Gold has been considered a precious commodity for centuries. Our forefathers used gold as a currency. And despite all the progress we have made in the last 100 years, paper currency, and now digital currency, gold is still here.
Today, gold is no more a currency but considered a safe haven. While there is so much uncertainty and turbulence around us in terms of traditional money, the value of gold has increased significantly.
As a result, more and more people are taking gold investment seriously. You can save money, buy some gold, and forget it for the next few years. Based on the trends, you?re likely to make some decent profit out of it.
If you have decided to invest in gold but are not sure how much you should invest in it, you?re at the right place. In this article, we are going to discuss how one can determine what?s the right investment for him in gold.
How Much Should You Invest in Gold?
Consider these factors before investing in gold:
1.Your Savings
As they say, don?t put all your eggs in one basket, you have to be precise with your gold investment. Gold is usually a long-term investment, you can?t earn much if you cash it instantly, so you have to plan accordingly.
That?s why the first step is to consider your savings and how much you can afford to keep in the gold investment. The investment duration could be months, and sometimes a complete year, depending on the gold price fluctuation.
Generally, if you are willing to invest for a longer duration, investing 30% to 50% of your savings in gold is safe. Because gold?s value never falls overnight, so you can pull out your investment anytime.
2.Your Country
The value of gold is different in all countries, and it keeps changing based on the local economy. In developed countries like the UAE, the value of gold is unlikely to fall overnight.
In fact, developed countries enjoy stable gold prices, so investors can invest without any fear of loss.
Conversely, if you are living in a country where the local economy is in recession, gold investment can be a little risky.
But at the same time, you are well assured that your gold won?t lose its value overnight, just like it’s happening to traditional paper currency these days.
You can cash out all your gold when things look unstable or gold?s value starts to fall in the aftermath of a political event or pandemic.
Tip: Check out the gold price graph of the last 10 years and observe when the value of gold fell and rose. This will give you a better idea.
3.Your Objective
There are different objectives of investing in gold. Some investors treat it as a prize bond, after some months they aim to cash it with some thousands of dirhams in profit.
On the other hand, some investors aim to create an asset — an asset that they can sell later to buy a house, a running business, a new car, or something else.
Of course, if you?re aiming for a short-term investment with minimum risk, something between AED 10,000-15,000 would be a viable investment.
For instance, you live in the Dubai and the current price of 24k gold is AED 2542.43 per Tola. If you buy 10 Tola and sell it with a profit margin of AED 100 per tola, you can earn AED 1000 without any hassle.
Conversely, if your goal is to create wealth or buy another asset from your gold investment, you can play big with AED 20,000-50,000. Even a little increase in price would result in a huge profit for you.
Why Invest in Gold?
Today, one gets plenty of investment options. But most of them entail significant risk. Take the example of digital currencies, one day they make a new record in terms of value, and in the next few days, they reach all time low.
Real Estate is usually considered a safe investment option but it lacks flexibility. In gold, you can buy as much as you want to; in real estate, you must have at least AED 50,000 in savings if you want to buy land.
Another reason why people invest in gold is that it’s much safer than other options. Gold prices are normally stable, they neither double nor decrease to all-time low overnight.
Further, there?s no paperwork or a digital wallet required to buy gold. You can walk into your nearest gold trading exchange and buy it like any other commodity.
Where to Buy Gold in Dubai?
If you are looking for the best trading platform in Dubai, then 24 Gold is your best option. It?s not just a trading platform but contains insightful data that helps you in making informed decisions.
Further, the platform provides a state-of-the-art digital gold hedging and storage service to manage your assets and keep them safe. If you?re new to this sector and have no idea about gold investment, no worries.
24 Gold is the trusted gold trading and storage platform for thousands of loyal customers in Dubai.
