House Jewellery Trading
Jewellery solutions for you and your business
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.
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.
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
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.
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.