Investing in gold can be an excellent way to diversify your portfolio, depending on how you go about it. Because of its nature as a commodity, and because of its relative scarcity, it can generally be considered a good investment. But it is recommended that you contact an advisor before purchasing a single ounce. Gold’s value as a profit earning venture is highly dependent on many factors, including not only what kind of gold you buy, but also when you buy and what your goals are for your investment.
If you take the time to learn about gold investing, you will be better prepared to move forward with making purchases. With that said, however, it is a good idea to make sure your advisor is familiar with precious metals specifically. Gold prices have risen over 400% in the last 10 years and factors point toward that trend continuing. There can indeed be big money to be made in short term investments if the timing is right.
Regarding what to buy, note that you can purchase gold in several forms, each having its own benefits. if you’re just looking for some security in uncertain economic times, present day gold bullion coins are safe bets because they are relatively easy to liquidate, they trade at minimal premiums over their melt value and they follow gold value. Try to buy coins as close to spot price as possible, and if rounds are available, you’ll do better with them since they have no collector value.
Gold bars are another option and are sized as small and large bars. Large gold bars are the best value, but they require more cash outlay and are more difficult to sell off, since not as many dealers trade in them. They are sized as standard 100 ounces or 400 ounces, and storage and handling is an issue as well as their lack of liquidity. Smaller gold bars are more manageable and are often sized in grams instead of ounces. Like gold rounds, small gold bars are an excellent investment, though they will cost a little more than large gold bars.
If you have money to set aside, gold is excellent for long investing because shorter term market fluctuations are not as important. Simply put, gold is good insurance. However, if you are interested in gold simply because of television commercials advertising its excellent money making opportunities, you should tread lightly. National ad campaigns are very expensive, and you shouldn’t lose sight of the fact that those costs are being borne by somebody, possibly you. Get a reputable dealer who you have checked out thoroughly.
