In this post, we will take a look at the gold business in Nigeria. We will majorly be looking at how to invest in this profitable sector.
Purchasing gold has, for a long time been an effective way of storing riches and passing it down to generations. Because gold’s prices rises together with inflation, it retain its worth better than bank notes. A person can invest in gold in Nigeria with little money, almost like you do in trading stocks and other investments. All you need to know about investing your money in gold will be covered in this post.
Gold Investment in Nigeria
Gold is one of the few malleable precious metal stones that is always needed and in style. Which is why, especially during a recession or terrible economy, many people invest in gold to protect their wealth. Gold is expensive, quite alright, but its value increases gradually. They are used in a variety of jewelry, devices, offices, home appliances, among others. They can be used as a legal tender as well. Gold is a minimum risk investment that pays out handsomely especially when it’s held for a long period of time. Now that we know how safe it is to invest in gold, let us check out some options for gold investment in Nigeria.
What is the best way to invest in gold in Nigeria?
Aside purchasing gold physically, there are numerous ways of investing in gold in Nigeria. Your choice or method can be determined by your demand and specification. Several ways to invest in gold in Nigeria are:
One way of investing in gold business in Nigeria is by actual acquisition of gold be it from jewelry, coins, and billions. You can purchase gold in a commodity market or online and preserve it for a long time in a secure volt.
If you intend to acquire physical gold in Nigeria to, you should be well-versed on the subject. Before making a purchase, you should be able to tell real gold from the fake ones. To avoid paying more than you should, make sure you buy from a reputable seller.
Gold Exchange Trade Funds (ETF)
Gold has exchange commodity funds which you can trade in, just like the stock market. You will not have real or actual possession of the gold the same way you do with FX and crypto currency. If you have little amount of money, the best ways to invest in gold in Nigeria is through Gold Exchange Traded Funds. You also don’t have to worry about the gold being secure because it isn’t physical.
Gold Mining Industries:
Another way to purchase gold in Nigeria is to buy stocks in various gold mining firms. People can invest in gold through these companies. This can be quite dangerous especially if the enterprise is not covered or insured. We suggest that you investigate any firm thoroughly before dealing with them.
What is the best way to start gold business in Nigeria?
Aside investing in the gold business, you can also start one of your own. Here are some tips that can help you in the gold mining industry in Nigeria.
Get information and experience:
To start the gold business, it is important to have a high level of ability, knowledge, and experience. As you begin your gold business, ensure that you conduct a thorough market assessment and feasibility study on the different forms of gold that you may use in your business. You need to know where to obtain gold and the sorts of gold that you can venture in.
Licensing and registration:
It is important to register and document your business with the Corporate Affairs Commission (CAC). Also make sure that you are a member of any Gold Dealers Association in your state.
Search for reliable resources to buy gold:
Ensure that you search for a reputable gold provider who will offer you gold at a price that you can profit from and get a significant return on investment when you resell it. You gold provider should also be able to deliver on time and as at when due. There are phony gold dealers there. Be careful not to be fooled by claims of inexpensive gold. Gold has never been cheap.
It is always a good idea to invest in your equipment and tools for this business. Several of these machines are used in gold smelting, molding, weighing, and testing among other things.
These items are required:
- A shop, if you do not wish to operate online.
- A mental or wooden showcase or show glass to show off your gold jewelry.
- A measuring scale. This is necessary for weighing gold.
- A gold testing kit to tell the difference a fake and real security door. This is help to prevent theft.
In addition, the correct location of your gold business is also important to the success of your business. Abuja, Lagos, and Kano are major places to start your gold business. Even though you can establish your gold business in any city, it is important to have your business located in an area that the demand for gold is reasonably high rather than in a remote area that has little need for gold or a low standard of living.
Keep an eye on the gold investment trend:
The demand, supply, market price, and the use of gold fluctuates. So, you must pay close attention to these changes to make clever and smart decisions that can improve your business, according to the gold bullion retail specialist. For example, during different periods of the year, especially during festive periods, the taste and demand for jewelry changes.
Publicity and Promotions
We must note that without any element of marketing or advertisement, or any form of publicity, no business can survive. To this effect, we recommend that you employ a variety of strategies, including online and offline marketing to publicize or make known your business to all.
How much capital do you need to start – up gold business?
The capital require to start or invest in gold depends heavily on how much gold you want to start with. Because gold is expensive, it might cost around $600 to $5000 to purchase it. You also need to get other items such as gold scale and gold testing kit which may be about N20, 000. Advertising your gold business will also cost money as you advance in the business.
That’s about it on this post. We believe that by now, you have basic knowledge on how to invest in and start up a gold business