What’s The Best Way To Invest In Gold?

Gold has always been very popular among serious investors. Nowadays, more and more people are interested in it. So what’s the best way to invest in gold?

About Gold

Gold is one of the first metals used by man. Its color and shine made it easy to spot in the river. The density of gold made it easier to extract, and its malleability made it easier to process into any form. Gold mining flourished during the heyday of the pharaonic state. Gold symbolized their divine power there, so they surrounded themselves with it in huge amounts.

What’s the best way to invest in gold, gold nugget

From Egypt, gold reached Mesopotamia and the Middle East. There, it gained a less symbolic meaning and began to be treated as money. The first gold coins, made from a solution of gold and silver, were created already in the 7th century BC in Lydia.

In the Middle Ages, gold also had extraordinary value. It was so desirable that alchemists of that time toiled in search of the philosopher’s stone, thanks to which it was possible to turn other metals into gold. Generally, all alchemy focused on various ways of obtaining gold from other metals, and thus achieving wealth and the benefits associated with it.

What’s the best way to invest in gold, alchemist

Of course, nowadays we know that alchemy has little to do with real science, and the search for the philosopher’s stone is just a waste of time. To get gold, you first have to work hard, because it involves extracting it from the ground, just like in the case of natural resources such as oil or gas.

In later centuries, people began to understand this. Basically, the Middle Ages was a period of respite, because in ancient times it was well understood that gold is simply mined and there is no other way to obtain this precious metal.

What’s the best way to invest in gold, mining

When a new continent, America, was discovered, it was exploited for the very purpose of finding gold reserves, which quickly fed the royal treasuries of European countries, such as England and Spain. Of course, we cannot forget about the famous gold rush that took place in the second half of the 17th century in the USA, and a little later in Australia.

Currently, the largest gold producers are:

  1. South Africa – 27,2%
  2. USA – 15,1%
  3. Australia – 10,9%
  4. Russia – 10,7%

In addition to the leaders mentioned above, other important gold mining countries in the world are Canada, Brazil and China. Most of it is used to create gold jewelry, and about 10% is used by the industry, especially the electronics industry. 5% of gold is used in dentistry.

What’s the best way to invest in gold, producers of gold
Source: https://elements.visualcapitalist.com/visualizing-global-gold-production-by-country-in-2020/

It is important to remember that gold owes its value not only to the fact that it looks nice, shiny and decorative, but also because of the properties it has:

  • high durability – gold is almost indestructible. It can only be damaged by a mixture of hydrochloric and nitric acid, the so-called aqua regia, or a cyanide solution
  • rarely occurs in nature – the remaining gold resources so far are estimated at about 50-60 thousand tons, while humanity has already mined almost 200 thousand tons of gold
  • gold is malleable – it can be divided and given any form.

What is the importance of gold for us, investors? First of all, it is one of the safest options for protecting your own capital. The value of gold, despite fluctuations on the chart, is still growing, which is confirmed by historical charts. Over the years, its price has increased significantly, so it is an excellent long-term investment.

Israeli-Palestinian conflict, historical gold price

You can invest in gold in two ways:

  1. Physical gold, such as gold bars, bullion coins, and even gold jewelry.
  2. Paper gold, this means that you do not physically buy any gold, you do not own it, but you invest in exchange-traded funds based on investment gold, that means ETFs.

It is worth considering that gold is one of the best safeguards against inflation. When the value of money is constantly falling, the price of gold is either staying the same or rising. Think of it this way: what could you buy with $100 in your wallet five years ago, and what can you buy with the same money today?

What’s the best way to invest in Gold?

It is commonly said that gold is a good form of long-term investment. But is this really true? Is it really necessary to invest long-term to gain profits from gold? Well, not necessarily. In a moment we will discuss what possibilities lie ahead of us.

Just like in any other case, investing in gold also follows the same market principles. More precisely, we buy at low prices and sell when the value of a given financial instrument reaches its price peak in a given period. And it doesn’t really matter whether you decide on a long- or short-term investment.

The above-mentioned principle is the foundation of all forms of trade and investment. However, another important factor is the correct risk assessment, and for this we need to conduct an in-depth analysis, both technical and fundamental.

That’s why I encourage you to learn it if you want to be successful and earn money. If you haven’t traded yet, please read my article How To Trade Online Stocks? Step By Step, where you will learn how to invest correctly.

Remember that every investment involves risk, there is no such thing as a 100% safe investment, and if someone offers such a thing, know that you are dealing with a scam!

What’s the best way to invest in gold, paper or physical gold

As I have already mentioned, there are two types of gold: paper gold, that is, in which we invest in the stock market sense, and physical gold, which we buy and we are its physical owners. For now, we will focus on paper gold, or investment gold. We’ll talk about buying physical gold later.

