If you own none, yes. I can personally attest to the fact that many gold critics, including some government officials, own some gold. You don’t have to be a doom and gloomer or a conspiracy nut to buy gold. Gold is uncorrelated to the stock market, which balances your portfolio and reduces both risk and volatility. Risk is high for a stock market correction, and also for some type of crisis due to excessive debt, money printing, abnormally low interest rates, etc.
For OFWs, most especially, you are the ones who are gravely affected whenever there is a decline in the currency of the country where you are working at. This is because it would also mean that the money you are going to remit for your family would have a lesser value in peso terms. This is precisely why for an Overseas Filipino Worker, it is really advisable to invest more rather than to spend. And what a better form of investment, but in the form of gold. But why gold?
Unknown to many, gold is more than just a precious metal which serves as a jewelry, as it is also a good investment. When you purchase a gold jewelry as a gift to your loved one, for example, you are not just showing how much you appreciate them. Also, in so doing, you are taking a practical step to smart investment because in times of emergency, since gold’s monetary value would not easily depreciate, they can have it pawned or sold so as to use the money in times of financial crisis. What more? Even if the market crashes, or inflation happens, gold keeps it value. But you must also take note not to purchase gold solely on the basis of wanting to invest, as gold-plated jewelries carry with them cherished moments in your life.
Truly, gold is a good investment, most especially for OFWs. But then, this would lead to further questions such as, “How do I invest in gold? And what are the tips I should know when investing?” This article would delve deeper into these questions. Now, if you wanna know the answer, just keep scrolling.
How to Invest in Gold
There are many ways in which you can invest in gold. Here are some of the best investment opportunities:
1. Purchasing Gold Bullions (coins, ingots, bars)
Purchase of gold bullions is a great option and the easiest to do if you are after a long term investment. What makes this advantageous is that you get to own the gold directly without any intermediaries. Gold bullions are available from government mints. Also, there are precious metals retails specialists, private sellers, and coin dealers of gold to which you can purchase from.
If there is a downside of owning gold bullions, however, it is that you will have a hard time in finding a secure way to have it stored. Also, some gold dealers may charge premiums. So, in case you plan to sell, you may receive less than the prevailing price. However, since gold’s monetary value occasionally increases over time, this is not much of a problem. Moreover, unlike other luxury products, such as posh phones or cars, whose prices drop over time, gold keeps its value.
2. Investing in gold-plated jewelries
The pros and cons of investing in gold-plated jewelries is actually almost the same as when you purchase gold bullions. The downside, however, is different in that it is subject to wear and tear, therefore, its price may decrease depending on the jewelries’ current state.
3. Through Gold Mining Stocks
Buying gold directly cannot guarantee you any income, at least short term wise, but gold mining stocks do. In the first place, they are active businesses. You simply have to have a grasp on basic stock investing, which you can learn on your free time. But if you want a more hands-on approach, you can hire lecturers to help you. If you don’t want to spend money, there are available free lectures and courses online. This may cause you some time, yes, but it’s definitely worth the effort.
4. Buying Shares of Gold Streaming Companies
Gold streaming companies are not the ones who mine the gold, but rather they are the ones who finance the gold mining companies in exchange of the mining companies’ gold production share. But what makes gold streaming companies a good investment is that they not only have the advantage of having a better overview of the gold prices, but also they get to have an income from their financing arrangements. There are a lot of streaming companies you can choose from, such as Royal Gold or Franco Nevada, you just have to know what suits you and your goals.
Necessary Tips to Know When Investing
1. Confirm the authenticity of the gold jewelry you are purchasing.
It is better if you ask for a certificate from an internationally recognized gemological institute or laboratory.
2. Know the Basics of Investing in Stock Markets
As mentioned previously, you have to be knowledgeable about stocks, most especially if you are eyeing on investing in gold mining ones. Truly, some people refuse to invest in this investment opportunity as they think that the process is too complicated. But actually, it’s something you can learn at home, or online. Only if you give it proper focus and effort, learning the basics will be as simple as you never thought it can be.
Bringing Jewelries to the Philippines
In case you are wondering if you might ever encounter a problem in bringing money, or jewelries worth a thousand of money, to the Philippines, yes, you might. The Philippine Customs Regulation require that you declare all the money, coins, jewelry and collectibles you bring to the Philippines if its worth exceeds $10,000 in US currency. If you do otherwise, you will have to pay for corresponding fines and sanctions.
Just an advice, if you own a gold-plated jewelry to which you invested in, and you are at the airport check-in, it is better if you just wear it in your body, rather than having it put in an encased jewelry box. This is because, as their way to prevent smuggling or anything like that, they may require you to show any receipt or proof that you own it, which can be pretty inconvenient in your case even if you are the real owner.