GOLD AS AN INVESTMENT: 7 TIPS FOR BUYING GOLD
There is no argument that GOLD AS AN INVESTMENT is one of the best and safest moves any decent investor can make. However, due to the peculiarity of the gold market, investors are often exposed to some investment risks that can lead to losses.
Although these potential risks are real and have damning consequences, if you follow some proven guidelines, you’ll enjoy a trouble-free gold as an investment.
This article outlines seven tips for making a safe gold investment in 2019. When you read and follow the tips in this article, you’ll be shielded from some risks involved with gold investment.
Buying Gold in the Form of Investment
- Buy gold stock from mining companies
Some companies are in the business of developing gold deposits. Buying shares of stocks from these companies is a safe means to invest in gold. Also, there is a huge possibility of a rise in the value of the shares purchased.
- Buy in funds
Exchange-traded funds and exchange-traded notes are examples of gold funds. Buying shares of gold funds are ideal for investing in gold. Also, gold funds are easy to sell.
- Invest in gold futures
A gold future is a form of contract. Holders of this contract can buy or sell gold at the specified time and price stated in the agreement.
gold as an investment Buying Gold Directly
- Buy gold when the price is low
The price of gold is usually low when the economy is doing well. However, happenings such as recession, military conflicts, and natural disasters can cause an economic downturn. When there is an economic downturn, the price of gold increased. To keep a tab on the price of gold, check the global gold exchange rate or the spot price of gold.
- Search for endorsed gold dealers
It is vital to search for dealers that are endorsed by the government. You can begin your search from treasury websites.
- Take note of purity
There are several means of determining the purity of gold. However, karat (K) remains the most common means of determining the purity of gold. In essence, a high karat means better quality. 24K gold has the highest level of purity. In terms of investment, 24K and 22K are ideal.
- Give deep consideration to return policies
Consider the terms and conditions attached to the return policies of gold sellers. In most cases, the return policies of gold are strict. Therefore, an understanding of return policies should take place before buying gold.
If you are yet to take a leap on gold investment, you can go ahead with it now. An investment in gold is a primary means of diversifying your investment. Besides, it is a good store of value with a quality that does not diminish.