Do you want to have a good time? Are you interested in your future? Then you must not forget about long-term and reasonable investing. Avoid risky speculations, don’t be stingy and carefully select individual components of the portfolio. Are you tempted by gold? We know what you need to look out for when buying it.
A universal store of value
Gold has been considered a universal store of value for hundreds and hundreds of years. For that reason, it is widely owned by banks and even entire states. This is precisely why it is bought not only by the rich, but also by average Czech investors.
And that brings us to the fact that the whole thing is a bit more complicated in our parts. Why? We will answer you right away – no Czech mint produces investment gold in the form of gold bricks. Not even a Slovak mint is among the producers of world-renowned gold bars.
This is precisely why all gold bars/bricks must be imported to us from foreign countries, most often from Switzerland. During the entire process, a number of companies take turns, each of which wants to earn a little.
Choose the right suppliers
As a result, we not only have a slightly smaller selection of gold than abroad, but we also suffer from large price fluctuations. Just the price of gold varies by more than 10% between merchants!
This means that, for example, you can buy a gram ingot from the most famous Swiss refinery, Argor-Heraeus, from one merchant for CZK 1,750, while from another it costs just CZK 2,100. Can you see the difference? In the case of heavier ingots, it is of course even more striking.
Unfortunately, simply tracking the value of gold on the international exchange is not enough. You also have to keep an eye out for different offers from domestic merchants.
Even the owners of one of the most famous Czech stores, Zlate-mince.cz, commented on this phenomenon. They claim that an absolutely identical ingot should cost exactly the same across the entire Czech Republic. It is in their e-shop that you can buy gold products at one of the lowest prices in our country.
For an idea, open the website under the link inserted above. You will immediately see how much gold can be bought for.
Golden strategy
For medium to long-term investments, timing the market is not a good idea. The vast majority of investors will especially appreciate the so-called “buy and hold” approach. This applies both to stock ETFs and, of course, to the yellow metal. Both components of the portfolio offer long-term and stable growth (do not confuse long-term growth with short-term volatility, which is natural).
That is exactly why it pays to rely on the proven tactic of regular purchases. Several times a year (for example, quarterly) you determine the exact day during which you will purchase the desired instruments (in our case, gold). In this way, you will progress for a limited time, whether it is 15, 20, 25, or 30 years.
After the given period, you will have accumulated really enviable savings that will help you in retirement, when buying a house or providing for children.
Don’t be afraid of crises
Do you have an investment horizon of, for example, 30 years? Over such a long period of time, there will be a number of adverse situations that will affect stocks, ETFs, bonds and other commodities. It is not unusual for the given opportunities to drop by as much as 40% over several years. After that, you will have to wait until it returns to its original value before the crisis.
For that reason, you must have a part of your portfolio composed of gold. The yellow metal relatively reliably resists all economic pitfalls. It thus acts as a counterbalance to the rest of the strategy. When stocks, ETFs and bonds go down, gold usually goes up. It has proven this quality countless times.
Experts say that about 10-15% of the total investment property should be this precious metal.
