How to Buy Gold

Introduction

In our unstable society with difficult and unpredictable tendencies of economical development, gold is probably the only type of investments that is considered to be stable. Buying gold is the best option for you if you want to secure your assets and weather them through stormy times of the crisis. Here are some tips for buying gold.

Do's

Essentially, there are 3 ways of buying gold:

1

Buying physical gold

This is the simplest and the most obvious variant that crosses the minds of the investors. You can buy golden jewelry, ingots of gold, or any other things that are actually made of gold. On the one hand, this is very convenient because you are actually the holder of the gold and can sell it whenever you want. On the other hand, you may have some problems with the storage and safety. You can store it at home if there's not much gold, but if you have bought several bars, you want to store them securely in the bank, and it requires additional payments. Plus, it might be quite difficult to sell your gold, especially in the hard times.

2

Buying a fixed price contract

This is a nice option if you don't want to have any storage or security issues. Basically, you buy the ownership of the gold or contract, but you don't own it physically. This is much better than digging it in your backyard. The only disadvantage of this method is the price. As mentioned earlier, the paper contract sets the definite price for your gold, but it may change significantly by the time you want to sell it. Thus, you can't really sell it at its actual market price, although the deal can be still very profitable.

3

Buying shares of gold mining companies

There is a wide range of companies. Some of them only deal with gold, others mine the whole range of metals. Feel free to choose a reputable company and invest in it. It gives you a relative freedom of actions because you can buy and sell your shares whenever you want and don't bother about the storage at the same time. Nonetheless, this method comes with a number of problems involved. Firstly, it's hard to estimate the potential of these shares. For example, the chosen company might have excellent gold reserves but be poorly managed at the same time, or vice versa. Plus, there are always some risk factors when it comes to buying shares. Your investments depend on the stability of the company, and you never know how it will develop.

Don'ts

Don't rely on gold totally

Yes, it's much more stable than any currency or shares, but it's not as straightforward as you might think. Banks are using gold for their operations and the price can move in an unexpected direction. Just follow the situation and if you feel that the things are going worse, think about selling your gold at a good price until it's too late.

Don't invest in fishy companies

There are some really reputable and trustworthy mining companies out there, but their shares are very expensive. It means that you might want to invest in a smaller company with cheaper rates, and that's a good idea if this company is trustworthy as well. Be really careful choosing a company!

Don't store a large amount of physical gold at home

You'd better play safe and pay for a bank box.

Don't buy physical gold from unaudited sellers

The quality of gold may vary, and you don't want to pay more for a bad product. Evaluate your gold prior to buying and double check it's worth its cost.

Video

Conclusion

With all these tips in mind, you will be able to make a smart decision and secure your money by investing it in gold. Think about these 3 options and choose one that suits you!

Related Articles

Rate Article:  
  Rating: 0

About Authors

nickcg
Articles: 68
Edited articles: 3
Article is not edited yet!
Articles total: 2878
Authors total: 33

Share the article!