Basic types of investment include stocks, bonds, mutual funds, deposits, real estate, and retirement funds. Ever wondered why gold investment is not as well-known? Investing in any of the above intimidates a lot of people – it’s mostly the lack of knowledge that dissuades people from investing, so imagine being asked to invest in gold for the first time in your life.
However, history proved that gold is almost unrivaled in popularity as a hedge against most types of issues, from currency fluctuations, inflation, and even war.
If you’re here thinking about investing in gold (maybe even selling it), then read on to find out the right way to go about investing in this open secret commodity.
Getting Started With Physical Gold Investing
While the most challenging, buying physical gold is preferred by many new gold investors since they can physically see and protect their investment. It is especially difficult for those who are accustomed to trading bonds and stocks online.
To get started, you need to find and interact with dealers outside of traditional brokerages, and you might also need and pay for storage to get investment insurance. There are three basic options for physical gold investment, including gold bullion, coins, and jewelry.
- Gold bullion is the big, shiny gold bars you see in movies, locked in high-security vaults. Gold bullion comes in bars that can range from a few grams to 400 ounces but is typically available as one- and 10-ounce bars. As of September, the current gold price is around $1,900 per ounce. Unlike stocks, you can’t get a fractional share of the gold. For this option, you need a reputable dealer with insurance and be updated on gold prices to know the best time to buy.
- Gold coins are widely available, dealers are known to sell blanks and damaged or worn coins. Don’t worry, you can crush, melt, or deform gold, but its value will stay the same. Gold coins do not always alight with their gold content. You can find deals on gold coins from pawn shops or collectors, but it’s always best to deal with a licensed dealer.
- Gold jewelry investment is done by many people. For this option, ensure that you only acquire them from reputable dealers, especially if they’re second-hand. Documentation is vital so make sure to keep them. Designers and manufacturers often mark-up gold jewelry from 20% or more of the gold’s raw value. You also need to assess the purity as well, which is based on karats, with 24 karats being pure gold.
Buying or Selling Virtually With an e-Gold Investment Account
Yes, you can invest in gold online through banks. Using an e-Gold investment account or eGIA lets you enjoy a simple and secure way to invest in gold.
And no, you won’t need millions or even thousands of dollars to get started with gold investment. With eGIA, for instance, you can initially purchase from as low as 1 gram! Within an e-Gold investment account, you can readily buy or sell gold as you please – much like stocks.
People often see gold as a luxury instead of an investment. In reality, gold is one of the best forms of investment to make. As mentioned, gold acts as a safety net against drastic dips caused by unforeseen circumstances or events which can cause traditional asset classes to decline, it also lets you diversify your portfolio while letting you trade flexibly with gold’s price changes. In reality, whether you choose physical purchase or e-investment, you are buying actual gold, so it’s your preference – another awesome gold investment advantage.