Gold is once again beginning to shine. Investors and experts all over the world are realizing that gold has value and has provided a good place for investment during uncertain economic times. In 2016, gold is beginning to gain steam again and will possibly make new highs in the coming years because of failed central bank policies and currency wars happening around the globe. So if you’re considering buying gold, you’ve come to the right place. We’ve prepared 5 tips to help you choose how to get started.
- Physical Bullion vs ETF’s
Would you rather have a piece of paper saying that you own gold somewhere or an actual gold bar in your hand? Of course, most people would rather have the actual gold in their possession and not a paper note stating that you own gold you can’t see or touch. In fact, it’s widely known that there is more paper gold being traded in the world than there is the physical equivalent. This means that some unlucky people may someday find out that they don’t own any gold after all.
- The Benefit of Owning Gold Coins
The Saint-Gaudens Eagle, a $20 gold coin produced by the U.S. from the years 1907 to 1933, not only provides aesthetic appeal with its beautiful carvings, but it also provides a higher scarcity value, as well as gold content value. This coin succeeds in both looks and profitability. You can enjoy its elegant eagle carvings designed by Augustus Saint- Gaudens or sell it easily and quickly, all thanks to its liquidity. Why is it wise to own gold coins, you ask? Because its rise in international demand has made it a popularity among investors and coin collectors.
- Storage Considerations
If you choose to own physical gold, you have to consider where you will store it. Facilities all around the world exist to securely hold and store your gold for you. Some of them, mostly depositories, will even let you visit and show you your actual gold bars at your request. Of course, you can also store it in a safe deposit box at your bank. If you choose to store your gold at home, however, obtain a safe and install a home security system in your house.
- Security Concerns
If you own physical gold and store it in your home, a safe and security system will do. If you store your gold at a facility or your bank, everything is taken care of for you (they obviously have better security systems than you can get yourself). The one problem here is that some people choose to tell or brag to friends, family, or co-workers about the amount of gold they have in their house. This has led to people endangering themselves and their families because of attempted and successful robbery attempts. DO NOT tell anyone where your gold is, even if you bury it in your backyard.
The last point is about variety. It is always a good idea to be diversified in any investment that you have. With gold, you can diversify between physical bars, jewelry, coins, and so on. With coins, you should own different types of coins from different countries. There are a wide variety of designs and countries that offer gold coins for sale to the public. Additionally, you should vary the weight and face value of your holdings. What sense does it make to only own 10 ounce bars? They are worth about $13,000 apiece at the time of this writing. Part of the benefit of owning gold is to have it to use in case of a major financial crisis but how many things can you buy with a 10 ounce bar? It’s better to own a variety of weights from ¼ ounce to 10 ounces so you can also purchase everyday items during a crisis. By owning a variety of gold investments, you reduce your risk and can also amplify your gains if one category outperforms another.
Although these 5 helpful tips have probably caused you to feel confident in investing in gold, make sure to contact American Bullion, who will help you open a self-directed gold IRA, today for additional guidance and advice.
Although the information in this commentary has been obtained from sources believed to be reliable, American Bullion does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice. American Bullion will not be liable for any errors or omissions in this information nor for the availability of this information. All content provided on this blog is for informational purposes only and should not be used to make buy or sell decisions for any type of precious metals.