Gold is one of the oldest and most tangible investments available to investors. It provides unique inflationary protection, genuine upheaval insurance and the opportunity to diversify your portfolio. Here’s a beginner’s guide on how to buy physical gold. However, there are a few things you should know before making a purchase. First, determine your investment goals, then explore your options.
1. Determine Your Investment Goals
One of the most important steps to investing successfully is to determine your investment goals. Whether it’s buying a new home, paying for a child’s college education or saving for retirement, your goals are what drive the strategy you use to achieve them.
Investing for these long-term goals can be challenging, especially when life’s unexpected events get in the way. However, figuring out your financial goals early in life and focusing on them regularly can help keep you on track with your plan to reach those goals.
Physical gold offers a lot of benefits to investors, including its intrinsic value, independence from any government or banking system, and the ability to secure against many risks. These characteristics make it an appealing addition to a diversified portfolio.
2. Explore Your Options
Investing in physical gold can be a great way to diversify your portfolio. It can also be a great store of value to have in case the economy goes south again.
But before you decide to buy physical gold, it’s important to explore your options. You’ll need to decide if you want to purchase bullion or coins, and whether you prefer to buy online or from a reputable dealer with a physical storefront.
Many people buy gold as a form of insurance against stock market volatility. It’s also a great way to hedge against inflation and other investment risks.
3. Choose a Trustworthy Dealer
Buying physical gold is a great way to diversify your portfolio. It can also help protect your savings from inflation. However, you should remember that gold is a highly volatile investment.
Choosing a trustworthy dealer is essential for your peace of mind. Look for a company with an established reputation in the local area.
They should offer transparent pricing, ideally without commissions or extra fees. They should be PCI compliant and secure their shipments with SSL encryption.
It’s also important to choose a gold dealer that accepts your preferred payment methods. These include credit cards, wire transfers and checks. They should also have return and buyback policies that fit your needs.
4. Secure Your Investment
Investing in gold is an important way to diversify your portfolio and protect it from market downturns. But it’s also a complicated decision that requires research and preparation.
Buying physical gold involves shipping and storage costs, so make sure you plan accordingly. You’ll also have to pay insurance.
Purity: Gold bars must be at least 91% pure to be investment-grade. Purchasing less-pure bars may increase your risk of losing money in the future.
Local dealers may offer lower prices than online stores, but you’ll have to do more research to find a reputable dealer. You can also buy gold bars on eBay and similar auction sites, but look for sellers with negative feedback on authenticity, exorbitant shipping and handling fees and failure to deliver.
5. Keep It Safe
Buying physical gold is a great way to increase your wealth. It offers a number of benefits, including diversification, safety and insurance.
However, it can be difficult to know where to store your gold safely and how to keep it secure from thieves. The most common storage option is a safety deposit box at a bank, but some investors choose to use a home safe instead.
Depending on the size of your precious metals, storing it in a safety deposit box at a bank can cost you a few hundred dollars a year. Storing it in a safe at your home can be cheaper, but it also increases your risk of theft and loss.