Gold plays an important role in different economies, mainly because it is an asset that does not lose value in times of financial crisis, despite the fact that it is no longer a primary form of currency, as it was in ancient times.
Investing in gold is a good long-term decision and can be a valuable addition to the portfolio, emphasize specialists from the Raisin digital platform.
Liquidity: can be easily converted to cash anywhere in the world. Apart from real cash, the liquidity and universality of gold is unmatched.
Maintains its value: gold tends to maintain its value over time. If the price decreases, the underlying value of gold does not change much, since there is a fixed amount of gold, as a commodity, while the US dollar, for example, has no inherent value.It may interest you
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Hedging against inflation: Gold increases in value when inflation takes hold. Since gold is priced in pesos, any deterioration in the Mexican currency will lead to a higher gold price. As a result, during times of inflation, gold offers a more stable investment than cash.
Diversification – Adding different securities to your portfolio is an essential way to diversify and reduce the overall risk of your investments. As gold often moves inversely to stock and currency values, it provides an effective way to diversify.
Does not generate passive income: Other investments, such as stocks and bonds, may derive a portion of the value of passive income in the form of interest and dividends. However, the only return you can get from gold is when it rises in value and you decide to sell it.
It can create a bubble: When the economy is in an unstable situation, many people start investing in gold, but when investors start to panic, gold can be too expensive. This, in turn, means that your investment could lose value once the price corrects.
You need physical and secure storage: If you choose to buy real physical gold, you will not only need to store it, but you will also need to insure it. Otherwise, you won't be able to replace it if it gets damaged or stolen.
Its value increases with the devaluation of the local currency: many economists argue that gold only increases in value when the currencies of a country are devalued or inflation is strong. As a result, critics of investing in gold feel that gold does not offer adequate returns in other markets.
In our country, there are different alternatives to invest in physical gold, so below we explain what each one consists of, according to information from Rankia.It may interest you
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BULLIONS: the size and weight of certified physical gold bars depends on the manufacturing company, but it must be taken into account that the higher the weight, the lower the price per gram of physical gold.
Physical gold bars typically sold are Good Delivery gold, which conforms to London Bullion Market Association (LBMA) standards and weighs 12.5 kilograms.
The most used unit of measure to weigh this precious metal is not the gram, but the “troy” ounce, a unit of mass that is equivalent to 31.1 grams. It should not be confused with the common ounce, which is 28.3 grams.
COINS: they offer greater security to the investor due to the fact that they are minted on both sides.
An investment gold coin has these technical characteristics:
-Degree of purity (proportion of gold) equal to or greater than 900 thousandths
-Minted after the year 1800
-Legal course in your country of origin
-Sale price does not exceed 80% of the value of the gold they contain. This percentage is equivalent to the premium that this type of currency has; that is, it is a leverage effect that multiplies the investment in gold in the long term
Centennial: with a price of 50 pesos in gold and equivalent to 1.20565 ounces, with a satin finish, a diameter of 37.0 and a purity of .900, that is, for every 1000 parts, 900 are pure gold, it has a pure gold content of 37.5 grams.
Azteca: (20 gold pesos), has a content of 0.48227 Oz. pure gold, with a satin finish, a diameter of 27.5 and a purity of .900.
Hidalgo: this piece has a content of 0.24113 Oz. of pure gold. There are different denominations: 10, 5, 2.5 and 2 pesos.
Libertad Series: The coins belonging to this series contain a purity of .999. and a satin and mirror finish. There are 1 Oz, 1/2 Oz, 1/4 Oz, 1/10 Oz and 1/20 Oz.
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Cultural Fusion: Spanish and Indigenous, Architecture, Cocoa and Merchandise. All with a mirror finish, a diameter of 13 and a purity of .750 (1.25 g of pure gold).
Pre-Columbian Collection: Aztec Collection, Central Veracruz Collection, Mayan Collection, Olmec Collection, Teotihuacan Collection and Toltec Collection. They feature a satin and mirror finish and a purity of .999. Within the pre-Columbian collection we can find 1 Oz, 1/2 Oz and 1/4 Oz coins.
New Libertad Series: It was launched in the market in 2000, with a satin and mirror finish and a purity of .999. There are 1 Oz, 1/2 Oz, 1/4 Oz, 1/10 Oz and 1/20 Oz coins.It may interest you
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-El Niño Floreando la Cuerda 1/5 Oz
-The Teocuitlatl 1/20 Oz
-That of Mexico's participation in the FIFA World Cup; 1kg gold
-The Bicentennial of the beginning of the Independence of Mexico
-The one of the Constitution of 1857 (7.5 gr and 37.5 gr)
-The Year of Hidalgo (7.5 and 15 gr)
-The medal of May 5, 1862 (15.75 and 37.5 gr)
-The one of the Constitution of 1917 (36.5 gr)
-The one from the National Institute for the Protection of Children (37.5 gr)
-The Victory of the Republic (37.5 gr)
-The Medical-Military School (37.5)
-From the Bank of Mexico: 40th Anniversary (37.5 gr), 50th Anniversary (37.5 gr), 60th Anniversary (37.5 gr), 70th Anniversary (37.5 gr), Death of Benito Juárez (48.60 gr).
JEWELRY: This is perhaps the most common and easiest way to invest in gold. In addition to the added design value they have, they can also be worn as accessories.
The way to preserve gold jewelry, however, is more complicated, especially if they are used, since in order not to lose their value, they must be kept clean and without scratches or repairs.It may interest you
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If you are looking to buy or sell gold jewelry, it is important to go to a specialized and recognized store to avoid fraud, or buy something that does not have the amount of gold that it claims to have.
In this case it is also possible to obtain a guarantee of authenticity, so that it is easier to certify its value.
Gold in jewelry is measured in carats. If one has 24 carats it means that it is pure gold, but if it is 14 carats it contains only 58.3% of the precious metal.
MINING SHARES: It should be considered that the share price of these companies does not necessarily follow the price movements of the metals they produce, but rather is subject to other economic variables.
This way of investing may be the one that requires more financial culture, but it can also be more stable and productive if you think in the long term.
It is necessary to open an intermediation contract with a brokerage house, the most advisable thing is to do it in several companies, as well as to put together a portfolio with the help of an investment advisor who knows this industrial branch and gives you a punctual follow-up.
-Locate a bank or exchange house where you want to buy. All banks in Mexico sell Centenarios over the counter. For more security, choose a nearby bank, or within an airport.
-Phone the bank or exchange office to see the number of Centenarios that are available. If you want more than they offer, one option is to order them in advance.
-Look at the bank or at the exchange house for a banker who can sell you the Centenarios.
-When making the payment, it must be done in cash, with traveler's checks or through an electronic transfer. The price will be quoted in Mexican pesos although American or Canadian dollars, British pounds sterling or euros can also be used. Banks accept credit card payments, but the card will charge them as cash advances.
-Bring a passport or other type of official identification to present in case the banker requests it. The banker may not ask for it, but it is better to be prepared in case he does.
-To transport your assets in gold it is advisable to use a discreet bag.