If you are looking for a highly stable investment that only grows in value each year consistently, than you are looking for an investment in gold. Gold continues to increase in value at a rate of 2% annually. What this means, is that if you invest in gold now, in a year from now your gold will be worth 2% more, and this keeps compounding annually.
Keep in mind that although this 2% increase in value may sound so small, it is consistent and can be relied upon for many years to come.
There are many different ways that one can actually invest in precious metals like gold. For starters, you can begin by purchasing scrap gold. Scrap gold can be in the form of rings, bracelets and other forms of jewelry which may be solid or even plated. In order to get anything of value from gold plated items, you will need to have a lot of it.
Many people often choose to dissolve the base metals out from the plating and keep only the plating in order to save space. Once you have enough, the purification of gold plating can be done with the help of aqua regia.
Next you have the option of investing in bullion. Bullion gold is that which has already been purified to more than 99.5% gold that is then cast in various shapes. You can purchase bullion in plates, coins and bars.
In most cases, this bullion will actually be 99.9% fine as only good delivery bars are usually 99.5% pure. When you purchase bullion, it will most likely be stamped and also come with a certificate of authenticity.
More and more people however are choosing to invest in gold online today. In order to do this, one has to open an online investing account with anyone of the many online brokers. From this account, you will have the ability to start your investment in gold by choosing to either purchase certificates or invest in funds.
Certificates are the actual purchase of a portion of a lot of gold that is stored in a vault somewhere. This gold is usually in 400 ounce bars known as Good Delivery bars and are kept in certified vaults to ensure that the purity and integrity of the gold is maintained. Buying a certificate is like buying a small share of one of these large gold bricks.
Funds are a little different though. A gold exchange traded fund which is more commonly referred to as an ETF is a pool of investors. In order to make short term profits in an investment which has very little fluctuations in price one needs to have a lot of leverage. A fund is a pooling of monies in order to gain the leverage needed to trade tons of gold at a time.
When it comes to a long term investment, one should only invest in the actual gold directly. This can be through the purchase of physical gold or gold certificates. However, if one wants to make short term gains in their investment in gold, then they should instead make use of the gold exchange traded funds. Keep in mind that ETF do eventually fall so it is important that you do not try to invest in them for any kind of long term gain.
Remember, that while gold is a very stable investment, like any investment there is the inherent risk of losing your investment. If you have invested in a fund that goes belly up, then it is possible to lose everything.
At the same time, even though gold increases in value by an average of 2% annually, the rate of inflation has increased at a rate of 3%. While you will get more money when you sell the gold later, the money will not go as far due to inflation. Always be safe and make sure you research any investment before making any final decision.Dan Craig