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Stabilize Your Investment Portfolio – Invest in Gold

Are you looking for ways to combat the fluctuation of the market? Do you want to know whether or not a gold investment is a right move for your situation? If so, then you need to learn all that you can before you invest in gold.

Investing in gold and silver allows you to have a traditional form of investment. The need for gold will always be there, so it could be worth your while to invest now and sell when it’s at an all-time high.

See below for an in-depth guide on how you can expand and diversify your portfolio when you invest in gold.

Know Your Options to Invest in Gold

When someone imagines investing in gold in their head, they likely envision exchanging dollar bills for a gold bar. That isn’t necessarily what we mean by investing in gold in this day in age.

These days, you hear a lot of talk about “diversifying your portfolio”. That refers to the investing strategy of spreading your portfolio across a variety of different sectors, as opposed to investing all your money into one or two sectors, which puts you at risk of a higher loss.

Well, we’ve got another statement for you: aim to stabilize your portfolio. in other words, look for sectors that you can invest in which have shown a steady return. Investing in what’s known as a Gold IRA can help you achieve that.

A Gold IRA (Individual Retirement Account) allows you to invest in things such as physical gold coins and bars. It also grants you the opportunity to invest in valuable materials such as platinum and silver.

Investing in a Gold IRA gives you the best of both worlds. You’ll be able to invest in the gold coins and bars like you desired to, but all under the monitoring of an IRS-approved retirement account. That way, you have more security and peace of mind.

How Much Gold Should You Invest in?

This is the million-dollar question. We mean that quite literally because you’ll want to save up over a million dollars in your IRA to give yourself a comfortable retirement. 

No matter what currency or stocks you’re investing in, experts will tell you that you’ll want your portfolio to include no higher than ten percent of any one sector, gold included. Granted, there are some exceptions to that statement.

For example, if you’re nearing retirement and gold is seeing a substantial spike, then you might want to invest in a bit more to yield a better return.

Gold (or any other material) can be highly volatile. That’s not as much of a concern over a longer period of time. Throughout all of the ups and downs, the price of gold will still increase over a 30-year. 

With all of this said, the amount of gold that you invest in is completely up to you. You can reach out to experts for insight and direction. Gold might be especially helpful if you’re looking to protect yourself from the possibility of an economic collapse.

The Proper Mindset for Investing in Gold

As the title of this article would indicate, we’re not here to tell you that investing in gold will make you rich. We’re here to pitch gold as a way to stabilize your investment portfolio.

So what should your mindset and expectations be when you invest in gold? For those of you looking to grow your portfolio, it can be an incredible way to limit the volatility of your investments.

For example, let’s say that gold is one of many assets and classes that you’ve invested in. While some of those other classes might experience a tremendous loss or are experiencing a high amount of stress, the gold can help prevent a major loss and vice versa. 

For that reason, we recommend gradual investments in gold. A gold IRA can help you build up the amount of gold you invest in over several years, rather than trying to catch it before it skyrockets. 

How to Beat Inflation

This is perhaps the biggest advantage of investing in gold for your portfolio. Many experts believe that gold can prove to be a worthy form of protection against economic inflation and deflation.

This belief stems from the relationship that gold and the US dollar have had in the past. Generally, gold and the US dollar tend to move in opposite directions.

For that reason, gold can be used for you to combat inflation. That way, you can protect more assets in your portfolio and be more flexible with the ebb and flow of the economy.

Should I Invest in Gold?

In short: yes, you should, but be sure to invest the right way. Start creating a strategy by investing in a Gold IRA. 

This will help you start the process of investing in valuable materials such as gold, silver, and platinum, albeit at a reserved rate. 

Investing in gold can allow you to return a profit, as well as protect you against inflation or deflation in the economy. 

Invest in Gold for Your Portfolio Today

Now that you have seen an in-depth guide on how to invest in gold and the advantages of doing so, be sure to use this information to your advantage.

Take the time to read this article for more information on whether gold or mutual funds are a better investment. Be sure to browse our website for more articles with helpful information on gold IRAs and other topics that you’ll find helpful.

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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:

  1. Jewelry
  2. Gold ETFs
  3. Gold Mining Stocks
  4. Bullion

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.

