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The Best Way to Invest In Gold 2022

The Best Way to Invest in Gold 2022

Gold has been a valuable asset class for centuries, and is an excellent investment choice for both current and future investors. There’s no question as to why we refer to something great as the “gold standard”–gold’s stability contributes to its performance as an asset class, hedging against systemic risk and depreciation, and inflation. For this reason, it is often compared to cryptocurrencies, but there are several key differences between the two that make gold a more appealing investment option. In this blog post, we will explore the history of gold, its current value and performance, and some of the most popular ways to invest in it.

1. How does investing in gold help to diversify an investor's portfolio, and what are the risks associated with doing so?

Aiming to help preserve wealth with a relatively liquid asset that can navigate risk amid market crashes, geopolitical stress, or sustained dollar weakness, investors have frequently utilized gold tactically in their portfolios. In addition to these tactical advantages, however, gold may also be able to fulfill a longer-term strategic role as seen by the fact that it has served as a fundamentally diversifying asset.

With its extensive advantages that may support strategic investing efforts over various business cycles, gold has the ability to improve portfolio creation techniques on a number of fronts. Its principal advantages include risk management, wealth preservation, and capital appreciation. Gold's consistency has the potential to shine during periods of high volatility and market turbulence, becoming less connected to traditional equities and potentially acting as a stabilizing force for portfolios that can assist reduce drawdowns.

Due to gold's historically favorable returns during periods of great volatility and market turbulence, as well as its poor correlation to many traditional markets, it has developed a reputation among some investors as a "safe-haven” asset. Gold has traditionally been a successful source of portfolio diversification, with its low correlation historically increasing over time, in contrast to many other real assets that have gone quite in the opposite way, more closely aligning with movements of conventional equities and bonds.

2. What are some of the most popular ways to invest in gold, and how do they differ from each other?

There are several popular ways to invest in gold. Gold can be purchased directly through Gold Exchange Traded Funds (ETFs), Gold Mining Stocks, or Gold Bullion. Gold ETFs are a popular choice for investors because they offer exposure to gold without having to physically own it. Gold mining stocks are another popular choice, as they offer investors exposure to the companies that mine gold. Gold bullion refers to physical gold bars or coins that can be purchased and stored.

3. How has the price of gold been performing over the past few years, and what might this mean for investors going forward?

The value of gold is determined by a number of factors including its rarity, industrial applications, and desirability. Gold prices have fluctuated greatly over the last 20 years but have generally trended upwards. In 2000, one ounce of gold was worth around $280 USD. In 2010, one ounce of gold was worth around $1300 USD. And as of 2020, one ounce of gold is worth around $1700 USD. Daily gold prices are influenced by a number of factors including economic stability, inflation, and central bank policy.

4. What are some tips for buying gold as an investment, and where should investors go to get more information about this type of investment?

Gold is a valuable asset class with a long history. Gold prices have been on the rise in recent years, making it an attractive investment option for both current and future investors. There are several popular ways to invest in gold, including Gold ETFs, Gold mining stocks, and gold bullion. 

Gold ETFs and digital gold have extremely similar characteristics. Trading occurs at market pricing even if you don't need to worry about its purity and resale worth, and you can buy digital gold for as little or as much as you want, however many increments you need. The sole distinction between the two is that digital gold offers the option of physical delivery, whereas gold ETF does not.

Gold ETFs, as they are not connected to real gold, cannot always be converted to physical gold. Additionally, if this is an option, the company or holder could charge extra converting fees.

While digital gold is very popular outside of North America, particular in countries that gift or trade gold on auspicious occasions (like India and China), it is small market with rapidly growing popularity. Matador Network is revolutionizing the gold industry by bringing it to the digital era. Matador is a DTC company that sells premium gold, such as ESG gold, directly to retail using Matador’s proprietary mobile platform. Installment plans define the Matador experience, enabling buy now, pay monthly for gold. It also enables retail gold buyers to buy/sell gold in a 24/7 marketplace with the best pricing, user-interface, and payment terms.

Register for early access to the Matador app to buy and sell your gold digitally, all from the comfort of your phone or mobile device., with the app launching in later summer 2022.

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