Currently, gold storage is a popular investment channel widely used. Therefore, buyers need to know some notes when buying real gold through the information below.
- What is gold investment?
What is gold investment? Gold investment is understood as gold being bought back at a low price and sold at a higher price thanks to the difference in market gold prices. From there, investors earn high or low profits depending on the fluctuating exchange rate when buying and selling.
This investment method is considered the most traditional method or also known as one-way investment. Nowadays, technology has developed and the forms of gold buying have been improved. Buyers do not need to spend too much effort, time, and money in the process of buying and storing gold.
Online gold investment is currently an investment channel that many buyers are interested in and use. Through online applications, buyers can quickly store gold bars, gold rings, and jewelry.
- Is gold investment good?
When first entering the gold market, investors always wonder whether they should invest in gold? Is investing in the gold market safe and profitable?
Monetary policy
Monetary policy is the first factor affecting the global gold market. To be more specific, this is considered the interest rate policy at banks that affects the price of gold. If the bond rate is lower than inflation, the gold market becomes a potential investment market.
When the actual currency is affected in a negative direction, investors turn to gold. This is considered an opportunity to attract investors to invest in the gold market. Thereby ensuring the source of money but still increasing the potential for profit when gold increases over time. Monetary policy directly affects the gold investment market. Note that when buying gold for investment, you need to focus on monetary policy.
Supply and demand
The next factor that investors need to pay attention to when participating in the gold market is supply and demand. Gold investment is a special investment market, so buyers need to be careful in surveying and relying on the supply and demand market. Only buy gold for investment when they see that the market demand is greater than supply.
Due to the scarcity of gold and the increasing demand for gold. More than half of the gold mined output is focused on meeting the demand for jewelry. Therefore, gold is increasingly scarce, gold storage will certainly bring profits in the future.
However, storing gold for too long also puts investors at a disadvantage. Therefore, based on the supply and demand market, investors choose to store gold appropriately. Thereby, they can earn high profits at the right time, ensuring the safety of their cash flow.
A typical example for investors to note when buying gold on the day of the God of Wealth, which is the tenth day of the first lunar month every year. On this day, the gold buying and selling market in Vietnam is extremely vibrant and bustling. At this time, the demand for gold increases and it is also an opportunity for investors to make a profit when selling gold on this day.
- Things to note to buy gold to store for super profit
If you want to invest in gold effectively, you need to pay attention to some of the following experiences in buying gold to store for super profit:
Choose a reputable, long-standing gold shop
The first thing that buyers need to note when buying gold is choosing a store to buy gold. When buying large amounts of gold to store, investors need to choose large, reputable jewelry stores. Besides, they also need to equip themselves with ways to identify real gold or fake gold
Gold is a commodity that can be counterfeited or mixed with other impurities. Therefore, when intending to invest in gold, buyers need to carefully research the gold market. Choose a reputable, long-standing jewelry store to increase safety when buying gold to store. Avoid buying fake gold and gold mixed with impurities, leading to losses in gold investment.
Nowadays, reputable gold shops often create some marking symbols on the gold. In addition, the buyer is given a certificate by the shop that he has purchased gold at the shop. Quality assurance helps buyers feel secure when investing in gold at the shop. Thanks to that, buyers can quickly choose a reliable jewelry store.
Buy gold where, sell gold there
The next thing to note when buying gold, the buyer needs to know is to buy gold where and sell gold there. This helps the buyer ensure the quality and stable price when investing in gold. When buying gold at a store, the buyer will be given a certificate of having purchased gold at the store, with the store’s logo engraved on the gold.
When buying gold at a store but selling it at another place, the buyer will spend time appraising the gold. Check if the gold quality meets the requirements? From there, consider giving a reasonable purchase price. On the contrary, if selling gold at the store where the gold was purchased before, the buyer will save time and effort.
This is also a note when buying SJC gold bars that buyers know. When buying gold at SJC stores or other jewelry stores, buyers should sell gold at these locations. Thanks to that, the gold price is stable and the profits are safer.
Investors can also choose to buy gold online to save time and easily compare prices between stores. In addition, online transactions also bring safety and convenience with secure payment methods.
Buy gold when you have idle cash flow
What should you pay attention to when buying gold? When buying gold for storage, buyers need to pay special attention to only buy gold when they have idle money. Money after deducting living expenses and other expenses will not be used in the next 1-3 years. That amount of money is considered idle cash flow.
Because when using idle cash flow in the process of investing in gold, buyers ensure safer profits. Waiting for the time when the gold price increases as desired, buyers sell. If using non-idle cash flow, buyers can easily sell gold early when the price is not yet good.
HanaGold recommends that consumers use 10-20% of their monthly cash flow to become idle cash flow. From there, gold investment takes place more smoothly and quickly. Thanks to that, when the cash flow efficiency increases according to compound interest, investors will earn huge profits.
Selling gold at the right time
Buying gold at a low price and selling gold at a high price is a note when buying gold that potential investors need to know. It is necessary to update the gold price table information every day to grasp the gold market situation in a timely manner. This is considered a general note for investors in all fields, not just gold. Gold is scarce, but the gold market price depends on many other factors. Therefore, the gold price will increase or decrease depending on fluctuations in the consumer market.
It is imperative that buyers stay alert and make quick decisions when selling gold. The increase and decrease of gold prices are often irregular, so investors cannot accurately predict whether gold will increase or decrease. At the time when the gold price increases as planned initially, investors should sell immediately to avoid hesitation. If you wait until the gold price drops before selling, investors will fail in the gold investment process.
Choose the type of gold to buy
Gold for investment and storage usually has two main types: gold rings and gold bars. Choosing gold for investment is extremely important for the process of pouring money into the gold market. Each type of gold has different characteristics along with different benefits when investing in it. Therefore, buyers need to choose the type of gold that suits the desired criteria for investment.
Notes when buying gold rings for investors include: Suitable for investors with average finances, storing gold in average quantities, can use gold rings in other cases (giving, gifting …). On the contrary, gold bars require buyers to have higher financial resources, suitable for large investors.
- Conclusion
Some notes when buying gold through the article on Finance and Coin introduce to help investors buy gold more safely. Thanks to that, buying gold for investment is much easier and more convenient. Currently, in the jewelry market, stores have started selling gold online. This further motivates investors to buy gold quickly and safely.
