Did you know that last year, gold hit its highest market price ever? The impact of the global pandemic meant physical assets became extremely sought after. But how can you invest in gold and safeguard your money in the event of another global crisis?
Investing in gold is much easier than you may think. Read on as we give our six tips for buying and selling gold.
1. Know the Current Cost
The price of precious metals fluctuates daily. If you find yourself asking “how much does gold sell for?” then you need to do a little bit of research as opposed to asking a dealer. This will give you a better view of the day’s market value.
If you are dealing in bullion, some coins generally have a higher worth than others. American and Canadian tend to be more valuable than South African. You will also pay a higher percentage over melt value for fractional gold pieces.
2. Comply With Laws
It sounds obvious, but you need to comply with laws if you are buying gold in bulk. When buying in small denominations, you are not breaking any rules. This can be the advantage of buying small amounts over a longer period of time.
However, if you buy in bulk then you must declare it. There are a number of ways you can buy large amounts and remain within the law, such as buying abroad in Switzerland and Lichenstein.
3. Invest in a Five Year Plan
Investing in gold is not a speculating game. If you invest and keep your money in gold for five years, then your investment is a much safer option. A lot can change in five years, for the better or worse, and if you aim for a five-year period then if you don’t gain value, it’s unlikely you will lose it.
4. Invest in Liquid Coins
If you are buying physical stocks for your own security, then opt for coins. If a crisis occurs, it will be easier to transport and move than large bars. Make sure they are well known, legal tender coins.
5. Know Your Fees
There are two fees you need to take into account when buying a physical product. The first is the fabrication fee. This is the amount paid to the mint to produce the physical bar or coin you are buying.
After this, you need to pay a brokerage fee. This covers the costs that the broker needs for all the tasks he does to get the gold to you. These costs should never be more than 5-6% of the price of gold on paper.
6. Time When You Sell
After five years of holding the gold, start to watch the market. It may take another few years or happen immediately, but a point will come where the value goes up and you are ready to sell. Have a value in your head and hold out for it.
Buying and Selling Gold
When buying and selling gold, only ever invest what you are willing to lose. Our tips should help you make a sizeable profit, but no one really knows what will happen.
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