Gold Investment
Looking to invest in gold ? Not sure how and where to start investing ? Then we can help. We have sourced out some of the best information that will help you get started with investing in Gold. New Zealand investment has been helping kiwis invest in gold for the past 10 years. Check out information and tips on how to start investing in Gold now.
GOLD INVESTMENT
Beginners guide to investing in Gold : Gold Investment NZ
Is it still worthwhile to invest in gold in 2022 : Gold Investment 2022
Find out if gold investment is the investment for you : Is Gold Investment Right For Me
Check out some of the main gold investment requirements in New Zealand : Requirements
Check out some of the main risk and rewards of gold investment in New Zealand : Risk & Rewards
Find out how to get started with gold investment in New Zealand. : Get Started
Find out where you can buy gold in New Zealand for investment : Investment Gold
Check out who can help with your gold investment need in New Zealand : Gold Investment Advisers
Gold Investing 101
Gold investment is the most sought after investment strategy. Unlike other assets, gold is known to have an intrinsic value because of its low natural supply and high demand in developing and developed countries. The main benefits include- high liquidity, high retail and industry demand, its usage as an inflation hedging tool, etc.
Gold comes in both physical and digital forms, providing you with the flexibility to buy. Since, centuries it has been used in day to day life as currency and hence, the faith that ordinary people have is impressive, making it the highest trading metal. In the recent times of uncertainty in the market world, investors expressed their confidence and faith in gold during the pandemic, which made it achieve an all-time high level.
Physical Form: Gold in bulk form is called bullion. Gold bullion comes in different shapes and sizes. You can buy gold bullion in jewellery, coins, bars, and even fancy collectables.
Digital Form: Considering the drawbacks of buying gold in physical forms, like problems related to security, people in the 21st century are buying in digital format. In digital form, gold can be invested through Exchange Traded Funds (ETFs), gold bonds, stocks of companies operating in the mining industry, future contracts in the commodity market, etc.
is gold a good investment
Whether or not gold is a good investment depends on a number of factors, including your personal financial situation, investment goals, and risk tolerance.
Gold is often considered a good investment because it is a tangible asset that can protect against inflation and market volatility. Gold prices tend to increase in times of economic uncertainty, so it can be a good hedge against risk. Gold is also a liquid asset, which means it can easily be bought and sold.
However, there are also some drawbacks to investing in gold. For one, the price of gold can be volatile and subject to market forces, so it can be risky to invest a large amount of money in gold. Gold also doesn’t generate any income, so it may not be the best investment for long-term growth.
Ultimately, whether or not gold is a good investment for you depends on your individual financial situation and investment goals. It may be worth considering as part of a diversified investment portfolio, but it should not be the only investment you have. It’s always a good idea to consult with a financial advisor before making any investment decisions.
is gold a good investment in 2023
It’s difficult to predict whether gold will be a good investment in 2023, as the future performance of any investment depends on a variety of factors. Some people believe that gold is a good investment because it is a tangible asset that can protect against inflation and market volatility. However, others believe that the price of gold is likely to decline in the coming years.
One factor that may affect the price of gold in 2023 is the direction of interest rates. If interest rates rise, it could make gold less attractive to investors, as it does not offer any income or yield. On the other hand, if interest rates remain low or decline, it could support the price of gold.
Another factor to consider is the global economic outlook. If the economy remains strong and stable, it could support the demand for gold and potentially drive up its price. However, if the economy experiences a downturn or enters a recession, it could lead to a decline in the price of gold.
In conclusion, whether or not gold will be a good investment in 2023 is uncertain and will depend on a variety of factors. It may be worth considering as part of a diversified investment portfolio, but it’s always a good idea to consult with a financial advisor before making any investment decisions.
Is it worthwhile investing in gold in 2023?
Gold, a well-recognized currency, is often seen as a conventional and even an ancient form of investment. Many wonder whether gold will be able to perform and beat inflation, which many mutual funds claim to be doing?
The answer to this question lies in simply the data and technical charts.
Gold currently trading around the NZD 2,800 level achieved its all-time high price on 10th August,2 020. Gold is said to behave inversely to the stock market, and when the stock market plunges, the gold price rises exponentially.
The prospects appear to be bright for gold, considering its past performance. In the last 15 years, it has provided more than 200%+ returns, which is commendable. But one needs to be aware that short term trading can result in even negative returns.
Who can invest in gold?
Gold investment in New Zealand can be made by anyone considering this market’s flexibility. You can invest in different forms and sizes, and since there is no lower and upper limit to your transaction, it provides you with the freedom to test your fortune in it. You can invest through stocks and ETFs even if you are a student or a senior citizen having fewer dollars in your bank account.
There can be some hurdles in gold investment, such as gloomy short-term prospects. Also, if you buy gold for investment in the form of bullion purity concerns, making charges etc., it can reduce the returns. One of the critical expectations retail investors have is a passive income in dividends, which is very difficult to get in gold investment unless you are invested in some stocks
Requirements to Get Started
To invest in gold, you need some of the following essential requirements:-
Money- If you are looking for investment, you probably might have some cash. However, one of your concerns could be whether you have ample amount to invest. But this should not worry you as a gold investment in New Zealand can be done with as low as $10 (in digital form).