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How to Invest in Gold: The Ultimate Guide

Humans have pulled a whopping 197,576 tons of gold from the earth, according to the World Gold Council. Gold has been consistently used as currency and jewelry for millennia, and today, learning how to invest in gold can serve as a safe-haven investment during times of political unrest and periods of inflation. 

Thanks to the staying power of gold as a lucrative investment, many investment advisors recommend investing in commodities, such as investing in gold, to lower the client’s investing risk as a whole. There are many benefits of investing, particularly in commodities such as gold. 

Read on if you would like to learn more about ways to invest that can help safeguard your financial future.

Getting Started: How to Invest in Gold

If you’re more of a hands-on type who prefers to invest in things that you can see and feel (as opposed to stocks, bonds, or other forms of electronic investment), you may be interested in investing in physical gold. When doing so, you’ll be interacting with gold investment companies that operate apart from traditional brokerages.

The three most widely used types of physical gold investors work with include coins, jewelry, and bouillion. 

Investing in Gold Bouillion

If the idea of owning a set of glorious gold bars, secured in a vault to appreciate over time interests you, gold bouillion may be your best bet. They frequently come in bars of one ounce or ten ounces and can be an expensive option depending on how much investment capital you have to work with and the cost of gold at the time.

It’s important to note that if you choose to invest in gold bouillion, you will also need to pay for secure storage and insurance on your investment.

Gold Coins

Gold coins, like President Donald Trump Commemorative Coins, can make for an interesting investment in that they are far smaller than gold bouillion, and can therefore require less investment capital. However, unlike gold bouillion, gold coins have varying amounts of demand among investors and collectors alike, so you may have to pay a premium above and beyond the cost of gold the coin itself contains.

Gold Jewelry

Should you want to invest in something you can get some use out of, gold jewelry can be both beautiful and valuable. Investing in gold jewelry poses a few risks that other physical gold investments don’t. 

For one, you have to be careful from whom you purchase gold jewelry, as not all sellers are reputable. Authenticity matters, and buying fake or low-quality gold isn’t going to result in the payoff you might be expecting.

Investing in Gold Mining Company Stocks

This may seem like a roundabout way to invest in gold, but investing in the stocks of gold mining companies can pay off. It’s also a bit easier than investing in physical gold. If you already have a brokerage account, you can use it to purchase stock in these companies just like you would in any other one. 

The stock value of gold mining companies is influenced by gold prices, but also by more traditional stock-value metrics, including how profitable the company is and what its expenses are. Investing in these companies carries the same risk as investing in any other company’s stock, as well as the risk involved when investing in gold itself. 

If you choose to go this route, it’s usually best to have some stock investing knowledge and experience under your belt already or be working with a professional who can provide you expert advice.

ETFs and Mutual Funds

Gold is known to have long-term stability. Investing in Gold ETFs and Mutual Funds offers more liquidity (the ease of selling a security in a secondary market) than trying to sell physical gold bouillion, jewelry, or coins. This means that it’s faster and easier to sell when you want to, making it more likely that you will get the price, and profits, that you’re looking for.

When you invest this way, you aren’t directly buying physical gold, instead, you’re buying a piece of paper that is backed up by debt or equity of gold mining companies themselves, or futures and options contracts for physical gold. 

These types of investments don’t necessarily line up value-wise with the price of gold as it is valued on the market, and generally perform differently than when you buy actual gold.

Gold Futures and Options

If you’re familiar with speculative investing, then gold futures and options may provide a profitable investment opportunity. If you’re unfamiliar, futures contracts are an agreement to buy or sell a security for a specific price at a specific date, no matter what the current market conditions are.

Options, on the other hand, give you the option to buy or sell a commodity (gold in this case) if it reaches a certain price on or before a specific date. 

To invest in either of these methods will require that you create a broker account with an online broker that offers these choices – most of which do. The benefit of signing up with an online broker is that it allows you to buy and sell directly from their trading platform. 

It’s important to note that the majority of online brokers charge a commission based on the number of ETFs and Options that you sell. In order to maximize your profits through this method, you’ll need to factor in the commission your broker will charge for each transaction.

Is a Gold Investment in Your Future?

You have a lot of options when it comes to how to invest in gold, and figuring out the one that’s right for you is of paramount importance. If you want something you can hold and feel in your own two hands, you may want to invest in physical gold, whether it’s bouillion, coins, or jewelry.

