Author Archives: AnDr3W@mCGYeRAd1m

  1. Is buying gold a good investment?

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    If you are looking to secure your future, or that of the next generation, then you may be looking for a safe investment – something that can hedge inflation and provide you with some certainty during times of economic instability. Precious metals have often been touted as a solid speculation choice but is buying gold a good investment?  

    Diversification 

    Gold is generally considered a good investment choice for diversification – a strategy in which you create a mix of various types of investment within a portfolio to minimise risk. The idea behind a diversification risk management strategy is that the different types of assets will yield good returns in the long run and reduce the risk associated with only holding one type of asset.  

    Obviously, each asset will come with its own risk, but by diversifying you are spreading this risk out and ensuring that what might negatively impact one type of asset, may positively impact another. Other asset classes that may be combined with gold in a diversified portfolio include stocks, bonds, real estate and ETFs (exchange-traded funds). 

    Beat inflation 

    Buying gold bullion is often a good choice if you are looking to hedge against inflation. This means that gold can generally maintain or even increase its value at a time when prices are rising. However, once high inflation has been reached, it is too late to hedge against it and thus the ‘good investment’ window may have passed. The optimal moment to put your money into virtually any asset is during a period of adverse sentiment when the asset is undervalued, thus offering significant growth potential when it regains popularity, however, knowing when this is can often be the difficult part. If you would like to know more about the current gold prices and how to protect your wealth please sign up for our newsletter. 

    Long term gains 

    Precious metals such as gold tend to hold their value in the long term, which can make them a good investment choice. If you have money to invest, the most sensible strategy is to grow it over the long term, thus negating the impact of any short term fluctuations caused by market volatility, economic uncertainty and inflation. 

    Investment risks associated with buying gold bullion 

    Of course, with any investment strategy, there are risks. You may be asking yourself ‘is buying gold a good investment?’ but what you should also be considering is the potential risks of investing in gold, which may include: 

    • Price fluctuations: Gold’s value often experiences wild swings in the short term, making its future worth hard to gauge. 
    • Uncertain protection against inflation: While some investors use gold as an inflation hedge, it’s not always a guaranteed bet that gold prices will rise with inflation rates. 
    • Influence of global politics: Political happenings, like wars, elections, or policy shifts, can sway gold prices. 
    • Cost of storage: buying gold bars also means you’ll need secure storage and insurance to guard against loss or damage which can add extra expenses to your investment.

    Once you are aware of the potential risks as well as the long term rewards of investing in gold you’ll be better placed to decide on what makes the right investment choice for you. It is also worth noting that if you are looking to make and protect wealth so it can be handed down, buying gold bars, coins or items of jewellery can enable you to pass it on as an inheritance. 

    When considering whether buying gold is a good investment for you right now, the important thing is to be aware of the wider global picture. With a lot of political and economic uncertainty, global financial markets remain increasingly volatile which means it is difficult to predict gold prices from day to day, let alone in the long term. The best thing you can do is to stay abreast of the latest market trends and news and refer to this before making any important investment decisions. 

    One of the easiest ways to stay ahead is to sign up for our newsletter. We aim to keep you up to date with gold prices, market conditions and tips on wealth protection. To sign up, simply complete the form below:

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  2. How to buy gold and silver when you haven’t done it before

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    As an individual of high net worth, knowing where to invest your money to make it work for you is key to managing your wealth. If you haven’t purchased precious metals in the past but are considering investing, we have prepared some guidance on how to buy gold and silver to simplify the process and get your portfolio started.   

    When to buy gold and silver 

    If you read our previous blog on ‘is now a good time to buy gold’ then you will know that the current global economic climate is not a stable one. With high inflation here in the UK, rising interest rates across the world and US politicians scrambling to stabilise their economy as the debt ceiling is again raised ahead of the looming 2024 presidential election, there is plenty of uncertainty ahead.  