Vault- Vaults can be used to store physical gold in a safe and secured environment under the surveillance of a third party. Many banks in New Zealand provide vault services to keep your jewellery, coins, and bars of gold.
Safe- Buying and investment in gold in physical form is often considered risky because of storage issues. So, it would help if you had a safe to store your gold bullions.
Digital Storage- Many platforms that provide you digital gold also provide you with virtual wallets. You can invest and store your digital gold by registering on these platforms and creating your Demat accounts.
Insurance- Insurance is not a mandatory element of this investment process. Nevertheless, if you buy gold in physical form and worry about its safety and security, you should opt for it.
Risks and Rewards in Gold Investment
Risk and rewards in any investment often go hand in hand, and gold is no exception. Risk ensures that speculators remain out of the market and serious long term investors receive the rewards.
Risks in gold investment:-
Gold is a natural mined metal, and hence, it is traded in different qualities. But this can be one of the risks you are prone to when buying gold in physical form. Buyers need to be sure of the quality of the gold bullion.
Often, gold investment can be costly, especially if you are buying gold in the form of collectables or jewellery because of the extra making charges. Furthermore, if you want to cover your gold with insurance, it can increase the investment capital and reduce the return prospects.
Gold may not provide the desired returns in the short run. So, if you are looking for trading, then gold should not be an ideal asset to trade.
Gold doesn’t provide any passive income in dividends and profits unless you invest in gold mining stock companies.
Rewards of Gold investment in New Zealand:-
Gold investment is considered an inflation-beating technique because of its high returns in the long run and is often used for hedging purposes. If we believe the current times when bank interest rates are low and similar to the inflation rate, it is much better to invest in gold.
Gold can be quickly encashed because of its high liquidity and easy commercial demand. You can soon sell both digital and physical forms of gold in an emergency.
Gold’s intrinsic value is high, and it has been used traditionally in many regions like India, the Middle East, Sri Lanka, etc. Hence, the global demand is expected to remain high.
Gold performs well even in times of crisis. Despite many global geopolitical situations and the health emergency of COVID19, gold has performed much better than any other asset in recent times. In the last 15 years, gold price has become nearly three times.
How to get started with investing in gold
Buying gold in New Zealand is an effortless process. Many websites are providing gold bullions and digital gold investment opportunities. You can purchase jewelry and even gold bars that you can store in your safe or gift to your loved ones.
Before buying from gold dealers and stores, one needs to be cautious about various cost components like making charges, purity of the gold, and rate cuts while selling in the future.
You can also buy digital gold by investing in bonds, derivatives (future and option contracts), stocks of some companies working in the same domain.
Where to get started investing in gold?
Physical Gold:
Gold in bullion form can be bought directly from merchants involved in trading metals. According to the New Zealand Financial Market Authority, you should purchase gold only through licensed merchants.
Some of the websites to buy gold for investment in New Zealand are:-
- Buy Bullion (Operating in Dunedin, Wellington and Christchurch)
- Morris and Watson (Operating in Christchurch and Auckland)
You can sign up on these websites and make transactions using your credit card or bank account. You can also contact them and find out the offered services and buy directly from their offline stores.
Digital Gold:
Investment in digital gold can be made using the following methods:-
ETFs– ETFs are an easy way to diversify your portfolio and purchase commodities like gold and silver. An ETF consists of a basket of assets like shares and bonds whose price is correlated directly with these assets. For Example- VanEck Vectors Gold Miners ETF
Derivatives (Futures contracts)-If you are interested in short term gold trading (which is not suggested for newbies), you can buy derivatives. Future contracts help you buy and short sell the asset despite not owning it. So, if you are sure about your strategies and want to speculate on the gold price, you can invest in gold futures.
Gold Stocks– Gold mining stocks also offer lucrative opportunities to invest. The advantage of gold companies’ stocks is that it provides passive income in dividends that no other instrument provides. Investing in these stocks means you are investing in gold and the company’s fundamentals. For Example- Barrick Gold Corp
Digital Gold Investment Steps
To invest in gold digitally, you can follow these three simple steps:-
Select an online platform that allows you to buy ETFs, gold futures or gold companies’ stocks. Some of the media that provide these services and are recognized by the New Zealand government are- Jarden, JBWere, com, etc.
Sign up and create your trading account. Some of these platforms may perform your KYC. Once done, add money to your wallet, and you can get started.
Choose appropriate instruments (Stocks, Derivatives, or ETFs) according to your investment objectives and risk appetite.
Taking Help of Advisories
It is always suggested to get help from the experts if you are new to investing or don’t want to take unnecessary responsibility for conducting research and making risky decisions.
You can take investment advice from both advisories working in this sector and gold dealers. Many companies provide you advisory services that charge a small amount as fees and offer you investment advice.
