The Pros and Cons of Investing in Gold - Acquisition International | The voice of modern business - est. 2010 (2024)

Home

About Us

Our StoryContact UsAdvertise With UsOur Media Pack

Our Team

Latest News

Corporate Social ResponsibilityCATEGORYFinanceCATEGORYInnovationCATEGORYLeadershipCATEGORYLegalCATEGORYStrategyCATEGORYView All Articles

Issues (Magazine)

Issue 3 2024LATESTIssue 2 2024Issue 1 2024View All Publications

Our Awards

Current AwardsArchived AwardsRecent Winners

SubscribeFREE

© Copyright Acquisition International 2024 - All Rights Reserved.

The Pros and Cons of Investing in Gold - Acquisition International | The voice of modern business - est. 2010 (3)

Posted 12th August 2022

Amongst increasing living costs and high levels of inflation, one of the last things on our minds might be investing in gold. However, there are some pretty convincing reasons as to why you should. Capable of transforming Victoria in the gold rush, gold managed to transform the lives of many Australian citizens, providing the highest living standards of all time.

The Pros and Cons of Investing in Gold - Acquisition International | The voice of modern business - est. 2010 (4)Scroll to keep reading

Let us help promote your business to a wider following.

Chat To Sales See Our Awards

Home » News » Finance » The Pros and Cons of Investing in Gold

The Pros and Cons of Investing in Gold

Amongst increasing living costs and high levels of inflation, one of the last things on our minds might be investing in gold. However, there are some pretty convincing reasons as to why you should.

Capable of transforming Victoria in the gold rush, gold managed to transform the lives of many Australian citizens, providing the highest living standards of all time.

Although a lot of the gold has already been extracted, many believe that is way more out there.

If you’re considering investing in gold, read on.

Why is gold valuable?

How valuable something is, when talking about materials, is normally to do with how difficult it is to obtain. As gold was historically hard to dig out of the ground, it’s been regarded as high value for centuries. In ancient times, gold’s malleability and luster meant it was sought-after by jewellers and even used to make coins.

Years ago, we started using gold to trade, but as time has gone on, there are other methods of trading such as forex and CFD trading that have overtaken gold.

What are the pros and cons of investing in gold?

Like anything in life, there are pros and cons to investing in gold.

Some of the advantages include:

It’s highly valuable – in 2022, gold is set to become more valuable than ever and is set to break its previous record of $2,072.50 per ounce.

It’s a safe investment – Even during Covid-19, gold has remained popular and is seen by many as a reliable, stable asset. Gold remains in high demand and (has since ancient times!), meaning it’s much less likely to experience price falls comparable to that of the stock market.

Its protected against inflation – With most of the world experiencing uncertain economic times and high levels of inflation, gold can protect your wealth. Gold won’t depreciate like a currency, so investing in gold will always lead to retention or an increase in value. Unlike bank accounts where money can be rendered worthless, gold can be a savvy backup.

It’s simple to get started – Unlike stocks and shares that require a lot of knowledge, you can get started by simply buying your first ounce of gold.

Disadvantages of investing in gold:

It can be difficult to store – As gold is so valuable, it means that it’s often the target of theft. As such, finding out how to store your gold is crucial. You must also authenticate your gold when you buy and sell it, meaning it can be a lengthy process.

It’s not as easy to release income – You can only yield a return on investment when you sell gold, so it’s not as easy as a stock or share that will pay dividends.

Lower capital gains – Although gold is highly lucrative, it is unlikely to give you as substantial of a gain compared to stocks, shares, or property. On the other hand, gold is experiencing a boom currently, so you could be in luck.

Categories: Finance, News

Our AwardsDiscover our award winners and nominate businesses you know deserve recognition!Our IssuesKeep up to date with industry leading news, and key business features.

