How to buy gold for investment purposes:
If you want to buy gold for its stable and unwavering value you aren’t alone. Gold is not affected by a currency crisis or collapse in the economies or stock markets of the world. So where do you start? Here I will outline a few general tips when buying gold to invest in.
Something any new gold investor must decide when buying gold is whether to own investment shares of gold or the physical bars and/or coins.
When buying physical gold (the kind you can touch, shine, etc) as an investment you will be buying gold bars or bullion coins. Gold coins are easier and more affordable to buy than gold bars because they come in multiple sizes and weights. This also makes them easier to sell later on as your options for other buyers increases as not everyone can readily afford gold bars. It’s also smart to stay away from collector’s coins when buying for investment purposes mainly because you’ll be limiting yourself later to reselling to coin collectors. Therefore the absolute best coins to buy are bullion coins. You want to stay away from any gold bullion less than 24 karats as those also contain non precious metals. Also, gold is soft metal so pure coins should be kept in its packaging in a safe place to avoid denting it. Gold bars are also a great option but be wary of fraud when buying. There have been cases of people buying gold bars that aren’t solid gold, just metal alloy inside. Remember as well, you will want to protect your investment with a bank vault or safe and it would also be a good idea to insure it.
Now owning physical gold is not the only way to invest in gold. You could buy mining stocks, gold accounts, ETFs and more. Many times it is far easier to buy and sell gold this way so the following are good options for beginners.
With a gold account you would be buying bars from banks which would keep your bars in a vault, possibly in another country. The options vary from owning certain bars alone or just owning a chunk of bars with other investors. With mining stocks you are still investing in a sometimes wavering stock market but because your stock is backed by such a secure investment (like the companies that mine gold) it fares much better than many other stocks. You could also own gold exchange traded funds which are backed by physical gold or futures in gold by a bank. Gold IRAs are another good way to invest as they are long-term investments which will ensure their success in funding retirement.
Remember, when buying gold do your research on buyers and sellers and invest wisely. Although sometimes it seems that you should put all of your money into gold because of the economy’s weather it’s still a good idea to diversify your banking portfolio with many other types of investments.