Category: Precious Metals

Gold – Tips on Investing in Physical Gold

gold investmentDespite ever-changing global economic conditions, gold has retained its value throughout the decades. It comes as of no surprise why people are considering gold investment. That provides either capital appreciation, wealth protection, or both.

And while there have been different forms of gold investment. From futures to mutual funds, physical gold remains the top choice. Here are five tips on a profitable  gold investment for both the novice and savvy buyer alike.

Profitable Gold Investment Tips

Have a Plan of Attack

Any investing venture must be guided by a strategy or business plan. This will maximize profitability and minimize capital risk both from short-term and long-term obstacles. Such as market fluctuations and account overhead fees.

As a rule of thumb, treat gold as a contrarian investment. Meaning you can make a hefty ROI only if you purchase the precious metal when valuations are at the bottom. Hold onto it until an eventual run-up in price. The risk, however, is that your capital can get tied to the asset for years. But the returns can be phenomenal if timed correctly.

Buy from the Right Source

Before you focus on finding and comparing prices, look for a precious metals dealer who is licensed to transact precious metals. Even if prices are competitively low, consider holding off any payments until you can verify their credentials as a precious metals dealer.

A legitimate dealer will be able to help you understand the different policies concerning the sale of gold, such as tax filing.

Diversify Your Investment Portfolio

Buy physical gold in different forms including bars, coins, and jewelries. For coins, some of the ubiquitous choices in the market are American Buffalo and American Eagle.

When you diversify your gold portfolio, it minimizes risk in that supply and demand can offset the losses in a particular form of gold investment.

Pick Out a Safety Deposit Box

It makes sense to have a secure container for your gold bullion. You don’t want something as valuable as gold to be lying around the house unchecked. It must be stored somewhere that is out of sight.

In addition to the risk of getting stolen, gold left unattended can get damaged thereby potentially reducing its value. Pick out a quality safety deposit box or just have it stored at your local bank to save you the time and hassle of shopping for the right box.

Choose a Payment Method

Aside from upfront cash, there are a few other payment methods available for the would-be gold investor. Credit and debit cards are the most commonly accepted payment method, irrespective of the dealer you intend to purchase from.

Paper checks and bank account wires are also available options and is specifically ideal for buyers who do not have the immediate funds to pay upfront.

Buying Precious Metals – A Beginner’s Guide

Guide to Buying Precious MetalsSince the dawn of time, gold and silver have been recognized as valuable. And even today, buying precious metals has its place in a savvy investor’s portfolio. But which precious metal is best for investment purposes? And why are they so volatile? If you’re just getting started in precious metals, read on to learn more about how they work and how you can invest in them. There are many ways to buy into precious metals like gold, silver and platinum and a host of good reasons why you should give in to the treasure hunt.

Gold – Granddaddy of Precious Metals

We’ll start with the grand-daddy of them all: gold. Gold is unique for its durability (it doesn’t rust or otherwise corrode), malleability and its ability to conduct both heat and electricity. It has some industrial applications in dentistry and electronics, but we know it principally as a base for jewelry and as a form of currency.

The value of gold is determined by the market 24 hours a day, nearly seven days a week. Gold trades predominantly as a function of sentiment; its price is less affected by the laws of supply and demand. This is because new mine supply is vastly outweighed by the sheer size of above-ground, hoarded gold. To put it simply, when the hoarders feel like selling, the price drops. When they want to buy, new supply is quickly absorbed and the gold prices are driven higher.

The Silver Bullet

Unlike gold, the price of silver swings between its perceived role as a store of value and its very tangible role as an industrial metal. For this reason, price fluctuations in the silver market are more volatile than gold.
So, while silver will trade roughly in line with gold as an item to be hoarded (investment demand), the industrial supply/demand equation for the metal exerts an equally strong influence on price.

Platinum Bombshell

Like gold and silver, platinum is traded around the clock on global commodities markets. It tends to fetch a higher price than gold during routine periods of market and political stability, simply because it’s much rarer; far less of the metal is actually pulled from the ground annually.

Buying Precious Metals – Get the Beginner’s Guide

Learn more about buying precious metals: A Beginner’s Guide To Precious Metals | Investopedia