Is Gold Investment Reserved for the Wealthy?

The Spotlight

10 minutes read

Jun 8, 2023

Men sitting on huge gold bars discussing gold investment

Outdated, expensive, and elitist: both young investors and those with more modest incomes tend to overlook gold... and they're mistaken! Let's debunk the misconceptions about investment gold. 🧹

Gold, that shimmering metal✨, has long been prominent in the investment world.

The mere mention of gold conjures images of luxury and exclusive treasures. It’s no wonder that a prevailing myth persists — the belief that gold is reserved solely for older, wealthier investors.

But today is the time to dispel this cliché.🤓

Contrary to popular belief; gold investment is not an elusive privilege but an accessible and easy-to-set-up opportunity open to investors of all ages and financial backgrounds.

Let us explain why gold can be an interesting investment for you and how to avoid beginner mistakes.

Is gold expensive?

PAMP Suisse Gold Bars and Canada Maple Leaf coin on a green background

Gold has been crucial in the global economy for thousands of years. People have valued gold from ancient to modern times for its rarity, durability, and aesthetic appeal.

Nowadays, gold investment has become more accessible than ever before.

Investors can buy physical gold through coins or bars ranging from 1 g to 1 kg or in gold exchange-traded funds (ETFs) or mutual funds. These options cater to different preferences and budgets, making a gold investment an opportunity for investors of all ages and financial backgrounds.

This means you can invest in gold with less than $500 in your pocket, thanks to..:

  • 1 g gold bar, available for less than $80 (based on the May 2023 gold price)
  • widespread and easy-to-find Latin Union Gold coins, which are available for less than $400 (still based on the May 2023 price).

This makes gold an attractive asset for even the most modest incomes.

💡What is the Latin Union?

The Latin Currency Union coins refer to a series of coins that were issued by the countries participating in the Latin Monetary Union (LMU) during the late 19th and early 20th centuries.

The Latin Monetary Union was established in 1865 and included countries such as France, Belgium, Italy, Switzerland, and Greece.

Some examples of coins from the Latin Union include the 20 Swiss Francs Vreneli coins and the 100 French Francs Napoléon coins.

What are the advantages of gold investment?

Gone are the days when investing in gold was solely associated with seasoned investors. Younger generations are actively learning about gold investment and embracing diversifying their portfolios with this timeless metal.

Investing in gold offers a range of benefits that make it an attractive addition to any investment portfolio:

Gold also offers the potential for capital appreciation. Over the years, gold prices have shown upward trends driven by various market factors. Investing in gold can be a long-term strategy to grow your wealth.

Gold has a low correlation with other asset classes. Gold plays a unique role in portfolio diversification, as its price movements often differ from those of stocks, bonds, and real estate. Gold has historically demonstrated a low or negative correlation with other asset classes, meaning it can act as a counterbalance to reduce overall portfolio risk. By adding gold to your investment mix, you can potentially reduce the impact of market fluctuations on your wealth.

Gold is an affordable investment. Gold investment is accessible to all investors regardless of their financial background. Physical gold is available in various sizes and denominations, allowing investors to start with smaller, more affordable quantities. For example, you can purchase gold coins or bars in smaller weights, such as 1 gram or 1/10th of an ounce. These smaller denominations make it possible to invest in gold without needing a large amount of money upfront.

Gold is a good investment option for retirement planning. Gold investment is particularly relevant for retirement planning and inheritance. Gold’s stable and enduring nature makes it an attractive asset for individuals seeking retirement funds. 

Gold can be easy to trade. With the introduction of modern investment platforms and online trading, buying gold has become as easy as a few clicks of a button. If you store your gold products with GOLD AVENUE in our secure vaults, you can sell them back to us at any time with 0% commission.

Gold can be passed down as an inheritance. Additionally, gold can be passed down through generations, providing a lasting inheritance that retains its value over time.

