Buy Precious Metals

Learn About Buying Gold, Silver, Platinum and Palladium for Investment

why buy gold

 

Gold bullion investing gets a huge amount of media attention even if only 1% of people in the West actually invest in gold.

But, why does this vocal minority of ‘gold bugs’ bother buying gold? Why would smart investors with sensible opinions buy something as ancient and potentially out-dated as gold bullion bars?

Safe haven assets out of the banking system.

Simply put, gold bullion is different from all other financial investments in that it is isolated from the financial system and its value can never go to zero. This is very different to:

- Equities: that can go to zero if the company is badly managed or has some catastrophic scandal. The likes of Lehman, Woolworths, Arthur Andersen and others actually occur far more regularly than we are lead to believe.

- Bonds: which can also go to zero if the issuer becomes insolvent. Investors at this time are participating in potentially the world’s largest ever ‘bond bubble’, partly caused by central bankers manipulating financial markets for decades, according to their political and economic whims.

- Derivatives and ETFs: are also financial instruments whose value and performance relies on a financial counterparty to fulfil their obligations. Futures, options and ETFs are examples here, which expose their holders to systemic risk and especially the risk of specific financial providers.

A physical gold investment has no credit risk, no counterparty risk and cannot disappear with the collapse of a brokerage or bank.

 


This is quite different to stocks and bonds owned in electronic form in today’s digital financial markets. Gold bullion just sits in a vault, quietly minding its own business, away from banks and other financial markets.

Gold bars cannot be printed like national currencies, making them attracting ways to save whilst central bankers choose to fix economic problems with never ending Quantitative Easing. Those that choose to buy gold often do so as well as, or instead of keeping cash in the bank. See this infographic comparing gold bars and cash deposits.

Gold investors see their gold investments like the most secure foundation of their wealth and like an insurance policy on the financial system. As with other insurance policies, you hope not to need them, but you hold them for good reasons. This is the reason Swiss bankers have traditionally urged their clients to keep the first 10% of their wealth in gold bullion bars, in secure vaults in Switzerland or elsewhere, to act as the most ultimately secure and liquid base of their portfolio.

Even with recent falls in the gold price, physical gold buying demand has been incredibly strong as savers in China, India and the developed West take advantages of lower gold prices.

Quick and easy to buy gold.

It used to be tricky and complicated to buy gold, but the internet has made it much more straightforward.

With sites like Regal Assets you can learn all about gold, watch helpful videos and investor guides and read the latest gold market research. The when you’re ready you can buy gold in 3 simple steps. You just need to open an account, fund your account by bank transfer and then enter the gold market to buy gold online.

Whilst gold is still a relatively unknown financial market, smart investors can gain a good advantage by doing their research and learning from some of the best sources in this most different of financial markets. The Real Asset Company’s Comment and Analysis section is a veritable gold mine for investors wanting to skill up, learn about gold and invest in gold with the greatest knowledge at their finger-tips.

where can i buy gold