Do
- know your options for gold ownership
- plan to buy and hold gold for many years
- work with an established gold company
Don't
- worry about day-to-day price fluctuations
- expect to “get rich quick” after buying gold
- put all of your investment dollars in gold
Do
Do know your options for gold ownership
You need to know the types and forms of gold available for purchase, the different forms of gold ownership, and where you will store it. There are two main options for ownership. First, gold can be purchased for private ownership. This is when you purchase gold and it is shipped directly to you. You can then store it in a safe or at your local bank in a safe deposit box. The second method of gold ownership is to purchase gold using your retirement plan. If you have an Individual Retirement Account (IRA) or an old 401(k), you may qualify to roll it over into a Gold IRA. With a Gold IRA, your gold is stored in an IRS-approved depository (such as the Delaware Depository) until you reach the age at which you can begin taking distributions.
Do plan to buy and hold gold for many years
Gold should be viewed as a long-term investment. Physical gold has been shown to be a hedge against inflation and a proven safe haven from economic uncertainty. Gold has been a store and form of transfer of wealth for thousands of years. Don’t wait to buy gold, instead buy gold and wait.
Do work with an established gold company
There are many choices when looking to purchase gold. Call a gold specialist and ask questions. It is recommended that the company is listed by the U.S. Mint and is also an accredited business with professional organizations such as the Better Business Bureau (BBB), the Industry Council for Tangible Assets (ICTA), the Professional Coin Grading Service (PCGS), theNumismatic Guaranty Corporation, and the American Numismatic Association (ANA).
Don't
Do not worry about day-to-day price fluctuations
Individuals trying to time the market to get the lowest price on gold usually end up never actually investing. Instead, focus on the fact that gold always has intrinsic value and has a proven track record of being a stable long-term investment. After purchasing a home, would you call your real estate agent or go online every day and see what the value of your house is? Probably not, because most likely, you are not planning on selling that house anytime soon. The same goes with gold. You can rest assured that years down the road, despite daily changes in prices and anything going on in the world, your gold will still be there and have intrinsic value.
Do not expect to “get rich quick” after buying gold
While gold is an investment that has the ability to increase in value over time, your focus should be on the improvement of your purchasing power, preservation of your wealth, and potential to pass down that wealth to future generations. Most gold investors buy gold so they can sleep at night and not have to worry about what the markets do in the future.
Do not put all of your investment dollars in gold
There is no proven percentage number that is recommended for how much you should designate to buy gold. Buy the amount you feel comfortable with and fits with the rest of your portfolio.
Summary
Gold has long been recognized for its ability to protect purchasing power and act as a safe-haven investment against inflation, market crashes, geopolitical conflict, etc. While daily fluctuations in gold prices occur, many investors turn to gold as an investment for the long term that will always be there and hold some value. With the right approach, buying and owning gold can strengthen wealth and help prepare for the future.
No comments:
Post a Comment