- Personal Finance»
- Investing in Stocks, Bonds, Real Estate, More
Investing your money in gold
Invest your money in a goldmine!
With the poor economic situation just now, especially within in the Eurozone, it's a difficult time for many people. A big worry for many is that their money just isn't safe in the banks, a fact which is true in Cyprus just now. However, if your money isn't safe in the bank, and it's not safe in your home, where else can you put it?
You could invest in property, although with the current climate this would be a poor choice unless you have a lot of money to burn. You could also invest your money in shares. The problem with this is that you could invest £100 one day, and by the next, your investment could be effectively halved.
One way that you can safeguard your money is by buying high quality gold! Unlike currencies which may crash and lose their value over time, gold has consistently risen in value since the 1970's!
As a good example, in 1970, an ounce of gold was worth £14.55 whereas today it's worth an astonishing £1055, which is an increase of over 7,100% Now imagine that you're starting your first job and you're planning on investing in a pension. I'm in no way suggesting that you don't invest in a pension. However, supposing you had to buy an ounce of gold today at the price and over the next forty years the gold increased in value by 7,100%. You could potentially have a chunk of gold worth just under £75,000. Of course, this is speculation and it may never rise by this amount, but even it it you tripled your investment and kept it in your home, it's a pretty good setup and your money is safe away from the banks.
There's nothing to say that you can't buy more than once ounce of gold, either. You're free to buy as much as you want.
What kind of gold?
When people think of investing in gold, the first thing that comes to mind is a huge gold brick, reminiscent of the Bond movie Goldfinger.
If you live in the UK, there's only one form of gold I'd suggest you should invest in. This is gold coins, such as British sovereigns, and also gold versions of British currency.The big question though is why should you invest in this? There are three answers to this:
- In the UK, gold is VAT exempt, so you'll never pay tax on it when you buy it
- Gold coins are either made from 22 or 24 carat gold. This means that they are of an extremely high purity and thus when it comes time to resell it, you should make a large chunk of money on it.
- In the UK, when you sell gold British coins, you don't need to pay capital gains tax on this because it's classed as legal tender and thus you can't be charged tax for selling currency. In comparison, you would be expected to pay capital gains tax when you sell a gold brick. Although whether you do or not is your own choice.
However, as mentioned, it is really expensive to buy the gold in the first place. Many people could feel uneasy in investing their hard earned wage on such a long term investment. One way that you could buy gold though is using the money you earn on HubPages to buy this gold!
If you're not already a HubPages member, you can sign up at this link and start writing articles and making money today. It's a great investment in your future.