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WHY Physical investment

As the market of any product is open, many will have the chance to buy the wrong product or commodity. Many have argued that having an account in gold and other precious metals in paper/certificate will be blown up with the physical bullion market. Hence, buy the real thing and get out of any investments that give your paper instead. To have a sound investment in physical gold, listed below are few of the things you need to know.

Gold Accountability

Banks and brokerage houses are the major

holders of the precious metals and thus

contribute in the precious metal exchange

traded funds (ETF).

What are the risks?


Risks in gold investment lie on those that

deal with paper substitute. However, if

you invest in physical bullion the

counterparty risk is decreased.

Management Skills

The holdings of the physical bullion is

determined by the skills of the manager,

it doesn’t reflect on the gold itself after

market timing, averaging and hedging are

introduced.

Liquidity of Gold

Bullion can be traded any hour of the day;

it has a high level of trading activity. It can

be easily bought and sold. Thus, bullion held

in papers or certificates must be avoided.

Gold Ownership

To be sure that you will own what you bought, ensure that title is transferred under your name before securing its storage vault. Any bullion must be stored in allocated basis for it not to be used in any way possible. Ownership of gold certificates alone is not redeemable in physical gold, so, invest in the real thing.