Buying & Selling of Gold as an Investment

Selling and buying of gold is famous worldwide. Gold is considered to be a very precious metal and you can sell them very easily in order to earn a handsome profit. But it is suggested that holding back gold until the market goes up is a  better idea rather than selling it for a small profit but if you don’t want a big profit and want it to sell for any urgency, you can do it any time.

Is Investment In Gold Safe?

Gold is considered as the only investment which is considered as high liquidity. Gold is also correlated with the stock market and currencies. Gold is one of the oldest and convenient ways of investment because people consider that there is no better way of keeping money safe than buying gold. There are different ways of investing in gold. Some money minded people prefer to buy gold in the form of brick or coins while some middle class people prefer buying gold in the form of jewellery

But as every coin has two aspects, investing in gold also have some advantages as well as disadvantages which must be kept in mind before making any investment decision.

Advantages of investing in Gold

  • Gold is globally accepted by everyone.
  •  There is some kind of gold all over the world hence irrespective of your location you can buy and sell the gold you have.
  •  The global gold market is stable and has recorded most of the times of staying high for a long period of time.
  • The best way of preserving and increasing your wealth as you can hold it for as long as possible and wait for the prices to increase.

Disadvantages of investing in Gold

Just like advantages, there are few advantages of investing on Gold as well

  • Until and unless you decide to sell out gold there is no interest or income which you can earn out of gold.
  • Also, the making charges which are seller’s commission is very high is of no use and only ends up paying hefty commission to the seller.
  • Accepting the truth that prices of gold stay high for most of the time but it starts falling suddenly which is not good for the investors.

Due to the mentioned reasons, there are very fewer chances that one can make a profit out of gold.

Why Private investors are investing in gold

During the period of recession, inflation or depreciation of the currency Private investors instead of holding cash believe in investing in gold. In the last 40 years, gold has always recorded the growth and only once or twice it has suffered which was during the ’90s and after 2011. During 90’s gold was suffering due to a hike in the interest rates in 1995 and that time investors were not interested in owning gold as insurance.

Types of Gold Investment

Buying Physical Gold

Physical gold can be bought in the form of jewelry, coins, gold biscuit, etc. You can buy gold from any jewelry store or any gold store but make sure before purchasing that gold is real and tested.

Investing in Gold Futures

These gold futures work at organized exchanges. They allow holders to buy or sell their property at a given time in the future and at a specified price from future contracts.

For trading and investing in Gold Futures, you need to deposit initial margin which is called minimum amount which is important for the opening. Every day your position is going to be marked in the market and if the price goes in your direction you will earn a profit or else vice versa.

Gold EFTs

If you are not comfortable in investing in gold you must go with gold EFTs. You can buy shares of gold and invest in EFT. ETFs are the best mode of investment for those who don’t want to earn in futures and maintain initial monitoring. If this is the case with you, then you can just buy the shares of ETF and follow the price of gold bullion. If we compare both futures may be tough to manage sometimes but ETF is a good move.

Gold Mining Companies

If you want exposure in gold mining companies you can invest in this industry but remember sometimes the exposure is very limited. Also sometimes these gold miners face the challenge because trade lowers in case of operating problems of the company no matter what is the price of the gold.

How to Start a Gold Business Buying & Selling Gold

You need to follow the below-mentioned steps for starting your business:

  1. Registration:

For trading in gold, you need to register your business and obtain all necessary licenses that may be required in gold trading.

2. Kind of Gold:

You must go through some niches of gold business such as buying of outdated jewelry or buying and selling of gold coins, trading on broken used jewelry sales and buying and selling of scrap gold. These are some form of gold business.

3. New Trends:

The gold business goes beyond buying and selling of gold. Other business opportunities such as gold plated items, tablets computers or even you can sell the luxury gold item.

4. Determine the buyer of your gold:

You must know that who will be the buyer of your gold. A successful gold trader must know to measure the purity of gold prior to buying it.

5. Develop a business plan:

Plan your business carefully and decide how you are going to run your business and expand it in the future.

6. Equipment:

Buy all the necessary equipment in order to start a business also to carry on your business conveniently.


Last but not the least after reading this article we can come to the conclusion that gold business is safe and secure most of the times however adverse effects can be seen sometimes. Advertise for your business is interested in buying and selling of gold think big and grow eventually.

Leave a Comment

Shopping Cart
Scroll to Top