Gold is a popular way for investors to hedge their portfolio against uncertainty, but it’s not an investment suited for everyone.

1. Sharp Asset
Management Inc.
Pros and Cons of
Investing in Gold
416-722-9009 contact@sharpasset.com

2. Pros of Investing in Gold
• Store of Value: Gold retains its value over time, acting as a wealth
safe keeper.
• Inflation Hedge: Gold often surges when inflation does, protecting
purchasing power.
• Portfolio Diversification: Adding gold can bring balance to your
investment mix, reducing risk.
• Tangible Asset: Gold is a physical asset that you can hold, unlike
digital investments.
• Safe During Trouble: Gold prices often go up when the economy is
down, offering a financial safety net.

3. Pros of Investing in Gold
• Easy to Sell: Gold is universally accepted and can be easily traded
globally.
• Tax Advantage: In Canada, only 50% of your profit from gold sales is
taxable.
• Always Valuable: Gold has been recognized as valuable for centuries,
showcasing stable worth.
• Limited Amount: Gold's finite availability on Earth adds a rarity
factor to its value.

4. Cons of Investing in Gold
• Price Volatility: Gold prices can swing, affecting your investment
value.
• Low Returns: Gold might not offer high returns compared to other
investments.
• Storage Costs: Keeping gold safe can come with its own expenses.
• Illiquidity: Sometimes, selling gold quickly at market price can be
challenging.
• No Extra Money: Unlike rental properties or dividends, gold doesn’t
generate additional income.

5. Cons of Investing in Gold
• Tricky to Buy: Beware! The market has its share of counterfeit gold
and scams.
• Unsteady Prices: Gold prices can vacillate due to various market
factors.
• Selling Hassles: At times, converting your gold back to cash might
test your patience.

6. Ways to Invest in Gold in Canada
• Physical Gold: Physical gold is tangible gold in the form of coins,
bars, or bullion that you can purchase from reputable Canadian banks or
authorized dealers.
• Gold-Backed ETFs: Gold Exchange-Traded Funds (ETFs) allow you to invest
in gold without owning the physical metal.
• Gold Funds: Gold mutual funds or index funds invest in a portfolio of
gold-related assets, such as stocks of gold mining companies, other
gold-related equities, or derivatives tied to the gold price.
• Gold Mining Stocks: Investing in stocks of gold mining companies allows
you to indirectly invest in gold through companies engaged in gold
exploration, mining, and production.

7. Things to Consider When Buying Gold
• Diversify: Diversification helps to achieve a balance that can
potentially provide more stable returns and mitigate overall risk.
Ensure your investments are varied and balanced (e.g., stocks, bonds,
real estate, commodities like gold).
• Research: Become familiar with the factors that cause gold prices to
fluctuate like global economic conditions, interest rates, inflation,
geopolitical events, and supply and demand dynamics. Stay informed about
economic trends, monetary policies, and market sentiment to make
informed decisions regarding your gold investments.

8. Things to Consider When Buying Gold
• Authenticity: Safeguard your investments by ensuring your gold is
genuine and certified. Work with reputable dealers, verify
certifications, and consider getting gold from trusted sources to
minimize the risk of counterfeit or impure gold.
• Store Safely: Determine a secure storage solution for your physical
gold, whether it's in the form of coins, bars, or jewellery. Options
include home safes, safe deposit boxes at banks, or secure storage
facilities.

9. Contact Us
21 Greenwin Village
Road, Toronto, Ontario,
M2R 2R9
416-722-9009
contact@sharpasset.com
P.O BOX 74539
Humbertown Centre,
270 The Kingsway
Toronto, ON M9A 5E2
www.sharpasset.com

10. Thank you