The price of gold has gone from just over $400 to over $1,600 in the past twenty years. While it doesn’t always go up, this shows that as a long-term investment, gold is a reliable choice.
Do you know how to invest in gold, or are you still pouring all of your money into crypto and the stock market?
We’re here with a few tips for new investors who are ready to start buying gold. Read on to learn more.
1. Opt for Physical Gold When Possible
In 2022, there are several ways to invest in gold. Investing in physical gold is somewhat out of fashion, but it’s still the best option if you’re able to do it.
Many people prefer digital investments, such as gold ETFs. These function more like traditional stocks, and while they’re easy to manage from home, they aren’t as reliable as “real” gold that you can hold in your hands.
Having real physical gold will protect you in the event of an emergency. You’ll be able to sell right away, and even to local buyers if you’re in a serious pinch (though this obviously isn’t ideal). People have been using physical gold as an investment for centuries.
You could opt for large gold bars if they’re within your budget, but these are actually more expensive to buy and sell. You’re also unable to sell a percentage of your gold if you’d still like to maintain part of your investment unless you’re willing to melt your gold bar down.
So what else can you use?
Gold Bullion Coins
Gold bullion coins, like the philharmonic gold coins, are by far the most popular option for physical gold investments.
Gold coins are a great entryway for inventing in general. They’re small enough that they’re accessible and even affordable, so buying a few shouldn’t be out of range for many people.
Because they’re so small, they’re easy to divide. If you want to sell part of your investment, you don’t have to worry about melting anything down. You can also find reputable gold coin dealers easily and verify them.
Some rare coins have more collector’s value than physical gold value, so use caution if you choose to invest in those. It’s harder to find buyers and the price may not scale with the current price of gold.
Gold jewelry is less popular than gold coins when it comes to investing, but you shouldn’t disregard it. It’s another great entryway to gold investing.
Avoid buying gold jewelry for investment at stores. Retail markups are high, and you’ll find gold pieces selling for far more than the value of the gold itself. The design and artistry that goes into the jewelry make it more expensive.
If you’re buying gold for investment, we recommend visiting estate sales, auctions, and secondhand stores. Take some time to educate yourself about how to find high-quality pieces. This is a slower way to invest, but it pays off when you find a deal, and it can be fun for anyone who enjoys a treasure hunt.
2. Be Careful With Storage
When you’re investing in physical gold, you have to consider where you’re going to store it. We recommend having multiple storage options.
It’s always a good idea to keep some gold nearby (in your home). Have a safe or another secure storage space. This will protect you in a crisis situation.
You can even bury gold outside, though we don’t recommend this for most people.
We don’t recommend telling people about your gold investments. While talking to others about investing in the stock market or cryptocurrency is common, telling too many people about your physical gold investment could put you at risk of theft.
Keep track of your gold. Make sure that you know how much you have.
Some people choose to store gold in safe deposit boxes. If a bank goes under, however, this could pose a problem.
3. Buy From Savings, Not Credit
Because investing is such a hot topic right now, everyone wants to get in on it. People are maxing out their credit cards to invest money that they don’t really have in hopes of a big break.
This is not a good idea. If you can’t pay for your investments (of any kind) with your savings, you shouldn’t be investing yet. Paying with credit means that you’re accumulating debt.
It can be scary to dip into your savings to buy gold. Remember: this is an investment. It may yield you more money in the long run than a traditional savings account.
While your physical pile of gold coins may not look like much, it’s the equivalent of having a savings account at the bank as long as you’re smart about it.
4. Don’t Invest Money You Need Right Now
On the topic of spending money you don’t have, make sure that you’re not investing money that you need right now. Gold is a long-term investment, and you can’t expect any significant short-term jumps in value like you may experience with high-risk stocks.
Gold is considered a safe investment, but it doesn’t always go up. As a long-term investment, you can expect it to yield more money than interest on a savings account, but you should expect to wait for a minimum of five years before you sell.
Gold is a good way to pad a portfolio full of other higher-risk stocks (or low-risk investments), but don’t expect it to make you rich overnight.
That’s How to Invest in Gold
Now that you know how to invest in gold, it’s time to look for your first pieces. Remember: prioritize physical gold, be safe with storage, don’t spend money that you need right now, and don’t buy gold with credit.
You’re setting yourself up for a stronger financial future by investing in gold now.
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