Maybe you’ve been playing with the idea of investing in precious metals lately but is a little apprehensive and want to know more. Investing in gold used to be something that only the wealthy can afford but not anymore. With the emergence of secure online markets, purchasing bullion is now more accessible than ever.
When buying gold bars or coins, here are some things you need to consider as suggested by Atkinsons Bullion.
When Is the Best Time to Buy?
Now is as good a time as any. Buying gold is not the same as stock or real estate where timing is key. There is no point in waiting for a more favourable price that might never happen. Don’t wait for a financial crisis like what happened back in 2008, where there was a shortage of gold, before you purchase. It is also noteworthy that after the said financial crisis, the demand for newly minted bullion gold coins shot up to an all-time high and has remained there ever since.
Buying gold is more than just an investment. It’s a wealth insurance. Gold will always retain its value no matter what happens even if banks go bankrupt or governments fall, unlike stocks or bonds. Your can rest assured that when your great-grandchildren inherit your gold, it will still hold its value.
What Kind of Bullion Investment Should You Make?
If you are a safe-haven type of investor, you might want to consider these things. A leveraged or financed gold investment could end up losing more money than you were originally loaned. ETFs may also be not right for you. Gold certificates are just that. A certificate. Just a paper. Gold shares are high-risk investments that you don’t want to risk, especially, if you are new in the business.
Own the gold physically. It is the most conservative type of investment but it will still retain the stability of its purchasing power over time.
Although the price of gold is liquid, it can still fluctuate so it is a good idea to invest only ten to fifteen percent (or if you are more of a risk-taker, you can go as high as thirty percent) of your overall portfolio. It is also recommended that you hold onto your bullion for a long time. Remember, gold is a long term investment.
Keeping your gold at home is possible given that you have a personal safe. You don’t want your precious gold coins lying around. Getting your bullion insured is a good idea, especially if you’re keeping it at home. If you want a more secure storage, you may choose a safe-deposit box at the bank. An even safer way of storing your precious metals is using an independent depository, as some gold investors would recommend.
Beware and Be Aware of Counterfeits
Counterfeit bullion ingots and coins are circulating the market. They are currently being sold out of China. Some are really high-quality, which makes it difficult to distinguish from the real ones. To avoid this, make sure to only buy from reputable dealers who have been in the business for a long time.
The supply of gold is not infinite. Someday the Earth will run out of it and scarcity will ensue. Hence, it is only natural for the price to go up. This is good news for your investments. So don’t wait before there is a scarcity before you invest. Now is as good a time as any to start investing in gold.