Before you decide to venture into gold investment, it is important to understand the different types of gold investors. Go to http://2gov.org/gold-ira/birch-gold-group/ to learn more about the investment. Anyone who decides to invest in gold has an agenda and the reason for gold investment. The type of gold investment that you choose will determine the type of profitability that you gain.
Gold is a precious metal and gold investors sometimes put their money in gold for the prestige that is associated with owning gold. This is especially true, for the investors who own gold in the physical state such as coins, bars and also jewelry.
Type of gold investors
These investors concentrate their investment in investing the physical gold, and they accumulate their stock of gold in various physical forms. This type of investors believes that gold will be the only type of currency that will be left after all the other forms collapse. According to catastrophe investors, time will come when money, stock and other forms of investment will collapse, and gold will be the only one left.
The theory of catastrophe investors may not be true but that is their motivation to invest in gold. The catastrophe investors believe in investing gold in its pure form and avoid other forms of investment like the gold in stock.
Just like the name suggests, this group of investors is actively involved in the process of trading gold. The main role of these type of investors is to benefit from the process of selling and buying of gold. Traders of gold prefer to own it in the form of stock and shares as opposed to owning physical gold.
Physical gold has too much cost associated with it like storage and the long process of selling, so it becomes too much for an active trader. The traders look at the market forces and determines the buying and selling price of the gold.
These type of gold investors prefer to hold gold for a long period with the hope that one day the prices of gold will go up and make a profit. The long-term investors can decide to hold both the physical gold and also gold in the form of shares.
Their reason for investment in gold is purely for speculative purposes just like it is common with other methods of investment like real estate.