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The Benefits of Investing in Physical Gold

gold bars

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The aftermath of the 2008 global financial crisis lingers in the mind of many Americans. It was one of the worst recessions in recent history. Investors lost over $ 7 trillion worth of stock.

For many investors, the massive financial loss was an eye opener. They realized that even the best stocks could lose value tremendously during a crisis. And this highlighted the importance of investing in more stable assets.

Unfortunately, many assets are not immune to hard economic times. However, investing in physical gold has stood the test of time over and over.

So are you skeptical about buying stocks, bonds, or even real estate? Here are the top benefits of investing in gold.

Gold Is the World's Most Valuable Precious Metal

Gold is undisputedly the highest-priced precious metal. Experts use its price to benchmark other metals like silver and platinum. The reason why gold is precious is that it's rare.

Estimates show that all the gold people have mined would fit into 3 Olympic-sized swimming pools. It is about 205238 metric tons. And much of this gold is not available for trade because it's held as reserves by central banks.

Gold is an excellent way to diversify your investment portfolio. It's a valuable asset that does not correlate with other assets such as stocks and bonds. Hence, when the stock market crashes, gold prices could potentially rise.

Gold Is a Safe

Unfortunately, stocks, money markets, and bonds could be volatile. They could lose value during an economic recession.

The good news is that this is not the case with gold. Gold prices have always been relatively stable. Its prices often increase when the stock market crashes. And part of this is because investors see gold as a haven asset.

Investing in gold is a great way to protect your investment portfolio from market volatility.

Gold Is a Tangible Asset

You buy a piece of paper when you invest in stocks or bonds. These are intangible assets. And if the company goes bankrupt, your investment could be worthless.

Gold is different. It's a physical asset that you can touch and feel. And even if the economy crashes and gold prices plummet, you can still sell it for cash.

Gold Is Durable

Gold is one of the most durable elements on earth. It does not rust or tarnish over time. And it's not affected by other elements.

Moreover, gold is also scarce. As mentioned earlier, all the gold ever mined in the world would fit into 3 Olympic-sized swimming pools. And with annual gold production levels only increasing by 1%-2.5%, it is highly unlikely that we will find much gold soon.

As a result, this precious metal is a valuable asset you can hold for many years.

Gold Is Immune to Inflation

Inflation has the potential to chip on almost any type of investment. Even real estate and stocks are not safe from the effects of inflation.

But gold is unique. Gold prices have always been relatively stable. And even if there is inflation, gold prices will eventually catch up.

Investing in gold is a great way to protect your investment portfolio from the effects of inflation.

Gold Is a Time-Tested Investment

Civilizations have valued gold for centuries. These stretches from ancient Greece to Egypt. And even today, gold is still considered a valuable asset.

We can attribute its value to the fact that gold has always been rare. It's not likely that we will find more gold anytime soon. As a result, this precious metal will continue to be valued by future generations.

Investing in gold is a great way to ensure that your investment portfolio will be valuable for many years.

Formidable Liquidity

The chances are that you will need cash quickly at some point in life. If you have invested in real estate, you may not convert your property into cash as soon as you wish. Stocks may not be the best option, as you may have to wait for the right buyer.

Gold, on the other hand, could be quickly sold for cash. You can go to a jewelry store or a gold dealer and immediately get your gold. Such qualities make gold one of the most liquid assets you could invest in.

As an investor, you should always have some cash on hand to take advantage of opportunities as they arise. Therefore, you should also invest in assets that you can quickly convert to currency if necessary. Investing in gold is a great way to achieve this.


You will find that the learning curve of investing in certain assets is quite steep. For example, you may need to understand the intricacies of the stock market before you start buying stocks.

The good news is that gold is a straightforward asset to invest in. You don't need to be an expert in investing in physical gold. You can still put your money in gold even if you are a beginner investor.

Moreover, there are many ways to invest in gold. You can buy physical gold, invest in gold mining stocks, or even ETFs. No matter which method you choose, you can be sure that investing in gold is quite simple.

Also, many dealers in the US are always eager to sell gold in various forms. Be it jewelry or gold coins, you can find it. If you are wondering how to store your gold, a deposit box at the bank will do.

When it comes to buying gold, you have many options. You can buy it from a dealer, a jewelry store, or even online.

The bottom line is that investing in gold is quite simple. Even if you don't have much experience with precious metals, you can still put your money in gold. However, you want to purchase gold in its physical form, not EFTs.

Investing in Gold Is a Great Way to Save for the Future

If you currently have a regular income, it is vital to save for your future. The truth is that you never know when you might lose your job or encounter financial difficulties.

Buying gold is a great way to save for the future. And this is because gold always has value. Gold will always be worth something no matter what happens in the economy.

