Buying gold as an investment is a somewhat old method, but it is still very safe. Here are some tips to keep in mind if you are going to buy gold to invest.
Many often think that investing in gold is buying several bullion and having it in a safe. Nothing is further from reality, you can start in this sector without having a large amount of money available. Learn in this article how to invest in gold in an intelligent way.
7 tips to invest in gold
1) Take precautions before acquiring the physical gold: Make sure of its purity and if it is an ingot that has an internationally recognized stamp (mark or seal). It is essential to request the invoice because it is the only way to know the origin of the metal (besides being legally required). Buying small amounts of gold does not exempt sellers from offering a proof of the legality and purity of the product.
2) Buy gold online: You will find very good offers to acquire gold coins or bullion (sold per gram). Before carrying out the operation, it is necessary to check the reputation of the seller and demand the corresponding certifications on origin and quality. The investment in gold is ideal for retail investors.
“If you are going to buy gold, make sure of its purity and if it is an ingot that has an internationally recognized stamp (brand or seal).”
3) Know the alternatives available in gold bars: They can be purchased in different dimensions or weights, with 5 grams being the minimum that is sold. Its composition must be pure gold, i.e. 999.9 / 1000, to be a guarantee of quality.
4) Know the options in gold coins: In this case there is a greater variety available, and in addition, the sizes are smaller. Two of the best known are the Golden Eagle of 10 (issued by the government of the United States, endorsed worldwide and weighing 16 grams) and the Krugerrand (from South Africa, is reddish in color, weighs 34 grams, 31 of pure gold and was minted since 1967).
5) Consider the cost of storage: You should avoid the risk of being stolen or until you lose it. Therefore, if you are going to invest in gold it is advisable to have it in safe deposit boxes in the bank, or in those institutions that provide the custody service. Knowing how much this storage will cost will serve to determine the real return on investment and whether the operation is a success or not. Do not forget the transportation costs and taxes.
6) Buy and sell gold in recognized entities: As banks, for example. This will prevent you from being scammed or robbed. The houses that are dedicated to the sale of gold offer products of excellent quality, in the gram of 1, 5, 10, 30, 50, 100, 250, 500 and 1000. For any operation it is necessary to present the identity document, and in some cases a proof of tax identification or income (receipt of salary, freelancers, etc.).
“If you are going to invest in gold it is advisable to have it in safe deposit boxes in the bank, or in institutions that provide custody service.”
7) Discount the risk premium in the price of the commodity: With few exceptions, gold is not widely used in the industry as a metal (something that happens with silver). It has been used historically as a store of value, a refuge for times of crisis or problems in the world or national economy. Many identify it as a safeguard against inflation, because it is sure that it will increase its value, not as it can happen with other investments.