Top Considerations Before You Buy Gold!
If you want to buy gold then there are many considerations that need to be looked at before you jump in with both feet. First you have to determine what type of transaction you are looking at. Do you want to buy shares in a company that finds or mines this ore? Are you hoping for gains by choosing mutual funds that specialize in this sector? Do you want coins that can be displayed and collected? Are bars a better choice because of the lower premiums?
These questions are just the start of the process. Once you have figured out how you want to invest and what specific type of vehicle you will use it is time to calculate how much you can afford to spend, or what percentage of your capital you are willing to use for this purpose. If you only have enough to buy an ounce and this is your choice then you may end up with a limited range of holdings and this can increase your risk exposure.
On the other hand if you only have a few grams of bullion then you may not see the maximum benefits and protection that can be offered by gold. You want a wide range of holdings and asset types whenever possible, but you also want to take advantage of everything that precious metals currently offer as well. This can be a balancing act, and it is important that you have considered both sides before coming up with a specific amount to spend.
Should you include other vehicles in the same category? Many prefer to have some silver and other possibilities as well as gold. This can be used in any diversification efforts, and the less expensive pick can be used for bartering purposes if necessary without losing any value that is held in the more expensive types of bullion. Others choose to stick with a single type in order to get maximum leverage in this more limited area.
If you choose to buy bars and other physical forms then you will need to think about where you will store the objects and how you will keep them safe from theft and other dangers. If only a few ounces are desired this can normally be stored in a securely locked drawer or small safe, but if you want to buy large quantities then a secure storage facility designed for this purpose or a safety deposit box may be a better option.
These questions are just the start of the process. Once you have figured out how you want to invest and what specific type of vehicle you will use it is time to calculate how much you can afford to spend, or what percentage of your capital you are willing to use for this purpose. If you only have enough to buy an ounce and this is your choice then you may end up with a limited range of holdings and this can increase your risk exposure.
On the other hand if you only have a few grams of bullion then you may not see the maximum benefits and protection that can be offered by gold. You want a wide range of holdings and asset types whenever possible, but you also want to take advantage of everything that precious metals currently offer as well. This can be a balancing act, and it is important that you have considered both sides before coming up with a specific amount to spend.
Should you include other vehicles in the same category? Many prefer to have some silver and other possibilities as well as gold. This can be used in any diversification efforts, and the less expensive pick can be used for bartering purposes if necessary without losing any value that is held in the more expensive types of bullion. Others choose to stick with a single type in order to get maximum leverage in this more limited area.
If you choose to buy bars and other physical forms then you will need to think about where you will store the objects and how you will keep them safe from theft and other dangers. If only a few ounces are desired this can normally be stored in a securely locked drawer or small safe, but if you want to buy large quantities then a secure storage facility designed for this purpose or a safety deposit box may be a better option.
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