Top 5 Tips for Gold Investment Online
Investing in gold online can be a great way to diversify your portfolio and also make some money. So, where to begin – this article aims to show you.
Research the Current Climate in the Market
The consensus among experts is that gold is a long-term, reliable investment that is regarded as being a fairly low risk in comparison to other investment options currently available.
Potential gold investors should ensure that they learn as much as they can on the topic and take the time to review a mix of information, which includes financial publications, industry websites, investment news, the findings of analysts, and reputable blogs that focus on gold investing.
All the sources listed here will help you build your gold investment plan and inform you about the steps you should take first.
Why Invest in Gold? Understand Why You Want to Invest in It
If you are like many other people, if you currently have a growing portfolio of stocks and a savings account, gold investing is the perfect opportunity to diversify your wealth further. People have several justifications for investing in gold including the fact that it is a highly desirable precious metal that’s always in high demand and helps protect against inflation.
If stored securely, gold can be a safe way to maintain wealth over an extended period of time. If any unexpected political or civil issues arise, gold helps protect assets since it is not hard to hide and is portable too. Here are some strong gold stocks to buy if you don’t wish to hold the physical metal.
Understand Your Investment Options and Budget
What is your budget? It is important to help you determine which type of gold investment would be most appropriate for you and your finances. New buyers should understand that several options are available when it comes to gold investing including jewelry, coins, and bars.
Gold Bars: When it comes to gold bars, you will discover that most are typically between 99.5 and 99.99 percent “fine”, which means “pure”. The bars will also bear a stamp bearing the name of the refinery that processed them. Examples of such refineries include Elemetal, Perth Mint, Credit Suisse, and PAMP.
Gold Coins: When it comes to gold coins, you will discover that most that are categorized as “rare” have a monetary value besides the gold content. While there are numerous gold coins available for investing, the most popular options include Saint-Gaudens Double Eagle, American Gold Eagle, or American Gold Buffalo.
Some coins are regarded as Investment Grade Coins. A good example of an Investment Grade Coin would be a Proof Gold American Eagle graded by a third party such as PCGS or NGC. If a gold coin is not considered rare, it is valued exclusively on the amount of gold it contains, just like gold bars.
Gold Jewelry: If you are thinking about investing in gold jewelry, you should focus more on the overall craftsmanship and design. Please note that jewelry marked 14 karats or less will typically be below investment grade quality while the antique pieces are likely to be of higher value.
Gold ETFs: The Gold-Backed Exchange Traded Funds are securities designed to track the price of gold in an accurate way. The ETFs are typically traded on the major stock exchanges, which includes the New York Stock Exchange. It is worth noting that Gold ETFs don’t involve taking physical ownership of the gold.
Select the Weight of Gold
It might seem obvious to a first-time buyer, but it is worth noting that choosing the weight is an important part of purchasing gold since it determines the specific price of gold always, except for rare occasions.
For instance, gold bullion bars are typically sold by the ounce and come in several different sizes. The 1-ounce bar is the most popular option for first-time investors. Gold coins have standard weights too, such as 0.1 ounces, 0.25 ounces, and 0.5 ounces.
It is also important to learn the industry jargon since the market can be quite confusing especially for beginners. New investors should know that while “carat” refers to the weight or mass of the gems, “karat” refers to the metal’s purity.
Identify a Reputable Dealer
You will find numerous brokerage houses, banks, and dealers that offer a variety of options to buy gold bars and coins throughout the world. It is important to find a dealer that you are comfortable and confident working with, so ensure that you ask several questions, including the length of time that they have been in business and the specific investment activities that they specialize in. It is important to know how to avoid gold scams and sketchy sellers.
One of the most popular options especially for first-time gold buyers is the US Gold Bureau. Feel free to contact us to talk to an investment professional, browse our website for additional research to help you find the best investment option for you, or to download the free investor guide to help you learn more about the best ways to buy gold online.