Many of American Bullion’s clients don’t just want to know about buying gold, they want to know if it’s right for them in particular. As individuals vary in their financial situations, needs, and goals, investing in gold isn’t for everyone. Since precious metals are an unfamiliar investment to many, that question can be difficult to answer without the help of someone more well-versed in the subject. To avoid potentially setting yourself up for disappointment, it’s important to assess what you want out of your gold investment before deciding to make a purchase. We’ve compiled a short list below to help you make a decision.
Don’t buy gold if…
- …you view gold as simply a commodity that goes up and down in price. Physical gold – meaning actual coins and bars, not mining stocks or gold ETFs – is not meant to be traded like futures contracts. Futures trading is considered one of the most speculative investment vehicles out there. Its returns are based on guessing the short-term price fluctuations of a commodity such as pork belly, corn, coffee, oil, etc. If you are a speculator and are looking for quick returns, physical gold would be a very slow and boring investment for you. Investing in metals is not so much about timing as it is about making a decision to own gold, regardless of what may be happening in the market.
- …you see gold as just an opportunity to buy low and sell high, enabling you to “get rich quick”. Physical gold differs from other investments in that it’s more commonly viewed as a form of protection from economic or geopolitical crisis, and less so as a vehicle for turning a quick profit. Those who try to do so with physical gold will likely experience impatience, frustration, and disappointment.
- …your strategy is to hold it for a short period of time and then dump it. Physical gold buyers are not in a hurry to sell their coins or bars based on short-term price fluctuations, and they understand that those fluctuations are normal and nothing to fret about. They are more conservative, long-term, safety-driven individuals. In other words, they don’t like to gamble with their investments. They don’t wake up every morning and check the gold price, just like you wouldn’t call your real estate broker every day and ask what the value of your house is that day. Don’t wait to buy gold, buy gold and wait.
American Bullion believes informed buyers are happy buyers. Evaluating how these three statements resonate with you is a good starting point before considering a gold investment. Gold is considered a long-hold, safe-haven investment that improves purchasing power, diversifies paper-based portfolios, stores wealth, and represents a high quality liquid asset. If you believe gold is right for you and are a first-time gold buyer, you’ve come to the right place. American Bullion can help you open a Gold IRA or purchase precious metals for home delivery. Don’t hesitate to call and speak with one of our precious metals experts today at 1-800-326-9598 or request your Free Gold Guide.