Can You Lose Money Investing in Gold?

Can You Lose Money Investing in Gold?

Disclaimer: Some or all of the companies listed on this page my provide compensation to us. This is how we maintain our free service for consumers that visit us. Compensation & hard research determine where and how companies appear below.

Gold's role in society and economy is as old as time and as relevant today as it was centuries ago. Gold can be considered a safe haven during times of economic uncertainty, and it has been for many people for many years. There are some interesting aspects to purchasing physical gold, but proper due diligence can easily mitigate the potential risks.

Investing in gold has long been viewed with a bit of skepticism. Gold can be a good investment for some people, but most are better off sticking to stocks or blue chip shares - those that pay out a dividend and hold their value well over time. Gold can also be a bad investment for most people, costing dearly as the price rises and falls.

Estate planning used to be a popular reason to buy physical gold. People would purchase gold bars when they were old but then pass down the ownership of those bars to their children or grandchildren. Gold can not be passed down through the generations in this manner, and it must be sold for someone else to gain ownership of it. If someone dies with physical gold, and no one is interested in maintaining ownership of the bars, they may have some issues selling it later.

What Are the Advantages of Investing in Gold?

Can You Lose Money Investing in Gold?

Gold can be a useful tool for diversifying a portfolio since its price tends to move independently of other assets, such as stocks and bonds. It can hedge against market volatility and help reduce overall portfolio risk. Gold can provide efficient portfolio diversification, as it has low or negative correlations with other asset classes, such as stocks and bonds.

Gold has long been viewed as a store of value, and it can maintain its value over time better than other assets. This makes it an attractive option for investors looking to preserve wealth. It is also highly liquid as it can be easily bought and sold on the market, making it an accessible investment option for many people.

Gold is often used as a hedge against inflation, as its price tends to increase when the value of paper currency decreases. This can make it a worthwhile investment for protection against the erosion of purchasing power. This can also benefit investors that invest in gold as a hedge against a likely decline in the U.S. dollar.

The price stability of Gold has made it a useful store of wealth through periods of economic uncertainty, and it has performed well in the past. Perhaps the most successful hedge against the Great Depression was gold, which saw its price rise from $20 in January 1932 to $850 by November 1933. Stocks were considered riskier, but many investors chose to sell some stocks for gold instead and then wait out the crisis.

In some cases like this, a simple hedging strategy could result in twice as much wealth as one would have obtained from a stock that didn't perform well during bad economic times.

Gold is often seen as a haven asset, meaning it can perform well during economic uncertainty or market turmoil. It is also a globally recognized asset in high demand in many parts of the world. This can make it a relatively stable investment, as it is not tied to the performance of a specific country or region.

You can diversify your currency risk if you invest in gold through a foreign currency. For example, if you invest in gold through the Euro, you can hedge against potential fluctuations in the U.S. dollar value.

What Are the Potential Risks of Investing in Gold?

Can You Lose Money Investing in Gold?

Gold is not a guaranteed investment, which means it isn't immune to risks. If something goes wrong, gold's value will likely fall. Gold may also be particularly volatile, and there has been a significant amount of gold price volatility since 2000, making the potential for large capital losses quite real.

Investing in gold can be risky, as the price of gold may not always rise. There are also risks with selling gold to obtain the money needed for medical care or any other expense. Some people may die without selling physical gold to pay their medical bills and debts. If you plan on holding your physical gold investments for a long period, you need to consider these risks carefully when making such an investment plan.

Gold is often viewed as an investment that is designed to preserve wealth over time. While this may be true, gold can also cause a lot of damage when it goes up in value because of speculation and inflation. This can make it difficult to sell if prices climb too high since many investors are reluctant to sell at those times because they believe that prices will continue to rise.

Gold is a good way to save money for future expenses, such as major repairs or medical needs like cancer treatment. However, if you are not in good health, your gold investment may not be a good idea and may increase your risk of a lawsuit.

The historical performance of gold bullion bars can be very poor compared to most other asset classes. This can cause problems if you have large sums of money tied up in physical bars, as they may only be worth a little when you need to sell them. If these gold bars cost you a lot of money to purchase, then the risk of losing a significant portion of your investment is significant.

Gold may be easy to buy and sell but comes with commission issues, and you need to pay extra for that convenience. When you sell gold, you typically receive less money than you would get from selling other assets.

You may also have to pay higher fees when you buy more gold bars. It is important to be aware of how the market performs over time to determine how much risk is associated with investing in gold. It is also important to consider how various factors affect your ability to sell your gold in the future at a favourable price.

As with any investment, due diligence is key in determining whether or not gold is right for you. It's important to figure out how much gold you want to hold, how much it will cost you to maintain ownership, and whether or not you are comfortable taking on the potential risks. Many research tools available today can give some insight into the performance of gold prices over time, and these tools can help you to make an informed decision regarding your investments.

Gold Investment Companies

Gold investing companies can provide trusted storage for your gold and help you get the most out of your investments. Gold may be challenging to sell, but there are many companies that will handle the process for you, so long as you purchase the company's services upfront. This article recommends the top three companies that offer top-notch services.

#1. Goldco


Goldco is one of the gold investment industry's most well-established names. The company has been helping investors to invest in physical gold for over ten years, and they have a wide variety of storage options available.

