Gold has been a reliable store of value for centuries, and its value has held up over the long term despite short-term volatility. As an alternative asset, it can help diversify your portfolio and provide a hedge against inflation. Gold rates are not affected by inflation, making it a stable investment that quickly recovers its value during economic shocks. Investors often opt for gold coins as they are easy to liquidate and can be passed down as an inheritance.
The best time to invest in gold is when there is negative sentiment and the asset is cheap, providing substantial upside potential when it returns to favor. Bullion coins such as American Gold Eagle, Canadian Gold Maple Leaf, or South African Krugerrand are the most popular form of gold investment. ETFs offer the convenience of trading company stocks while providing exposure to gold prices. However, you don't own gold when you use a gold derivative, so it may be more suitable for short-term trading than long-term investing.
When investing in gold coins, it's important to consider the risks associated with storage. Although there are risks during transportation, an approved long-term storage vault within the professional bullion market system is the safest place to store gold. Insurance actuaries know that this is the best way to protect your investment and ensure you can access its value when necessary.