For thousands of years, gold has been the benchmark of value and still remains the same today. In fact, with the price of gold generally shooting up during times of economic uncertainty, many investors seek out the headline-grabbing investment as a hedge against inflation.
There are several ways to own gold and protect your investment. With West Hills Capital, you can be sure that you have full control of your gold bullion investment at all times.
How to Invest in Gold the Right Way
If you are looking to make gold a part of your investment portfolio, here is a brief, but thorough, introduction into the best way to invest in gold with the help of West Hills Capital.
Why Direct Ownership of Gold Is the Best Choice
For many gold investors, there is simply no alternative to having physical gold in their possession as the ultimate expression of pure value. Historically speaking, many civilizations have recognized the permanence of gold’s value and many wars were fought over the storage of gold. So, why the fuss? Well, gold is the only form of currency whose value cannot be changed or controlled by government fiat.
The value of gold rises based on supply and demand and there is no intermediary between you and your investment. Gold bullion is available through government mints or private sellers, and you can typically purchase coins and bars from private dealers or other precious-metals retail specialists. Most even include a serial number for security purposes.
There are some things to be aware of when investing in physical gold. Because gold is an impressive sight, less reputable gold dealers will charge a premium for gold and you might receive less than the prevailing gold price when you sell. This is especially true if they try to upsell you on numismatic “collector coins” that have a higher markup than bullion coins. We always recommend bullion for investing.
It may be difficult to turn over a fast profit when selling gold. It’s also worth noting that finding a safe and secure way to store gold can be challenging and costly. West Hills Capital offers a high-security, 100% insured and segregated third-party storage facility.
Since other types of investments will eventually fall in value, gold is still the best place to preserve value.
What About Gold Stocks and ETFs?
The essence of keeping your hard-earned wealth in gold or other precious metals is to own an asset that can weather any economic storm. Not every type of gold investment can give you that peace of mind.
Gold stocks are usually referred to as “mining shares.” Rather than physical gold, you own a partial interest in a gold mining company.
The investment in a mining company is highly speculative. There are hopes of great profits but also the chance of tremendous losses. Although some of these companies have earned extremely attractive returns over the years, they are simply not the same as an investment in actual physical gold.
Gold ETFs (Exchange Traded Funds) are similar to mutual funds in that they track an asset or index of assets. A gold ETF may hold various gold assets, including stocks in mining companies and gold reserves.
Here’s the problem with that. Just like any other stock, a gold ETF has no inherent value. You own “paper,” not an actual physical gold coin or bar. An ETF doesn’t protect you against market volatility like physical gold does. Yes, an ETF will tell you they have the metals to back up the account, but if everyone who owns a piece tried to cash out at once, they’d find out there isn’t enough metal to go around.
So, unlike gold stocks or ETFs which are highly speculative and subject to volatile market changes, direct ownership of gold allows you to have full control of your investment and proves itself to be a tangible asset to do with as you please.
Investing with the Help of West Hills Capital
The ultimate dollar hedge investment has always been and will always be gold bullion. Investing in gold through physical ownership provides you with the most direct alternative to the dollar.
While the world economy will likely remain off the gold standard, the value of gold as the basis for real value – whether acknowledged by central banks (or not) will never change. Growth will always be seen in gold.
With the help of West Hills Capital, you have multiple ways to position your portfolio to profit from a bull market in gold bullion and you never have to worry about precious metal scams and/or be forced into a long-term commitment.
No matter if you want to invest a portion of your assets or all of your assets into precious metals, West Hills Capital makes sure that the choice is completely yours. We will help find the most appropriate option for you and protect your purchasing power throughout. Call (800) 867-6768 to speak with one of our metals strategists today.