One investment with 649 per cent return

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From January 1, 2000 until today, the price of gold has increased by over 649 per cent, capturing the attention of a heap of investors.

This investment has seen unimaginable returns but paying into it isn’t as simple as you may think - and there’s an obvious downside.But for anyone who hasn’t invested into gold in the past, knowing whether it’s a smart move and how to actually get started can be overwhelming.

Gold bullion bars after being inspected and polished at the ABC Refinery in Sydney. Picture: DAVID GRAY / AFP With gold, because you ultimately own a piece of metal there is no income on your investment, meaning your only lever for financial upside is when the price increases over time. The implication here is that you don’t actually receive any financial return from a gold investment until you sell.

Also, if you’re looking to buy gold you ultimately want to own a gold bar , so you need to think about how you will actually buy your gold and how you will ‘manage’ it.First, you can buy physical gold. This means you’ll hold the physical gold, and need to either store this yourself or pay someone to store it for you. This option can come with some costs and risk, you don’t want to go losing your gold brick or have it stolen.

 

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