Image courtesy of www.goldcoin.net
Buying gold can be one of the greatest investments you’ll ever make, but it comes with a great deal of added responsibility and certain risks.
It’s crucial to cover your bases before bringing home the bacon. We here at Toronto Gold would like to offer some precautions to those who are considering investing in physical gold.
Attention Gold Buyers!
Keep It Confidential
Buying gold is an exciting venture. As such, you may feel the urge occasionally to tell other people about it. The first rule in buying gold is that you don’t tell others about it! It can potentially make your house or other private property a target for home invasion and theft.
Limit yourself to only telling people who absolutely must know, such as a spouse, a child, or an heir in your will.
Avoid Collectible Coins & Other Gold Items
Collectibles come in two parts: the physical value of the coin (this goes for bullions as well) and the collectibility value. To reduce risk, stay away from collectible items since there is no guarantee that their physical value and collectibility value will progress together. Try to determine whether the value of a coin comes mostly from its collectibility before buying, and speak with an expert before making any purchases.
Pay As Close To Market Price As Possible
The less you pay for gold, the better chances you’ll have of reaping a good return on your investment. Most professionals in the gold buying industry agree that anything more than 12% premium above the spot gold price isn’t worth your money.
Make Sure It’s Authentic
Beware of scams. Many an investor has wasted money on what they thought was real gold, but it turned out to be fake gold. Ensure that you know with certainty that the gold you are buying is real.
Whenever possible, do business with an authorized gold dealer so that you can enjoy that much-needed reassurance.
Do Your Research
Gold, as with any other investment, is subject to change and you could lose money. You must face this fact and do as much research on your own as you can so that you can buy with confidence. Examine the prices of gold past and present to help gauge where they’ll be at future dates. Keep up-to-date with industry news by subscribing to newsletters and reading articles to help you know what’s going on in the world of gold buying.
Consult with a financial adviser before making any large purchases, especially if you are are not familiar with the precious metals industry. If the next 10 years are a repeat of the past 10 years, then gold buying looks very favorable!
Toronto Gold is a gold buyer and seller located in Toronto, Ontario. The above image is not our own.