Most people tend to stick with what they know. If they know little about investing, they may be hesitant to begin. Or if they started buying stocks or mutual funds through their bank when they got their first job, they’re likely to stick with that even if it’s not getting them the results they want.
But stocks, bonds and mutual funds aren’t the only investment vehicles available, and with the volatility in the market over the past few years, it’s an excellent time to consider a new approach, and the appeal of gold continues to grow.
Gold has proven itself as a reliable investment option over hundreds of years – literally – and can weather stormy financial times.
Why Invest in Gold?
Gold bullion can be purchased in the form of bars and coins. When you buy these, you are purchasing the weight equivalency of the precious metal.
Gold is considered a safe haven asset, which means it tends to increase in value or, at the very least, retain its value during periods of volatility when the stock market becomes more unpredictable. With rising inflation, many investors turn to assets like gold as an inflation hedge, as currency-based assets lose ground.
All precious metals are safe haven assets. Silver bullion makes a great investment as well and is usually more affordable than gold, however, prices are also more volatile. Your own experience, risk tolerance, and other factors will help determine which precious metal is a better choice for you to begin with, although it’s important to note that many precious metal investors dabble in both.
If you haven’t started building an investment portfolio, gold is a great vehicle to begin investing with due to its stability and the simple process of investing in it. If you have a portfolio already, gold is a great option to diversify and mitigate the risks of the other assets in your portfolio.
How to Begin Investing in Gold
Investing in gold is actually straightforward. Finding a reputable dealer, like Global Bullion Suppliers, is one of the most important things. While gold is a great asset to invest in, many beginners worry about being scammed. Stories abound about people who were sold what they thought were authentic products but were, in reality, counterfeit products.
That’s why it’s essential to find a reputable dealer. Look for dealers with solid reputations, reviews and customer service. If you find a seller giving you a deal on gold bars or coins for a fraction of the price you’re seeing in other places, be wary. Reputable dealers won’t be selling bullion at a loss.
Another important thing to think about when buying gold bullion is what your intentions are. Many investors choose to purchase gold with the intention of holding onto it for the long-term. While gold prices tend to be stable, the price can rise during periods of volatility when more investors turn to it, and it can make it tempting to sell. Planning out your intentions and what price would make you reconsider will help you avoid making emotional decisions when prices begin to increase.
Disclaimer: This content does not necessarily represent the views of IWB.