The company offers many other services, including selling gold loans and bullion coins. These services can be particularly useful for investors who want to move their money from an "investment" account into a savings or checking account at some point in the future. Goldco has a large branch network, an excellent resource for those looking to buy gold bars or coins.

The company has significant resources to back up the security of its services, with over $20 million in gold stored in-house. Goldco is a member of the American Bankers Association, which means that they are dedicated to providing a highly secure environment.

This company is a good option if you want to sell your gold. They have an established website and branch network, which gives you another resource if something goes wrong with the process. The online platform is easy to use, so you should get the process moving fairly quickly.

The company can also provide a storage service for most commodities, including silver and platinum. This is useful if you want to diversify your holdings and store precious metals together in a safe place. Goldco offers free shipping if you order over $10,000 worth of gold or platinum, which can make moving large amounts of gold easier.

Goldco is a good company if you want to store gold in a secure place that works even when the power or internet goes out. The company has multiple locations across the country, most of which have backup generators in case of emergency.

Pros & Cons of Goldco


  • Good security: Goldco has a lot of security measures in place for the safety of their clients. This includes policies for handling gold coins and partnering with agencies like the United States Mint and the Bureau of Alcohol, Tobacco, Firearms and Explosives for additional security measures. Because of these measures, you can be confident in your gold being stored safely at any time.
  • Many payment options: Goldco has several payment options available to their customers. These include credit and debit cards, ACH transfers, checks, wire transfers and bank drafts. This is useful if you have much money tied up in your gold investment. You can avoid many fees by making a large purchase but still have the ability to manage your money as needed in the future.
  • Free storage: Goldco offers free storage for most items purchased from them over $10,000. This can be useful if you don't want to worry about having your gold close by at all times during sell cycles.


  • Cost: The shipping costs for this company are among the highest in the industry. This can make it hard to buy larger amounts of gold with them if you don't have much money available upfront.
Augusta Precious Metals

Augusta Precious Metals is a family-run business that has been helping investors to buy gold for over eight years. The company offers its clients various services, including selling branded bullion coins and bars.

Augusta Precious Metals offers a range of payment options, which makes it possible for you to sell your gold without worrying about making large initial payments. This can be useful if you want to sell gold or silver in-house but need access to a lot of capital.

Augusta Precious Metals offers free storage, an excellent bonus for people who cannot keep their gold close by at home.

It's also possible to visit the company's main location in Texas if you want a face-to-face meeting to discuss your gold investments. This can be particularly useful if you have specific concerns about your gold or want to sell a large amount of your holdings.

Augusta Precious Metals has branches in multiple states, and it offers clients access to additional resources like bullion coins, bars and rounds of different varieties. These can be purchased as needed so that you can create a holding that works for your needs and preferences.

Pros & Cons of Augusta Precious Metals


  • Reliable: Augusta Precious Metals has a lot of experience in the industry, which means that you can be confident in selling gold to this company. The company has access to a growing network of investors and buyers for your gold, so you won't have a lot of trouble getting your gold sold.
  • Lots of resources: Augusta Precious Metals puts a lot of effort into making its customers feel valued. This means that they have reliable customer service and an excellent team that will work with you to make gold selling easy.
  • Good security: Augusta Precious Metals has multiple measures to ensure that your gold stays secure. These include high-quality storage facilities and security procedures like biometric technology and cameras in their vault storage areas.


  • High shipping costs: Augusta Precious Metals has a lot of shipping options available to their customers. The company charges the most for international shipping options, which can be a surprise when you buy your gold online.
American Hartford Gold

American Hartford Gold is a precious metals company specializing in retailing gold and silver bars and coins. The company was started in 2015, which gives it a lot of experience in the industry.

You can buy gold from American Hartford Gold in three main ways. You can purchase the bars and coins in individual or bulk quantities or set up a contract for as long as you need to secure your holdings. American Hartford Gold has a fairly large network of partners worldwide, so resources are available to help arrange to ship or store your products if needed.

American Hartford Gold has an excellent reputation for customer service among investors. This means that you can easily get in touch with the company if you have questions or concerns or are having trouble verifying your identity. The company offers clients a great option for buying gold if they need to figure out how much they need.

Pros & Cons of American Hartford Gold


  • Wide range of coins: American Hartford Gold offers a wide range of coins, meaning you can buy a small amount of gold or silver and sell it when needed.
  • Wide customer base: The company ships within the United States, but they also have access to international partners that can help your gold get shipped around the world if needed.
  • Safe storage: American Hartford Gold has a couple of core storage facilities where they store their gold. This means that your gold will be stored in an area away from any threats, which can be useful in natural disasters or other events like theft or fire.
  • Good customer service: American Hartford Gold has a dedicated team to help you with any questions or concerns. They have excellent customer service, which makes it easy for customers to get in touch with the company.
  • Quick sale: American Hartford Gold has a fast sale process that can help you use your gold as quickly as possible. This means you can sell your gold quickly, which can be helpful if you need cash.


  • High shipping costs: American Hartford Gold has some very high shipping rates if you try to sell your gold through them on an international level.

Final Thoughts

Gold, like any other investment, comes with risks and should therefore be cautiously approached. The three companies mentioned above are a good starting point for anyone who wants to venture into the precious metals industry. Most of the companies in this article sell various gold and silver coins, bars and rounds at competitive prices.

Leave a Comment

Your email address will not be published. Required fields are marked *