After the Government’s disbursement of the first batch of consumption vouchers on 1 August, those who completed the registration, like me, would have received the HK$2,000 voucher via selected electronic payment platforms.
While we all look forward to a shopping spree, Grandma Chin wants to spend the money on gold products that can keep its value and go towards part of Princess Chin’s dowry in the future.
Gold has always been a popular choice among investors who are more risk averse. However, there are some considerations to be taken if you plan on buying gold with the voucher for the purpose of wealth preservation or investment.
Gold bid-ask spread
Firstly, gold bars and pure gold are often preferred over gold jewellery or ornaments due to their lower prices and narrower bid-ask spreads. Besides, the prices of gold jewellery or ornaments actually include other fees such as craftsmanship and refinery charges, which can go up even more for more complicated designs, thus increasing the cost of reselling. Also, the gold price quotes may vary among jewellers, so investors should do some research beforehand.
Future price movement
Secondly, you should consider the future gold price movements. Like other investment products, gold price may go up or down with a downside risk. Factors affecting gold price should also be considered, such as inflation, monetary policies and political situation.
Other gold investment options
When it comes to gold investments, some may choose to purchase gold products from jewellers, while others may prefer to set up paper gold accounts with banks, or trade gold ETFs, gold futures and gold futures leveraged products through the HKEX. Regardless of the various options, it is always important to understand the risks and features before making any investment decisions.
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An alternative to gold investment
Gold futures leveraged product