When it comes to investing in gold, first of all you need to find a good broker. The list is long, depending on the country you live in. A good broker must have specific features, first of all, the most important ones for you are:

  • commission amount – this is what you have to pay to the broker for your transaction,
  • Spread – the difference between the market price and the trade opening price.

If you have already found a suitable broker, it is also worth getting a trading platform. One of the best and most popular is Meta Trader 4 or 5. You can download it for free on a desktop computer or phone. I recommend both solutions because the desktop version has many more useful features, but the phone version will help you control your transactions, no matter where you are.

Now it all depends on what capital you have, how much you want to invest. If you want to invest for the long term, you should have at least $1,000, and the more the better. Why? Yes, it’s known that the more you invest, the more you earn, but most of all, your investment will be protected in case of drops, which you can wait and close the transaction when the value of gold rises to a level that satisfies you.

What’s the best way to invest in gold, current price of gold

Observe whether the trend is increasing or decreasing. Usually, in the case of gold, we deal with the former, but remember that this is not a rule and sometimes the price of gold can drop. Nevertheless, taking into account everything we know about gold, these declines do not last long and the price returns to the level before the declines, after which it can continue to rise.

Price fluctuations always occur, so you should have enough money so that in the event of a correction, your capital will protect the transaction before closing.

However, if you do not have sufficient funds, you can invest short-term. Such trades will allow you to earn faster, but smaller amounts of money. The risk is also higher, so it is necessary to monitor the market regularly, every day. Perform technical and fundamental analysis, this is the only way to minimise the risk. Remember that you can, of course, invest in price declines (so-called Short), which in the case of short-term transactions often brings results much faster than in the case of investing in price increases (so-called Long).

Regardless of which broker you invest with, you have the option of leverage, which means that your profits can increase from several to even several hundred times, but it also carries the risk of faster losses if you invest at the wrong time. Therefore, I recommend that you do not use leverage greater than x5 if you are not experienced in investing.

What about buying physical Gold?

The situation is completely different when buying physical gold. Contrary to what most may think, it is not the case that only the richest can afford to buy gold. Gold can be purchased in many forms and sizes. The most common are:

1) Gold bars – you can buy even one-ounce ones, not necessarily half-kilogram or kilogram ones, which actually require more money

What’s the best way to invest in gold, gold bar

2) Bullion coins – it is best to buy coins with a standard, repeated appearance, which are minted by renowned mints in the world

What’s the best way to invest in gold, bullion coins

Now it’s worth mentioning safety. In Poland we have a proverb: Not all that glitters is gold. And in this case it has a literal meaning. The point is, dear reader, that when you decide to buy gold, you should verify the seller thoroughly. In today’s world there are many scammers and thieves who are just waiting for someone who does not have enough knowledge in a given topic.

Therefore, if you buy gold, take advantage of the offers of the best mints in the world, such as:

  • Perth Mint
  • Münze Österreich
  • US Mint
  • Royal Canadian Mint
  • The Royal Mint
  • Rand Refinery

A good choice are gold bullion coins without numismatic value, such as South African Krugerrands, Canadian Maple Leafs, Australian Kangaroos or Austrian Philharmonics.

First of all, gold varies in quality, which is why you should buy this valuable metal from proven brokers. You should certainly avoid buying gold on eBay and similar platforms. You don’t really know if you’re buying gold at all. You may fall victim to fraudsters who will sell you completely worthless metal that is only gold-plated. Just like in the case of gold jewelry.

My forecast for the near future

Regardless of whether you intend to invest in paper gold on the stock exchange or in physical gold that you own, the best time to invest is always when the price of a given asset is low. In the case of gold, this happens when it stabilises.

However, during a crisis, many investors are interested in gold and other precious metals, such as silver, and the price increases. Therefore, it can be concluded that the crisis is not the best time to invest, especially at the peak of the crisis.

Looking at today’s world, it is clear that the time of stabilization is slowly coming to an end. Over 20 years ago, we witnessed the attack on the WTC in New York, which literally started a chain reaction. Immediately after this event, the war on terrorism began and the Middle East ignited.

Regardless of opinions on this subject, and there are many theories, the fact is that these events had a major impact on the market and commodity prices. Then the revolution in Ukraine, the annexation of Crimea by Russia and the destabilization of Donbas, the rise of ISIS, the migration crisis in Europe, and now a full-scale war in Ukraine, Israel, as well as digitalization and the 2030 agenda.

What’s the best way to invest in gold, crisis ahead

These are not some minor events. Of course, we cannot forget about tensions in Asia, for example China and Taiwan, or North Korea. We are also witnessing the polarization of societies in individual countries, such as the division into the extreme right and the extreme left.

The climate crisis, in turn, is pushing us towards another industrial revolution, i.e. slowly moving away from traditional energy sources in favor of the so-called clean energy from renewable sources. All this will have a huge impact on the market and the mood of investors, who largely determine prices.

