Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche

Market Insanity

The Stability and Surety of Gold as an Investment

The recent pandemic and resultant economic uncertainty have seen the price of gold rise as more people, businesses and investors look to the precious metal as a source of stability.

During times of economic or fiscal crisis, gold and other precious metals hold their value and can even appreciate. It must, however, be noted from the outset that as an investment, it is about buying low and selling high to make some profit that wouldn’t have been generated by mere interest and money in the bank. This is why gold seems to shine the brightest.

Why gold in a time of uncertainty

Gold was one of the highest performing investments in 2019 and 2020 and the trend is set to continue into the long term. There are a number of ways to invest in gold. In the recent uncertainty, most of the investment in precious metals was made via exchange traded funds.

Some were diversified even further and purchases of jewelry and actual gold bars or coins saw some growth. There is still opportunity to participate in this sector and this article provides some basic knowledge and insight as to just how it can be done safely.

Investing in gold mines and companies on the stock exchange

This is the process of buying shares and stocks in gold-producing companies or companies that hold gold stock.

You will never see or touch any physical gold and all trades can be done from the comfort of your home and online. You must use a reputable broker and ensure that you do your due diligence on any companies that you intend to invest in.

Buying secondhand gold jewelry and items

Buying secondhand jewelry can be seen as a great investment, but if you’re buying raw gold or from the public as a business venture, then you need to be able to evaluate for purity using machines like the ones manufactured by to ensure that what you’re buying and dealing in is the real thing.

Buying gold bars and coins

Purchasing actual gold is a trendy way to make money on precious metals, bought either in bars or coins. But it must be remembered that unless they are extremely rare, then the selling price is for the weight of the gold.

Therefore, when buying, never buy bars or coins at prices over the premium or the spot price of the metal on the day. This allows you to always be in a position to make your money back or more if the gold value appreciates. On the other hand, if it’s a gold doubloon from the days of yore and legend, then you are investing in the rarity and historical value of the coin or bar rather than the value of the gold itself.

There is a number of ways to invest in gold, and although some of them will be shiny and sparkly, the real value of the metal is in its weight and purity.