Home Does it Make Sense to Invest in Gold in 2019? [OR NOT?!]
Consumer Discretionary, Gold, News

Does it Make Sense to Invest in Gold in 2019? [OR NOT?!]

Michael Booker

Gold was thought-out to be a universal currency for many years. In 1944, after the Bretton Woods Agreement, dollar substituted gold as an anchor currency. However, gold continued to be used to give a lift to various countries’ local currency. Today, the precious metal is one of the most popular investments both as a form of portfolio diversification and a hedge for different classes of investments.

Does it Make Sense...
Gold historical price
Note: Historically, and in comparison with equally performing investments, Gold has had minimal and less impactful volatilities that helped it outperform most other investment classes and even went on to earn the tag ‘investment safe haven.’

How to invest in gold?

Buy physical gold: Invest in gold futures:Buy gold ETFs:Invest in gold mining companies:

Does it Make Sense...If you are looking for direct investment in gold, you may consider buying physical gold. This involves buying into gold bullion bars, bullion coins or jewelry. These can be acquired from a gold storefront or jewelry shop down the street or online from reputable online gold trading sites. Like in any other investment, you want to ensure that you are acquiring the gold in its purest form and at a fair price. You will also need a proper safe or depositor’s account with a bank for its storage.

Does it Make Sense...You may also choose to invest in the leveraged gold futures contracts. This investment has to be done through a commodities brokerage house that requires an initial cash deposit necessary to open a margin position. The biggest advantage in gold futures investment is that it allows margin trading implying that you stand to make more than your initial investment should the gold prices shoot. On the flipside, you stand to lose more than your deposit should the price go south. You can, however, take confidence in the fact that Gold prices can never be Zero and this puts a limit to how much you can lose in a single trade.

Does it Make Sense...If you don’t want to own physical gold or being tied to a futures contract but still want to benefit from its price, consider investing in Gold Exchange Traded Funds (ETFs). This refers to highly diversified investments in physical gold and gold-related products. As the name suggests these are bought and easily traded on the stock exchanges.



Does it Make Sense...

You may invest directly in the gold mining companies through a direct investment for private companies and buying into the shares of the publicly traded miners. In most instances, the price of the gold company shares will rise and fall in relation to the value of gold. The only exception to this rule is when these companies experience operational challenges specific to the company that often strangles its share price regardless of the performance of gold.

What are the pros and cons of investing in gold?


  • Helps protect your long term savings from the effects of inflation
  • Presents you with one of the most viable investment diversification options
  • It is easier to invest in gold than keep trolling the markets looking for the right shares or stocks
  • Unlike fiat currency or company shares, its value can never go down to Zero even in the worst economic downturns like war
  • Can be used to hedge against the dollar and most other international currencies


  • Fewer volatilities mean low rates of return
  • Keeping physical gold safe may be relatively stressful and expensive
  • The high fees in collector’s fees and premiums on prices for physical gold eat into possible profits

Gold as a Form of Investment

Although gold is no longer used as a standard form of currency internationally, it still remains to be a preferred investment choice for many potential investors. Below you will find some of the reasons that make gold a better investment choice in 2019.

  • Liquidity

Gold is believed to be one of the most liquid assets as it can be conveniently converted into cash whenever and wherever required. Similar to cash, the liquidity and acceptance of gold is incomparable and you can sell it instantly whenever needed.

  • Maintains Its Value

Unlike other investments and assets, gold tends to hold its value over the passage of time. Economists believe that even the gold price is not able to signify its real worth, meaning if the gold price drops, the primitive gold value doesn’t vary a lot. This is mainly because unlike dollar that holds no inherent value, there is a fixed quantity of gold.

  • Hedges Inflation

Gold prices generally increase when your local currency loses its worth and inflation takes hold. As gold is valued in dollars, any decrease in the dollars price will trigger raise in the gold prices. Thus, because of its stability, gold can act as a better investment option than its counterparts.

  • Portfolio Diversification

Gold is a simple and effortless way to expand your investment portfolio. You can significantly reduce the overall risk of your investments through portfolio diversification. Since, gold generally moves in reverse to the futures market, it’s relatively easier to diversify with gold than other investment options.

  • Gold can be used as an Input for Other Products

As gold is used to produce other products like jewelry, there is a significant need that also readjusts the gold prices.

