Best recommendations on how to invest in gold in 2020? There are both advantages and disadvantages to every investment. If you are opposed to holding physical gold, buying shares in a gold mining company may be a safer alternative. If you believe gold could be a safe bet against inflation, investing in coins, bullion, or jewelry are paths that you can take to gold-based prosperity. Lastly, if your primary interest is in using leverage to profit from rising gold prices, the futures market might be your answer, but note that there is a fair amount of risk associated with any leverage-based holdings. (For related reading, see “Has Gold Been a Good Investment Over the Long Term?”).

“As gold keeps breaking new records…the fundamental factors behind the trend remain clear: increased worries about the solidness of U.S. public finances; the lack of any serious government plan to resolve long standing issues related to the future of the social security system; eroding credibility of the U.S. motto about a strong dollar; the general weakness in the fundamentals of the global economy” [all of which make the] purchasing of gold…a store of value that thrives when uncertainty, insecurity, and fear rule the global economy. Furthermore, when we recall the never ending speculations about the U.S. dollar’s demise, it is only natural that the metal will find attention regardless of the price tag, until a bubble develops [but] we are apparently very far from that turning point.

Although the U.S. dollar is one of the world’s most important reserve currencies, when the value of the dollar falls against other currencies as it did between 1998 and 2008, this often prompts people to flock to the security of gold, which raises gold prices . The price of gold nearly tripled between 1998 and 2008, reaching the $1,000-an-ounce milestone in early 2008 and nearly doubling between 2008 and 2012, hitting around the $1800-$1900 mark. The decline in the U.S. dollar occurred for a number of reasons, including the country’s large budget and trade deficits and a large increase in the money supply.

Gold jewelry is probably the most frequently bought and sold form of gold investment, though you may not even think of it as such. In actuality, gold jewelry is highly beginner-friendly because it is so easy to acquire. According to Investopedia, about 49 percent of global gold production is used to make jewelry. Generally, any piece of jewelry at 14k or higher is considered an investment in gold. While it is relatively simple to obtain, there are some drawbacks to consider. In some cases, gold has a questionable resale value. This means it may be difficult to identify a buyer and sell your jewelry for a profit.

Following the advent of gold as money, its importance continued to grow throughout Europe and the U.K., with relics from the Greek and Roman empires prominently displayed in museums around the world, and Great Britain developing its own metals-based currency in 775. The British pound (symbolizing a pound of sterling silver), shillings and pence were all based on the amount of gold (or silver) that it represented.3? Eventually, gold symbolized wealth throughout Europe, Asia, Africa, and the Americas. The U.S. government continued on with this gold tradition by establishing a bimetallic standard in 1792. The bimetallic standard simply stated that every monetary unit in the U.S. had to be backed by either gold or silver. For example, one U.S. dollar was the equivalent of 24.75 grains of gold. In other words, the coins that were used as money simply represented the gold (or silver) that was presently deposited at the bank. Read even more information on how to buy gold.

One of the major reasons for making any financial investment is that you consider it as a backup if in case you need it in future and gold is one of the most of the easy to liquidate the hard asset. In case you happen to be in need to use your gold to make your ends meet, you just have to sell it to the buyer you prefer. There are always buyers ready to buy the gold. But keep in mind the return rate is not exactly what you expect, instead, it is opposite especially in the case of physical gold, you get less than what you invest. Like we mentioned above, gold has a lot of significance in Indian culture but we are not talking of emotions here, in fact, financial investment is not a matter of heart but Mind and thus, let us take a look at all the practical reason that make gold a suitable investment medium over other options.