As a result, investing in gold is a great way to ensure you have money when you need it. Gold coins will be brilliant if you plan to purchase this precious metal. But you want to get them from a bank because or renowned dealer they have a quality guarantee.

Gold Is Not Demanding in Terms of Maintenance

Many forms of investments are demanding. For example, if you buy stocks, you need to monitor them closely, which takes time. Real estate is even much worse because property requires regular maintenance.

On the other hand, gold is not demanding in terms of maintenance. Once you have purchased it, you can store it and forget about it. Of course, you will need to check on it from time to time to ensure that it is still there.

But overall, gold is a very passive investment.

You Can Easily Pass Gold to the Next Generation

If you invest in property, you accept the tedious process of transferring it to your children. The same is true for other investments such as stocks and bonds.

The good news is that gold is easy to pass on to the next generation. All you need to do is put it in a safe place and give your children the location of the gold when they are ready. And this is much simpler than going through the hassle of transferring stocks and other assets.

Gold Is a Great Form of Collateral

Financial institutions are happy to loan out money to investors with solid assets. They know they can always seize the assets if the borrower defaults on the loan.

Gold is an excellent form of collateral. It is easy to value and easy to sell. As a result, if you ever need to take out a loan, you can use gold as collateral. Hence, it is a great way to get access to money when you need it.

How to Invest in Physical Gold

If you have decided to invest in precious metals such as gold, you might be unsure how to do it. Physical gold can be confusing for beginners. Besides that, there are a lot of scammers who may try to defraud you by selling fake gold.

In this section, we will cover physical gold investing tips;

Types of Gold to Buy When Investing in Physical Gold

First, you need to know the type of gold bar you should buy. There are several options available.

Gold Bars

The best approach is to go for the most popular gold bars from world-renowned brands. These bars will be much easier to sell if the need arises. Moreover, these types of gold will come with a quality guarantee.

Huge gold bars are much harder to come by, and they will need a higher initial capital. If you want to invest gradually, focus on purchasing smaller bars. Nonetheless, you should not be limited to a particular size of a gold bar; it all depends on the amount of money you want to invest.

Additionally, you want to go for gold bars that are 99.9 % pure. The advantage of this type of gold is that most countries remove the VAT from it.

You also need to know how much you will pay for gold bars. The price of gold tends to differ at different times. Two factors affect them.

The first one is the spot price. It is the current value of gold that investors have traded at this moment. That is why at one point, you will find the price of gold is at $1800. Then a day later, it will rise to $ 1850.

Sellers quote the price of physical gold at a troy ounce equivalent to 31.1 grams.

The next factor is the physical premium. You will pay a mark-up cost on different types of gold bars. For instance, the price of a 1 Oz gold bar could be $1800. However, you may end up paying $1900 for it.

The extra $100 will be due to the physical premium, which is essentially the cost of refining and shaping the gold bar.

Gold Coins

Another great option to invest in is the gold coins. These are government-minted bullion coins such as the American Gold Eagles and the Canadian Gold Maple.

Gold coins have an intricate design. For this reason, their physical premiums tend to be higher when compared to gold bars.

The advantage that gold bars have is that their premiums can go lower. And this will allow you to save more while stacking more grams of gold.

Where to Buy Gold

There are several places where you can buy gold. You could purchase it from your local bullion dealer or coin shop.

If you don't know where to find these dealers, get online and type "bullion dealer in New York" or any location. Once out, find a place, call them and ask about the type of gold bars or coins they sell.

Also, you could buy gold from an online bullion dealer. These sellers tend to have a wide range of gold. But their prices could be higher due to the shipping costs involved.

The best part is that they have clearance and seasonal sales occasionally. And you could get gold at better prices in such a time.

Some banks also sell gold directly. Their pricing structure is more transparent, and other aspects are standardized. A bank may require you to create an account for the transactions.

Invest in Physical Gold

In terms of stability, value and safety, no other investment can match gold. So, adding gold to your portfolio will be a great idea for diversifying your portfolio.

Are you thinking of investing in physical gold? Sprott Money is one of the most trusted dealers in precious metals. If you buy gold from us, you will not only get competitive prices but also have peace of mind.

Contact us today to learn more about our products and buy high-quality gold. 

Don’t miss a golden opportunity.

Now that you’ve gained a deeper understanding about gold, it’s time to browse our selection of gold bars, coins, or exclusive Sprott Gold wafers.

About Sprott Money

Specializing in the sale of bullion, bullion storage and precious metals registered investments, there’s a reason Sprott Money is called “The Most Trusted Name in Precious Metals”.

Since 2008, our customers have trusted us to provide guidance, education, and superior customer service as we help build their holdings in precious metals—no matter the size of the portfolio. Chairman, Eric Sprott, and President, Larisa Sprott, are proud to head up one of the most well-known and reputable precious metal firms in North America. Learn more about Sprott Money.

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