In times of economic uncertainty, interest in safe-haven assets is growing. Among them, 'gold' has been a popular safe-haven asset for a long time. Today, we're going to delve deeper into gold investment.

What is Gold Investment?

Gold is one of the most representative safe-haven assets, widely known as a hedge against inflation and economic uncertainty. Gold investment is one of the investment methods that use this gold to pursue profits.

There are various ways to invest in gold.

• Gold bars: The most traditional method. Gold bars, also known as gold bullion, are physical assets made of 99.99% pure gold. Gold bars can be purchased from banks, precious metal stores, and online exchanges.
• Investment in gold-related financial products: Representative products include gold funds, gold ETFs (Exchange Traded Funds).

These methods each have their own advantages and disadvantages, and the appropriate method should be chosen based on the investor's goals and situation. Gold is a volatile asset so it's important to do thorough research and analysis before investing.

The Value of Gold as a Safe-Haven Asset

Gold has been recognized as a safe-haven asset for a long time. Here are the reasons:

• Gold is a limited resource: Only a certain amount is produced each year, making it difficult for supply to increase quickly even if demand rises. This results in relatively low price volatility and helps maintain a stable value.
• Gold is used as a hedge against inflation: Inflation is a phenomenon in which prices rise continuously, leading to a decline in the value of currency. Gold, on the other hand, is a tangible asset that can protect against the depreciation of currency due to inflation.
• Gold is free from political risk:Unlike currencies issued by countries or central banks, gold is independent of political influence. It tends to retain its value even in situations such as wars or economic crises.
• Gold is one of the internationally recognized currencies: It is used as a means of payment in countries around the world and plays a role in supporting the international monetary system along with the US dollar, the international reserve currency.

For these reasons, gold holds high value as a safe-haven asset. However, gold investment, like any other investment, comes with risks so it's important to thoroughly review and analyze before investing.

Diversifying Gold Investment Methods

Gold can be traditionally invested through methods such as gold bar purchases, opening a gold savings account, and investing in gold ETFs (Exchange Traded Funds).

Market Analysis Basics for Gold Investment

It's important to understand and analyze market trends for gold investment. Here are basic market analysis methods for gold investment.

• Gold price trend analysis: Gold prices fluctuate based on various factors such as international political situations, economic conditions, and inflation. Analyze past gold price trends to determine whether it's an upward or downward trend .
• Interest rate and inflation indicator analysis: Interest rates and inflation are closely related to gold prices. When interest rates rise, gold's relative value falls, and when inflation rises, gold's value rises. Monitor the interest rate policies of the US Federal Reserve (Fed) and inflation indicators .
• Analysis of international political and economic situations: Because gold is classified as a safe-haven asset, its price tends to rise when the international political situation is unstable or the economic situation worsens. Pay close attention to political issues in major countries and announcements of economic indicators .
• Technical analysis: Through chart analysis, you can identify support and resistance levels, and use signals such as golden crosses and dead crosses to determine trading timing. Technical analysis involves a lot of subjective elements, so it's best to use it for reference only.
• Listening to expert opinions: You can listen to the opinions of financial experts or investment professionals to supplement or revise your investment strategy. However, expert opinions can't be 100% trusted, so it's crucial to establish your own investment principles and adhere to them.

Gold Investment Methods and Brief Comparison

• Gold bar purchase: When purchasing gold bars from banks or jewelry stores, 10% value-added tax and a fee of approximately 5% are imposed. When purchasing gold coins or jewelry with gold craftsmanship, additional craftsmanship fees are added, resulting in fees of around 16% to 17% .
• Gold Savings Account (Gold Banking): When using a gold savings account, 15.4% dividend income tax is imposed on the profit from the sale, and transaction fees are incurred for both buying and selling. The approximate transaction fee is 1% .
• Gold ETF / Gold Fund: When investing in a gold ETF or gold fund, 15.4% dividend income tax is imposed on the profit from the sale, and there are sales fees and management fees. These fees vary depending on the product, but are generally around 1.3% .
• KRX Gold Securities: When trading gold securities listed on the Korea Exchange, there is a tax exemption on the profit from the sale. Transaction fees are approximately 0.33% and may vary depending on the brokerage firm.

The most beneficial method in terms of fees and taxes can vary depending on individual investment goals and circumstances. For example, if you're aiming for long-term investment and prioritize tax benefits, KRX gold securities may be beneficial. On the other hand, if you want to own physical gold, consider purchasing gold bars, but keep value-added tax and fees in mind.

Understanding the Advantages of Gold Investment from a Long-Term Perspective

Gold is one of the most representative safe-haven assets and can also be used as a hedge against inflation. Let's look at the advantages of gold investment from a long-term perspective.

• Protection against currency depreciation: Gold is an asset that can protect against currency depreciation. When inflation occurs, the value of currency depreciates, and prices rise, but gold maintains its value over time.
• Diversification effect: Gold has a low correlation with other assets such as stocks and bonds, enhancing the diversification effect of your investment. In other words, investing in gold can increase the stability of your portfolio.
• Ease of trading: Gold can be bought and sold at any time, making it easy to trade. It can also be invested in small amounts, making it accessible to investors with limited funds.

However, gold prices are volatile, so seeking short-term profits is risky. It's better to invest spare funds from a long-term perspective.

Today, we've learned about gold investment methods and gold price outlook. As gold remains a popular safe-haven asset, it seems like you can make significant profits if you use it well.