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In times of inflation, how to invest in gold?

In times of inflation, how to invest in gold?

Gold is considered a safe haven asset even in Uruguay, so it is a good alternative when prices rise worldwide and the dollar does not seem like a viable saving option.

Photo: Orobel

invest in gold It is very common in times of global economic uncertainty and, above all, in times when inflation has a rising trend or, at least, does not drop at the speed at which international governments aspire. The recent skyrocketing of its price confirms this and increases the interest of investors and savers in this asset. But how to buy gold in Uruguay?

Although gold closed the week lower, with losses, May started as a great month for this asset, usually understood as a safe haven: its price shot up to $2,072.19 per ounce, just a few cents from its all-time high of $2,072.49. At today’s official exchange rate —according to the blackboard of the Central Bank of Uruguay (BCU)– This equals 80,517 pesos each ounce.

Invest in gold in Uruguay

Investing in gold without having the physical asset is possible, simple and can even be done in pesos. The precious metal is considered a safe haven asset of value, and there are many stock traders who recommend having a portion, at least, of the portfolio in instruments that follow their price because their value tends to follow the same lines as the global macroeconomic situation. Therefore, in times of high inflation, its price also rises.

In the country, for the physical purchase of gold in small quantities, there are some financial entities regulated by the BCU They offer bullion coins from various countries and bars ranging from 1 gram to 100 grams. The coins most frequently seen in the limited Uruguayan circuit are the British Pounds (Sovereigns), the Chilean 100 Pesos, the Mexican 50 Pesos, the US$10 and US$20 Águilas, the iconic South African Krugerrand, the Chinese Panda, and the Canadian Maple Leaf.

But there are also other options more in line with digital times, which allow you to buy gold without necessarily having to access its physical version. For example, an increasingly popular alternative is the stablecoin or stable coin called PAX Gold (PAXG)which during May became one of the top five cryptocurrencies with the best performance.

This asset is backed by physical gold, and its value represents the price of one ounce —81 grams— of a gold bar. Therefore, your price varies based on fluctuations of precious material. In short, each issued PAXG token has a physical reserve of gold that is deposited in a bank.

It is also possible to invest in Exchange Traded Funds (ETFs) or listed investment funds, which follow the prices of different raw materials, including gold. Among the available options is the VanEck Gold Miners (GDX), which brings together the largest mining companies; and VanEck Junior Gold Miners (GDXJ), which brings together smaller companies. You can also invest in the GLD ETF, which replicates physical gold. Although they are all options available in the international market.

Source: Ambito

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