For a long time I’ve lots of questions about investing in gold. Some years ago I thought it was a good thing to do, invest in gold, but then decided I have other things to invest better than that.
Still, as I am in all that investing world deeper and deeper, I feel like it’s time to get updated on all the do’s and dont’s when investing in gold, at least just for fun. :)
I have some my own questions to which I’ll try to find answers to:
What sum is enough to invest in gold?
What kind of gold to buy?
Where to store the gold?
Does purchasing gold jewelry count as an investment?
For the sake of this article I’ll stop on investing in physical gold you can have accest to, not any kind of ETF-s or things like that. :)
SO.
What sum is enough to invest in gold?
The price for one gram gold bar is about 60+ Dollars, but you should also take into consideration all the shipment costs and so on. Can’t tell you any more details just because it’ll all depend on your country and the dealer you’ll choose and everything.
Does purchasing gold jewelry count as an investment?
From reading lots and lots on investments in gold what I’ve understood is that it’s surely better to invest in investment gold and not in the gold jewelry. This is just because in the jewelry there is less gold than in investment gold. Gold itself is quite soft and it is not practical for jewelry. For the practical reasons other metals are mixed with gold to make it harder.
Also, it’s quite hard to sell jewelry in other places than Lombard, and there usually they do not take into consideration any precious stones in the item and buy only considering the gold grams and the price is much lower because when one bought a piece of jewelry he or she mostly paid for the beauty of the piece.
What kind of gold to buy?
Speaking of investment gold, it’s kind of better to invest in bullion bars than bullion coins. This is due to the fact that coins cost more just because they are “pretty”. On the other hand coins may raise in value just because the same thing.
Also, for a regular investor is kind of better to buy 100g bars, because with the smaller bars you lose quite a lot of on commissions while bigger bars is harder to sell. Thus, 100g are considered to be the golden mean.
Still, first time investors and investors who have quite small amount of money to invest are encouraged to look into investing in both bullion bars and bullion coins.
Where to store the gold?
This also depends on your purposes why you buy gold for. If you want to buy gold for the situation of “world collapse” – then you better keep your gold at home as it’s at hand always. On the other hand, it’s not safe to keep gold at home, even in your safe, so you may want to choose a vault storage. In this way you don’t have your gold at hand, but it’s considered to be safer there as well as easier to sell. Still, it may be impossible to get your gold out in the situation of crisis, I guess...
I loved this topic, it’s really exciting for me as I get to learn more about investments. What I’ve understood until now it that it’s a BIG topic and it needs a research of several days [I spent whole day today researching it, as well as several days some two years ago].
I think that one of my next posts will be about exact types of gold, with certain names of mints and dealers, cause it’s also a BIG topic and of interest to me. I hope, you’ll be interested to hear about it as well!
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