11 Things to Know Before You Start Investing in Gold
Are you looking to make a few investments that could pay off in a big way down the line? Do you want to grow your money by finding different ways to invest in gold? If so, then there are several things that you need to know before you start investing in gold.
It’s important to know where gold is currently at, how much you should invest, and what you could expect when you go to unlock the benefits of gold.
See below for an in-depth guide that lists all the different things you need to know before you start investing in gold.
1. Decide Between Bars and Coins
One of the biggest misconceptions about gold investments is the misunderstanding that the element’s price is the only factor that drives a gold bar or gold coin’s value. That couldn’t be further from the truth.
In fact, these two ways to invest in gold (bars and coins) have vastly different values. A gold bar’s value can fluctuate considerably. The gold bar’s value will rise or fall with the overall value of gold as an element.
Meanwhile, those that invest in gold coins are far more secure. When you invest in coins, you get a certificate pointing out the coin’s rarity and fineness, which will help it to hold its value, even if the price of gold (as an element) drops. It can help you avoid the volatility of gold.
Here’s our suggestion: invest in a bit of both. Prioritize finding a trusted company that you can purchase gold coins. That way, you can ensure yourself a fine and rare product that holds its value. Then, if you’d like to purchase a few gold bars, you can do that as well without becoming a victim of the volatility. Weigh out the pros and cons of both.
2. You Need Proper Storage
While investing in gold is a lot like getting involved in purchasing stocks (more on that in a moment), there’s one distinct difference: gold is a physical product. Therefore, you need a physical place to store it and keep it secure.
As we’ve stated before, most people generally invest in gold bars, gold coins, or a variation of both. It’s important to keep these items in a safe place, void of any risk of theft. Some of the most common places people store their gold are:
- Safe Deposit Boxes
- Bank Vaults
- Home Safe
- Precious Metals Storage
These are the four that we recommend. The safe deposit boxes, bank vaults, and precious metals storage give you the chance to safely store your gold items with maximum security features. If you’d prefer to keep your gold close by, you could invest in a home safe as well.
Believe it or not, some choose to hide their gold in various places in their land. Some people actually bury their gold in a place of significance to them. We strongly advise against that.
Start thinking about how you’ll store your gold before you invest in any physical goods. This way, you can be prepared to keep them protected right from the get-go.
3. You Can Invest Through the Stock Market
One of the hottest questions right now for those considering investing in gold is this: “Should I invest in gold or bitcoin?” There is only one person that can make that decision: you!
Buying physical forms of gold (bars or coins) isn’t the only way that you can invest in gold. In fact, several gold individual retirement account options can help you invest in your future.
Contrary to popular belief, these aren’t as volatile as you might think. It allows you the chance to own elements such as silver, gold, platinum, and palladium the same way you would invest in stocks and bonds. Even if the value of gold drops, your investment in other elements can help level out the return of your IRA overall.
4. The Many Different Ways to Invest in Gold
As we’ve touched on throughout this article, there are many ways to invest in gold. You must know all of your options so that you can make the best decision for you and your family’s finances. Here are the four ways to invest in gold:
- Gold ETFs
- Gold Mining Stocks
Bullion has two different forms: bars and coins. Gold mining stocks allow you to get involved in the value of gold without purchasing physical gold. Rather, you’re investing in the gold mining company that finds it and procures it.
5. The Three Factors of Value
For those of you wanting to invest in physical gold, you should know the driving factors that affect its value. That way, you know which companies to invest in gold through.
Other factors could influence the value of your gold bullion. However, the most common factors are the gold bullion’s fineness, content, and certificates.
As we discussed earlier, the certificates of gold coins can help them retain their value. That way, you’re less susceptible to the peaks and valleys that gold as an element can experience.
Investing in Gold: Know All of Your Options
Now that you have seen an in-depth guide to investing in gold and all of the things that you need to know before you start investing, use this information to your advantage.
Be sure to read this article for more information on whether or not it’s the right time to invest in gold and silver ETFs.
Make sure to circle back to our site often for more articles on investing in gold, as well as other gold-related topics that you’ll find fascinating.