A number of first time investors are quite perplexed on what to invest in when they have some spare money to make an investment. First time investors shy away from the stock market as they are not knowledgeable about shares and don’t want to tie their investment up in something they have no idea about how to manage. Investing in gold makes sense for not only first time investors, but for all investors. Gold is a safe investment as it’s the most precious metal that you can buy easily. Gold prices have seen a steady rise in price over the years and are considered to be a safe investment.
The history of gold goes back a long time and has always been a prized possession. Gold jewelry is still given as a dowry to women in many cultures in the world as an investment in their future. Many women prize their gold jewelry and will pawn them or sell them as a last resort. The reason for this phenomenon is quite simple; it’s a prized possession that will always increase in value. Gold has seldom been known to loose its value over time, and when it has it just been for a very short period.
Governments of the world measure their wealth by the gold that they have in their treasuries. All world currencies that are traded on the world market are backed by the gold wealth of the country. A number of world currency notes clearly state that the owner of the note will be redeemed in gold on the value of the note.
Therefore for first time investors, investing in gold is a safe option as there are no risks involved. Gold can be bought in several forms and depends on how much the investor wants to invest in it. Gold can be bought as coins, bars and as certificates. In Swiss banks you can actually open a gold account. Buying certificates or having a gold account actually ensures that your investment is sitting safe in a locker somewhere and you don’t have to carry it around or look for a place to keep your gold bars and coins.
A traditional way of investing in gold has been by buying gold bars. Gold bars are available in different weights and have the proper certification on it. The certificate stamped on the bar states who made it and its weight and purity. In Europe you can get gold bars that weigh from 1oz to 10oz. So you can purchase the bar and store it and when the price goes up you may decide to sell it.
The price of gold fluctuates slightly every day on various bullion markets but as a long term investment you can be sure that the price will move up and when you go to sell it, you will have made a profit. Rarely if ever has anyone ever lost on a gold investment. Investing in gold for the investor also makes economic sense. As in your saving pyramid you start at the bottom of the pyramid with tangible assets, like gold.