I come from Poland, the country that suffered the most during World War II. Our capital, Warsaw, was completely destroyed by the Germans, approximately 6 million Poles died, and both Germany and Soviet Russia dreamed of erasing us from the maps of Europe forever. Fortunately, they did not succeed.

What’s the best way to invest in gold, Warsaw 1944

Okay, but why am I mentioning this? Now listen. Our grandmothers and grandfathers who survived this brutal war told us how important and valuable gold was in those times. People had no jobs because they were busy fighting for survival. What do you think, dear reader? What helped them survive? Just gold, gold jewelry, chains, rings, etc.

Gold was like currency, that’s why it was valuable. What a simple example from life told by our grandfathers and grandmothers, simple people who had no knowledge about investments, but simply wanted to experience the nightmare of war, hoping for a better tomorrow! Just logic!

What’s the best way to invest in gold, gold as a currency

It is no different today, as it has ever been in the history of the world. It’s a constant law of the market, as obvious as the fact that after night comes day! Today we are entering a global crisis, which means that the price of gold will continue to grow, even though we will continue to see fluctuations on the charts.

Therefore, I suggest that you manage your money wisely and instead of spending it on stupid things, think about serious investments, such as gold. It is also worth stocking up on other supplies, for example food, the price of which will definitely increase. Let’s be wise before we get hurt!

Final thoughts

I have been preparing for this article for quite a long time, and I realise that this is a topic that cannot be omitted in the field of finance. Gold is one of the safest assets in which we can invest and make a profit.

You don’t really need any specialised knowledge about investments or finances in general, because since the beginning of civilization, this precious metal has always been in demand. Possessing it meant wealth, and the fact that there is less and less of it (and more and more people) means that, according to market law, there is no other option but to increase the value of this precious metal.

What’s the best way to invest in gold

I really strongly encourage you to invest in gold, because it is one of the best, if not the best, form of protecting your wealth and even multiplying it. Learn all the time. The world of finance is still unfathomable. It is really worth diversifying your portfolio, this way you will significantly minimize the risk and, over time, even obtain not one, but several sources of income.

What’s the best way to invest in gold, gold vs inflation

History has shown many times that gold protects against crisis. Today we are dealing with inflation all over the world, prices are rising like crazy, especially real estate prices. As an example, we can present the prices of apartments and houses in London, where to rent a two-room apartment you have to pay about £2,000 per month!

People don’t even make that much money! Gold perfectly protects against inflation, and even the effect of such an investment is reverse. For example, by investing £1,000 in gold 10 years ago, when the value of money was higher, we not only freeze the value of cash, but also count on pure profit.

However, if you need help related to investing in gold and more, I have launched a special section on My Money Force, Financial Help. There you will find all the details and information on how to contact me. I will personally do everything to ensure that your investment is a success!



6 Replies to “What’s The Best Way To Invest In Gold?”

  1. Thank you for a super informative post ! I’ve Always wondered about them workings of investing in gold, so this was really perfect ! I will definitely consider investing apart of my savings in gold , but I really appreciate the pouts about even that it being a gold standard solution.:D. Thanks again for a great post! 

  2. Very thorough and informative article about gold! From the history of gold to the ranked producers – it was a deep dive into the world of this incredible metal.

    I think your title and focus got a little overshadowed by the history lesson and the trading details. It made me go back and look at the title to make sure I hadn’t jumped into a different article. My advice would be to create an outline that focuses on the points related to your title/keyword so that it all flows in the same direction.

    That said, I learned a lot about gold and I appreciate your page layout and all the great content.

  3. Thanks for your great article on best way to invest in gold.
    I live in Perth so you can probably guess my preferred way to buy gold as mentioned in your article.

    Just an observation on gold as an investment. I keep hearing from some financial commentators that Gold is not keeping up so well with the high money printing that is going in.  When we consider that gold is priced in USD and the rate of M2 money supply is growing at such a high rate.
    I checked this from Y charts and I could see that the money printing started with the pandemic in March 2020 and was rampant until around July 2022 and has gradually wound down since then.

    The growth in M2 money supply does flow on to the economy in terms of inflation.  So i’m not sure that Gold has been keeping up with both the growth in M2 money supply and inflation since March 2020.  When I look at the charts for 31 March 2020 of around USD $1,450 per ounce for Gold to around USD $1,980 per ounce today.  I suspect that it has not kept up with inflation and money printing.

    Nonetheless, gold, land and arguably bitcoin are hard assets as they are inherently scarce and valuable.  So as the money printing continues with fiat backed by nothing.  Then these assets are arguably wise to hold.

    • Hello John!

      Thanks for comment. Very accurate observations. I like it when people analyze things themselves, so we can learn from each other.

      Kind regards!

  4. Thank you for sharing such an exciting post! It was informative and helpful, as I have always been curious about how gold investments work. Although I understand the concerns about gold being a standard solution, I am still considering investing some of my savings in gold. Thank you again for this great post and all the insights you provided.

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