In school, we aren’t taught how to invest. If you’re lucky enough, you will somehow learn how to invest in stocks and bonds. The truth is there are so many more things to invest in. One example is gold, but with the lack of education and training that also exists in this area, where should you start? This short article lays out five tips for you to get started as a new gold buyer.
- Start With a Comfortable Investment
Like every new investment venture, you should start within comfort levels and not go “all in.” This strategy not only gets you used to the gold buying process, but it also doesn’t drain your cash reserves in large amounts. Buying in small increments also allows you to dollar cost average. This is the process of buying an investment at different price points in time. Sometimes, you’ll get the investment on sale and other times you’ll pay a premium. At the end of the day, the price you paid for your gold averages out and helps your overall performance.
- Buy What You Like
One of the best parts of investing in gold is gold collecting’s diversity. In fact, even gold bars have unique designs to make them more appealing. Outside of gold bars, there are many varieties of both modern and rare coins with all kinds of artistic designs on them. Some even have colors incorporated into the design. The important point here is that there is something for everybody. Gold collecting should be fun, and it’s only fun if you invest in gold assets that you like.
- Find a Dealer You Can Trust
There are a lot of scammers out there that will try to rip you off when you’re buying gold, especially when it comes to online vendors. Make sure that the place you’re buying from is reputable and has a track record of charging reasonable premiums and delivering what they promised to their customers. The best rare coin dealers hold the ANA designation, which is only designated for dealers with a history of ethical service.
- Come Up with a Storage Plan
One of the most important yet overlooked items on a gold buyer’s checklist is storage. Many options exist for storage. While you can store your gold in a safe at your house, which you should never tell anyone, you can also store your gold at a secure facility for a nominal charge. These secure facilities take the storage burden off of your shoulders. If those two options don’t appeal to you, you can store your gold at your local bank in a safe deposit box.
When we’re talking about diversification in this context, we’re talking about diversifying across different types of gold investments. This means you should buy gold at different weights and in different forms. For instance, you don’t want to buy all 1-ounce gold bars. It’s better to buy a few 1-ounce bars, a 10-ounce bar, some 2-ounce bars, and so on. You also don’t want to invest only in gold bullion. It’s better to invest in some gold bars, some bullion coins, some rare coins, and even gold jewelry. This helps protect you against any risk that can be associated with any one type of gold investment in the future.
Taking the step to invest in gold is a fun journey that becomes very easy once you get used to it. Hopefully after reading this, you now have better information on some key steps to start your personal journey towards the exciting world of gold investing.
If you are interested in leveraging the benefits of commodity investments, American Bullion can discuss your options and help you every step of the way. Our #1 goal is for you to take control of your own finances – and we promise to be transparent, safe, and efficient in the process.