Investment
Gold is usually seen as the ultimate symbol of wealth and security, but did you know there’s more to gold than meets the eye? From bars and coins to digital gold accounts, each type has unique traits that affect its value and usability. Let’s break it down so you can make more informed decisions before buying!
How does weight affect gold investments?
Gold is sold in standard weights, ranging from small gram bars like 2.5g, 5g, or 10g to larger bars weighing a full kilogram (1,000g). If you’re new to gold, a one-ounce bar (around 31.10g) is often a popular choice. It’s big enough to hold value but small enough to handle.
Smaller weights, like 2.5g or 5g bars, are easier on the wallet upfront but typically have higher premiums per gram. They’re particularly useful if you ever need to sell a smaller amount of gold, as you won’t have to part with a larger bar or an entire ounce. Larger bars, on the other hand, offer lower premiums per gram but require a bigger initial investment.
The good news is that gold comes in a variety of weights, providing options that fit your budget and financial goals, so you can build wealth at a pace that matches your income and investment appetite.
Why does the gold manufacturer matter?
Not all gold bars and coins are created equal. The manufacturer can influence the price you pay and how easy it is to resell your gold later. Here’s a closer look at some of the big names in gold:
PAMP (Produits Artistiques Métaux Précieux): Based in Switzerland, PAMP is known for its intricate designs, such as the Lady Fortuna, and advanced anti-counterfeit technology like VeriScan. PAMP products are recognised worldwide for their quality, often commanding higher premiums. This global recognition can contribute to strong resale value.
The Royal Mint: Based in the UK, The Royal Mint has a long history of producing gold coins and bars. Its products, such as the Gold Sovereign and Britannia coins, are widely recognised and valued for their blend of heritage and craftsmanship.
Emirates Gold: Based in Dubai, Emirates Gold is known for producing high-purity gold bars at competitive prices. However, it’s important to note that the resale value of Emirates Gold products typically doesn't match the higher premiums commanded by PAMP or The Royal Mint due to differences in global recognition and market demand.
How does purity impact gold’s value?
Purity is one of the most important factors when it comes to gold. Measured in karats, 24K gold is pure gold (99.9% purity), making it ideal for investment. Lower karat gold, like 21K or 18K, is mixed with other metals for durability, which is why it’s more common in jewellery.
What’s the difference between the gold Lira and the gold ounce?
If you’re comparing gold coins, it’s essential to understand how they differ. Take the Rashadi Lira and the English Lira, for example. Both are made of 22K gold, but the Rashadi Lira weighs around 7g, while the English Lira is slightly heavier at about 8g. In contrast, a gold ounce is 24K gold and weighs 31.10g. These differences affect their value, selling price, and resale value.
How can you invest in gold without owning it physically?
If you think owning gold means buying physical bars or coins, think again. Digital gold accounts provide a modern and innovative way to invest in gold. They allow you to buy, hold, and sell gold virtually without needing physical storage.
So, if you're looking for a hassle-free way to invest, digital gold accounts might be the answer. Bank al Etihad offers a virtual gold account, making it simple to invest in gold without the challenges of physical storage. You can even start with as little as around 21 JOD, making it a convenient choice for beginners or seasoned investors alike.
Ready to get started? Follow the steps here to open your account today!
Why is gold considered a good investment?
Now that we’ve explored some different forms of gold and how to invest in it, let’s look at why gold is often viewed as a reliable and valuable investment.
- Hedge against inflation: When the cost of goods and services rises, the value of paper money can decrease over time. However, gold typically maintains or increases its value during such periods, making it a strong safeguard against inflation.
- Safe haven during uncertainty: In times of economic instability or geopolitical tension, gold is often seen as a stable and secure asset. Unlike stocks or currencies that may fluctuate wildly, gold tends to retain its value, providing reassurance to investors during volatile periods.
- Liquidity: Gold is one of the easiest assets to convert into cash. Whether in the form of bars, coins, or digital holdings, it can be sold quickly and efficiently, ensuring that you always have access to funds when needed.
Now that we’ve explored some types of gold and how you can invest in them, it’s clear that gold offers something for everyone. Whether you’re drawn to traditional physical bars and coins or the modern convenience of digital gold accounts, gold remains a timeless investment.
Its ability to hedge against inflation, provide stability during uncertain times, and offer liquidity makes it a valuable addition to any portfolio. However, investing in gold isn’t a one-size-fits-all solution. Thorough research is important to understanding how you can invest in gold and determining which option best aligns with your financial goals and risk tolerance. By staying informed and making thoughtful, well-researched decisions, gold can become a reliable and rewarding asset for years to come.
