An investment in gold and silver is a dandy way of hedging inflation as well as turning a profit over the long term if gold continues to increase in value, as it has throughout history. More savvy investors are turning to gold and precious metals while the stock market and economic climate in the world remains uncertain since gold and other precious metals tend to run against the market trend over the long haul.
Of course, investing in gold might be a little more complicated than most of us imagine. In order to avoid some of this confusion and to help you to avoid being sold something that you don’t want or being taken by a slick salesman, here are a few tips that should keep you out of trouble when investing in gold or silver.
Buy Bullion For Investing And Numismatic Coins For Hobby
There are some gold companies or salesmen from some companies that are a little less than scrupulous. In an attempt to line their own pocket they will attempt to sell you what is known as numismatic coins. These coins are collectible coins that are made from gold, silver, platinum and palladium. The cost much more than their weight in precious metals and the markup on these coins is very high.
If it’s your desire to invest in gold or silver, stick with buying coins or bullion that is minted for that purpose. Stay away from numismatic coins and stick to your guns when you get the sales pitch that these coins can’t be confiscated by the government or that the sale of these coins won’t be reported to the government. As a matter of fact, I would recommend that you run the other way any time these scare tactics are used on you to try to get you to buy something that you don’t want or don’t need.
Buy Silver First Then Gold
Silver is actually a very good investment at this point in time. It’s very undervalued and it has been for some time. Also, you can get a lot of small silver coins, called junk silver, at very cheap prices. It will be easier for you to sell off many small pieces of silver when it comes time to liquidate your savings than it will be to sell off large ingots of silver or gold.
You should still have gold in your portfolio but if you’re starting out small, buy silver first and then smaller pieces of gold as you can afford it. Advice from someone from a gold investment company is always advisable and they will help you to balance your precious metals portfolio if you are investing a larger sum of money and taking delivery of your gold and silver or if you are creating a gold IRA or doing a 401K to gold IRA rollover.
Avoid High Pressure Sales
Any sort of high pressure sales tactics should make you run for the hills. There are a lot of gold companies out there that you can do business with and the really good ones have no need to pressure you into buying from them. They’re busy enough taking care of investors who know better than to be moved by high pressure sales. Such tactics are the sign that something is wrong.
Common high pressure tactics that are used are feeling like you’re being pressured into buying collectible coins, feeling like you’re being pushed to make a purchase immediately because “the price is going to go up”. A good investor never feels pressure to make an investment or a trade and they won’t be moved by emotional tactics and you should never feel pressured by anyone at a solid gold investment company.
Keep your head, do your research so you can understand what you’re investing in. Far to many Americans are taken advantage of every year and talked into buying gold that is not meant for investment purposes or gold stocks which are no different than any other stock. If you’re hoping to hedge inflation and protect your investment dollars there is nothing like a tangible asset like gold or silver to do just that.
Source by Andrew A. Block
3 Tips For Investing In Gold And Silver
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