This article originally appeared on eHow.com, but has been relocated here due to the discontinuation of the eHow writer’s compensation program.
In these times of fluctuating stock market prices, shrinking retirement accounts and a weakening U.S. dollar, finding a safe investment with long term value can be difficult. Though most people only think about it in terms of jewelry, gold is once again being sought by savvy investors who realize that this historic, precious yellow metal can be a great way to strengthen and insure an investment portfolio. What follows are some simple tips to help you get started buying gold.
STEP 1 – Do your homework. Investing in gold bullion is not something to take taken lightly, especially since the price is relatively high as compared to most other investments (when this article was originally written, the price was $890 per ounce). Prior to making this buying decision, you should take the time to do some research and learn about gold, its history and potential value to you as an investor. Some of the links found below can be of help.
STEP 2 – Decide what sort of gold you want to buy. Due to size and price options, gold coins are usually the best choice for someone who can only afford gold in limited quantities due to their own personal investment budget limits. There is also the matter of storage to consider. Be mindful that it is easier to afford, transport, hide, store and gold coins than, say, gold bricks. Coins can also have additional value for coin collectors, depending upon the age, condition and rarity of the coin.
STEP 3 – Find a reputable local or online gold dealer. A local dealer that you can interact with directly is the best choice, if only to avoid added shipping and insurance costs. Additionally, being able to sit down and converse a gold dealer is also more comforting than conducting a transaction online or over the phone with a dealer you don’t know. If there are no local dealers in your area, you should know that online gold dealers do exist and can be trusted. As a starting point, consider working with companies like Kitco and Blanchard (links below). Again, do your own research to find others and to ensure that you are dealing with a reputable company.
STEP 4 - Invest what you can afford. Though the price of gold may seem high, gold coins can be purchased in sizes as small as only 1/20th of a ounce. The price of these smaller coins may be easier for you to obtain depending upon your budget.
STEP 5 - Protect your investment. Now that you obtained your precious metal purchase, make sure you have a place to store and secure your gold investment. Consider buying a safe or using a safety deposit box at your local bank to ensure that your new investment is secure.
STEP 6 - Be patient. The value of gold value will likely increase (though that is not a guarantee), but it may take a while. Be prepared to buy and hold it for a while.
Tips & Warnings
- Watch the price of gold to find the right price for you.
- Try www.kitco.com for live gold charts.
- Price of gold to high for you? Consider investing in silver instead.
- Buying ETFs or stock in gold mining companies can also be a good, complimentary investment.
- Don’t over extend yourself by buying too much at once.
- Don’t just rely on gold. Try to keep your investment portfolio diversified.
