Skip to main content

Goldman says go for gold. Here are 5 Things To Know Before Investing In Gold.

 

Gold investment


 

Gold investment: Goldman says go for gold; sets a target of $3,000 by next Christmas

 

In a report on business today, Goldman Sachs analysts predict that gold prices will reach new heights in 2025 due to increasing central bank demand and anticipated US interest rate reductions.

 

The investment banking firm believes that a potential second term for President Trump could positively impact gold prices, especially in light of increasing geopolitical tensions and concerns about US fiscal stability.

 

Before you decide to either invest in Gold or not , here are 5 things to know about Gold investment. 


5 Things to know before investing in Gold.

 

1.       1. Gold and the dollar sometimes have inverse relationship.

 

 The gold price and the trade- weighted US dollar can have an inverse relationship.

 

What does the trade-weighted show?

 

The trade-weighted value shows how US dollar gains or loses purchasing power against its trading partners.

 

Note, this relationship is no longer as accurate as it used to be in the  past under the gold standard.

 

2.     2.    You pay a premium when you buy a physical gold.

 

When you buy a gold coin with an ounce of fine gold from a dealer or a bank, you pay more than the gold price. The difference is called the premium.

 


3.      3.   You pay tax on collectible rates on physical gold.

 

Physical holdings in gold and other precious metals are considered as collectibles.

 

These holdings attract capital gains tax which is owed after you sell your holdings in gold.

 

This capital gains tax is is equal to your marginal tax rate up to a maximum of 28%.

 

4.    Physical gold is different from Gold stocks.

 

Gold stocks offers higher liquidity because they can easily be traded on public exchanges.  

 

But in period inflation spiral, physical gold provides more security and long-term stability.

 

Investing in either gold stocks or physical gold comes down to your risk tolerance.

 

5.    An investment in Gold does not provide consistent returns.

Labels:

Comments

Post a Comment

Popular posts from this blog

9 High yield savings accounts in Nigeria.

High yield savings account in Nigeria Here are nine Nigerian banks known for offering high-yield savings accounts, as of the latest available data.  The interest rates can vary, so it’s always a good idea to check with the banks directly for the most up-to-date offers. 1. GTBank (Guaranty Trust Bank)    Known for competitive interest rates on savings accounts, including specialized savings products like the GTSave savings account. The GTSave offers a competitive interest rates at 8.175%. 2. Access Bank     Offers a variety of savings products with attractive interest rates, especially on their Access Bank High Interest Savings account. Access bank premier savings accounts attracts interest rate of  8.175%p.a paid monthly. 3. Zenith Bank    Provides various savings products with good returns, including the Zenith Bank High Yield Savings account. Zenith bank has an account called Save4Me. Save4Me  is a savings account with a higher interes...
Post a Comment
Read more

24 Exchange gets set to offer 23-hour trading in 2025.

Security exchange. In a press release on November 27, 2024, 24 Exchange announced it has received approval from the U.S. Securities and Exchange Commission to operate 24X National Exchange as the first national securities exchange in the U.S. that allows trading of U.S. securities 23 hours each workday. The extended hour trading is subject to Equity Data Plans making changes that would facilitate overnight trading hours and 24X National Exchange making an additional rule filing with the SEC confirming the changes and the Exchange's ability to comply with the Securities Exchange Act. 24 Exchange CEO and Founder Dmitri Galinov said: "The SEC's approval of our new exchange is a thrilling development that the 24X Team has been working toward for many years. Traders are most at-risk when the market is closed in their geographic location. 24X National Exchange will seek to alleviate this problem by facilitating around-the-clock U.S. equities trading for broker-dealers and their...
Post a Comment
Read more

Which primary effective spending habits guarantee personal budget discipline?

First, why is personal budget discipline necessary?  It's necessary because without it, you're going spend more than you earn and end up living the rest of your life in debt. Spending one's entire life in debt doesn't produce growth. Personal finance growth is founded on having substantial savings, which could form a significant portion of initial investment capital.  Investments drive personal growth.  So to grow financially, personal budget discipline is necessary. However personal budget discipline can't be obtained in the absence of effective spending habits. What are the effective spending habits that guarantee personal budget discipline? 1. Having the habit of preparing a personal budget regualrly. Having a personal budget is the starting point and the driver of effective spending habits. A personal budget is a financial plan that clearly defines your expected revenue and expected expenses. For a personal budget to be effective, it must be realistic. That is, ...
Post a Comment
Read more