Today we shall look at gold investing hacks that can help you get started on the right foot, and avoid making massive losses. As much as the hacks I will present herein are the holy grail for investing in precious metals, they will help you avoid most of the turmoil that you’d otherwise face if you were green in this field, and did not have anyone to point you in the right direction. If this sounds interesting to you, then read on to find out more.
Top reasons to consider investing in gold
Before we even get to the gold investing hacks, let’s first take a look at some of the reasons why people invest in gold, and why you should consider getting yourself some gold bullion. Here are the top reasons:
Gold is a store of value
Gold outdoes money as a currency because it is a store of value. Fiat currencies cannot offer this benefit, simply because they’re affected by market forces such as inflation. If you had purchased $20 worth of gold in the early 1900s, it would be worth more than $1500 in today’s economy. If you, however, held on to your $20, you’d not be in a position to purchase as many items today, as you would have back then.
It is a hedge against losses in the stocks market
Historically, the price of gold has been observed to increase during the times in which the stock market is crashing. Having gold in your retirement investment portfolio means that you can balance out the decline in the value of your portfolio.
Protection against geopolitical instability
The market tends to go down under the weight of geopolitical instability. Every time superpower nations are at loggerheads, the economy tends to perform poorly. Assets such as gold, however, tend to gain more value during such times, which is a major reason behind why more investors are owning this precious metal. Of late, there has been looming political tension fueled by the quest for dominance. As time goes by, the tension is expected to get worse, so it is only wise to have a portion of your retirement investment portfolio funds allocated to gold.
Depending on how you intend to acquire your gold, you can avoid paying hefty taxes. Purchasing physical gold through a gold IRA presents you with the opportunity to enjoy tax benefits as you do a gold IRA rollover, or you do a direct transfer of funds from your existing IRA.
Gold investing Hacks
To make an income through investing in gold, you should know several secrets that can make a break your investment deal. Again, these are not the “cast on stone-must follow” rules, but they have worked for many investors, hence are worth trying out. Here are the top hacks you can consider:
Have direct ownership of the gold
If you cannot hold the gold, then you do not own the gold. That’s an old saying that is popular in the precious metal industry, but it also applies to you as an investor. You should, at all times ensure that you own physical gold, not physical assets since this is the only way through which you can enjoy the benefits of gold listed above. Only physical gold can offer true diversification.
Build up liquidity
Depending on the reason you want to purchase your gold, you may think about how you will be relying on it as a vehicle for trading. The truth, however, is that gold will serve you best if you view it as a means of accumulating your savings or an insurance policy. Instead of having idle money lying in your bank, you should convert some of it to gold, so that its value remains intact (or grows) over time. doing this will pay off quite well in the future when you cash out the gold.
Buy a mixture of gold assets
As an investor who is trying to invest in gold and maximize your returns, it is advisable that you mix your assets. You can try purchasing a variety of bullion bars, or coins, in a bid to ensure that you get maximum value as the prices of gold begin to rise. It is usually advisable for one to have some amount of money put aside for the purpose of buying gold assets from time to time.
Do not take out credit to buy gold
One thing about buying items on credit is that you do not own those items until you’ve paid back the full amount. In addition to that, you will end up parting with more money if you factor in the interest. The best way to acquire an asset such as gold is through taking a portion of your savings (say 5% to 20% depending on your age and risk aversion). It is best to use a small portion of your retirement savings to purchase your gold, and to leave it in your secure gold depository, where its value will grow with time.
Do not break the law
A significant number of investors opt to purchase small amounts of gold in a bid to remain anonymous, and not reveal their personal information- this is a fully legal process in itself. Companies that offer smart gold and silver investment solutions always ensure that the deal is private and secure. Whenever you make your purchase, you should confirm whether there are any applicable taxes, and pay them up right away, or as soon as they are due.
Gold is a popular investment, owing to its scarcity beauty, and durability. Unfortunately, not many people know about the gold market, and beginners lack sufficient knowledge of the fundamentals of gold investments. If you’re trying to find your way in this investment sector, then I hope that the above tips have helped you. You can otherwise get started by having a look at the recommended gold and silver IRA investment solutions.
That will be all for this article on gold investing hacks. I hope you found it informative, and that you are now capable of making your entry into the gold market without making some of the mistakes that would cost you a lot of money. Let me know if you have questions with regards to today’s topic – drop them in the comments section so that I can get back to you ASAP.
I wish you well
Eric, Investor and Team Member at Gold Retired.