What are the advantages and disadvantages of buying gold?

Advantages and disadvantages of investing in gold Gold is a hedge against inflation. It maintains its value over a long period of time. Gold is not a passive investment. The price correction may result in losses.

An initiative of Kredent InfoEdge Pvt. When you decide to buy gold, you'll pay a premium that looks more like the current market price. The premium will affect you in such a way that, when the value of gold falls, you will suffer losses. The losses you make will be equal to the current value of gold.

Whenever you sell your gold and make a profit, you'll have to pay a tax. The current IRS rates are 28%, which is the maximum. For example, if you want to sell gold bars, you'll need to find a buyer willing to buy that peso in gold. Millions of gold traders around the world are just waiting for a buyer to be able to sell them their gold.

In general, you should buy ingot coins, such as the American Gold Eagle, Canadian Gold Maple Leaf or the South African Krugerrand. By buying gold mining stocks, gold certificates or publicly traded products, for example, you can take advantage of hedging gold against inflation without having to carry heavy gold coins or worry about where to store them.