The best way to invest in gold

13 min read

It was a busy week in the Kirk household this week as humming and huffing rose in the wake of last Friday’s record high gold price. I can’t even afford the smallest memorial coin since I cannot even afford the smallest memorial coin. As my wife is a jeweller, we both have something to gain from this deal.

In my opinion, I rarely make comments about gold. A journalist who reports on end-of-the-world events will be screamed at by insane end-of-the-worlders once the story is broadcast. There is a sham called fiat money. The government cannot be trusted in any way. There is a zombie apocalypse coming.

There isn’t anything outrageously expensive about the yellow metal right now. It reached its peak in July 2020 after adjusting for inflation, and since that time real prices have been on a downward trend. Nevertheless, I have been flooded with requests for a column on gold, so here it is.

I am going to start off by covering some of the basics. There will then be something completely different. I will explain to you in a foolproof manner, based on my experience, how to invest in gold in the best possible way. A method like this can be taken by anyone and it does not involve stealing anything.

I must begin by saying that I find it quite amazing how little gold we are talking about when we’re talking about gold. The amount of the stuff that has been discovered is only 245,000 metric tonnes. As of today, three-quarters of the diamonds have been mined, with the remaining quarter remaining underground.

All of the gold that has ever been dug up could be packed inside a box of 20 x 20 meters. But if you decide to move it, good luck with that. In historic times, historically, prices were either set by governments or a minority of investors due to scarcity and weight. It was a class of assets that was illiquid.

Contrary to the past, people today are able to buy and sell easily. There are more than $200 billion worth of gold held by exchange traded funds alone. The price of a product now obeys the laws of finance. Although gold does have its quirks – relative value is what matters, not gold itself.

Gold, therefore, may be viewed as any other kind of financial asset with zero credit risk and constant purchasing power – unlike, for example, corporate bonds, where a company may default and coupons are paid out only at nominal rates.

In order to keep the price of gold high, it is reasonable that the yields on alternative low-default assets should fall when the yields on gold rise, and vice versa. That is what happens, and that is what happens. An increase in the real yield on government bonds is closely correlated with an increase in gold prices.

Besides the dollar’s value (since gold is mostly priced in that currency), other factors also play a part in the demand for the metal, such as the demand from the big boys in the market, such as the central banks.

The most important factor for investors, however, is the return they are going to receive. The performance of gold over the long run is fine, but lagging behind that of silver and other precious metals. As an example, equities in the United States would have made you six times richer over the past century, and over the past 30 years, you would have made two times as much money.

However, even though my annualised real return since I was born has been almost 8 per cent on average, it’s not something to be smug about. The performance of emerging market stocks is one-third better than that of cash – and twice as good as emerging market stocks. There are also gold bugs that are not completely mad: at least if Martians invade them, they will have a fighting chance.

It is important to note that the price of gold for the official US government during the second world war held firm at $34 per ounce when the world order collapsed. After Hamas attacked Israel last week, prices rocketed 6 percent in the week following the attack as a result of Covid shooting up by a third in 2020.

Therefore, if you are convinced that there is a risk that we are all going to hell in a handbasket, or that global warming is going to change downtown Denver into a prime waterfront destination, then investing in gold makes sense.

The rest of us, however, are better off trading this asset class more carefully – and there are many other things we can buy and sell that will earn an income for us before we lose money before we lose money in the process. You may not love gold as ornamentation as much as my wife and me, unless you are also a fan of gold, like my wife and I are.

It is a common occurrence for most people to do so. In the yearly consumption of gold, almost 80 per cent of it is used for jewellery, whether newly mined or recycled. There is always the option of buying an ETF if you wish. I am of the opinion, however, that the beauty and gleam of a gem-encrusted necklace or bangle is easily equivalent to an extra 5 percent yield for me.

However, if you want to buy from a shop, you should never do so. Due to the steep mark-ups on high street jewellery, you can never expect to earn a positive return on your investment despite a rise in gold prices. There are 24 percent premiums on the gold price that I crave from the Royal Mint in order to purchase that King Charles III coin I so desperately want.

Let me tell you a little secret that I would like to share with you. It is a well known fact that gold rings and bracelets can be purchased for less than the scrap value if you know how to do it. The season may have passed, but there is always next year, and you are often just going to have to be patient anyway, so it’s never too late for Christmas.

If you want to buy a piece like this, I would recommend starting by creating an account with one of the aggregator auction sites, such as, and searching for the type of piece you’re interested in. You should then eliminate all auctions focused on jewellery by weeding them out. It is best to stay away from those situations.

A bulk sale can be a great place to find your items if you know what to look for. If you are going to be auctioning off a lot of stuff, it could be a huge auction, say, of furniture or Victorian toys, or even an estate sale. There is a very low probability that jewellery experts will attend these events.

It is no longer necessary to bid on the antique cushion since the bidders have left after hours of bidding. It is a nervous and distracted atmosphere among those who are awaiting the cigar lots. In spite of the fact that nobody knows how to calculate the scrap value of gold except you (weight multiplied by gold price multiplied by carat divided by 24), no one can find a way around this problem.

You don’t even have time to blink before the hammer drops. In addition to the fact that you are able to get a gorgeous piece of jewellery for a fraction of the price it would be retail, you are able to invest in gold at a much lower price than the spot price which includes the buyer’s fee and taxes.

In this case, there is no such thing as a loss. A lovely piece of clothing to wear. An inexpensive gift for a friend. Regardless of whether the price of the item has fallen some, you can still sell online for a massive profit or scrap and receive more than your money back. Investing in gold is one of the best investments one can make.

That Magazine provided by timenews1.

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