Gold is a tangible asset that can protect you in times of economic crises or financial failures.
You can store gold coins or gold bullions in your safety deposit box. And knowing that you have bonds, stocks, or mutual funds backed by gold can also put your mind at ease.
It’s a real investment, and you can choose to sell your gold when the time comes.
Gold is very liquid. And even if the Philippine Peso fails, the value of your gold will remain the same because of its performance in the global marketplace.
The right time to invest in gold
The answer lies on how you think the economy is doing. Gold can work as some kind of insurance policy for when the economy is struggling or unstable.
Gold prices may increase when there is a demand and may also drop when the economy recovers and makes a surge.
Since it’s not always that simple or straightforward, it’s advisable to learn about the ins and outs of the gold market.
If you can buy gold at a good price point, so much the better. This way, you can have a better chance at a bigger profit when it’s time to sell.
How do you invest in gold in the Philippines?
Buy gold jewelry
This is perhaps the easiest way to invest in gold, although the markups in gold jewelry do not make it that much appealing.
Also, the resale value of gold jewelry may not always be substantial.
But if you buy a very expensive piece that’s at least 10 karats, or even pure gold with 24 karats, you can profit a lot more. It has more value in terms of gold content and collectability.
Buy physical gold
You can buy gold coins, gold bars, or gold bullions, depending on how much you want to spend on them.
However, most dealers will add markups to their gold prices, so it’s best to find a reputable gold dealer first.
Once you have purchased your gold, an option is to rent out a safety deposit box at your local bank.
Should you decide to sell your gold, you may also need to find a gold dealer or buyer to get the best prices.
Buy gold certificates
These are notes issued by companies that own gold, the most common of which are gold certificates for unallocated gold.
Because there is no actual or physical gold, it’s more convenient and more affordable than allocated gold.
You also have the company’s guarantee that they have gold reserves that will back your gold certificate.
But if you have funds and are thinking of buying a gold certificate, it’s recommended that you buy allocated gold.
It may be more expensive because you will need to pay for storage or premiums, but the gold will be your investment and physical property.
Invest in gold ETFs, gold-mining stocks, or gold mutual funds
Exchange-traded funds or ETFs work just like stocks, and they also trade on an exchange.
But ETFs are only backed by gold, and you don’t physically own the gold.
When you want to redeem your gold ETF, you will only receive the cash equivalent and not the actual gold.
Although ETFs will not make it possible for you to own a real gold bar, it will expose you when it comes to tracking the performance of gold and how its prices move in the market.
Mutual funds and ETFs are low-cost and are a very liquid entry to the gold market.
BSP Gold Buying Program
The Bangko Sentral ng Pilipinas has a gold buying program that allows it to purchase gold from small-scale miners and other sources.
They refine the gold to meet the standard requirements of international bullion markets.
There are gold buying stations located in different locations in the Philippines. Currently, you can sell your gold at the Gold Buying Stations in Quezon City, Baguio, Naga, Zamboanga, and Davao.
For gold to be accepted, it should be in disc or bar form and free from amalgam or mercury. It should not contain slag or other foreign matter as well.
Check out this table for the gold’s physical requirements:
|Type of Gold||Maximum Dimensions||Maximum Weight|
|Gold bar||16.5 centimeters long x 8 centimeters wide x 4 centimeters thick||5 kilograms|
|Gold disc||10 centimeters diameter x 5 centimeters thick||5 kilograms|
The maximum weight per lot is 10 kilograms, and the minimum preliminary gold assay is 30%.
You can find out more about the BSP Gold Buying Program here.
Why should you invest in gold?
Gold is a real currency and is considered a superior currency. Even if gold prices go up or down, gold will always be valuable.
You can sell it anywhere because it’s a global currency.
With your gold investment, you can rest easy even if the stock market is volatile or fluctuating.
It’s also good to note that gold cannot be stolen from your online bank or financial accounts. They are secure in your safety deposit box, which cannot be hacked by online hackers.
Overall, investing in gold is considered safe and a stable income-earner for gold traders.
But as with any kind of investment, you should first do your research to know what you’re buying or investing in.
Most financial advisors will tell you that gold investments are not the best option, especially during turbulent or volatile times.
However, if you want a diversified portfolio, you can invest in gold if it meets your financial goals.
Try not to put all your eggs in one basket, though, especially if it’s your first time to buy gold.
Are you ready to invest in gold in the Philippines? Why or why not? Share us your thoughts in the comments!