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Did you know that buying gold as an investment is a great way to make your portfolio more secure? Read on to learn more!
If you're a beginner investor, you may not have heard that it's possible to invest in gold.
This practice is very common during times of crisis; more experienced investors prefer to exchange risky investments for safer alternatives.
Among the options, gold occupies a great position, as in addition to being safe, it offers good profitability, depending on market movements.
In today's text you will discover more details about the subject: How to buy gold, which broker to invest in, what the yield is, and much more!
Don't miss it!
How does gold investing work?
Gold is an interesting type of investment for any investor: from the most daring to the most conservative, everyone can benefit from a portfolio that has investment in gold.
In addition to having guaranteed value and demand, gold is a great asset for security in times of crisis and market instability.
You've probably heard someone say that gold is worth more than money. However, the focus of this type of investment isn't high returns, but rather the security it provides for investors.
To buy gold as an investment it is necessary to monitor fluctuations in the price of this metal.
In our country, it functions as a currency, and the price of the dollar even influences its value.
In short, the value of this product depends heavily on supply and demand. These can be influenced by many factors in the financial market, such as the inflation rate, the economy, and interest rates.
The price of gold is not directly related to government factors in any country, which is one of the reasons why this asset is a safe option.
How to invest in gold?
One of the ways to invest in gold is by purchasing the physical metal. However, the buying and selling process is quite bureaucratic.
For example, it should only be sold by financial institutions authorized by the Central Bank of Brazil. Beyond that, you still need to obtain authorization to own the physical asset, which involves other bureaucracy, costs, and risks.
So this ends up not being the best way to buy gold for investmentHowever, there are other easier, more economical, less bureaucratic, and safer alternatives to investing in this asset.
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#Gold futures contracts
One of the most viable alternatives for those who want to increase their wealth by investing in this metal is to use gold futures contracts.
They are traded on the B3, the Brazilian stock exchange. Transactions are similar to stock investments.
This investment consists of an agreement to trade a defined volume of gold on a future maturity date for a stipulated price.
To access this investment, you need to open an account with a financial institution that offers this asset. You'll find some recommendations below.
Among the many particularities it involves, we can highlight the fact that it has guaranteed quality and the possibility of financial settlement.
In this case, the amounts are debited or credited to the investor's account according to the market results each day, but you do not receive the gold in cash.
Despite this, it is still possible to redeem the metal on B3 through physical settlement.
#Gold investment funds
You can also invest in gold through an investment fund with an interest in this commodity. This alternative is simple and straightforward.
You gold investment funds They work like a financial consortium, you need to buy shares to participate.
The investor assigns a specialist to manage the asset, meaning a professional manages it. This requires paying an administrative fee.
In some cases, a performance fee is also agreed upon. This is a simpler alternative and ideal for beginning investors.
#ETF
THE Exchange Traded Fund is a type of investment whose main objective is to reflect the performance of a financial market index.
Therefore, it is possible to invest in ETFs that track indexes that measure the price of this valuable metal.
The alternative in B3 with this profile is GOLD 11. It seeks to track the price of gold in dollars.
To achieve this, GOLD 11 uses the IShares Gold Trust index. Thus, the asset's performance for Brazilian investors benefits from the appreciation of the foreign index.
#Spot contracts
Cash contracts are also good alternatives for those who want buy gold for investment.
As the name suggests, contracts are paid in cash. This means you can purchase contracts in installments, such as lots.
#BDR from Aura Minerals (Aura33)
The Aura Minerals BDR (Brazilian Depositary Receipt) is also available on the Stock Exchange.
It is a gold mining company from Canbaden and has been listed on the stock exchange since 2020.
You can purchase this asset through your home broker.
There's also the gold ETF BDR (BIAU39), an option for investing in the IAU. With this asset, you can expand and internationalize your equity portfolio.
What are the risks of investing in gold?
Before choosing any investment model, you need to understand the risks. In the case of this metal, the main risk is a price drop.
If its value decreases, investments concentrated in this commodity will be negatively impacted.
The economic situation greatly influences the supply and demand of this asset, so it is important to pay attention to the main market variations.
In short, buying gold is safe to make your portfolio more secure in the long term. Furthermore, you need to choose how you'll make this investment: whether you'll buy physical gold or opt for some of the alternatives mentioned in this text.
Any investment can perform well or poorly, so it's important to evaluate the risks involved. To mitigate negative impacts, portfolio diversification is the best solution.
How much does gold yield per month?
In 2020, a year of global crisis due to the Covid-19 pandemic, gold was one of the most sought-after assets by investors.
In that same year, it was one of the investments with the highest profitability, including the appreciation of the dollar (+55.9%), against +2.9% of the Ibovespa, +2.8% of the CDI and +2% of savings, according to Toro Investimentos.
This precious metal has had a high appreciation in the long term. On the website of Investing you can follow a graph with the value of gold futures.
One Troy Ounce of gold was worth US$$501.5 in March 1980. Ten years later, in June 1990, it was worth US$$357.9.
However, from the mid-2000s onwards, the value only increased, and even in a crisis scenario, it appreciated significantly.
Currently (as of the posting of this text), 1 Troy Ounce is equivalent to US$1,783.30 +2.05% (+ 0.12%), according to the Investing website.
It's worth noting that past appreciation doesn't guarantee future appreciation. However, these numbers show how this material has appreciated, even during times of crisis and financial market instability.
How to buy gold for investment?
In this topic you will find some financial institutions where you can buy gold to invest safely.
Be sure to follow our list!
1. Rich
On Rico's digital platform, you'll find several gold investment fund options.
You can choose a fund that is tied to the dollar's fluctuation or that is influenced exclusively by the appreciation of this precious metal.
Visit the Rico website and open your account for free.
2. Toro Investments
At Toro, you'll find a variety of gold investment fund options and even earn cashback on the management fee.
It doesn't charge an opening or maintenance fee, so learn more about this broker and open your account.
3. Gold BB
At Banco do Brasil, you invest in gold and guarantee a reserve of value with a focus on the stability of your assets.
BB does not charge brokerage fees, accepts applications starting at 25g, and you have a guarantee of buying back up to 1 kg per day.
At BB, this metal is traded in book-entry securities with physical backing in custody. Therefore, you have the guarantee of physical gold and the protection of BB's vaults.
A custody fee of 0.15% is charged per month on the amount held in custody.
Download the BB investment app and learn more!
Conclusion
Gold is one of the oldest assets used by humanity, and it is also one of the safest.
One of the reasons is that in times of economic crisis its price increases, as it is used by many countries as financial protection.
Among the many advantages of buying gold for investment, we can highlight, for example:
- Material with great international acceptance;
- A great reserve to protect your assets in times of financial crisis;
- Diversifies and provides more protection for your investment portfolio;
- It has little relationship with other Variable Income assets;
- Possibility of investing in the appreciation of gold without having to store it in a bank.
However, it is worth noting that they function as trading, which is not considered an investment.
This is because the investor makes profits from the differences between the purchase and sale values.
How could you find out, buy gold for investment it may be simpler and less bureaucratic than you imagined.
So, learn more about this investment model and see how to diversify your portfolio with it.
Keep following the news of our blog to stay up to date on everything that happens in the financial market.
