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What comes to your mind when you think about gold?
Do you picture a vault full of gold bars stacked one on top of the other? Perhaps you are picturing a plethora of gold coins and gold jewellery similar to what you would find after an adventurous treasure hunt.
Whatever it is that comes to mind when you think about gold, the fact remains; gold was, and still is, one of the oldest and most reliable means of exchange known to man. That is why it is a sought after asset all over the world.
Gold still leads the charge
In fact, emerging technologies like Bitcoin are mimicking gold’s properties in an effort to create a digital gold.
Unlike currencies, however, gold naturally has limited supply guaranteeing its increase in value over time. Even as the overall supply increases with more mining, this process is very slow thus preventing an oversupply of gold.
As a result of this scarcity, gold’s traditional reputation as a hedge against inflation still stands even today.
Challenges to buying gold in today’s market
So with that in mind, what is the best way to invest in gold?
Obviously, buying gold is not as easy as running down to your nearest store and ordering a few grams of gold. Buying physical gold comes with a high cost that emerges from production, shipment and storage costs.
Fortunately, buying physical gold is not the only way to invest in gold. Various options have emerged including gold exchange-traded funds, gold mutual funds, and even gold futures and options markets.
However, these existing solutions are still marred by hurdles and barriers that just make investing in gold much riskier.
Gold exchange-traded funds
For instance, as one of the solutions available to investors looking to get into gold investing, gold exchange-traded funds have become quite popular recently. This rise in popularity has mostly been attributed to the proclivity of younger investors towards investing through apps.
Although gold ETFs offer the convenience of speed while relieving the buyer from having to worry about the security of storing physical gold, only a few ETFs hold gold bullion as their one and only asset.
Most ETFs are not fully redeemable and therefore investors don’t get direct ownership of physical gold.
In fact, if you are a large investor with a long-term investment timeframe, you will easily discover that most gold ETFs are actually pricier than buying and storing physical gold.
Gold mutual funds
Compared to gold ETFs, a more direct way of investing in gold is through gold mutual funds. This option is a great alternative to investors who are hesitant about investing in gold bullion but still want exposure to the precious metals industry.
Most of these funds hold large portfolios of gold stocks in gold mining companies. The best gold mutual funds hold gold stocks with mining companies that produce known quantities of gold annually.
Investing in gold mutual funds with stocks in mining companies is more of a conservative play and most investors hardly have access to the best performing mutual funds.
Plus, with concerns about climate change gaining traction, this business model might not be a decent option for the long term.
Investing in gold futures and options market
If you are a sophisticated investor, one of the best ways to invest in gold is to speculate on its price through the futures and options market.
However, to win in the options market, you have to be an experienced investor.
Although options allow you to use a small amount of capital to control a large investment portfolio, the options expire within a fixed time frame making the investment very risky and complicated.
In fact, studies show that as much as 60 percent of all bought options expire. This high level of risk is something that is recognized even by seasoned options investors.
So what is the best way to invest in gold?
Despite the challenges in the current market, buying physical gold is still the safest bet in a world economy where most jurisdictions are overprinting money. However, having gold bullion in your house presents even more challenges in terms of security or the risk of a natural disaster.
What if there was an easy, secure and transparent way of investing in physical gold. Well, that is where Novem Gold comes into play.
Novem Gold is a company that has been in the business of buying and selling gold for many years. After seeing the countless problems inherent in the precious metals industry, the Founders of Novem Gold (both long-term precious metals and gemstone experts) sought out to create the best way to invest in gold.
Novem Gold is re-inventing the precious metal industry by taking full advantage of existing technologies like blockchain to ensure transparency and accountability in gold ownership.
With a fully redeemable gold backed token (NNN) on the blockchain, investors looking to own physical gold can purchase 100 (NNN) tokens to be entitled to 1 gram of gold.
Final remarks
Thanks to businesses like Novem Gold, buying gold is much easier. You don’t need to be a sophisticated investor or have a lot of capital to get exposure to the precious metals industry. In fact, Novem Gold goes beyond the limitations of a web-based solution with its plans to build brick and mortar commercial stores across Europe and other major metropolitan cities. With Novem Gold buying gold will soon be as easy as running to the store and ordering a few grams of gold.
Novem Gold’s entire approach is based on safety and transparency. Through the use of the NEO’s blockchain, Novem Gold is providing institutional as well as retail investors a transparent gold-backed token project that can handle secure storage and transfer of physical gold.Click here to learn more about Novem Gold and how you can invest in gold in a safe and secure way.
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