Gold has long been one of the most reliable forms of wealth preservation. Whether you’re a seasoned buyer or someone just starting their journey into precious metals, understanding the fundamentals of purchasing gold is essential. In this guide, we’ll walk you through why buying gold is a smart choice, the different types of gold you can purchase, and how to make your first move. Let’s get started.

Why Buy Gold?

Gold is often considered a “safe haven” asset. In times of economic uncertainty, when the stock market fluctuates and currencies lose value, gold remains resilient. Historically, gold has maintained its purchasing power over time, which makes it an excellent hedge against inflation. Buying gold offers a sense of security that few other assets can match, and it diversifies your portfolio, balancing the risks from more volatile assets.

Ways to Purchase Gold:

Physical Gold: One of the most straightforward ways to buy gold is through physical gold such as coins, bars, or bullion. Many buyers appreciate having a tangible asset they can store at home or in a secure vault.

Gold ETFs and Mutual Funds: If you prefer a more liquid option, you can buy gold-backed Exchange-Traded Funds (ETFs) or gold mutual funds. These provide exposure to gold’s price without the need for physical storage.

Gold Mining Stocks: Another option is to purchase shares of companies that mine gold. This type of purchase carries higher risk but can potentially offer greater rewards if the company’s production succeeds.

When Should You Buy Gold?

Gold is best purchased during times of economic uncertainty or when inflation is expected to rise. Given its historical performance during crises, adding gold to your portfolio now might provide the diversification you need.

Key takeaway: Whether you are diversifying your portfolio, preparing for inflation, or looking for a safe haven, gold remains a strong choice. Start small with gold coins or buy strategically with gold ETFs to minimise risk.

Looking to make your first gold purchase? Folton.co.uk has everything you need to get started, from premium gold bars to expert guidance.

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