Gold is a hedge against inflation. Gold has long been regarded as a safe haven in times of economic uncertainty. It acts as a potential hedge against inflation and market volatility, which investors of all financial backgrounds can appreciate.

A chart showing how the price of gold has been rising steadily over the past 10 years.
A chart showing a steady increase in the price of gold between 2014 and 2022.

As you can see from this chart, over the past 10 years, the price of gold has seen a growth of about 71% in euros, 77% in the British pounds, and 42% in the U.S. dollars. It has been a rather gradual increase, which is why it can be a good idea to consider investing in gold early on. Gold is relatively less volatile compared to other investments, making it a good asset for diversifying and securing your investment portfolio.

💡Find more practical tips in our blog article: When Should You Buy Gold?

Where can you buy gold?

If you wish to start investing in gold, two options are available:

  • Buy coins and gold bars from physical stores or banks
  • Buy coins or gold bars online from online retailers such as GOLD AVENUE.

Be very careful to select a reliable source for your investment. Here’s a couple of criteria to watch out for will tell you if your retailer is legit:

  • When buying gold bars, ask for the producer’s name. Only a few well-known refineries. selected by the LBMA association, are allowed to produce gold bars. One of these is MKS PAMP, a world-renowned refiner for which GOLD AVENUE is the official retailer.
  • Demand to check the packaging and paperwork supplied with the gold bars you wish to purchase. You should have, at the very least, an invoice with your name, the date of purchase, and the details of each product bought.
  • Verify the company’s official documents (terms and conditions, legal notice) and its reputation.

Where can you store gold?

A safe deposit box filled with gold bars

Gold storage contributes to its almost mystical aspect. It’s synonymous with lost treasures and many famous stories about hidden gold bars recovered only years after their owner’s passing.

However, storing gold can be very easy!

There are several options available:

  • Store it in a safe deposit box at home, which you would need to declare to your insurance.
  • Store it in a safe deposit box at your bank, which is becoming increasingly rare.
  • Store it with a private company, in a secure vault.

GOLD AVENUE provides easy and secure storage for your precious metals products. They will be stored in our secure vaults, outside of the banking system and off our balance sheet. This means that you are the sole owner of your precious metals products and can have them delivered to your house at any time.

Why you should start investing in gold as soon as possible

pamp suisse gold bars and a canada maple leaf coin on a blue background

Gold investment offers various strategies to tailor to match different financial goals and situations. Let’s explore some examples:

A. Retirement Planning

Gold is a stable and lasting asset to help preserve your wealth over time. By allocating a portion of your portfolio to gold, you can safeguard your retirement funds against market volatility and inflation.

Dollar-Cost Averaging. This strategy involves investing a fixed amount in gold every month or quarter, regardless of the current price. Dollar-cost averaging reduces the impact of short-term price fluctuations and allows you to accumulate gold holdings gradually.

B. Long-Term Wealth Preservation

Portfolio Diversification. Gold’s low correlation with traditional asset classes makes it an excellent diversification tool. To preserve long-term wealth, you can allocate a portion of your portfolio to gold to reduce overall risk. By including gold alongside stocks, bonds, and other assets, you can enhance the stability and resilience of your investment portfolio.

Physical Gold. If your goal is to preserve wealth over the long term, you can invest in physical gold. Physical gold provides tangible ownership and is typically considered a safe haven asset. Investing in physical gold can provide valuable benefits in uncertain times, such as bank closures, financial crises, or the collapse of investment funds. During these challenging situations, "bank runs" frequently hinder investors from accessing their paper or digital money and assets. However, owning 100% allocated physical gold eliminates this concern.

The takeaway

Despite many clichés and beliefs, gold is not reserved for only the wealthy!

Gold is an accessible, relatively safe, and easy asset to bring to your investment portfolio and within reach for anyone, even starting at a low budget.

The key to successfully investing in gold lies in starting early. Just as gold has withstood the test of time, investing in gold should be viewed as a journey that begins as soon as possible. But keep in mind that it’s never too late to start.


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