Saving gold is a safe way to preserve the value of your money and achieve financial stability despite the economic and political changes taking place in the world and the lack of confidence in paper currencies.
In the following article, we'll take you on a practical journey to understand how to buy gold for savings, choose the right type, store it safely, and avoid its most significant risks.
Smart gold saving steps for beginners
Set your financial goal
Ask yourself before you buy any piece of gold, “Do you want to save gold for the long term? To hedge against crises or as part of your investment portfolio?”
When you can accurately define your goal, you will be able to know the most appropriate carat and shape of gold that you should acquire.
Bullion or jewelry? Choose the type that's right for you.
This step emphasizes the importance of the first step: determining the purpose of purchasing gold and the extent of savings you desire—long-term or short-term. For example:
Gold bars are an ideal choice for those looking to purchase gold for savings. They typically come in various weights (1 gram, 5 grams, 10 grams, and even 1 kg), are inexpensive to manufacture, and are easy to evaluate.
As for ornaments and jewelry, despite their beauty, they are not the best option for saving, due to the high cost of crafting them and the difficulty of reselling them at the same value.
Understand gold carats
When you buy gold, the first thing a jeweler will tell you is its karat. What is gold karat? You need to understand this to be able to evaluate the options available to you, compare them with your goals, and determine which option best meets your objectives.
- 24 karat: 99.9% pure gold, often used in alloys.
- 21 karat: Most common in the Middle East, used in jewelry but less pure than 24 karat.
- 18 karat: Contains a higher percentage of other metals, used for decoration, not for saving.
But as a beginner, go for 24-karat gold bullion to get the most out of your gold savings plan.
Where can I buy gold with confidence in Saudi Arabia?
To ensure the success of your gold saving experience after determining your goal, be sure to choose a reliable, high-quality place. Here are some things to keep in mind when choosing:
- Trusted gold shops: Ensure the merchant's reputation and a clear purchase receipt is available. You can browse and transact at Ruby's store with confidence and assurance.
- Banks and financial institutions: Some of them offer gold bullion at prices close to the market.
- Certified online platforms: There are many websites that allow you to buy gold for savings online, with delivery and storage guarantees.
Ways to store gold safely
The process of saving gold doesn't end with the purchase. Storage comes next, which is equally important. Here are the most important ways to store gold safely:
- If you have small amounts, storing them in a secure home safe is a good and convenient option, but be sure not to tell anyone about them or their location.
- Bank safe deposit boxes offer high protection but come with an annual fee.
- Some companies offer professional storage services with content insurance.
Make sure you have purchase documents and gold purity certificates , no matter which method you choose.
Risks to avoid when saving gold
Of course, there may be some risks involved in saving gold, even though it is a safe means of saving. These risks include:
- Fraud in caliber or weight: Only buy from reliable sources.
- Buy high: Monitor global prices and avoid buying during peak times.
- Crafting costs: These affect the value of gold when resold, especially in jewelry.
- Unsecured storage: It exposes you to theft or damage, so choose a secure storage method.
Essential Tips for Beginners in Gold Saving
- Don't put all your savings in gold, but make it part of a diversified portfolio.
- Monitor gold prices continuously and periodically, and take advantage of buying opportunities when prices drop.
- Consider buying in batches rather than a large amount at once.
- Learn to differentiate between real gold and fake or adulterated gold.
Saving gold isn't complicated, but it is a conscious financial step that requires a little knowledge and discipline. If you're thinking about starting to save gold, you can start with a 5-gram, 24-karat Gold Era Ruby bar.