Technically speaking, gold isn’t an investment; it’s a hedge. Gold is valued inversely proportional to the value of the dollar. So when the price of the dollar goes down, the price of gold goes up. There are no immediate rewards to owning gold. But the benefits are to be experienced later, especially at times of economic uncertainty.
If you can own physical gold, your cash and other assets will be protected against a potential devaluation of the dollar in the future. The future for most people lasts for several decades. It’s not unfathomable that during this time, there could be another economic recession. If you are saving for retirement or investing for the long term, then gold is a worthwhile asset to have. You can add gold to a self-directed retirement account. Physical gold assets can be included in a larger investment portfolio.
It’s important to buy the right type of gold for your needs. Only physical gold can hedge your assets against another financial meltdown, not gold stocks or stocks in mining companies. You will first have to buy physical gold in the form of coins, bullion, or bars. Then, you will have to store it in a safe place like a bank account. If you are new to owning gold, here are several tips on how to buy gold:
Choose a Reputable Dealer
The first thing to do when buying gold is to find a reputable gold dealer. As gold dealers have proliferated online, this can be a bit tough. However, with the right research, you will be able to find a dealer you can rely on. When buying gold online, always check the business websites of the seller. If the seller has none, avoid him or her. Consider, for example, well-known gold dealers like Lear Capital. Such businesses have official websites, social media pages, customer reviews on various sites, and in general, a solid online presence. Always research the dealer to avoid getting scammed.
Find Licensed Dealers from U.S. Mint List
The U.S. Mint does not approve or authorize dealers. However, the list does recommend gold dealers that can be largely trusted. If you are unsure of which dealer to pick, the U.S. Mint list can be a great starting point to find a genuine gold seller.
Find the Best Type of Gold for Your Needs
You can buy gold in the forms of coins, bars or bullion. Think about which type would be the most convenient for you. Gold coins are easier to store. Certain gold bars, like the Valcambi Combibar, are very convenient for traders as well. Combibars arrive as gold bars, but can be broken down into measured nuggets for trading.
Do Not Buy Collectible Gold Coins
Do not buy rare or collectible gold coins as these do not have any gold value, unless you melt them down and make gold bars out of them. Check out the IRS website for gold coins that are approved for inclusion in retirement accounts. For trading and other purposes, it’s best to use well regarded national mints.
Do not buy gold without weighing all your options and taking out time to research the seller. Follow the above suggestions, and you would have spent money wisely buying gold.