Andrea Lopez
● Gold has been one of the oldest assets.
● And beyond being a currency, it’s a ‘prized’ product since it is used to
make jewelry, watches, and more. Even gold coins that are no longer in
circulation are collected for their rarity and their ability to act as an
economic “insurance policy” of sorts.
○ This is because gold is traditionally considered to be a hedge
against market instability, or even the devaluation of the US Dollar
● Although Gold is no longer plays a central role in the global monetary
system it remains a symbol of wealth and valuable precious metal
because of its following properties:
○ Diversification: Gold is not correlated to the equities and bond
markets-in fact, the price of gold is considered to move inverse to
that of traditional asset classes
○ Inflation Protection: The price of gold, at least in theory, is said
to grow in line with the inflation rate over time
○ “Safe Haven” in Recession: Gold prices typically rise when the
outlook on the economy is negative, and investors fear a
recession is on the horizon
● How to invest in Gold?
○ There are numerous methods to invest in gold
■ Physical Gold
● One of the most traditional ways to invest in gold is
by purchasing physical gold in the form of coins or
bars. These tangible assets offer a sense of security
and are an excellent option for those who prefer to
have a direct control over their investment
● Gold Bullion is perhaps the best known form of direct
gold ownership. Many people think of gold bullion as
the large gold bars held at Fort Knox in Kentucky
○ Actually gold bullion is any form of pure, gold
that has been certified for its weight and purity
● While purchasing physical gold may involve
additional costs such as storage and insurance, it
provides a tangible and reliable means of holding
value. Physical gold can also be used in a gold IRA
to prepare for retirement, which comes with lots of
unique benefits as well
■ Mutual funds and (exchange traded funds) ETFs with Gold
Ownership
