Gold Business In Nigeria – Beginner’s Guide On How To Start

Ever since the economy dropped in almost all nations, especially Africa and the growth of digital businesses, many people from different nations have come up with the idea of investing in their own choice of platform. This started with Bitcoin and others, but the most important and most welcoming one is what I am about to explain to you. It is called “gold business.”

You may or may not have heard of gold investment. As you scroll down to learn more, I will explain what it is all about. am assuring you that through this article you will see many reasons to be a part of this investment.

Gold Business in Nigeria

In all the precious metals, gold is the most welcoming metal to invest in, as it ensures you with a well-secured profit, unlike others, which could easily crash.

Another part is the investor buying gold as a means of diversifying risk, especially through the use of future contracts and derivatives. However, this proves that the investment is not just done with Nigerians alone but has other investors around the world who seek to put in their money to prevent future setbacks.

Aside from being a safe metal investment, we must recall the global financial crisis in 2007 caused by the United States mortgage sector, which is still affecting the world, as well as the emergence of other financial crises, such as the US increasing national debt, which is approximately $21 trillion and counting, and trade wars between world powers such as Russia, China, and the US, which have affected the stock market.

It really calls for us to invest in gold, which is the best investment to withstand such a global crisis and so on. Due to its value, it has been used by investment firms and banks to prevent wealth and store value.

Six things you should know before investing in Gold

One can’t just jump into an investment without having much knowledge of what such an investment is all about. From the starting point, we have read about the importance of gold investment, but it is necessary to have other insights into it as things you should know before investing in gold:

  1. Gold does not move or change in value: The value of gold when purchased remains constant, even over the next five years; for example, a 24-carat gold bar remains a 24-carat gold bar regardless of the year it was existed.

  2. Gold has a steady appreciation in value, although it is not always astronomical.

  3. Gold is used for the production of many precious materials such as jewelry and other materials in industries and medicine, as well as being a valuable stone that has lasted over 5000 years.

  4. A gold investment does not provide a fixed income; rather, it is a good business decision that yields a profit when purchased, held, and resold. Purchasing a share in any of the gold mining companies will help you earn a regular payout from investing in gold.

  5. The value of gold usually rises during times of economic recession and other uncertainties because people tend to liquidate their investments and seek safety in physical assets using gold. This is with the aim of preserving their capital.

  6. Provision for gold storage and safety is advised for those who do not intend to buy physical gold, as well as a refusal to invest in mining companies.

Benefits of Gold business in Nigeria

The following are benefits of gold investment in Nigeria:

  1. Safety is the main reason you invest. It is only when your investment is saved properly with a legit hand that you start thinking about a profit. Therefore, gold is the safest investment that you can make, especially during a financial crisis, since it is not affected by any economic fluctuations like other financial crises.

  2. Tangibility: With gold, your investment can be handheld, so you know it exists, which gives a certain level of assurance. On the flip side, other financial assets are just numbers on the stock market that could rise or fall.

  3. Consistent value: Unlike other investments, gold’s value never falls. Instead, it keeps on increasing with time. The only uncertainty is that the risk could be slower or faster at different times.

  4. Risk-free and inflation-resistant: Sovereign bonds, treasury bills, and gold are the only risk-free assets. However, treasury bills and sovereign bonds are risk free because the government backs them, but gold stands alone and remains risk free. They do not melt under an economic crisis and are not affected by inflation.

  5. Privacy investment: Gold investment has nothing to do with government bodies, meaning that when purchasing gold, you have no reason to report it to any central authority, unlike with stocks and other financial instruments. Rather, you make your purchase private with the seller, with full knowledge that the person is legit.

How to Make Money After Investing in Gold

Making money after investing in gold is easy. You can make profits by trading physical gold, using it as an underlying instrument in other investments, or renting it out.

Before trading gold, consider these: ensuring important products like a storehouse, weighing scale, and security are in place. Meanwhile,
Gold has different forms, which include bars, coins, bullous, and jewelry.

You can trade in any of these, though their prices depend on their weights. They also come in different karats, up to 24. Don’t forget to be intelligent enough to tell the difference between real and fake gold.

Where to buy Gold in Nigerian

There are places where you can make purchases for your gold, but these are the well-recognized states where you can get it easily in Nigeria. The cities include Abuja, Kano, and Lagos.

They both have high amounts of gold. When dealing with gold dealers, make sure you do a proper investigation into where and who you are purchasing the gold from to avoid fake dealers. Apart from physical trade, you can trade your gold online with Sell Gold Nigeria or Gold Price Ticker.

You can also invest in shares of gold mining or trading companies, ETFs, and gold futures if you do not have the time to source physical gold or its commodities. Doing this needs the help of an experienced stockbroker who will put you through.

Finally, gold investing is an investment that gives a high profit. As stated above, be aware that it also has a risk of piracy and fake dealers. Therefore, ensure you do an excellent investigation while putting in a good amount of time to thoroughly access the market and check the credibility of any dealer.

Source: Nyscî

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