How to invest in gold? As a precious metals investor, here’s what you need to know about gold, its uses, and its main price drivers when building your gold savings.

Investing in Gold: A Beginner’s Guide

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Tens of thousands of investors worldwide were asked 

 and what expectations they have of their gold investment and savings.

To be honest, the results did not surprise us.🤓

The majority of those surveyed by the World Gold Council think of gold as a 

of investors in Germany, Canada, Russia, China, India, and the U.S., said owning 

of retail investors and fashion and lifestyle consumers have bought gold at least once in their lives.

 of German investors said they are willing to invest in gold but there was 

If you also feel this way, don’t worry. We’ve created a 

 that will give you answers to the following questions: 

a pile of fine gold nuggets

Gold is a dense, yellow, lustrous precious metal with unique physical properties that set it apart from other precious metals.

⭐ It is this combination of qualities that makes gold so special:

 it is harder to find a one-ounce gold nugget than a five-carat diamond.

 you can beat an ounce of gold into a 0.000018 cm thick sheet.

 an ounce of gold can be drawn into 80 kilometers of five-micron-thick wire.

 pure gold doesn’t react with oxygen, therefore staying bright and shiny.

 gold is resistant to acids, corrosion, and most other chemical reactions.

 in a relatively pure form. A great deal of gold is 

 located on every continent except Antarctica. Among the world’s 

 are China, Russia, the United States, Australia, and Canada.

Then, some amount of gold can also be found in 

, but in very low concentrations, making it difficult to detect and even harder to extract.

a golden Oscar statue symbolizing a special place of gold in our culture

Gold has always played an important role in our culture and society.

For many years, we’ve used it to make our 

, such as Olympic medals, Oscars, Grammys, and many others.

In addition, the above-mentioned physical properties of gold make it widely used in industry as well as in our everyday items.

 of all gold mined today is made into gold jewelry. With its softness, resistance, and luster, gold is a perfect metal to be worked into beautiful things.

Governments, banks, and private investors 

 and protect themselves in times of inflation and economic uncertainty. According to the World Gold Council, private investors hold about 

You’re reading this article online, which means that you’re currently using a device that contains a significant amount of gold. Smartphones, computers, and tablets use gold in their processors and connectors. You can also find gold in gaming consoles, printers, TVs, and basically anything electronic.

For many years, gold has been used in dentistry and medicine, mostly because it's non-reactive and non-toxic. Injections of gold are used to treat muscle damage and rheumatoid arthritis, and gold microparticles are used to treat some cancers. Even Covid tests use gold!

Gold is used in practically every space vehicle. Apart from being applied in circuitry as a conductor, spaceships are fitted with gold-coated polyester films that reflect infrared radiation and help control spacecraft temperature. 

Finally, in addition to its many other uses, gold also goes in 

. Believe it or not, those shiny edges on the pages of books can sometimes be real gold.😯 

Unlike any other metal, gold has special physical properties that make it an essential metal in a lot of fields, including technology and space exploration.

100 euro notes and three fine gold bars on top on a blue background

When it comes to investors' demand for gold bars and coins, it’s also expected to increase. For example, in the Eurozone, the demand for physical gold has been steadily growing since 2019 and is likely to remain high in the future.

Growing industrial and investment demand for gold could help 

 in the long term, thereby benefiting your gold savings.

 can affect the price of gold. So, if you’re looking to 

, you first need to understand how, why, and when its price is likely to move.

Here are the main factors affecting the gold price:

When there's inflation, the gold price normally goes up. During inflation, consumer goods become more expensive, thereby making the U.S. dollar lose its value. Since gold is dollar-denominated (meaning it’s expressed in U.S. dollars), its price 

a picture of a gold mining site representing high gold supply and demand.

 from precious metals mines and refineries, tends to drive its 

. Conversely, an oversupply of gold coupled with stagnant or weak demand can cause prices to fall.

The monetary policy set by the Federal Reserve, the central bank of the United States, usually has a big impact on the price of gold. It’s not guaranteed, but there’s a general belief that the gold price usually rises when interest rates fall and vice versa. However, 

historical data show that it’s not always true

a press conference tribune with microphones with the Fed emblem in the background

Because gold is a dollar-denominated metal, its price is usually inversely correlated with the dollar. This simply means that a stronger U.S. dollar tends to keep the gold price lower, whereas 

. It is for this reason that gold is often seen as 

a hedge against inflation and money losing its purchasing power

These gold price drivers are always worth watching, simply because a change in one of them could be a good indicator of 

 that predicting the market, and especially the gold price, can be tricky since it's often affected by multiple factors at once.

Having learned the basics about gold, how it's used, and how its price is determined, it's time to take a look at some of the most popular gold products.

Should you buy gold bars, coins, or gold ETFs?

fine gold bars and coins on a light blue background with ETF letters

If you feel like adding some gold to your investment portfolio, there are two ways to do it:

Buy paper gold, a.k.a. gold futures and exchange-traded funds (ETFs).

If you’re unsure what to choose — physical gold or gold ETFs — here are 

First, compared to physical gold, gold ETFs have slightly different drivers, risks, and benefits, which makes them a better choice for more experienced investors.

Second, gold ETFs act like stocks and are only 

Let's see what physical gold products you can get out there.

, including 50 g, 100 g, 250 g, 500 g, and 1 kg. Pure gold bars are generally divided into two types: cast bars and minted bars.

. Because of their simple design and lower production costs, cast bars are usually less expensive than minted bars.

A PICTURE OF 50 gram Fine Gold Bar 999.9 by PAMP Suisse

on the other hand, can have an artistic design, like the famous 

 range made by MKS PAMP, a global bestseller among investors.

