Are you planning to invest your hard-earned money in gold? If so, you need to be aware of some important techniques of gold investment in order to avoid many pitfalls that usually people fall prey to. Gold is one of the most stable investments. This is why many people try to invest their treasured finances in gold. Here are some effective tips that can greatly help you to invest money in gold in the right manner.
1.Do a lot of research: First of all, research thoroughly before you purchase gold bullions. There are several new investors, who get emotional when buying gold and purchase gold from the first site that they find online. You may land up paying unreasonable price for your purchase, if you don’t perform a thorough research.
2.Avoid buying numismatic coins: Never go for numismatic gold coins, unless you are a collector of old coins. Generally, these coins are purchased by collectors. Numismatic coins include rare coins, shipwreck coins, graded coins, and many more. They carry a huge premium over the spot price of gold. Remember you are investing your hard-earned money in commodity so you should invest in the right form of gold that can help you derive good financial gains.
3.Prefer to purchase bullion coins and gold bars: Gold bullion is gold, which is produced in mass quantities. It is 99.9% pure gold and usually comes as minted coins, gold bars, ingots, and rounds. Prefer to buy gold bullion since the premium that it carries over its spot price is minimal. You can have good financial gains by purchasing gold bullions.
4.Compare the different gold bullions: Compare various gold bullion products, before you finalize one. Gold bullion that is minted by government mints such as Australia mint, Perth, or U.S. mint carries a higher premium than gold rounds and bars. Gold rounds are not legal tender. So, they are not considered as coins. Gold bars do not bear face value on them just like a U.S. gold coin does. You will find a gold bar cheaper than a gold coin of equal weight. This kind of comparison helps you to invest money as per your convenience.
5.Steer clear of fool’s gold: Fool’s gold is a terminology used to describe the gold ETFs (Exchange Traded Funds). The major problem in this kind of investment is that you are not in physical possession of the gold you are investing in. The ETFs being derivatives so you get exposure only to the price of gold.
6.Don’t go for the gold future contracts: Avoid the gold future contracts that are traded as COMEX (Commodities Exchange). These are just future contracts to purchase 100oz of silver per contract. The gold price shoots up when the future date arrives and you can make good profit from it.
7.Diversify your physical gold holdings: Just as any other investment portfolio, you should prefer buying different kinds of gold. Don’t invest all you finances only in to Sovereign gold coin. It will be beneficial for you to diversify your physical gold investment, as you never know which coins may carry a much higher premium when you go to sell them.
8.Purchase different denominations of gold coins: You can buy gold coins in ¼ ounce, ½ ounce, and 1 ounce. You can even find some of these coins minted in 10 oz or even higher. Remember that the smaller coins carry higher premium because more time and energy is consumed in minting them.
9.Make sure that you put gold into bank lockers: It is better to keep your gold into the bank lockers. Bank is the safest option to store your precious gold without anybody else knowing about it. Another option to save gold is keeping it in a solid heavy safe which is bolted to the ground. It is important not only to invest in gold in the right manner but also to save it in the safe manner.
10.Keep it to yourself: Never discuss with that you are investing in gold. If gold price hikes or falls in the coming times, it will definitely affect your investment in gold positively or negatively. By keeping your gold investment secret, you can definitely keep your treasured safe from the notorious thieves.
If you consider all these ten gold investing tips, you can definitely invest your finances in gold smartly and derive good financial benefits from them. So, use these right gold investing techniques and have a stable financial position.
Gold Bullion Lover 