Gold is historically viewed as a store of value, but prices can be volatile in the short term. Volatility is driven by global macro forces — interest rates, currency moves (especially the US dollar), geopolitical events, central bank buying/selling, and changes in investor sentiment. Expect periodic price swings; plan your horizon around your financial goals.
Common market risks
- Price volatility: Daily moves can be large.
- Liquidity risk: Narrow spreads for rare items.
- Counterparty risk: When using dealers or unregulated marketplaces.
- Regulatory & tax changes: Local rules may affect costs and exportability.
Secure storage options
Choose storage that matches your risk tolerance and liquidity needs:
- Bank safe deposit boxes: Widely available but may lack insurance for market value.
- Insured allocated vaulting: Third-party vaults that hold specific, serial-numbered bars for you and provide insurance — recommended for investors seeking high security.
- Custodial services: Regulated custodians offering reporting, insurance, and transparent audit trails.
- Home storage: High risk unless professionally insured and secured; consider insurance and concealment costs.
Best practices: verify dealer reputation, insist on allocated storage when possible, get written insurance coverage, and keep clear ownership records to preserve liquidity and resale value.