    As we explored in our previous blog, gold and other precious metals often provide a safe haven at times like this, allowing you to hedge against inflation and minimise risk to preserve the value in your portfolio. If you haven’t invested in precious metals before, click here to read why you should buy gold and silver instead of investing in property, stocks or cryptocurrencies. 

    Where to buy silver and gold 

    Once you’ve decided to invest in a precious metal such as gold, you need to determine what format to purchase it in. There are three main choices when it comes to buying gold – physical gold, digital gold and gold ETFs (Exchange-Traded Funds) – these track gold but trade on the stock market, like shares. 

    If you choose to buy physical gold then your choice is between gold bullion and coins. For larger denominations, bullion is the sensible option but you’ll need to ascertain whether you’ll be taking possession of the gold or paying to have it stored in a safe vault.  

    The easiest way to invest in precious metals is to buy them online from gold dealers. Even if you prefer to do things the old fashioned way and complete the deal over the telephone, the internet provides you with the best research in terms of comparing live prices and storage costs. It is quite safe to buy gold bullion online when you purchase from a reputable dealer such as Goldstar Global. Our customers can relax in the knowledge that our easily accessible electronic environment is safe, secure and facilitates real time trading. 

    Where to store your precious metals 

    If you want to buy physical gold or silver but store it yourself there are a few factors you’ll need to take into consideration. Firstly, you will need to find a safe, dry location for storage. This should preferably be away from your home and in a place that is free of damp and corrosives. It is also worth noting that gold and silver should not be stored together as silver can oxidise over time which can tarnish the gold. 

    If you choose to store your own precious metals you’ll also need to ensure you take out adequate insurance to protect your investment. 

    The easiest option when purchasing gold or silver is to pay to have it stored. This can be arranged at the time of purchase when you buy from us, helping to keep the process simple and the costs transparent.  

    Why use Goldstar Global? 

    If you are looking for gold dealers to help build your investment portfolio, you’ve come to the right place. At Goldstar Global we promise: 

    • A fair and transparent environment where all gold and silver market investors and traders are safe and secure. 
    • All the services of a Bullion Bank without the associated high fees. 
    • A low friction solution for the trading, purchase, sale and storing of precious metals globally. 
    • Private client account management – should you wish us to help manage your portfolio. 

    To get started with your precious metals portfolio please click here to buy silver and gold. 

    If you want to stay up to date with the latest gold and precious metals news, prices,  investment and wealth protection tips please fill in the form below to sign up to our newsletter: 

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  3. Is now a good time to buy gold?

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    Despite some signs of resilience, experts predict that we will be in a recession by some point later this year. Across the key markets of the UK and the US, economists believe there is still more than a 50% chance of a downturn in the coming 12 months. With inflation at 10% which is eroding purchasing power, increased interest rates and low consumer confidence, it is only a matter of time before the inevitable is declared. It is at unstable, uncertain times like this that investors often turn to gold to protect themselves against the changing economic climate. Gold has maintained its purchasing power for 5000 years and will continue to do so. In this blog we are going to ask ‘is now a good time to buy gold?’ and is it better than the alternatives?

    Buying gold vs investing in property

    When considering the best place to invest your money, property is often touted as the greatest solution. Bricks and mortar have long been considered a safe option and with average house prices rising 53% in the last decade, on paper, property seems like a sensible investment. That is, however, until you factor in the projected recession and current cost of living crisis. If you are looking at buy to let properties to provide a steady income then you need to be aware of the factors that can negatively impact this projection – namely:

    • The recent legislation changes that have significantly reduced the potential returns buy-to-let properties offer – such as the increased tax on rental income and reduction in Capital Gains Tax allowance.
    • The fact that many people now won’t be able to afford the current rental prices and thus your properties could be left unoccupied.
      The stress involved with managing a property portfolio.

