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Long before printed money first circulated and eventually became the norm; it was gold that was considered the currency of most of the ancient world. Gold was easier to process than other precious metals and was also lighter and available in most parts of the world.
Today, gold remains a viable means of trading; it does not fall victim to economic crises like fiat currencies, it is easy to store and carry around in its various denominations and is also considered by experts as a safer investment than…well, almost anything else. Little wonder why so many people around the world choose to convert their assets to gold.
Are you one of those people who have decided to have gold instead of fiat currency?
What are some things you have to know before you invest in gold?
Step #1: Develop a good sense of the role you would like gold to play in your overall portfolio.
When people buy gold it’s generally for two reasons;
- Either they want to actively trade with it
- Want to use it as a hedge for inflation and other economic crises.
So how does gold fit in your portfolio?
Do you want gold to just be a fallback for the future, or do you want to actively trade in it?
Perhaps you like it both ways and want to buy gold for future trading?
Actively trading in gold will require you to always keep track of the price of gold and know when to buy and sell. Keeping it as a reserve takes less effort; you just put the gold somewhere safe and wait –although not hope– for the right occasion to be able to use it.
Step #2: Decide how much of your overall portfolio should be committed to gold coins and bullion
Gold comes in coins, bullion, and bars of different weights (one ounce, ten ounce, 32 ounce, 100 ounce and 400 ounce). When buying gold you pay the dollar equivalent for every ounce you buy, plus the premium for that particular weight in gold. You get to pay a higher premium for smaller weight denominations, but it is still advised you should get some anyway.
According to Monex Deposit Co. Vice President Mike Maroney you should never underestimate how these smaller denominations will add to the flexibility of your portfolio.
Another important factor you have to consider is whether or not you have somewhere safe to store the gold. You might want immediate access to your gold all the time, but unless you have a house built like Fort Knox or are very confident no unscrupulous person can get to your gold, it is advisable to store your gold in the bank.
Step #3: Match your portfolio choices to your objectives.
As an investor, you want to convert some part of your fortune into gold to safeguard the future, but also don‘t forget that you are still living in the present. Leave more than enough fiat currency for the daily and future needs, not to mention emergencies, for you and your dependents.
So how much of your fortune should you convert to gold?
Nathan Erickson, an investment strategy manager with Miller/Russell & Associates, says people, particularly retirees, should not invest more than 10 percent of their portfolio in commodities like gold.
Investment expert John Hathaway puts this figure even lower, saying a reasonable allocation in a conservative, diversified portfolio is zero to three percent during a gold bear market and between five to 10 percent during a bull market.
Step #4: Choosing the right gold firm
Don’t risk losing your hard-earned money, always go for reliable gold dealers. So what should you be looking for?
- Always look for dealers with experience in the business, have fair trade practice certification and have the essential knowledge to guide you in your investment.
- Avoid dealers that say they have limited options when it comes to their gold products, there are many gold products available out there and a good dealer should have a lot of them.
- Avoid jewelry dealers, even if they do deal in gold jewelry. You want the coins, bars or the bullion; items that already have a set value and set weight. Here’s a caveat when buying coins; don’t fall for an item just because it’s described as “rare”, says Texas State Attorney Gregg Abbott, who did a study on gold dealers in 2007. You might end up paying for thrice the value of a gold coin if you fall for this.
- Make sure you are dealing with gold dealers, and not just general commodities dealer, the latter deal only in gold futures, not actual physical gold.
Regal Assets has been in this business for a long time now and its tradition of responsibility and trustworthy business practices has earned it the A+ rating with the Better Business Bureau as well as 5 out of 5 star customer satisfaction rating with TrustLink.
They can also help advise you in setting up a long-term tax deferred retirement plan, commonly called a gold IRA, and takes the time to educate new investors about the precious metals industry.
Looking to buy or sell gold? Read this comprehensive review about Regal assets
Placing your first order
If you have doubts about buying gold that’s actually a good thing; it means you are aware of the risks that go with such a move and you are willing to put a lot of thought into it. However, don’t worry; our representatives at Regal Assets are ready to answer any questions you might have about buying gold.
To begin a live chat with any Regal Assets experts, just go to RegalAssets.com and click the yellow box on the right side with the words “chat with an expert”.
Once your doubts have been assuaged or questions answered, buying gold is very easy.
Just fill out the form on the website to speak with one of the experts. This will be followed by an e-mail confirmation for your records. After this you can remit payment by wire or personal check then sit back and relax while we fulfill your order.
They guarantee product delivery within seven business days, or else you get a Silver American Eagle coin for free. Diversify your portfolio toady by investing in gold by click here