The government is stepping up efforts to encourage gold trading in Nigeria. President Buhari approved extra budgetary allocation of N30 billion in 2017 for the sector. The government had originally targeted five states for the initiative, but has recently given priority to the states of Kebbi and Osun. However, this is still a long way off. What are the benefits of gold trading in Nigeria? Here are three of them. These advantages make it more attractive to investors, and they can help Nigeria secure its position in gold trading.
The Nigerian economy is growing at a fast rate and the country is pursuing its development strategy through a new commodity trading ecosystem. The country’s economy will become more diverse with this investment strategy. Nigerians have always valued gold investments as a means to preserve their wealth. Investment grade Precious Metals, such as Good Delivery Gold bars, are also financial assets that are actively traded. For this reason, many investors are flocking to the country to participate in gold trading.
Buying physical gold is the most popular method of investing in gold. This means visiting a gold dealer or jewelry store. Major cities are home to many gold dealers and traders. Buying gold this way is quick and easy, and requires no financial manager or stock trading account. Whether you choose to buy gold from a jewelry store or a dealer, it’s important to know the risks involved. But if you’re looking to beat inflation, buying gold could be the perfect choice for you.
Inflation is a major concern for investors in Nigeria’s economy. While paper currency is relatively stable, it can become inflated, reducing the value of money. A N500 today can purchase six bananas, but in 10 years, it will be worth just three. Gold is a safer, more reliable way to protect your money from inflation. The government is taking steps to regulate gold trading in Nigeria. If it’s successful, the government can reap the benefits of increased investment.
The price of gold depends on its weight and karat. Various karats of gold can be traded in the market. As with any commodity, gold trading in Nigeria can be lucrative, but you should exercise caution when purchasing it. Beware of fake dealers and products. The Nigerian Gold Exchange has plans to introduce commodity derivatives in the near future. The Nigerian Gold Exchange is also looking into introducing commodity derivatives in the future.
ETFs are another way to invest in gold in Nigeria. Gold exchange-traded funds are a way for investors to buy gold and other investments through an ETF. The ETF premiums can be as much as 30%. The risks involved are high, and traders should use caution when trading. There are also other investment avenues that are more attractive. For example, the government is promoting investment-grade gold bullion bars through DGETC.