You Might Also Like

Read Full Post

Corporate Social Responsibility

17/03/2023Why Corporate Social Responsibility (CSR) Matters for Small Businesses and Enterprise

Corporate Social Responsibility (CSR) has become a hot topic in recent years, and more businesses recognising just how important creating a positive impact on society and the environment is for them.

Read Full Post

Finance

29/02/2016Resolving Franchising Disputes in the UK

Franchising is the granting of a license by a franchisor to a franchisee, which entitles the franchisee to operate their own business using the franchisor’s brand, systems, knowhow and business model.

Read Full Post

Legal

29/02/2016Medical Mergers, Acquisitions, Divestitures and Licensing Agreements

An investment bank and venture fund manager specializing in medical technology, MedCap focuses on developing growth strategies, implementing them through mergers, acquisitions, divestitures, and licensing agreements.

Read Full Post

Corporate Social Responsibility

26/01/2023Top Custom eLearning Solutions To Improve Corporate Training

Customised eLearning programs are created to satisfy the professional training requirements of your staff and your company.

Read Full Post

Leadership

04/05/2016Managing Director of the Month

Delivered Health Solutions Ltd provide high quality products and services for care homes that deal with cleaning as well as infection prevention and control.

Read Full Post

Finance

02/11/2016Accenture Completes Acquisition of Kurt Salmon

-Accenture has completed the acquisition of Kurt Salmon, a leading global strategy consulting firm focused on the retail industry and a subsidiary of Management Consulting Group. The acquisition was first announced on September 22, 2016.

Read Full Post

News

28/06/2022Easy Ways To Improve Your Money Spending Habits

Good management skills are something that is crucial in order to live a hassle-free and organized life, and no one can deny this fact. Management is extremely important in every aspect of your life, and if you don’t manage properly your tasks, you could end

Read Full Post

Strategy

17/03/2015Minimum Wage Workers Will Be Hit by Chancellor’s Cuts, Says TUC

TUC General Secretary spoke about new minimum wage rates.

Read Full Post

30/04/2015Current Approach to Due Diligence Requires Rethink

Completing a corporate transaction without rigorous financial due diligence is unthinkable. Yet, despite numerous well publicised incidents of cybercrime, investors remain blasé about the potential impact of cyber risks on long term value.

View More Articles

Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have 14 unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

The Pros and Cons of Investing in Gold - Acquisition International | The voice of modern business - est. 2010 (2024)

FAQs

What are the disadvantages of investing in gold? ›

You may face short-term volatility, storage and security challenges, and a lack of steady income. Understanding these pros and cons helps you make an informed decision. Whether you're an experienced investor or a beginner, knowing the intricacies of gold investment could be your golden key to financial success.

What are the pros and cons of investing in precious metals? ›

The pros of investing in precious metals include their ability to act as a store of value, protection against inflation, and diversification of an investment portfolio. The cons include price volatility, storage and insurance costs, and a lack of income generation as metals don't pay dividends like stocks and bonds.

What are the arguments against investing in gold? ›

  • Returns on physical gold tend to be poor. If you purchase gold jewelry, for example, you may not earn as much when you sell it as you paid when you bought it.
  • Safely storing physical gold can be difficult, as it's vulnerable to theft.
  • Physical gold will never be a passive, steady source of income.
Dec 21, 2021

What are the advantages and disadvantages of investing? ›

Investing in stocks offers the potential for substantial returns, income through dividends and portfolio diversification. However, it also comes with risks, including market volatility, tax bills as well as the need for time and expertise.

Why is gold a good investment? ›

Gold has historically been an excellent hedge against inflation because its price tends to rise when the cost of living increases. Over the past 50 years, investors have seen gold prices soar and the stock market plunge during high-inflation years.

Is it a risky investment in gold? ›

While low risk overall, gold investing still carries some downside risks to consider. Storage, insurance, economic factors, inflation, and political impacts can all influence gold's risk profile.

Is gold a bad investment for the long term? ›

Gold is considered a safe investment. It is supposed to act as a safe haven when markets are in decline, because the price of gold typically doesn't move with market prices.

