29 December 2022

Ditch Bitcoin. Get Gold Instead! (According to Goldman Sachs)


Last Monday, Goldman Sachs clarified its financial feelings about Bitcoin. It stated that it expects Gold to perform better than Bitcoin in the long term. However, it also added that cryptocurrency is volatile, which makes Gold a better alternative. 

If you’re joining the cryptocurrency market, consider giving it a second thought. It’s easy to get caught up in the profits, but you’ll lose massively when the market gets very volatile. How about we give you a better alternative? 

This article takes a deep dive into yellow metal and its profit potential. You’ll learn about the best ways to use it for portfolio diversification. By the end, you’ll be in a better financial position.

Reasons why investors like Gold

Beyond its value stability, here are some other reasons for choosing Gold:

  • Diversification: Gold isn’t closely correlated with other assets. This means it can diversify your portfolio and make it less volatile.
  • Liquidity: When you buy certain Gold-based assets, you can easily convert them to cash. This gives you available funds for other ventures.
  • Returns: Gold has a track record of outperforming stocks and bonds. It’s been able to do this over long periods and through economic uncertainty. 
  • Low correlations: Gold has an inverse relationship with stocks and bonds. This means when they go down, the Gold price goes up. 

Best ways to use Gold for portfolio diversification 

There are many ways to add Gold to your investment portfolio. These include the following:

Buying & Trading Gold Bullion

Unlike other commodities, Gold can be easily obtained by the average investor. You can easily buy Gold bullion from a precious metals company like ISA Bullion. We also provide it in Gold coin or bar form at a bank or brokerage.

Bullion bars come in different sizes. They can range from a quarter-ounce wafer to a 400-ounce brick. If you’re new to Gold investment, it’s best to start with purchasing a Gold deposit with us and then trading it on the spot market to lock in instant Gold profits from anywhere in the world.

You can buy various Gold bars/biscuits like the American Eagle, the Canadian Maple Leaf and the South African Krugerrand and trade it digitally from our secure online Gold trading platform 

⚠️ Always deposit with a reputable dealer that’s trusted worldwide. At ISA Bullion, we ensure your physical Gold holding’s safety by storing it with our reputable security & vaulting partners like Transguard & Brinks.

We also offer two way pricing – which means we can buy back your Gold at a pre-agreed price in case you want to sell it urgently. Start trading Gold now

Buying Gold Funds

Owning physical Gold still has its issues. For example, you need to consider transaction fees, storage costs and asset insurance. But Gold funds can give you a more liquid and low-cost entry into the Gold market. This includes mutual funds and exchange-traded funds that replicate commodity movements.

For instance, SPDR Gold Shares (GLD) is one of the oldest ETFs of its kind. It was launched in 2004 and trades shares on the New York Stock Exchange. Like stocks, the shares can be bought or sold at any time during the trading day. 

When investing, you should know that each ETF share represents one-tenth of an ounce of Gold. For instance, if Gold is trading near $1,500 an ounce, the Gold ETF will trade for exactly $150 per share. The GLD only invests in bullion, giving investors direct exposure to Gold price movements. Other funds invest in bullion and shares of publicly traded companies. These organizations are involved in the mining, refining and production of Gold.

Generally, Gold stocks rise and fall faster than the actual Gold price. Companies are also exposed to problems that are unrelated to Gold prices. Such problems range from political factors to environmental concerns. These concerns make ETF investments risky. But, you also get a huge appreciation potential in exchange.

Buying Gold Futures Options

If you’re an experienced investor, you might not be interested in risking huge capital. A good alternative is to get Gold futures or options on a Gold ETF. These contracts represent the right to buy or sell Gold at a specific price for a certain period. 

You can use options when you think Gold prices are going up or down. If your guess is wrong, the highest risk is the premium you paid to enter the contract. In the U.S., options can be bought or sold through the Chicago Mercantile Exchange. You can also get SPDR Gold Shares ETF options and trade them in a standard brokerage account. 

However, some traders buy and sell Gold futures contracts. This can allow you to speculate on short-term Gold price moves that may go higher or lower. The biggest advantage of having Gold futures is the leverage you can use. This means you can own a lot of Gold futures for a small sum of money. Then, if the futures go in your direction, you can quickly make a huge profit. 

But the leverage you get goes both ways. If the Gold moves against you, you’ll need to put up a lot of money. These funds are needed to keep the position open, or you’ll take a loss.

Buying Gold Mining Stocks

Gold mining stocks are an excellent alternative if you can’t get Gold directly. But you should remember that Gold stocks don’t necessarily move with bullion prices. This is because mining companies succeed or fail based on their operating performance. 

Their stock price is also affected by how they use their capital and generate profits. So, if you choose to buy mining stocks, you won’t have the security of physically owning the metal. However, you can invest in diversified ETFs to be on the safe side. This will protect your investment if one company starts performing poorly. But, it won’t keep you safe if the entire industry is affected, e.g., sustained low Gold prices.

Add Gold to your portfolio with ISA Bullion

Bitcoin might have some perks, but Gold offers you better long-term financial security. You also have many investment options, from Gold & Silver bullion and futures to mining stocks. If you’re ready to diversify, we’d be happy to help.

We can give you unrestricted access to the Gold market at ISA Bullion. You can get live commodity price updates and choose the perfect investment plan. 

So register today and improve your portfolio stability with Gold.

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