Gold has a stable value in the long term and is a recommended option to protect personal finances. There are those who opt for physical gold – even jewelry – and there is also the option of making indirect investments in gold.
Since ancient times, investment and savings in precious metals, diamonds and jewelry have been a valid option to protect the value of personal finances gold ira. In times of inflation like the ones we are living in, it is opportune to look for backup alternatives and gold is one: unlike the rest of the currencies, it has historically enjoyed a positive correlation with high inflation.
This trend leads many investors to turn to gold as a safe haven to protect their finances.
Fabián Testorelli, president of Testorelli 1887 luxury jewelry and watchmaking, tells us that if we talk about investing in physical gold, we are mostly referring to the purchase of coins. And he details: a Mexican, for example, has 37.7 grams of pure gold. The coin weighs 41.6 on the scales. “Recently, investors have turned to krugerrands, which contain exactly the amount of gold in one ounce: 31.1 grams, but on the scale it weighs 34 grams because of the alloy it contains to make it 22k, as most are of the gold coins.
He clarifies that each country has its gold coin and that the value of the coins is given more by the gold they contain than by their age.
Another option to invest in physical gold is to buy pure gold bars, which can weigh 50, 100, 500 grams or smaller, 20, 10 and even 5 grams. The price per ounce today is US$ 1,750. A year ago it was at a very similar price.
“There is a possibility for those who wish to invest a smaller amount and that is to acquire laminated gold from half a gram, one gram or more,” adds the expert. He points out that many are looking for the Swiss gold bar, which is the same metal as the rest of the bars, but has its certificate of origin. “You have to keep in mind that whoever sells it must charge a bonus for this certification that, at the time of sale, is not recovered. That is why we always advise investing in traditional gold bars or rolled gold”.
Invest in gold indirectly
In addition to direct investment in gold (involves buying and storing physical gold, such as bars, coins, or rolled gold), there are indirect investments. The latter usually involve the purchase of securities or funds that buy gold for the investor.
It is important to know that if you invest in physical gold, it is important to find a trusted seller. For investment purposes, 21 karats or higher is considered the most desirable, as the purest gold is less likely to tarnish. In addition, you must have a safe place to store it: it can be a safe deposit box or a safe in the house, for example.
Investing in jewelry, a growing trend
According to consulted jewelry stores, more and more inquiries are being made about small pieces of gold, precious stones or watches as a way of saving. Miriam Testorelli, great-granddaughter of the founder of Testorelli 1887, the renowned jewelry and Watchmaking Company that celebrated its 135th anniversary this year, sees a significant growth in inquiries and requirements from the expansion of the digital world and the development of the online jewelry boutique.
“Jewelry and watches are chosen as a safeguard for savings for various reasons. Some of them are the pleasure of using them, how easy they can be moved and the ease with which the heirs can take possession of them for later sale if necessary”, he comments.
Among the best-selling pieces for use and savings are those of the Longines brand. “They have found a formidable twist on their models with the development of the sports line, which can be used with ease”, reports Miriam, adding that Omega and Rolex are also highly chosen by their clients.
Women also opt for pieces in white gold with diamonds and colored gems, rubies, sapphires and emeralds or larger pieces with gems such as citrines, blue topaz and amethysts. “For them, pearls have also been revalued as an elegant and sophisticated option,” he specifies.