What are some of the top steps to invest in gold?
Many investors are intrigued by gold, horrified by inflation and government spending, and wonder if they should have a substantial part of their portfolio invested in gold?
#1. Pick your poison.
The first thing to decide is how exactly you plan on investing in gold, ie buying gold bullion, buying gold coins, buying gold futures and options, actually investing in a gold mining company, or buying gold jewelry.
Realize that in particular when it comes to buying gold bullion, buying gold coins or buying jewelry, there is a significant amount of markup that you will pay.
Buying gold bullion is typically the cheapest. YOU can obtain it by paying approximately 5 to 8 percent over spot prices.
When you buy gold coins, however, particularly numismatic collectibles, you may pay as high as 50 percent commission.
Coins valued primarily for their gold value, like Kuggerands may be cheaper, but remember, when you sell, you’ll often take a loss. You may want to choose a company like Goldco to help you with your purchase. There is a Goldco review that can help you get a lot more information about them as a company.
Hold onto it
Because you normally pay a lot, and often lose when you sell, hang on to your gold for a long time.
Unless you have the financial wherewithal to buy a lot of gold and can sell it for industrial purposes such as making computer motherboards, then you want to buy your gold and hang on to it for emergencies.
If three is a worldwide financial depression, and dollars go the way of Deuce Marks immediately after World War II when it took a wheelbarrow full to buy most products,
those gold coins, although valuable, may not be as valuable as you think.
However, if there is such a collapse, a gold coin may buy you a rifle to protect yourself and your family, or to shoot your own food.
Consider where to keep it
There are two ways general ways to invest in gold. One way is take physical possession of the gold and the other way is to have it stored at at a gold depository.
If you take physical possession of it, the more gold you have, the tougher it gets to store it.
On the other hand, if you store it in a depository, what makes you sure that they won’t simply confiscate your gold if there is a collapse? Both are quite risky.
The historical price of gold?
Since 2012, gold has gone as low as $1600 an ounce. In 2021, the price of gold has risen to $1894 per ounce. So that’s a definite increase. However, plan on losing a minimum of 5 percent or more if you sell your gold.
And considering that analysts predict the price of gold will drop to near 2012 prices by 2026, gold doesn’t look to be such a great investment.
Buy small pieces of gold bullion or gold coins to use as trade during a major financial collapse, but other than that, gold is not so hot an investment.