Independent Living Bullion sells bullion bars, rounds, and coins in gold, silver, platinum, and palladium. Here, Independent Living Bullion helps answer questions and debunk myths about investing in gold.
– Is buying gold jewelry considered an investment?
Buying gold jewelry isn’t traditionally considered a form of investment — the markup over the melt value of the metal is very high, and that extra cost will generally not be recovered. Instead, gold investors sell and trade in coins and bullion bars. It’s generally better to buy physical metal rather than shares of gold exchange-traded funds (ETFs). Gold ETFs are similar to mutual funds and invest solely in gold bullion.
– Why is gold identified as a hedge against inflation and market volatility?
Gold maintains its investment strength when compared with volatile shares, and gold bullion can prove significant when the market is performing poorly. Independent Living Bullion also says that investments in gold can be used to gain capital appreciation in real terms/
– Is gold a high-risk investment?
Gold is not a high-risk investment because it cannot go to zero like stocks and bonds can. Gold has been recognized as money for thousands of years — it can be considered a better form of cash than currencies created by governments that are not backed by anything with tangible value. Gold has preserved its value in periods inflation or deflation. Even as markets fluctuate, gold’s purchasing power remains relatively constant.