Purchasing gold should be fun and worry free
Today, purchasing gold can be safer and more convenient than ever before, but with current record prices, a great number of shady characters have crawled out of the woodwork to prey on unwary investors.
The first rule of purchasing gold is to keep it simple
Wall Street was quick to see the opportunity to play on the fears of individual investors, so they invented “paper gold” in order to lure them in. These instruments include ETFs, futures contracts, warehouse receipts, and mining stocks, and, like everything else the Street comes up with, they are complex and rigged to benefit insiders. Besides the obvious counter-party risk inherent in all paper assets, these instruments also incur continual fees and severely restrict your access to the underlying asset.
A much simpler and far better investment option is to purchase gold directly, taking possession of physical gold in a simple exchange for cash. For that, you have three basic choices:
- Gold bullion coins. These legal tender coins are minted around the globe and boast a wide variety of exquisite designs. The country of origin guarantees the gold content of their coins for both weight and purity.
- Gold bullion bars. Available in a broad range of sizes, gold bars are struck, and certified for weight and purity, by a limited number of prominent producers.
- Rare gold coins. Valued for their rarity as much as their gold content, third-party grading services that certify these coins for quality and authenticity have made them very popular with investors.
While jewelry is frequently promoted as a gold investment, production costs and extreme dealer markups make it a particularly poor choice.
The second rule of purchasing gold is to be very careful when choosing your dealer
Investing in gold is too important to leave to chance. Check out the retailer’s reputation and credentials. Find out what others have had to say about doing business with them. Make sure that the price you are quoted is all you will have to pay — hidden fees and shipping and handling charges add up quickly. Keep asking questions until you fully understand your investment and are certain it is right for you.
GoldPice.net is committed to helping you invest safely and confidently. Before you purchase gold, we encourage you to request your free copy of our comprehensive gold investment guide