Investors should invest in gold, especially during a crisis, and buying gold is only available to rich people? The extraction of the precious metal mainly takes place in environmentally harmful and inhumane conditions - these and other myths constantly run around the yellow precious metal.
There has always been a lot of prejudice against gold as an investment. First of all, there is a common assumption that this investment is only suitable for rich people. This can be refuted, as well as some other fallacies.
Myth 1: Investing during a crisis
Gold has long been seen as a stable investment in economically volatile times - especially in times of high inflation and strong fluctuations in the capital markets, the precious metal should protect against loss of value. In fact, in recent years, the price has always risen most sharply in the short term, when there was a lot of uncertainty in the markets. Therefore, ideally, investors should buy gold not only in times of crisis, but also during stable market conditions. Thus, the probability of reliable hedging of own assets increases.
Myth 2: Gold mining
The mining of precious metals is often associated with environmental pollution and the exploitation of man by man. However, there are products that support sustainable gold mining. These include recycled gold. It can be obtained, for example, from old jewelry by melting it down and casting it into ingots or coins. From old to new - and without interfering with nature.
There is also the so-called responsible gold. The ability to trace the entire production process of such products allows you to make sure that fair conditions were observed during the extraction of minerals. This includes reducing CO2 emissions as well as respecting human rights, including in line with UN and OECD regulations. Therefore, buying recycled gold and responsible gold is a fair way to invest in this precious metal.
Myth 3: Investing for the rich
Gold is very expensive and only wealthy people invest in precious metals, a prejudice that persists stubbornly among many people. This may be true for large amounts, but there are now many cheaper alternatives. Currently, one gram of the precious metal can be purchased for just under 60 euros. The so-called CombiBars are a gold bar in the form of a plate, which can be divided into smaller pieces by hand and without any loss of material. This gives investors the opportunity to sell even a small amount of gold at any time instead of selling a whole bar at once.