Investing in gold – a beginner's guide

Every year, the number of people interested in precious metals grows. Investing in precious metals such as gold or silver has long been considered one of the safest forms of capital investment and, thus, a way to secure savings. It is a good way to protect your assets from the effects of inflation and sudden turmoil in the financial markets. Capital invested in gold coins or bars will not lose significantly in value even in the event of a sudden crisis.

There is no doubt that precious metals are a good investment and a way to diversify your portfolio. But what should novice investors starting their adventure with gold keep in mind?

An investment for everyone

Contrary to appearances, buying gold does not have to involve large sums of money. We can choose between various bullion coins (at different prices) and bars of varying weights, starting from as little as one gram. This means that investments in this precious metal can start with small amounts and gradually expand your gold reserves.

Long-term investments

First and foremost, it is important to realize that investing in gold should not be viewed as a short-term endeavor. It is a mistake to treat it as a way to quickly generate a satisfactory profit. Adopting a speculative strategy in the case of inexperienced investors may have the opposite effect to that intended. When thinking about return on investment, it is important to take a longer-term view and bear in mind that gold, like any investment commodity, is characterized by volatility and there are periods when it loses value, but in the long term it remains on an upward trend.

The right investment strategy

When seeking to secure your capital, it is important to remember to diversify your investment portfolio. That is why experts recommend investing in several different assets rather than just one, e.g., owning only stocks.

A similar principle of diversity can be applied when purchasing precious metals. If you want to invest a significant amount, instead of one heavier bar, it is worth buying several smaller ones or, for example, a CombiBar product consisting of 100 bars of 9999 gold, forming a gold plate with a total weight of 100 grams. Several different products (bars or coins) give you greater flexibility in terms of sales. You do not have to sell your entire gold stock at once, but can cash in on individual products depending on how much money you need.

Appropriate forms of investment

You can invest in gold both in physical form and in "paper" form (any financial instruments whose price is determined by the price of gold, e.g., gold futures contracts). What should a person starting their adventure with gold choose? The most sensible option is to purchase the metal in physical form, which does not require specialist knowledge or significant involvement.

Both gold bars and bullion coins are physical carriers of value. The very fact of purchasing and owning them (e.g., in a safe deposit box) constitutes an investment that is sure to bring a profit in the long term. Therefore, after the purchase, no action is required on the part of the investor until the decision to sell is made. And when that decision is made, there will be no difficulties, as gold bullion coins and bars are easy to sell. In addition to selling, Mennica Skarbowa also purchases precious metals.

Authorized points of sale

The place where you buy gold is very important. It is worth choosing a trustworthy dealer and not risking losing money by buying from unknown sources at temptingly low prices. Without in-depth knowledge and the ability to distinguish gold from imitations, it is not worth taking such a big risk.

Mennica Skarbowa is the leader in gold sales on the Polish market. It obtains its goods directly from producers and has the largest amount of gold available for immediate delivery. Its offer includes certified products from well-known mints, including the Australian Perth Mint, for which Mennica Skarbowa is the official distributor.

By following the above guidelines, you can reduce the risk of making wrong decisions when buying gold, such as purchasing inauthentic bullion, buying at too high a price, or choosing a form of investment that will not bring the expected return. To achieve your investment goals, it is worth using reliable places of purchase.