Buy gold to save, what kind of gold should you buy? for good? Join HVA to learn about the advantages and disadvantages of popular gold types today to make the best choice.
Why do many people choose to buy gold to save?
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Everyone knows that from ancient times to the present, gold has always been recognized as a reliable valuable asset against inflation and market fluctuations. So what is it? buy gold to save what gold should buy for good? And what are the main reasons why many people choose to buy gold for savings? Let's clarify the following characteristics:
Stable value
- Gold is a safe haven asset: During times of economic uncertainty, the value of currencies can fluctuate wildly. In contrast, the price of gold is often more stable and even increases. This makes gold a safe haven for many people.
- Gold Price History: Over the centuries, gold has proven its worth and is considered a measure of wealth.
High Liquidity
- Easy to buy and sell: You can buy and sell gold at gold shops, banks or online gold exchanges easily.
- Widely accepted: Gold is accepted worldwide, making it easy to convert into cash when needed.
Gold is not affected by inflation
- Gold prices rise with inflation: When inflation increases, the value of money decreases, but gold prices often rise to compensate. This helps protect the real value of your assets.
- Inflation hedge: Gold is seen as an effective hedge against inflation, helping to protect the purchasing power of money in the long term.
Buying gold to save, which gold should I buy?
Currently, there are many types of gold on the market for consumers to choose from. Those who want to accumulate gold often ask the question:What kind of gold should I buy to save??”. However, faced with the choice What gold should I buy to save? Buyers also need to understand experience buying gold for storage For some popular types of gold today to be able to make the best decision as follows:
Gold bars
Advantages of gold bars
- High purity helps gold maintain a stable value and is easily accepted by gold shops to buy back. Gold bars are usually 9999 pure, meaning that out of 10,000 parts of gold, 9,999 parts are pure gold. This ensures the quality of the gold, giving you peace of mind when buying.
- High liquidity helps gold investors easily convert gold into cash when needed. You can buy gold bars at many reputable gold shops nationwide. When you want to sell, you can also easily find a place to buy at a reasonable price.
- Gold bar prices are publicly listed on the market, you can easily compare prices between stores to find the best price.
Disadvantages of gold bars
- When buying gold bars, in addition to the value of the gold, you also have to pay a small fee called the processing fee related to the production of gold bars such as: labor, auxiliary materials, transportation costs, etc.
- Gold bars are valuable and should be kept in a safe place to avoid theft or damage.
Gold ring
Advantages of gold rings
- Combination between investment knowledge and jewelry: This is the biggest advantage of gold rings. You not only have a beautiful piece of jewelry but also a valuable asset. When needed, you can sell gold rings for money.
- Easy to buy and sell: Gold rings are available in most gold shops, so you can easily buy and sell them when needed.
Disadvantages of gold rings
- Lower purity than gold bars: Gold rings are often mixed with other metals to increase hardness and beauty, so the purity is often lower (for example 18K, 14K). This makes the value of gold rings depend not only on the world gold price but also on the value of other metals and the cost of production.
- Loss of value when reselling: When reselling gold rings, you will be deducted for manufacturing costs and wear and tear.
Gold jewelry
Advantages of gold jewelry
- Diverse designs: Gold jewelry has countless designs, from traditional to modern, from simple to elaborate details, meeting all tastes and styles of buyers. You can easily find a piece of jewelry that suits you.
- Combining investment and beauty: Gold jewelry is not only a piece of jewelry but also a valuable asset. When the price of gold increases, the value of the jewelry also increases. Therefore, you can both beautify and preserve and increase the value of your assets.
Disadvantages of gold jewelry
- Loss of value when reselling: When buying gold jewelry, you have to pay an additional fee for the manufacturing process, including design, processing and finishing the product. In addition, over time, gold jewelry will be scratched, dented, reducing its aesthetic value and resale value.
- Low purity: Jewelry gold is often of lower purity than gold bars (usually 18K, 14K or 10K), meaning that other metals are added to the gold to increase hardness and durability. This reduces the pure gold content and affects the value of the product.
Gold ETF (Gold Exchange Traded Fund)
This is an investment fund whose underlying asset is gold. When you buy a gold ETF, you are essentially buying a small portion of a larger basket of gold, managed by a fund management company. So buy gold to save what gold should buyShould you buy gold ETF? Let's find out the advantages and disadvantages of gold ETF as follows:
Advantages of Gold ETF
- Trading on the stock exchange: You can buy and sell gold ETFs at any time during the trading hours of the stock exchange, just like buying and selling stocks. Thanks to high liquidity, buying and selling gold ETFs is quick and easy, without worrying about capital being stuck.
- Gold ETFs often include a variety of gold assets, from physical gold to gold futures contracts. This helps to minimize the risk of investing in a particular type of gold.
- Low management fees: Compared to other forms of gold investment such as buying gold bars, the management fees of gold ETFs are often significantly lower. Buyers do not have to pay insurance, shipping fees or costs related to storing physical gold.
Disadvantages of Gold ETFs
- Gold ETF prices move with market indices: The price of a gold ETF will rise or fall depending on the performance of the market index it tracks. If the stock market goes down, the price of a gold ETF can also be negatively affected.
Should I buy gold bars to save?
How to buy gold for storage Many people like and choose to buy gold bars to save. HVA will help you explain the factors that make gold bars chosen by many consumers for investment as follows:
Preserve value
- Inflation protection: As inflation increases, so do the prices of goods and services. This means that your cash will lose value over time. Meanwhile, the price of gold often increases with or even exceeds inflation, helping to protect the value of your assets.
- Real value: Gold is considered a measure of real value, independent of macroeconomic factors such as interest rates, monetary policy, etc.
High liquidity
- Easy to buy and sell: You can buy and sell gold bars at gold shops, banks or online gold exchanges easily.
- Widely accepted: Gold is accepted worldwide, making it easy to convert into cash when needed. This is especially useful in emergency situations or when you want to withdraw money for use.
Risk diversification
- Diversify your portfolio: Instead of investing in just one asset, owning gold helps you spread your risk. When the price of another asset falls, the price of gold can rise, helping to stabilize your portfolio.
- Minimize the impact of market fluctuations: Unexpected events such as economic crises, wars, etc. can cause strong fluctuations in the stock and real estate markets. However, gold is often considered a safe haven asset, helping to protect your assets during such times.
Psychological value
- Sense of security: Owning gold provides a sense of security and stability for many people. Holding a certain amount of gold gives you more peace of mind about your financial future.
- Everlasting value: Gold has long been considered a valuable asset that can be passed down to future generations.
In short, to answer the question:buy gold to save what gold should buy "suitable?" depends a lot on factors such as: investment goals, financial capacity and personal preferences of each person.
Investment platform HVA is a useful source of information for you to learn more about the gold market and make informed decisions. Whether you choose to buy gold bars, gold jewelry or other gold products, the most important thing is that gold investors need to learn carefully about the product and choose reputable suppliers to ensure the quality and value of the gold.
