10 Gold Investment Tips for Beginners

Gold is a commodity that people invest in for its intrinsic worth – but how do you start investing in this metal – well here are some tips to help.

1. Silver and Gold are Solid Options When the World is Falling Apart

Silver and Gold bullion sell in the millions every week and are sold in various forms such as the Canadian Maple Lean and you can easily buy and sell them through precious metal dealers. While some people recommend buying gold in paper form, it is better to buy real silver or gold bullion. For instance, the Maple Leaf is 24-karat gold that mimics the spot price of gold and joins in its rise.

2. The Shortcoming of Silver and Gold Bullion

It is important to understand that investing in silver and gold can have its shortcomings before you commit your money. Prices have wide fluctuations, silver and gold bullion are not designed for trading, and experts recommend holding it for not less than 3 years.

3. You Can’t Buy Gold from Dealers Using Credit Cards. If They Do, You Are in Trouble.

Reputable silver and gold bullion dealers don’t take anything besides cash. If a dealer takes debit and credit cards, you are probably paying too much for the bullion since the percentages they lose will be included in the sale price.

4. Ensure that You Ask the Dealer’s Policy on Buying Back the Silver and Gold Bullion

Selling your silver and gold coins means having to ship them back to the dealers by first packing them in protectors for coins and then using bubble wrap to wrap them. If you wish to track your package, you need to send it through Express Mail or registered mail or using a shipping service like UPS or FedEx. You also need to insure the coins for their full value. If you don’t wish to purchase the physical coin then a Gold ETF could work for you.

5. Ensure That Your Bullion is Actually Recognized in Canada

In North America the easiest coins to sell or buy are the American Eagle and Canadian Maple Leaf gold bullion coins. The most recognized bullion on the planet is the 9999 Canadian Maple Leaf. All countries recognize it as being the very best. The United States Mint guarantees the gold content and purity of the American Eagle bullion. The new Gold Buffalo is the United States version of the Maple Leaf and should be recognized everywhere too.
Gold coins that are widely used are also easier to sell, unlike the Austrian Vienna Philharmonic and South African Krugerrand gold coins. These coins are typically sold and bought outside North America.

6. Find Safe Storage for Your Silver and Gold Bullion

Once you have bought your silver and gold bullion, store it in a home safe or a safety deposit box instead of with a dealer. The best way to avoid scams is through physical possession and you shouldn’t forget that you are investing in precious metals for the purpose of securing yourself against disaster. You can easily lose a lot of your bullion if it is not in your possession. You should also ensure that you keep your purchase secret.

7. Price Comparisons are Important

Always compare prices across several dealers. It is literally the most important thing that you can do as an investor. The Canadian Mint and most mints typically don’t sell bullion to investors directly. It is easy to compare prices across dealers. All you need to do is call them and compare the prices. Bullion usually sells at a premium above the spot price of gold or its delivery price as a commodity. The spot price of gold can be found on precious metals exchange websites like Kitco.com and Monex.com.
It is foolish to pay more than you have to. Always aim for the lowest prices and avoid buying your gold bullion online or on eBay since you can find yourself in a bidding way. The insurance and delivery fees are likely to add to the cost of your purchase. When buying bullion from a seller who is far away, you will incur additional shipping and insurance costs. Shop local, pay for your bullion in cash, and enjoy major savings.

8. Buy Bullion in 1-Ounce Denominations

1-ounce bullion is the best to buy. Fake 10-ounce gold bullion has been surfacing in various parts of the globe. Currently, there are fake 1-ounce bullion in the market. You can easily identify these especially if you take them to an expert in bullion. Ensure that your chosen dealer guarantees all the bullion sold to be genuine.

9. Exercise Caution When It Comes to Rare Coins

Avoid rare coins unless you are a coin aficionado. Rare coins demand more expertise and diligence when it comes to buying. Two coins might be identical but have totally different grades. The difference can add up to thousands of dollars in price differences. Hire a professional grading service and ensure that you get a certificate of authenticity when you are buying rare coins. Professional grading services judge the physical condition of a coin and assign it a grade. Buying rare coins is actually more of an art.

10. All that Glitters is Not Necessarily Silver or Gold

The old saying goes that all that glitters is not gold. It is important to realize that there are numerous scams out there. Some of the red flags to watch out for include delayed delivery and dealers that offer free storage. If it’s too good to be true, it probably is. Trust your gut instinct. Find a dealer listed with the Better Business Bureau. Look at the dealer’s reputation. Check the dealer’s testimonials and references. It is quite straightforward to invest in bullion.
Always ask yourself whether a particular dealer makes sense. Avoid buying from telemarketers since they usually charge significantly higher commissions. Be extra cautious when buying from people online. Numerous robberies have been reported. Always meet the seller at a well populated and safe location. Fake bars can still be found in the marketplace. Ensure that you are confident that what you are buying is the real thing. Carry a real coin with you to compare with the ones that you wish to buy.