Much sought after by those who want to protect their assets against crises and fluctuations in equity, gold investment funds are falling in favor with investors.When investing in gold, it is possible to establish a negative correlation with the movements of the stock market, which acts as a cushion for your investments and smooth possible falls in risky assets.
This is because gold is one of the oldest assets in the world and is seen as a scarce resource and protection in the midst of crises, both by investors and by central banks. The gold IRA professionals are the best options to opt for when it comes to getting the best financial support after the retirement.
But to what extent can gold investment be considered a real investment?
In this article, you will understand how to invest in this asset in practice, in addition to the advantages and disadvantages of gold investment funds.
- Gold investment funds are one of the most practical and simplified ways to invest in gold.
- The operation follows the same logic as equity investment funds, fixed income or multimarket fundsas if it were a condominium.
- As an investor, you acquire shares of the fund, proportional to the amount invested.
- On the other hand, the managerwho plays the liquidatoris responsible for the composition of the assets.
- Each fund follows a specific charter, and funds that invest in gold are no different. They are obliged to invest in gold, either through future contracts or at sight on the Stock Exchange.
- Some funds link the fund’s profitability not only to gold, but also to the dollar.
In this case, the investment in gold, which is already a protection in itself, can gain a double protection.
Before investing in a gold investment fund, the investor needs to keep in mind that the fund’s objective is not necessarily to guarantee the highest possible return to the shareholder.
The fund’s objective will be to invest in gold as a protection instrument.
The investor will be exposed to the variation in the price of gold in the international market, without major interference by the fund management.
How does the gold buying and selling market work?
How gold is bought and sold depends on the market you choose.
Among the most traditional ways, investment in the Stock Exchange, investment in gold investment funds and physical gold bars stands out.
Other modalities, such as investment in jewelry, are not recommended due to the lack of security and liquidity of these operations.
In general, however, the rationale behind investing in gold follows the logic of any other asset: when demand increases, the price increases, and when demand decreases, the price is reduced.In general, the fluctuation in the price of gold is related to macro events, which affect the world as a whole. For investors who have experience with the Stock Exchange, it is possible to invest directly in gold, trading this asset as if it were a stock of a company or the quota of a real estate fund.Depending on your broker, it is possible to buy gold through the home broker, but there are brokers that only allow this transaction through calls to the B3 branch.