In the last few years since the GFC first arose, an increasing number of investors are searching for alternative investment opportunities to protect their assets. Many of these investors are turning to precious metals such as gold and silver. However, investing in these ‘safe haven’ assets is not always that simple and can be fraught with high risk. So if you’ve been thinking about diversifying into precious metals but not sure exactly where to start, the tips you’ll find in the article below will point you in the right direction.
Gold bullion bars are an excellent form of investment. The weight of these bars varies significantly – weighing anywhere between one half of an ounce, to as much as four hundred ounces. If it’s the 400-ounce bars you are after, then start saving your pennies! These guys over $500k so it’s no wonder they are quite difficult to get a hold of.
One of the more recent developments in gold investing is the ability to sell gold online. It is no longer necessary to buy or sell gold at a physical location. There are many places online that specialise in online gold transactions. They will typically provide you with a seller’s kit which you can use to send in your gold items. Once delivered to the dealer, they will assess your gold and pay you the current market rate per ounce for the gold, with a fairly heavy commission taken out for their fee.
It’s worth mentioning that when you do sell your gold, always ensure that your price expectations are not overly unrealistic and that you have your government-issued identification. Be aware that gold dealers usually only pay between 70-80% of the current market rate for gold. Federal laws also stipulate that dealers must ask sellers for identification when buying gold to assist the authorities in possible connections with stolen property.
Gold investing risks
Simply put – just make sure you understand that there is an element of risk in all types of gold investment. For example, if you’re looking at buying gold bullion coins, always due your due diligence and research before your go ahead with the transaction. Customers who buy emotionally or on impulse will often regret in hindsight their hasty purchases. Gold is no different to other investments – there are usually no guarantees that the value of the investment will not decrease after you make your purchase. The only thing you can do is make sure you are fully informed of the risks at stake.
Before you enter into any form of buying or selling of gold or other precious metals, always be sure to stay protected against identity theft. Refrain from supplying your personal financial information like bank account numbers, credit card numbers or social security numbers. Particularly be wary of anyone asking for this sort of information over the phone, especially if they are individuals you don’t personally know.
Storing your gold
Similarly, once you have bought your gold, also make sure that if you’re planning on using a company to store it safely, do your due diligence again and pick a reputable storage company with a great reputation. If possible, try to read other previous customer testimonials on websites like the Better Business Bureau and check that any customer complaints have been addressed by the company in question.
For those investors who have an especially nice bit of jewelry, it may be possible to acquire more money for this in its current form as opposed what you would get for it melted down. This is particularly true if the piece is related to some historical event or was designed by a famous designed. As always, investigate all your options before buying or selling your gold.
Gold as an investment
Gold has shown to be a safe and valuable investment to the retirement plans of many investors. Many choose to include some U.S. mint coins to their gold IRA since their value is guaranteed from the U.S. government. Building a diverse portfolio that features gold is an excellent way to buffer your investment savings from inflation and finance your retirement.
Hopefully this article will give you the confidence to participate in some of these gold investment strategies yourself, knowing that you are safeguarding your future from potential threats to your life savings.