Gold Rises Amid Geopolitical Tensions: Tips for Investing in the Precious Metal

As geopolitical tensions and fears of inflation continue to rise, the price of gold has been steadily increasing, reaching record highs. Financial advisors typically recommend that investors allocate a small portion of their assets in gold, around 3 to 10 percent, as a way to protect their investments during times of crisis and inflation.

There are various ways to invest in gold, including funds, structured products, and physically backed ETFs. However, some investors prefer to own physical gold in the form of coins and bars. When buying gold, it is important to consider the price ranges as there are no real bargains in the precious metals market. Gold dealers typically have buying and selling prices for bars and coins, so buyers should be aware that they may initially be in the red after purchasing.

Popular gold coins like the Maple Leaf, Krugerrand, and Vienna Philharmonic are widely used and easily sold. It is crucial to purchase gold from reputable sellers to ensure authenticity and reliability. Buyers should also pay attention to storage costs and consider how they want to store the precious metal. Gold bars should have the LBMA label to ensure they can be traded in Switzerland and other European countries. Additionally, buyers should be aware of the VAT exemption for gold coins and bars in Switzerland.

In conclusion, investing in gold can provide a safe haven for investors during times of crisis and inflation but may not necessarily build wealth in the long term. Financial advisors recommend allocating a small portion of assets in gold as part of a diversified investment portfolio.