Why Are the Alternates to Gold Investments Failing in 2019?

There are numerous reasons that make gold investment better than other alternatives like stock, forex or bonds.

  • Hedge

When we compare gold with other investment options, gold is popular worldwide because of its hedging capability. As we know that each year the cost of goods and services rise due to the increase in inflation. This rise in prices negatively impacts our purchasing power. Since, gold maintains its value, it is said to be the hedge against inflation.

  • There are Number of Ways to own it

This is one of the most important aspects. Yes, there are multiple ways to own gold. For instance, you can buy gold coins or bullions. You can even invest in gold securities that enables you to trade that security in which acts similar to owning any tangible asset.

  • Maintains its Worth

There can be a decline in gold prices but one thing is certain that it can never be worthless. In fact, it always gets back its real worth after some time.

Where to invest in Gold

1.United States Mint – Best for physical gold (bullion coins)

Does it Make Sense...The United States Mint is a government-owned producer and distributor of physical gold and other precious metals in the form of coins. According to the gold manufacturer, the composition of the gold coins produced and sold here includes the one-tenth, one ounce, the 22 –, and 24 – Karat gold. These coins are specially designed for investors, with most being offered in limited edition mode, to help them diversify their investment portfolios. The U.S Mint doesn’t, however, sell Gold coins directly to investors but passes them through collectors and dealer stores.

How to buy gold bullion coins from U.S Mint

Step 1: Login to USMint website

Step 2: Identify a suitable dealer


  • The intrinsic value of gold, unlike paper money, will never be zero
  • Helps shield your reinvestments against inflation
  • Acts as a hedge against market crashes
  • The rising global demand for gold constantly pushes prices up


  • Relatively illiquid investment
  • High maintenance costs in a safe or bank safe deposit box
  • Low returns occasioned by long periods of market stability
1. SPDR Gold Trust – Best for ETFs

Does it Make Sense...

Started over a decade ago and currently valued at over $33 billion, the SPDR Gold Trust comes off as one of the largest Gold ETF you can buy into. It also competes favorably against most other precious metal ETFs and ranks highly on both returns and inexpensive management fees.

These currently stand at 0.4% of the total assets under management. One of the greatest perks of investing in Gold ETFs is the fact that you are trading its price movements. You, therefore, don’t have to worry about the extra costs associated with keeping physical gold safe.

How to buy SPDR gold trust ETF:

Register and fund your account account and start investing


  • Low management fees of 0.4%
  • Your investment is held in electronic form and thus no need to spend more on keeping it safe
  • The fact that it is exchange traded makes it highly liquid


  • More capital intensive compared to such other electronic gold investments as CFDs


When it comes to long-term investment, gold is certainly the best option – and continues to be, this year. If you’re interested in latest monetary news including the inflation status or devaluation of your local currency, you may want to include gold to your investment portfolio.


What is the best time to invest in gold in 2019?

How much Gold should you buy?

Why is gold considered an investment safe haven?

Is gold a viable investment option?

What factors influence the price of gold?

Can I invest in gold using leverages?

Is gold affected by market volatilities?

Trusted & Regulated Stock & CFD Brokers


What we like

  • 0% Fees on Stocks
  • 5000+ Stocks, ETFs and other Markets
  • Accepts Paypal Deposits

Min Deposit


Charge per Trade

Zero Commission on real stocks


64 traders signed up today

Visit Now

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Available Assets

  • Total Number of Stocks & Shares5000+
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • DAX Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
  • Paypall
  • Skrill
  • Neteller


What we like

  • Sign up today and get $5 free
  • Fractals Available
  • Paypal Available

Min Deposit


Charge per Trade

$1 to $9 PCM


Visit Now

Investing in financial markets carries risk, you have the potential to lose your total investment.

Available Assets

  • Total Number of Shares999
  • US Stocks
  • German Stocks
  • UK Stocks
  • European Stocks
  • EFTs
  • IPOs
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 $1 - $9 per month
  • NASDAQ $1 - $9 per month
  • DAX $1 - $9 per month
  • Facebook $1 - $9 per month
  • Alphabet $1 - $9 per month
  • Telsa $1 - $9 per month
  • Apple $1 - $9 per month
  • Microsoft $1 - $9 per month

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account