Why is it profitable to buy gold bullion? - Golden Way Group

Why is it profitable to buy gold bullion?

People have known for a long time that gold is one of the most profitable investments. If you take a look at archaeological finds of antiquity, the treasuries of the powers were full of this precious metal. The ancient rulers echoed our parents and grandparents saying that buying gold jewelry as a gift was always the prerogative of the wealthy and that the children at puberty and after were often presented with gold.

But the era of investment in precious metal in the form of jewelry has passed. And we will explain why.

Why gold jewelry is not the best investment

Let’s start with the fact that it’s not pure gold that’s used for jewelry. Just one look at the marking on the product, and it becomes clear that there is not much yellow metal itself in it. The classic, 585 marking means that only 585 is pure gold per 1,000 mg of the product. This is quite reasonable, because gold is a soft and tricky metal. Being 100% pure gold, it easily loses its commercial value and gets deformed by the slightest action. But in that case, why does the gold jewelry cost so much?

  • Reason 1 – design. A designer’s labor is used to create the ring.
  • Reason 2 – the manufacturing technique. We do not take into consideration the stamped types of jewelry. The really expensive jewelry uses complex and high-consumption production techniques, and we pay for them.
  • Reason 3 – prestige and style. Fashion also dictates the cost of jewelry.
  • Reason 4 – additional elements. Stones and enamel, engraving and etching all make gold jewelry items even more expensive.

However, not all types of gold jewelry gain in value over time. Some, on the contrary, become worthless, obsolete and simply unprofitable.

Do you want to invest in gold? Choose bars!

Why bars, you may ask? The first reason is that bullion contains pure metal. Even if you decide to sell the gold bullion, or give it away to make the same jewelry, the result will be a price high enough to cover all costs.

Why is it profitable to buy gold bullion?

In addition, gold bullion is a handy asset diversification tool. When the economy goes down and inflation rises, gold will be a kind of ” safety deposit box” for your investments. Its price will remain stable or even rise as inflation increases.

The second reason: gold reserves are not endless. Eventually, this element will become extinct. Having gold in the form of bullion is an opportunity to get enriched on scarcity of the resource. Gold is extremely important for precision engineering, electronics and computer technology, because these industries create chips based on gold.

The third reason is that gold bullion can always be sold to the government. Any central bank holds the gold reserve of a country. And to replenish it, they buy up bullion from individuals and legal entities.

Low risks is another reason. Gold is always in value. It is tangible, it can be kept at home without the risk of losing profits, as it happens with deposits in non trustworthy banks or cryptocurrency, oil and real estate. Gold bullion is one of the most liquid investments.

Do you want to buy your first bullion? Or maybe you’re striving to diversify your investment portfolio? Golden Way company will help you buy gold at the current price. We are manufacturers and distributors of gold from our own mines. Among other things, we have lucrative investment projects that are designed to help investors profit from gold. Choose your bullion and start investing effectively with Golden Way.

Why is it profitable to buy gold bullion?

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