Digital Gold Investment - The only guide you need

Introduction

Welcome viewers to our latest article featuring our new product "E-Aurum 79 Digital Gold".

A brief introduction to E-Aurum 79 Digital Gold:

E-Aurum 79 is our latest financial product that enables investors to invest in physical gold kept in a secured vault. Investors of Aurum-79 will receive documents (invoice & payment confirmation) entailing details of the purchase and entitlement of gold held by our vault operators.

The article today is designed for individuals or investors that are: -

a) Interested in learning how to invest

b) Learning how to get the best out of their investments

c) Have yet to decide on whether to invest or not

Why are you investing?

One of the most common questions that many other investment guides, books or investors have iterated is "What are you investing for?". We share a similar perspective that this is the #1 question one must ask themselves before investing. We have included some investment goals below: -

a) Retirement Planning

b) Emergency Fund

c) Portfolio Diversification

d) Children Education Fund

e) Marriage (Yourself/Children)

f) Travelling

g) Buying a home or car

h) Jewellery Purchase

i) Hedging against inflation, currency fluctuations or political uncertainty

Deciding on your investment goal, whether it is listed above or not, enables you as an individual to gauge a few key things:

a) Time Horizon (How long do you plan on investing for?)

b) Risk Level (Determined your risk levels based on time horizon)

c) Estimated amount desired at the end of time horizon (Pre-Inflation Consideration)

d) Investment Amount (Initial Investment + Monthly commitment)

How Much to Invest?

After determining the questions above, the next question on our list is "How much to Invest?". There are various opinions from investors, financial consultants, institutions, and others on deciding how much to invest. At AME, we adopt two simple approaches that work based on a client's net worth.

Salaried Individuals/Individuals with a consistent source of income

Our advice for this group of individuals would be to invest roughly 8% of their net worth. The term "Net Worth" here indicates the total value of an individual's assets (cash, real estate, stocks)

So why 8%?

a) Gold is a stable investment (Low - Medium Risk)

Gold price itself has increased year on year except for 2013 and 2015. The last five years from Gold has risen from 2015 to 2020. An average of 10% every year over the previous five years.

b) Opportunity cost of investing 8% is relatively small compared to how much one would invest in stocks or bonds. (i.e. general standard of 50/50)

c) The margin of safety (Safety Net)

The amount of buffer one need to indicate to invest in Gold is relatively small for a total of 8% investment.

Inconsistent Income (4%)

We recommend an investment of 4% for individuals that have varied incomes every month. 4% is a conservative investment amount for individuals requiring additional funds for emergencies, businesses or other cash-hungry activities.

Tips

To keep things sweet and short, we offer only two tips for you to take away after determining your investment needs above:

#1 Pick an investment strategy that allows you to meet your goals successfully

#2 Tip 2 comes from one of the essential investment books of today, "Psychology of Money". "For every plan made, one must plan on one's plan not going according to plan".

Thank you for listening in on our digital gold investment guide. We hope to see more of you engaging with us on our platforms.