Gold: A Safe Haven Investment for Times of Crisis and Inflation? But Is It the Best Way to Build Wealth in the Long Run?

The price of gold is on the rise due to geopolitical tensions and fears of inflation. As a result, savers often turn to coins and bars as a way to invest in gold. The price of gold has been steadily increasing, reaching record highs, and many see it as a safe haven for their investments during times of crisis and inflation.

However, while gold may be seen as a reliable investment option in the short term, it may not be the best way to build wealth in the long term. Financial advisors typically recommend that investors allocate a small portion of their assets, around 3 to 10 percent, in gold. 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 for buyers to consider price ranges and understand that 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 for buyers to purchase gold from reputable sellers to ensure authenticity and reliability. Additionally, buyers should pay attention to storage costs and consider how they want to store their precious metal. Gold bars should have the LBMA label to ensure they can be traded in Switzerland and other European countries. Moreover, buyers should be aware of the VAT exemption for gold coins and bars in Switzerland.

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