Carlos Slim’s millions to do it.

This precious metal is attractive because it is a commodity that maintains its value in difficult times, unlike coins or stocks.

How much money do you need to invest in gold?

Investing in gold is not cheap.

An ounce (28 grams) of this metal costs almost 2,000 dollars. That equates to about 48,000 pesos with a dollar in 24 pesos), so you have to have savings to start. But the benefits are great because it will take care of your money from the ups and downs of the market and will serve as a refuge.

“It is good to have gold when conditions become extreme, as it is universally recognized as valuable and as a form of quasi currency,” says Jeffrey M. Christian.

For the expert, this investment is good for people of all ages, as long as they recognize the moments of opportunity to maintain or increase the value of their investment. “Some of those savings should be in gold, to diversify wealth and preserve value over time,” says Jeffrey.

How much gold should you buy?

Initially,  Jeffrey recommends that you start investing as soon as your savings reach you to buy a gold coin. “It’s probably better to wait until you have enough money to buy an ounce than to buy fractional coins,” he recommends.

A one-ounce coin at retail costs between 4% and 6% more than at wholesale. Therefore, keep in mind that you should check the prices to get the one that gives you the most for your money.

“You need to find honest gold outlets that charge reasonable premiums,” says Jeffrey. In Mexico, one option is to go to Casa de Moneda, a public institution that sells precious metal items.

Is gold jewelry an investment?

It is an option but not just any string. They are jewels that must have the equivalent of an ounce of gold to obtain the benefits that this metal gives as an investment.

The specialist says that in Islamic countries women have 24-karat necklaces that are exactly equivalent to having a one-ounce gold coin.

“Gold jewelry works as a form of investment,” he says.

The key to investing in gold is diversification

Gold is valuable, yes, but when investing you have to diversify. That means that in your investments you have gold, stocks, and currencies; Or, as popular knowledge says: “Don’t put all your eggs in one basket.”

“In the long term, statistical studies have suggested that having about a quarter of your wealth in gold may be the optimal diversification for an investor who owns stocks and bonds,” suggests Jeffrey.

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Sienna Juteau

Proud #vanlife mom passionate about teaching others how to be sustainable in all parts of life.