Despite 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.