When Investing into Gold various facts have to be considered. Things like mark-ups for bullion and for lower weights of gold bars(below one ounce), price spread differences between buy-sell price, price difference between various banks and online shops.
Another factor is the decision whether to make an Investment in Fairtrade Gold.
In a comparison between various gold sources I noticed that there are also Fairtrade gold sellers on the market, especially I became aware of traidgold.com.
What is Fairtrade Gold?
The wording fairtrade gold refers to the fairtrade certification which is since recently also available for gold mines. Gold bars or bullion are only allowed to be labeled “Fairtrade Gold” when certain safety conditions and other are fulfilled and a goldmine receives a certification. But this means also higher wages for workers and additional support for their region. Also, the EU has come up with import regulations in respect to gold mined in Africa – therefore this topic will receive even more interest in the future.
Investment in Fairtrade Gold
One has to admit that there are different viewpoints on the topic of an Investment in Fairtrade Gold. From the perspective of an Investor, its makes no sense to pay more for your gold and also receive non-standardized gold bullion or bars as your costs are just higher and its harder to achieve a profit. From the perspective of both a collector and also an ethical point of view, it makes indeed sense to invest in such opportunities. This is mostly due to the following reasons:
- ethical and much better for the eco-system
- only limited quantities available therefore its possible to achieve still a profit as a collector due to scarcity
- feel good by supporting the locals and increase their working quality and payment
A detailed evaluation which type of an investor you are and if this is the right Investment for you has to be of course done by yourself.
When interested in this topic see also my older posts about gold and silver investments:
- Gewinn.com Edition: 5/17