Investing in gold can be a prudent decision, even for beginning investors without investing experience. Gold bullion, in particular, isn’t only a relatively affordable asset for investors, but it also tends to retain its purchasing power over time.
In fact, gold is considered a safe haven asset. A safe haven asset is an asset that tends to retain or increase in value during stormy economic and political times, such as when the value of the dollar decreases and inflation rises.
That’s why investors tend to put their funds into gold when events like the 2008 market crash occur, or during the COVID-19 pandemic, when the value of gold increased so much it reached an all-time high.
Gold is also considered a strategic asset. That means it tends to appreciate during periods of inflation.
Experienced investors put their funds into gold. But beginning investors can do so as well.
One of the best ways for beginning investors to put their funds into gold is to invest in gold bullion.
Gold Bullion Explained
You can invest in gold by purchasing jewellery, gold exchange-traded funds (ETFs), gold funds, and gold stocks. But gold bullion refers to physical, high-purity gold sold by bullion dealers and comes in the form of coins, bars, or ingots. Due to its high purity, it’s a tax-free investment vehicle in Canada.
Gold bullion, such as Toronto gold bullion, is a hard asset that is valued per ounce. The most common option for beginning gold investors is to buy 1 oz bars or coins in-person or online.
In March 2021, during the very early days of the COVID-19 pandemic, gold was valued at over USD 1,700 per ounce. But, as mentioned above, the value of gold often increases during worrisome economic times; after March 2021, the value of gold per ounce increased by 30% and, for the first time in history, surpassed USD 2,000 to reach a record high.
Currently, the value of gold per ounce has been hovering just under USD 1,800.
Benefits of Investing in Gold Bullion
There are several possible benefits to investing in gold bullion.
In Canada, for instance, gold bullion is considered an investment vehicle, is not subject to tax, and can be included in RRSPs.
When Canadians include gold bullion in their RRSP and wait until they retire to sell their bullion, they can keep more of their capital gains by selling it in a lower tax bracket.
More, gold bullion can diversify your portfolio.
And gold bullion is an affordable asset, compared to many other assets, including other kinds of gold assets. So, if you don’t want to spend a fortune to invest in gold, you don’t have to.
This Is All to Say
If you’re interested in investing, consider investing in gold bullion. There’s a reason beginning investors so often choose to invest in gold bullion rather than other gold assets. Investing in gold bullion is relatively simple, and can pay off big time.