A PICTURE OF 1 oz fine gold Bar 999.5 - PAMP Suisse Lady Fortuna

As you can see from the picture, minted gold bars come with a certificate integrated into protective sealed packaging, which can make them easier to sell.

There’s a wide range of gold coins to choose from, including 

 coins issued by official mints such as the famous 

a picture of 20 franc Vreneli gold coin

But which is better, gold bars or gold coins? 

, investing in gold coins may be a better option than gold bars. But if you want to diversify your portfolio while increasing your exposure to gold, you could invest in gold bars as well.

Of course, like with any other investment, it all depends on your 

. But, in general, there are a few reasons why gold could be an interesting investment as 2022 comes to an end:

as a physical asset with intrinsic value, gold is often used by investors as a protection against inflation and paper currencies losing their purchasing power.

history has shown that gold usually performs well in times of economic uncertainty, stock market volatility, or geopolitical crises. With its value recognized all over the world, gold is 

 gold is a safe long-term investment, the price of which moves in the opposite direction from the prices of other assets. Therefore, adding some gold to your investment portfolio is a good way to offset risks coming from more volatile investments like stocks or crypto.

With all three advantages combined, investors are increasingly turning to gold as an alternative to bank savings, converting some of their cash savings into gold, especially in today's challenging economic environment. 

 by our colleague Nicky Shiels, Head of Metals Strategy at MKS PAMP GROUP.

Want to learn more about silver? Check our 

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A Shift in Gold Demand Trends

Good thing central banks can't print gold. 😉

21.9% Annual Inflation... and Counting

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#Silversqueeze 2.0?                         

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Meet GOLD AVENUE CEO, Alessandro Soldati, in our first Q&A video session!

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24/02/22: Russia has launched a full-scale invasion of Ukraine, the S&P is in a correction for the first time since the 2020 Wall Street plunge, gold hits a 20-month high. And more. 

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Russia’s decision to remove the US dollar assets from its sovereign wealth fund and partially replace them by gold boosts the yellow metal’s importance as a strategic asset.

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After yet another central bank starts considering negative interest rates, we’re taking a look at how unlimited debt can impact physical gold investment.

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You probably noticed certain industries and communities aren’t bouncing back as quickly as others during times of recession or economic crisis. That’s what the K-shaped recovery is all about.

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03/03/22: Markets are on a wild rollercoaster ride, Eurozone inflation at a record high, Russia intensifies its invasion of Ukraine, gold proves itself as a safe haven. And more.

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#silversqueeze

Here’s a rare sneak peek into one of the world’s biggest gold refineries. 

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10/03/22: Gold and palladium hit a record high, oil records its worst day since November, Biden signs an executive order on crypto. And more. 

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In 2021, central banks continued buying gold, with emerging countries stepping up as key net buyers. Do you wonder why? Here’s what you need to know.

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17/03/22: The Fed has raised interest rates for the 1st time since 2018, one of Brazil’s biggest funds goes for gold, E.U.'s rethinking gas supplies. And more.

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The U.S. Federal Reserve has announced its first interest rate hike since 2018. What could this mean for the gold price? Here’s what you need to know. 

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31/03/22: European inflation soars to new heights, Russia resumes gold purchases, no breakthrough seen in Ukraine war despite renewed peace talks. And more. 

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It seems that the ongoing US presidential election has not changed the situation in the gold market so far as the macro backdrop remains quite favorable to the yellow metal.

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07/04/22: More and more people are worried about rising consumer prices, experts think the U.S. recession is inevitable, cryptocurrencies are facing some privacy issues. And more.

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14/4/22: U.S. inflation hit 8.5% in March, the highest since 1981, EU ban on Russian gas could spark a sharp recession in Germany, Ukraine peace talks “at a dead end.” And more.

Weekly Digest: U.S. Inflation at 40-Year High, German Recession Risk 

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21/04/2022: The IMF cuts its global economic growth forecast, UN says the war in Ukraine could create a global food crisis “beyond anything seen since World War II,” Macron and Le Pen fight for the presidency. And more.

Weekly Digest: IMF Cuts Growth Forecast, Hunger Threat

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Easy is always right. Especially when it comes to buying precious metals. If you still don’t know what’s the easiest way to buy gold, you’re in the right place.

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28/4/22: Russia halts gas supplies to Poland and Bulgaria, the Fed is set for more aggressive rate hikes to tame inflation, Musk seals the deal to buy Twitter. And more.

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04/05/22: The Fed is set to fight inflation with the fastest rate hikes in decades, Fitch trims China’s 2022 growth forecast amid Covid-19 lockdowns, two Argentinian banks will allow crypto trading. And more.

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Swissmint made history as they issued their first-ever 50-franc Vreneli gold coin on May 11, 2022, making a very special coin even more popular in Switzerland and beyond.

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12/05/22: U.S. inflation stays at a 40-year high, defying expectations of a bigger drop, crypto and stocks fall, reacting to the U.S. inflation data. And more.

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The end of Bretton Woods seems to be an essential reason behind the widening of the productivity-pay gap that reveals gold's influence as a source of stability.

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A quick overview of the performance of gold versus some of the major commodities for the first half of 2020.

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19/05/22: U.S. stocks post the biggest daily drop in almost two years, Sri Lanka default hints at troubles ahead for developing nations, E.U. slashes growth forecast. And more.

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Since the start of 2022, the stock market has been on a wild ride, while gold was close to hitting a new record high in March. Which has performed better so far? We guess you already know.🙃

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25/05/2022: U.S. stocks slumped again amid economic data, the global food crisis risks causing a “messy” migration in Europe, Bitcoin could fall to $8,000. And more.

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02/06/22: The Eurozone inflation hits a new record high, JPMorgan Chase CEO warns of the economic hurricane, EU leaders agree to ban most Russian crude imports. And more. 