Those who have experience in other vehicles of investment, such as stocks, bonds, ETFs, and options may want to stick with what they know best.

To learn more about investing in gold and securing your financial future, check out our blog.

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The Pros and Cons of Investing Gold in a Self Directed IRA

Gold is one of the most popular investment options out there, and for good reason. It’s widely recognized as an effective hedge against inflation, and many people see it as a safeguard against recessions. And with a self directed IRA, you can even invest in the power of gold without needing a physical place in your home to protect it.

But as with most things, even gold investments have their pros and cons. Although gold seems to be going up in value perpetually, it doesn’t yield interest. It can also be a magnet for thieves and fraudsters.

If you’re considering investing in gold with an IRA, then this article is for you. Keep reading to learn all about the pros and cons of investing gold in an IRA.

Pros of Investing Gold in a Self Directed IRA

There’s a reason why you hear so many financial advisors tell you to invest in gold. Here are the top reasons why you should.

Enjoy Tax Benefits Exclusive to Individual Retirement Accounts

If you’re familiar with the concept of individual retirement accounts (IRAs), then you know that you take advantage of certain tax benefits when you invest with one. Like a traditional IRA, a gold IRA provides similar tax incentives.

Depending on the type of IRA you have, you may not have to pay taxes on the income that you invest into it. Or you may pay taxes on the income you invest, but when you withdraw your investment at retirement age, you won’t have to pay taxes on it then.

As long as you don’t liquidate your portfolio before reaching retirement age, an IRA is one of the best ways to prepare for retirement.

Have Full Control Over Your Portfolio and Investments

With a standard IRA account, you’re limited to using either fiat currency or paper stocks and bonds. Stocks and bonds can be a great idea as long as you choose good places to invest your money, but fiat currency will inevitably depreciate by the time you retire.

However, one thing you can’t do with a standard IRA is invest in precious metals. That’s something that sets gold IRAs apart.

Being able to invest in precious metals lets you diversify your portfolio. It also gives you greater control over your wealth as it grows. Both are very good reasons for opening a gold IRA.

Enjoy a Uniquely Secure Portfolio With a Strong Asset

Perhaps the most important factor investors consider when they open an account is the security of their assets. Many people see fiat currency as a poor store of value because its value almost always goes down. Similarly, the money you invest in stocks could disappear overnight if the companies you bet on go under.

Compared to these modern stores of value, gold is much more likely to maintain its worth over time. It’s been trusted as a store of value and a unit of exchange for thousands of years. And in the modern world, gold has been increasing in value steadily for as long as most people can remember.

These are the primary reasons why investing gold in your IRA is a good idea to consider. Next let’s look at some reasons you might want to avoid a gold IRA, or at least not rely on one entirely.

Cons of Investing Gold in a Self Directed IRA

Not all IRA investments are created equal, and investing in gold may not be best for everyone. Keep reading to learn about the cons of investing gold in your IRA.

Miss Out on Interest, Dividends, and Yields

This is perhaps the most disappointing part of using gold as an investment choice. Unlike paper-backed assets, you won’t earn dividends, interest, or yields on gold you buy. Instead, you’re stuck waiting for your gold to increase in value on its own as global inflation continues.

Because of this, you may not earn as much money as fast with gold as you would with stocks. But on the other hand, stocks and bonds are a much riskier investment choice. While they have the potential to increase in value dramatically, they can also lose their value overnight.

Face Certain Fees and Expenses

IRA account fees vary depending on the trust you choose to invest with, but there tends to be a bigger expense involved when you invest in gold. Any IRA may charge a one-time initiation fee, but a gold IRA may charge annual storage and custodian fees as well. This is because the gold you buy has to be stored in a physical location—ideally one with tight security.

Risk Potential Theft and Fraud

Although this is a fairly small risk if you invest with a reputable company, anytime you invest in physical assets like gold, there’s a chance it could be stolen.

To mitigate this risk, make sure that any gold IRA you open has a depository that’s fully insured. You should also make sure the custodian you work with insures each financial transaction that you make.

Learn How to Invest Gold in a Self Directed IRA

As you can see, investing gold in a self directed IRA has its upsides and downsides. But many investors will agree that, when it comes to gold, the advantages far outweigh the risks. And since gold continues to go up in price, there will never be a better time than right now to get started.

Keep reading our blog to learn everything you need to know about investing in precious metals through an IRA.