Is It Worth Investing in Gold Bullion?

In a world of economic uncertainty, where markets can swing like a rollercoaster, it's only natural for investors to yearn for a safer haven to park their hard-earned money. And that's precisely where gold bullion takes centre stage, beckoning with its time-tested reputation as a stable and enduring long-term investment.

But before jumping on the bandwagon, prudent investors may pause and ponder: Is investing in gold truly the gleaming opportunity it's made out to be?

Why is Gold Bullion a Good Long-Term Investment?

Historically, gold bullion makes a great long-term investment for the following reasons:

1. Wealth Preservation

Unlike paper money, which can be printed endlessly by central banks, gold possesses a unique attribute: its supply is limited. This crucial distinction, coupled with its universally recognised reputation as a symbol of prestige dating, contributes to the long-term stability of gold's value, solidifying its reputation as a valuable asset and stable form of investment.

2. Portfolio Diversification

In addition to wealth preservation, gold serves as a good means for investors striving to build a more resilient investment portfolio. This is because gold is negatively correlated to the stock market, meaning that when the stock market is bearish, having gold among your assets potentially balances out your losses. As such, incorporating gold as a diversification asset enables investors to reduce their vulnerability to economic risks and volatility effectively.

3. Hedging

Above all, gold serves as a reliable hedge against inflation. This is because when inflation rises and erodes the purchasing power of the dollar, the cost of each ounce of gold in dollars rises accordingly. Consequently, investing in gold compensates investors for the impact of inflation by acquiring more dollars for each ounce of gold they possess. This effectively shields individuals against the erosion of currency value caused by inflation.

How to Invest in Gold?

If you decide to buy gold for investment in Singapore, the most common types of gold come in the form of bars and gold coins, each with pros and cons.

For instance, gold bars are generally more cost-effective to produce than gold coins, resulting in a lower premium. The size of the gold bar also influences the premium, with larger bars typically having a smaller premium, enabling you to achieve significant cost savings when you buy in large quantities. However, this option may also reduce the flexibility of your portfolio as selling a portion of your investment becomes challenging since you cannot divide a gold bar like you can split up your coins.

Although Indigo Precious metals offers their clients a solution by converting their physical bars into fully audited pooled gold holdings, allowing clients to sell down any size percentage of their bar ownership at any time.

Additionally, gold coins provide an additional dimension to gold ownership by offering a collectable element. Certain coins, like the Gold Sovereign, may command a good premium if they are in high demand or considered highly sought after, potentially increasing their overall value. In some cases, if there is a significant demand for specific gold coins, you may even obtain a better price when selling them, as in the case of the 1960s, where trading gold sovereigns carried a premium of 40%.

Depending on the clients location and tax exposure, sovereign coins can strongly appeal by the mere fact that they hold a capital gains tax exemption written into tax law, such as UK citizens, and hence demand for UK sovereign coins has a far greater demand.

Invest in Gold Bullion with Confidence via IPM

If you are considering buying gold bullions in Singapore, Indigo Precious Metals is where you can find valuable guidance in selecting the best option for your portfolio and maximising your returns on investment. With decades of experience in asset class trading and performance within the banking industry, our team brings expertise in investment and trading across various asset classes.

We have a deep understanding of precious metals and actively buy, sell, transport, insure, and store gold and other valuable metals like silver and platinum. With our hands-on involvement, you can trust us to provide tailored advice that optimises your investment portfolio.

Above all, our unwavering commitment to providing competitive pricing enables us to offer these precious metals at a cost advantage. By investing in gold through Indio Precious Metals, you can leverage this to maximise your gains. Create an account or speak to our dedicated team today to buy and unlock the full potential of your gold bars and coins.

Protect your wealth; invest in physical gold, silver or other precious metals at best prices from Indigo Precious Metals. Physical delivery across the world.  

Consider the safest option of segregated, allocated vault storage at Le Freeport Singapore with IPM Group.

Disclaimer : The information contained in this website should be used as general information only. It does not take into account the particular circumstances, investment objectives and needs for investment of any investor, or purport to be comprehensive or constitute investment advice and should not be relied upon as such. You should consult a financial adviser to help you form your own opinion of the information, and on whether the information is suitable for your individual needs and aims as an investor. You should consult appropriate professional advisers on any legal, taxation and accounting implications before making an investment.