Is it a good time to invest in gold now?
New gold investors may ask this golden question, as gold may seems to be a safe haven to many, indeed during crisis, gold rallied. Now due to coronavirus uncertainty, the worst pandemic in our lifetime, would push the precious metals higher and many experts claimed gold will once again hit record high, some even said precious metal could hit $3000 per ounce!
That said, if we are season gold investor, we must ask ourselves, over the past 100 years in history of gold, does it constantly appreciate its value over time and by studying the current market, will it get better or worse for the next 50 to 100 years? Presuming, it is getting worse, physical gold would be no doubt a safe haven acting as an investment insurance over our lifetime. Gold is also perceived as a hedge against devaluation of government backed fiat currencies. Gold buyers have returned to gold due to current market uncertainty, seeing it as a safe store for their money.
Gold Is Money
Gold is a store of value since 6000 years ago. As gold is highly regarded as a store value and it is known to be very limited supply. Gold has been used a medium of exchange and as a form of money. Since 6000 years ago, mankind used gold in form of transactions for trades.
Under the current monetary system, gold is a form of currency, another words gold is money. Gold has been thought of in relation to the US dollar, since gold is priced in US dollars. If gold is taken out of the monetary system, imagine how valuable gold will be during wartime or time of crisis.
Gold price will fluctuate, but its value is priceless in the long run. Looking at how gold preserve our purchasing power overtime, in the longer term all paper currencies devalued but gold will still hold its store of value against time and the value are timeless and priceless.
When is the best time to invest in gold?
There is no best time to invest in gold, you have to ask yourself, do you have gold in your portfolio? If not, you should have some gold in your portfolio. The wise choice is to slowly accumulate your physical gold portfolio by dollar cost averaging. It is also very important to be a season investor yourself, you must diversify your investment with physical gold in your long term investment portfolio.
Why it is better to invest in physical gold and not paper gold or vault storage allocation gold?
Only trust our own ownership of gold which you can physically hold in your hands, that is "physical gold". As a season gold investor, we should have ownership of physical gold with low premium.
Paper gold if it trade against you, you will experience the risk of paper loss and you actually doesn't have physical gold holding in your hands.
Vault storage allocation gold is stored with a company warehouse which they claimed allocation ownership of gold to the owner who sign a paper contract with them. The gold is still not in your own hands, and it is only a form of paper contract between you and the company which you hold, not physical gold.
Which physical gold holding should I own?
You can go for (Investment Precious Metals) IPM qualifying Gold Coins which are GST exempted or LBMA listed 999.9 Gold Bars, for example Pamp Suisse, Valcambi, Metalor, Argor Heraeus, Rand Refinery, Royal Canadian Mint brands etc.
What is LBMA?
The London bullion market is a wholesale over-the-counter market for the trading of gold and silver. Trading is conducted amongst members of the London Bullion Market Association (LBMA), loosely overseen by the Bank of England. Most of the members are major international banks or bullion dealers and refiners.
The physical characteristics of gold and silver bars used in settlement in market is described by the Good Delivery specification which is a set of rules issued by the LBMA. It also puts forth requirements for listing on the LBMA Good Delivery List of approved refineries.
List of IPM qualifying gold coins
(i) America Buffalo
(ii) Australia Kangaroo Nugget
(iii) Australia Lunar
(iv) Austria Philharmonic
(v) Canada Maple Leaf
(vi) China Panda
(vii) Malaysia Kijang Emas
(viii) Mexico Libertad
(ix) Singapore Lion
(x) United Kingdom Britannia
(xi) Canada Call of the Wild series
(xii) United Kingdom Lunar
(xiii) United Kingdom The Queen's Beasts series
(xiv) Australia RAM Kangaroo
(xv) Australia Dragon Rectangular
(xvi) United Kingdom Royal Arms
IPM (Investment Precious Metal) coin is exempt based on criteria similar to those for IPM bar, ingot and wafer. Coins that qualify for GST exemption must be gold of at least 99.5% purity, silver of at least 99.9% purity or platinum of at least 99% purity; and is or was a legal tender in its country of origin.
Only refiners whose bars have been accredited by LBMA as meeting the exacting standards for trading on the global OTC market appear in the LBMA Good Delivery List.
Gold Price 100 Years History
The historical chart below show the gold prices per ounce back to 1915. Gold has once again proven to be a secured safe haven commodities. Gold price steadily climbed over the last 100 years. During the current turnoil, the value of gold continue to appreciate.
Gold Prices - 100 Year Historical Chart
As a season gold investor myself for over 12 years, physical gold is always a must have investment in my portfolio. Ownership of physical gold is the only way to build your physical gold wealth.
Gold Price Singapore Pte Ltd provide physical gold in various form, we aim to provide the best value of your physical gold purchase. We carry IPM qualifying Gold Coins which is GST exempted and LBMA listed brand 999.9 Gold Bars. You may shop at our physical gold online store at www.buygold.sg and we provide Free Delivery in Singapore. For order at our store counter and self collection, you may arrange an appointment with our sales person, Billy at (65) 9781 8351.