Gold Business in Nigeria: How To Start Investing In Gold Explained (2022)
In this post, we’ll look at the gold industry and gold business in Nigeria, with a focus on how to invest in this lucrative area. Buying gold has long been a traditional way of accumulating wealth and passing it down through the generations. Gold holds its value better than banknotes since its price rises in lockstep with inflation. In Nigeria, one can invest in gold with very little money, just as one can trade stocks and other investments. This article covers all you need to know about how to invest your money in gold and where to place it.
Overview of gold business in Nigeria
Gold is one of the only malleable precious metals that never goes out of style. As a result, many people buy in gold to protect their wealth, particularly during a recession or a bad economy. Gold is costly, and its value rises over time. They can be found in a wide range of jewelry, devices, offices, home appliances, and other items. It can also be used as legal tender.
Gold is a low-risk investment with a high return, especially when held for a long time. Now that you know how safe gold investments are, have a look at some of the gold investment choices in Nigeria.
Best way to invest in gold in Nigeria
Aside from purchasing gold physically, there are a number of other options for investing in gold in Nigeria. Your requests and specifications will influence the strategy you use. In Nigeria, there are numerous options to invest in gold.
Individual ownership of physical gold, whether in the form of jewelry, coins, or billions, is one of the ways to invest in gold in Nigeria. You can buy gold on a commodity exchange or online and keep it safe in a vault for a long time.
You should be well-versed in the subject if you intend to buy physical gold in Nigeria to invest in. You should be able to discern the difference between fake and real gold before making a purchase. Also, consider purchasing from a reliable source to avoid paying a higher price.
Gold Exchange-Traded Funds
You can trade in gold exchange commodity funds, which are similar to stock market exchange commodity funds. You will not have physical possession of the gold, as you do with foreign exchange and cryptocurrency.
If you just have a limited amount of money, Gold Exchange Traded Funds are one of the best ways to invest in gold in Nigeria. You also don’t have to be concerned about the security of the gold because it isn’t physical.
Gold Mining Companies
Another way to invest in gold in Nigeria is to purchase stock in gold mining companies. The bulk of these companies allows individuals to invest in gold. This, on the other hand, might be quite dangerous, especially if the company is not insured. We urge that you properly evaluate any company before doing business with them.
How to invest in gold business in Nigeria
What is the best approach for a Nigerian to start a gold business? In addition to investing in gold, you can start a gold business in Nigeria. Here are some tips to help you succeed in the country’s gold mining business.
Get experience and knowledge
Trading gold requires a great level of skill, knowledge, and experience. When you start your gold business, make sure you do a complete market analysis and feasibility study on the many types of gold you may use, where you can get it, and which kinds you can get into.
Get registered and licensed
It’s critical to have your company name registered and documented with the Corporate Affairs Commission. Make certain you’re a member of the gold dealers’ association in your state.
Search for reliable suppliers
Make sure you find a reliable gold supplier that will sell you gold at a price that will allow you to resell it for a profit and a considerable return on investment. In addition, your gold supplier must be reputable in terms of delivery. There are bogus gold sellers out there, so don’t be fooled by claims of cheap gold; gold has never been cheap.
Acquire necessary equipments
For this business, it is advisable to invest in your own tools and equipment. Among other things, these devices are used in gold smelting, molding, weighing, and testing.
Additionally, choosing the right location for your gold business is crucial to its success. The primary cities where you can start your gold business are Abuja, Lagos, and Kano. While you can start a gold business in any city, it is vital that you do so in an area with a reasonable level of demand rather than in a remote location with a low standard of living.
Stay afloat of gold investment trends
As shown in the gold bullion retail professional, demand, supply, market price, and the use of gold change, therefore you must keep an eye on these reforms to make wise and sensible judgments to grow your business. For example, the taste and demand for jewelry vary throughout the year, particularly during festive occasions.
Marketing and publicity
No firm can thrive without any aspect of the marketing mix or advertising. As a result, we propose that you utilize a number of techniques to promote your gold business, including both online and offline marketing.
How much capital do you need to start a gold business?
The amount of money needed to start a gold business is determined by how much gold you wish to start with. Gold is expensive, therefore purchasing it may cost anything from $600 to $6500 You’ll also need to purchase items such as a good gold scale and a gold testing kit, which may cost up to N20,000. As you grow your gold business, you will need to spend money on advertising.