Gold Investment – 5 Top Tips
It has recently become both very popular and a very wise move to learn about investing in gold. The market seems to think that gold prices are going to continue to rise and the price keeps steadily going up. Clearly, people are thinking that gold investing is a good hedge against any currency fluctuations and to stave off future inflation. The longer gold remains above 1,500 dollars per ounce the harder it will be for it to go below that threshold.
First Tip: Invest In Gold Bullion
Your 3 main gold investment options are to
- Buy gold jewelry
- Buy gold stocks and shares
- Buy gold bullion
It is not wise to invest in gold jewelry if your main objective is to get the best ROI (Return On Investment). This is because the cost of designing and making the jewelry is built into the price when you buy but it is not taken into account when you sell. The selling price is not based just on the prevailing price of gold and the item will not be as liquid as gold bullion because personal tastes and preferences will come into play.
Buying stocks and shares in the gold sector which principally includes gold mining companies does not guarantee that your investment will rise in correlation with the price of gold. Of course the gold price will have a strong influence but your investment will also be governed by how well the companies you invest in are managed.
The safest means of investing in gold particularly for inexperienced investors is to buy gold bullion. For more information please refer to the article I have written elsewhere on this site about gold bullion investing.
Second Tip: Avoid Telemarketing Companies
These telemarketing companies are just shameful. Some have even made the news reports regarding how they are ripping people off. It is always best to go with a gold dealer who has a solid reputation and stellar customer service. As well these telemarketing companies have far higher fees than your average gold dealer so you would have to hold on to your gold for far longer in order to see any profit.
Here is a rule of thumb regarding any investment, just do not buy over the phone from someone who has cold called you. Stick with a Company you have researched or who you have been recommended to. While some good deals may be offered by some reputable telemarketing companies there is just too much risk involved. You simply do not know the person on the other end of the line and you could easily get ripped off.
Third Tip: The Size Of The Coin Matters
When buying gold coins the size of the coin matters. American Eagle coins for example are sold in four increments and those are one ounce, one half ounce, one quarter ounce, and one-tenth once respectively. The best coin to buy is the one ounce American Eagle coin because that is the best value for money vis-a-vis the spot price of gold. Smaller coins are actually more expensive per ounce of gold. You just get a better deal with the larger coins.
Even if you can afford a gold bar it is better to buy coins of the same monetary value because these are more liquid if you want to sell (because you can sell to a number of different buyers instead of one) and because a gold bar will be very heavy and not too easy to ship or transport.
Fourth Tip: Avoid Rare Coins
Although it may seem wise to buy rare coins the cost of overhead to ensure you are making the right deal is just not worth it. Rare coins may look remarkably similar but be graded differently thereby altering their value significantly. In order to make sure you do not get ripped off you will need to have each coin appraised by an expert and a certificate of authenticity issued for each and every coin. When you are looking to buy a lot of coins those costs can add up rapidly and degrade your overall investment.
Having said all that you stand to make more gains from rare coins but the risks outweigh the rewards for new and inexperienced investors. If you are an experienced collector then investing in rare coins has definite advantages though.
Fifth Tip: Put Your Gold In Your IRA
The US government allows you to put certain gold coins into your IRA. Whether you wish to make this a small percentage or a large amount, either way is fine. This works by having your IRA custodian buy the gold from your preferred gold dealer or by buying the gold yourself from a dealer who is also an IRA custodian. The United States Mint simply does not sell gold directly to people so you have to buy through a dealer.
Setting up a Gold IRA may sound complicated but in reality it’s actually a simple and straightforward process. To see how I set my own one up within two weeks and by only having to fill out a simple one page form Click Here Now.
There are numerous reasons why you should invest in gold to protect your retirement. As I mentioned before you will be safeguarding your investment portfolio and hedging potential losses as the upward trend in the price of gold is extremely likely. By making sure you have a steady value of money waiting for you when you retire will ensure that you can live comfortably and not be a burden on any of your family members. Investing in gold via your retirement fund also has a lot of tax advantages.
Many of the larger gold dealers are also IRS custodians so they will be able to take care of everything for you in compliance with the laws overseeing IRA’s in the United States. The dealer that I use personally and thoroughly recommend is Regal Assets. They are specialist gold dealers and retirement fund experts who deal with the entire transaction from start to finish.
If you’re ready to start your journey into gold investment, either to buy and hold or to include in a retirement fund, I recomment that you enter your name, email and phone number in the form at the top. Once you’ve submitted those details one of the Regal Assets specialists will call you to answer all your questions, discuss your requirements and to arrange to send you one of their excellent and complimentary Gold Investment and Retirement Kits.
If you are interested in learning more about Gold IRAs then I would recommend that you read the following article I have written elsewhere on this site: Gold IRAs – Frequently Asked Questions
Conclusion – Gold Investments
Gold investing is becoming a very wise move indeed. The price of gold has risen for each of the last 11 years and this trend shows no signs of abating as uncertainty in the US dollar, currency markets and the economy worldwide continues to grow. This is why most financial experts are recommending that gold and other precious metals are included as an integral part of your investment portfolio.
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