Getting into Gold Part 2: How Do I Buy Gold?
Investing in gold and precious metals can be easy, fun, and profitable. Because gold retains its value in times of crisis, this precious metal is both a hedge against chaos and a solid long-term investment. The good news is anyone can learn how to start buying gold as a physical store of wealth.
If you missed Part 1 in this series, Getting into Gold Part 1: Why Should I Buy Gold? you can read it here.
Like any activity, the process of buying, selling, and holding gold involves certain nuances that are important to understand, and it is essential to be an informed investor. Potential investors should be fully armed with knowledge about gold market trends, different ways to buy gold, values of gold coins and more so that they can use these tools to make sound choices for their financial future. Begin building your expertise in gold so that you can fully take advantage of what this investment vehicle has to offer.
How Do I Buy Gold?
Gold stocks and Exchange Traded Funds (ETFs) are both popular ways to invest in gold, but we believe the best way to invest in gold is in its physical form. Physical precious metals are most commonly sold for investment purposes in bars, rounds, and coins.
Many buy gold for collection purposes as well as investment, preferring to purchase pre-1933 U.S. gold coins which often carry a value above their gold melt content because of their rarity and historical significance. These coins are referred to as “numismatic”, and they can be a source of profit as well as an opportunity to capture a bit of history to hold in your hand. Rare coins are an asset class not correlated to other mainstream, traditional assets and therefore largely unaffected by volatility and downturns in other markets, although values do tend to rise when the value of gold rises.
Gold jewelry has also been popular because it maintains value, can be worn as adornment, and passed on to provide wealth to future generations.
Where Do I Buy Gold?
These can be purchased at coin shops and internet auctions, but you can also obtain them from a reputable precious metal dealer, who may be able to advise you on the best strategies for collecting and investing based on your goals.
What Common Mistakes Should I Avoid?
- All bullion bars and coins come with a premium, but do your research when preparing to make a purchase to make sure that you are not taken advantage of by price-gouging, or unusually high premiums on bullion. Don’t buy from dealers that won’t offer buybacks.
- Don’t pay numismatic prices for gold bullion. ONLY Pre-1933 U.S. gold has numismatic value.
- Avoid fractional bullion if possible. Because the cost to produce 1/10 oz. gold coins is even higher than the cost to produce a 1 oz. gold coin, you’ll end up paying a higher markup for less gold.
- Since the decision on South Dakota v. Wayfair, delivery of precious metals to states which enforce sales tax can be expensive. If possible, use offshore storage or a domestic storage facility in a state which doesn’t require sales tax on out of state purchases.
- Don’t put all your eggs in one basket. Store your gold at home for easy access, and in secure depositories both domestically and abroad. Diversify when it comes to storing your precious metals.
When Should I Buy Gold?
If your purpose for investing in gold is wealth insurance and a diverse portfolio, the action to this question is NOW regardless of fluctuations in the market. Yes, if you haven’t already started your position in gold, now is the best time to start.
We’ve seen the evidence of the rising market since last June when gold broke out and has continued to surge in the first quarter of 2020. If you’ve been waiting for a sign to dive in, this is it.
It is important to note that even in a rising market, the gains in gold will not always be linear. We strongly urge you to consider paying very close attention to market moves going forward as there will be ample opportunity to take advantage of temporary dips in the market as gold trends up.
Want to Find Out More?
Give us a call at 800-831-0007 or email a preferred client representative from Asset Strategies International. They would be happy to have a conversation with you about the best ways to buy gold to suit your investment purposes.
If you missed Part 1 in this series, Getting into Gold Part 1: Why Should I Buy Gold? you can read it here.
For further information, check out this podcast from The Expat Money Show with Mikkel Thorup – 092: Why Gold In An International Portfolio Is More Important Than Ever Before – Rich Checkan
About The Author
Rich Checkan, ASI President
As the President and COO of ASI, Rich has knowledge of every facet of ASI’s operations. He has been an integral part of ASI’s maturation from a precious metals and foreign exchange dealer to a full service tangible and rare tangible asset provider—to include rare U.S., world, and ancient coins. Rich oversees the operations, administrative, sales, and marketing departments, as well as serving as ASI’s Compliance Officer.
To contact Rich Checkan or anyone from his team, reach out to Asset Strategies International at 800-831-0007
