Precious metal investments: news, consultancy, trends, reports & more!
HomeMarket WatchHard AssetsInvestor's GuideDownloads
 

Guide to Buying Investment Gold




How much do you really know about gold?
(Warning: this guide is for starters).

The average person will most likely run into a trap when attempting to invest for the first time. Better read this little guide to avoid making any mistakes.


Perth Mint gold bars

10 g gold bullion bars by Perth Mint, Australia



Starters should proceed with caution. Gold buying can be "tricky" and just when you'd think you've "hit it", you may have cmomitted a major mistake.


Here's some advice for starters:

 Educate yourself: learn about gold - the metal itself to understand its properties, purities - most importantly karats!

 Decide upon a budget to spend: be wise when allocating a budget, don't overspend, because although gold is a great long-term hedge, you will encounter ups and downs on the price charts

 Keep in mind that you'll have to buy investment gold: this means gold bullion bars and coins, not jewelry, nor watches, just plain investment "bricks" and coins

 Pick a reliable merchant: either a specialized gold seller (some of which are featured on this website) or a bank - this drastically reduces the possibility of getting fake gold into your hands

 Make sure you are up-to-date with the prices and price trends: don't just follow the price level, but also watch the trends in order to know where gold is heading - is it on the rise or is it heading down the slope?


Every person invests differently and the variety of gold coins and gold bars is wider than most think.

Some items have tremendous numismatic value. So they can be a good buy, if you manage to grab them just slightly above spot price.

Ideally, you will have to buy the dips.
Gold oscillates just like any other commodity. Most people buy when its price drops lower (when it "dips") before it spikes.

Learning a bit of technical analysis can help, but unexpected geopolitical and geoeconomic events shape the future trends.

If you would have bought gold well before its peak in September 2011 and you would have sold it in 2010 or 2011, you could have made a good return-on-investment.

In 2011 and 2012, gold traded mostly sideways and then - as earlier predicted by Prime Values, it has crashed in April 2013.
Followed by more crashes and smaller spikes, but has been trading sideways for approximately a year (until this article's editing date).





comments powered by Disqus

 
Prime Values on FacebookPrime Values on Twitter

about us    terms of use    privacy policy    disclaimer    partners    advertising    contact us