What is a disadvantage of gold compared to money? ›

Cons of gold investing

While gold can help add balance and security for some investors, like most investments, there are also risks to watch out for. Performance over time: Gold might outpace other assets during specific periods, while not holding up as well to long-term price appreciation.

Why not to buy gold or silver? ›

Physical precious metals are non-regulated products. Precious metals are speculative investments which may experience short-term and long-term price volatility. The value of precious metals investments may fluctuate and may appreciate or decline, depending on market conditions.

Why gold is a better investment than silver? ›

Both silver and gold can make worthwhile additions to your portfolio. But depending on your goals and individual investment plan, gold may have some advantages over silver. Long-term growth and stability, as well as overall value and being a hedge against a recession could all be reasons to prioritize gold.

What are the pros and cons of investing in gold jewelry? ›

The Pros of Gold Investment
  • The Gold Market Has Historical Stability. ...
  • Gold Investment Can Be a Hedge Against Inflation. ...
  • Gold Investment Can Diversify Your Portfolio. ...
  • Gold is a Tangible Asset. ...
  • Gold Has High Liquidity. ...
  • Gold Does Not Generate Regular Income. ...
  • Gold Is Not Immune to Volatility. ...
  • Gold Investment Has Added Costs.

What are the two disadvantages of gold? ›

8 Cons of Investing in Gold
  • Costs of securing gold. ...
  • Investment costs. ...
  • Underestimated volatility. ...
  • No income stream. ...
  • Purity considerations. ...
  • Opportunity costs.
Aug 18, 2023

Do wealthy people buy gold? ›

Gold in Rich Investors' Portfolios

It turns out the average ultra-high net worth individual (UHNWI) with a net worth over $30 million does own a little gold. They just don't own giant vaults and swim in gold like Scrooge McDuck. The average UHNWI holds about 2% of their net worth in gold.

What does Warren Buffett say about investing in gold? ›

As Buffett told his shareholders at a Berkshire Hathaway annual meeting, “If you take all the gold in the world…and put it into a cube, it will be a cube that's about 67 feet on a side…but it's not going to do anything for you.” Buffett therefore doesn't see any utility in owning gold because it can't produce things.

Is it better to have gold or cash? ›

Is it better to hold gold or cash? For short-term needs, cash is better due to its unmatched liquidity. For long-term buy-and-hold investments, gold is preferable to protect against inflation and provide portfolio diversification.

Is buying gold a good way to make money? ›

While it's possible to make money from gold investments, proponents of the yellow metal typically view it as a tool for wealth preservation rather than growth. Traditionally, the stock market tends to deliver higher returns than gold.

Is it better to buy gold coins or bars? ›

Gold bars are often favored for their higher purity and lower premiums, making them cost-effective for larger investments. However, if you value the aesthetic appeal and historical significance of gold coins, they may be a better option, especially if you believe they have potential numismatic value.

Should you buy gold coins or bars? ›

Ideal for Long-Term Investment

If you consider to hold physical gold for a long period of time without any intention to sell part of your investment overtime, gold bars will be the best option for you. They will cost you less per gram compared to gold coins. This is because of their lower premium, as explained below.

Top Articles
Latest Posts
Article information

Author: Rubie Ullrich

Last Updated:

Views: 6034

Rating: 4.1 / 5 (72 voted)

Reviews: 95% of readers found this page helpful

Author information

Name: Rubie Ullrich

Birthday: 1998-02-02

Address: 743 Stoltenberg Center, Genovevaville, NJ 59925-3119

Phone: +2202978377583

Job: Administration Engineer

Hobby: Surfing, Sailing, Listening to music, Web surfing, Kitesurfing, Geocaching, Backpacking

Introduction: My name is Rubie Ullrich, I am a enthusiastic, perfect, tender, vivacious, talented, famous, delightful person who loves writing and wants to share my knowledge and understanding with you.