    If you are looking for a safer and easier option to invest your wealth then gold may be the better alternative. Gold offers several advantages over property as a means of investment, including:

    Gold is easier to invest in – there are no estate agents, builders and tenants to deal with. You simply choose the amount you want to invest, buy the gold bullion and have it safely stored.
    Gold is a flexible asset – it is quick and simple to add to your gold portfolio or sell some of your gold assets. Raising capital from a property can be a much more complicated and long winded process.

    Gold offers the ultimate wealth protection – it does not follow economic trends like the housing market does and so can provide a very stable investment during times of economic turbulence and uncertainty.

    Buying gold vs stocks

    If you are looking to make your money work for you and build long term wealth, you may be considering investing in stocks. There are many advantages to doing so such as the potential for higher returns and regular dividend income, however investing in stocks also comes with its drawbacks. As stock prices fluctuate frequently they are considered high risk, particularly if you plan on holding them only for a short period of time.

    Gold may be a better investment alternative to stocks because it allows you to:

    • Hedge against inflation – gold holds its value better and longer than other investment types which helps to protect you against the decreased purchasing power of fiat currencies.
    • Minimise risk – the value of gold doesn’t fluctuate on a daily basis to the same extent as stocks and other investments. It tends to remain stable and so can help you to preserve value in your portfolio.
    • Protect your wealth – as the value of gold tends to hold steady it can be a safe bet during times of economic uncertainty and rising inflation. In fact, in 75% of the stock market crashes of the last 40 years, the value of gold has increased.

    Buying gold vs cryptocurrency

    Cryptocurrency is a digital or virtual currency that uses cryptography for security. It began with the creation of Bitcoin in 2009 and since then, thousands of other cryptocurrencies have emerged. There are several options for investing in cryptocurrency, including buying and holding, trading on exchanges, mining, and staking – each with its own set of risks and potential rewards.

    The biggest and most obvious difference between gold and cryptocurrency is that Bitcoin, and its alternatives, are digital currencies and only exist online. Gold, on the other hand, is a tangible asset. When you buy gold bars you have the option of storing them yourself and being able to hold them.

    The second biggest difference is in the stability of these two investments. Whilst gold is generally considered a safe and stable investment, cryptocurrencies are volatile. With the worst of the crypto market sell-off behind us, currencies such as Bitcoin does seem to have stabilised and now appear to be at least loosely affected by wider market trends, but does this mean they are a good investment option?

    Consider this. Since its launch, Bitcoin has been up to five times more volatile than gold. It only has a history of just over a decade, so it is too early to know if it is a useful inflation hedge. Most people who invest in cryptocurrencies do so speculatively, whereas gold investments are seen as a store of value and a means of wealth protection. Gold may not offer the high returns of cryptocurrencies but it does provide a safe haven investment.

    Conclusion – is now a good time to buy gold bullion?

    Having considered three possible investment alternatives it is time to decide whether today presents a good opportunity to buy gold bullion instead. Ultimately, your decision will be based on personal preference and the investment type you feel most comfortable with, however it is always worth considering what is happening in the wider world at the time.

    In summary, the factors currently affecting the world’s economies such as the lingering effects of the COVID-19 pandemic, Russia’s invasion of Ukraine and higher than expected inflation in the US, UK and Europe, are all having an impact on the suitability of investment choices. Reduced household purchasing power, tighter monetary policy and slowing growth are affecting, and will continue to affect the property market, stock prices and the volatility of cryptocurrencies. With these factors in mind, gold currently offers the best route to wealth protection. The price of gold is uncorrelated to other investments, it often increases its value during times of recession and it is easy to buy and sell, increase or decrease your portfolio.

    At Goldstar Global we offer simple and efficient solutions to enable you to buy, sell, trade and store gold and other precious metals. In short, we provide all the services of a Bullion Bank without the associated high fees.

    If you’d like to stay up to date on the latest news on gold and precious metals and find out first hand about the best investment opportunities please sign up for our newsletter below:

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