While stock brokers may tell you that certain companies are poised to do well and offer you the opportunity to double or triple your initial capital, the truth is that the market and the world economy are extremely unpredictable, so there are no guarantees. The price of gold is also dependent on the market, but unlike stock, gold will always be worth something, so you will always be able to sell it when you need to. Below, you will find a basic guide to investing in gold.
Choose Your Bullion
Investment quality precious metals, whether in bar form or coin form, are called bullion. Unlike jewelry or collectible coins, bullion is kept solely for the intrinsic value of its metal contents. While some bullion comes in the form of gold coins, such as the United States Gold Eagle and the South African Krugerrand, these are usually minted in large quantities and thus are only worth the price of the gold they contain.
Do Your Research
Whether you choose to invest in bars or coins, you will need to pay attention to the purity of the gold you are purchasing. Dealers of ill repute may attempt to sell less valuable alloyed bars and coins, so you will have to do your research to determine the value of any coins and only buy through a reputable dealer if you wish to invest in gold bars.
Keep It Safe
Once you purchase your gold bullion, you should keep it in a safe place. At the very minimum, you should have it in a heavy fireproof safe inside your home, where burglars will not easily be able to access it. Some gold investors choose to open safe deposit boxes at a bank and store their bullion there for added security.
At California Numismatic Investments, we deal in gold, silver, and platinum bullion, as well as rare coins. If you are interested in investing in precious metals, call us today at (800) 225-7531.