How To Invest In Gold In Nigeria

How To Invest In Gold In Nigeria

Have you been looking to diversify your investments or you are in search of a low-risk investment in Nigeria, investment in Gold is a good option. This article reveals all you need to know about, gold and how to invest in it in Nigeria.

Reasons why you should invest in Gold

Gold like many other commodities is highly sorted after and valuable. The absolute value of Gold does not change. A 24-carat gold will always be a 24-carat gold irrespective of the number of years it has been in existence.

The cost of gold appreciates steadily with time.
It has been a valuable mineral (valuable stone) for over 5,000 years and is used in making jewelry, gadgets, it is used in the production of some office and home appliances and as a raw material in several production industries.

In Gold investment, you can make money by buying and selling. You can make money by buying shares from gold mining companies, holding it, and reselling after some time.

The value of gold most of the time rises in the event of economic recession and uncertainties because people tend to liquidate their investment and look for safety in physical assets like gold. This is in an aim to preserve their capital.

How to invest in gold in Nigeria

Buy physical gold

You can get to invest in gold by purchasing gold in physical forms such as gold jewelry, coins, or bullion. Gold bullion is of high value and it can be in different forms such as gold bullion bars or gold bullion coins. (I.e it could be in bars or coins.

The general perception about investing in gold bullion is that you buy and possess a big, shiny, gold bar that is kept in a locked vault. Gold bullion is in bars which from a few grams to 400 ounces, but it’s most commonly available as one and 10-ounce bars.

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To invest in gold by buying gold bullion, ensure to buy from a reputable dealer, and ensure it is insured and well stored in a large and safe vaulted as it could attract theft.
If you choose to invest in gold with bullion, it’s also a good idea to also study the market to get up to date information on the price of gold, so you can pick the right time to buy. Prices are updated by dealers based on the current spot prices and the economic situations.

Ensure the gold is real, and tested before making purchases and also ensure you are not paying more.
Apart from physical markets, you can as well source your gold from online stores. When buying from online stores, ensure to check the store rating and reviews made by people who have earlier patronized them.

After making your purchases, it’s time to store it. Once you buy gold, you have to store it properly. Ensure to store it in a secured place to avoid losing your asset.
Invest In Gold Exchange -Traded Funds. (ETFs)
Gold exchange-traded funds (ETFs) are commodity funds and are traded like stocks and also represent assets backed by gold. When you invest in Gold through ETFs, you don’t own any physical gold, but instead, you invest in small quantities of gold-related assets, thereby creating more diversity.

As an Investor, with low capital for investment, gold ETF is a good choice as you can buy in smaller quantities and invest less compared to what you might need to invest in gold bullion. Investing in gold through ETF also saves the need to own a physical store or a vault with high security to store the physical gold.

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Investing in a gold mutual fund:

Investing in a gold mutual fund is another good way to invest in gold. This method helps protect you against inflation and provides a hedge against economic recession etc. By investing in gold mutual funds, you can your money in gold savings funds to take advantage of ETF stocks that directly depend on the price of physical gold.

Invest in gold mining companies

Investing in gold mining companies is another way to invest in gold in Nigeria. An investment in gold mining companies offers great opportunities to invest in gold, but sometimes certain activities could put the investment at risk especially if not insured. Gold mining companies carry out different operations in their mining process which are of risk.

This risk could affect the price of gold both negatively and positively. .External factors could also affect the activities of the mining companies. Such external factors include government rules, variability in the stock market, etc.

Gold trading platform

Just like there is foreign exchange (Forex) trading platforms, cryptocurrency trading platforms, there are also gold trading platforms. Investing in gold trading platforms is quite similar to the forex trading and cryptocurrency trading platforms. You buy stocks and resell.

Depending on the platform, there are several trading options made available to investors. A good example of a gold trading platform is Avatrade.

To get started visit https://www.avatrade.ng try other gold trading platforms that are trusted and of good rating.

N.B: the platform mentioned above is not the only platform you can trust, there are several platforms you can choose from.

When choosing which platform to invest, ensure you check their customer reviews and ratings.