Why Invest In Gold?
Gold values shift with time but gold is always valuable and its value is not dependent solely upon being able to sell it. Unlike stocks and other investments, gold's value isn't linked primarily to supply or demand nor is it related to company performance or earnings. Gold stands on its own and will always have some value just as it is. In an ever shifting economy and world market the dollar may lose value, stocks may plummet and other investments may fall flat. Gold coins, however, are valued everywhere and travel well. No matter what happens there will always be a minimum fixed value to gold and demand for it. Gold coins are one way to diversify your investment portfolio if you are an avid investor, and one of the easiest ways to begin investing if you are new to the practice or have limited means to begin.
The Best Investment
To make the most of your investment in gold coins you need to know the best gold to invest in. If you are looking for how to buy gold for investment, the best option of all is bullion coins. Many people are taken in by the idea of collectible gold coins, but unlike bullion, collectibles require an interested party if you wish to off-load them for cash later. Collecting is not the same as investing, though you can certainly collect thoughtfully with the intent of investment. Collectors tend to gravitate towards designs that appeal to them rather than the actual quality of the gold itself. This means when they want to sell, they need to find someone who is equally interested in the design or meaning of a specific coin if they want to recoup the investment or make more. This can be tricky as the value of the gold itself is then not in play but instead it is based on the intrigue to a collector. Bullion coins, on the other hand, have an inherent value being of higher quality more pure gold that can be melted down if necessary. It is easier to find a buyer for bullion for this reason.
How To Get Started
It is often said the best time to buy gold for investment is when the economy is fairly quiet. Gold and interest rates are connected; when interest rates rise gold value drops and vice versa. Buying gold when the value is lower in anticipation of it rising again makes sense, but buying when there isn't a panicked scramble for gold is even better. Find a reputable trader and build a relationship. Look for brick-and-mortar businesses where you can meet with your merchant in person. Consider how long they have been in business. Familiarize yourself with market values on gold so you can recognize if the merchant is also knowledgeable and able to give you accurate information and is selling quality gold. Buy from the same merchant in relatively small amounts at a time as you are able. Think of each purchase as a long-term investment, with no intent to try to flip the gold coins quickly. Buying slowly allows you to invest a reasonable amount at a time and watch the coin investment increase over time. Watch the market so you can plan purchases when prices are low.
Investing in gold bullion coins can be a relatively simple way to get started in investing or a great way to add additional value to an extensive portfolio.