What are the best ways to invest in gold?

Many citizens have turned to gold as the best way to preserve the value of money and a highly secure vessel for savings.

Many reports indicated that there is a general trend in many countries to buy gold, as the market is witnessing a significant increase in demand, whether at the local or global level from investors, and this coincided with increasing fears of the repercussions of the war in the region, the state of uncertainty, and the impact of its severity on the crisis. economic, which prompted citizens to buy gold.

The most prominent ways to invest in gold 

With the increase in demand for gold for investment, Al-Watan reviews the most prominent and best ways to invest in gold at the present time.

Najib Naguib, Secretary of the General Division for Gold and Gold Jewelry, at the General Federation of Chambers of Commerce, said that gold is considered one of the most prominent investment methods that is characterized by ease and uncomplicated, and it is constantly growing, and is summed up in selling when the price rises and buying when the price falls.

He added in press statements that the best way to invest in gold is bullion, especially since its manufacturing is very low, because it is made of the most pure 24 karat, and it is available in many different weights to suit all categories.

Fractional gold.. investment and decoration

Naguib pointed out that investing in broken and used gold has become one of the options currently available to many citizens, and it can be used as decoration and investment due to the clear decline in manufacturing.

He pointed out that one of the most prominent methods that have spread widely recently are gold-backed investment funds, through purchasing a document or a share in an investment fund, which is one of the types of investment funds that have assets related to gold, and there are two famous types of these funds, the first is funds that have assets It is gold bullion, and the second is funds whose assets are gold futures contracts and gold mining companies.

Benefits of investing in gold:

For gold as a safe haven:

 Gold is considered a valuable material resource that acts as a safe haven during periods of economic and political crises. In cases of financial instability or financial inflation, gold is considered a means of protecting wealth and preserving financial value.

Diversification in investment portfolios: 

Gold is considered one of the assets that can be added to investment portfolios to diversify risks. In the event of a decline in the performance of stocks or currencies, investing in gold can contribute to achieving a reasonable level of balance and achieving stable returns.

To protect against inflation: 

Gold is considered an asset that can protect against the impact of high inflation. When the prices of goods and services rise, the value of gold often increases as well, so investing in gold can preserve purchasing power in the future.

Ease of trading and liquidity:

Gold is considered a liquid and easily tradeable commodity. It can be bought and sold in global financial markets, including stock exchanges and free markets. In addition, the valuation of gold depends on supply and demand, which makes it a desirable and profitable commodity in the event of a significant increase in demand.

Industrial uses: 

Gold is used in many industries, such as electronics, medicine, and jewelry. Therefore, there is an increasing demand for gold in these industries, which contributes to increasing its value and the sustainability of investment in it.

Long term investment: 

Gold is an asset that can be invested in the long term, as it can achieve good returns in the long term due to the sustainability of demand for it.

Hedging against economic crises:

Gold is considered one of the assets that serves as a hedge against economic crises. When economies face difficulties, investor confidence in other assets such as stocks and currencies decreases, which makes them resort to investing in gold as it is considered a safe haven.

Global Demand and Supply-Demand Equilibrium: 

The demand for gold comes from different parts of the world and from multiple sectors, and therefore investing in gold reflects a balance between global supply and demand, and this makes it a sustainable and reliable investment in normal times and times of crisis.

Fluctuations in financial markets: 

The price of gold is affected by fluctuations in the financial markets, which makes it an opportunity for investors to achieve high returns. When the market witnesses turmoil and fluctuations, the price of gold may rise significantly, allowing investors to achieve large profits.

Geopolitical and economic factors: 

The price of gold is also affected by economic factors. For example, when political or economic crises occur in the world, the demand for gold may increase because it is considered a safe haven, which leads to an increase in its value.

Fiat currencies and inflation: 

Gold is one of the assets that maintain value under inflation. When inflation rises and fiat currencies lose part of their value, gold is considered a good investment to maintain purchasing power.