For centuries, gold has remained a popular investment, whether in jewelry, in a gold IRA or as physical gold bars and coins. It has proven to be a reliable hedge against inflation and is an excellent portfolio diversifier. It’s no wonder that it re-emerged as a favorite long-term investment for many Americans in the wake of recession fears and skyrocketing inflation.
When it comes to making a sound investment, there are a variety of factors to consider. The best option for you depends on your overall goals, your risk tolerance and the level of exposure to other investments. Regardless of your investment objectives, however, most experts recommend investing at least 2% to 10% in gold.
Unlike stocks, bonds and mutual funds, gold does not produce income, and therefore won’t provide immediate returns or help you achieve your financial goals in the short term. However, it’s important to remember that gold isn’t intended to produce big returns — it is a wealth preservation asset that can preserve your capital in case your other investments lose value.
Gold has been known to perform better than most fiat currencies in times of economic turmoil and natural disasters. It’s also a hedge against inflation and other global risks, as it isn’t tied to any one currency.
Because of its unique characteristics, it can be a valuable addition to any investor’s portfolio. When the world faces political unrest, economic crisis or natural disasters, gold tends to climb in value as investors seek safety.
With so many ways to invest in gold, it can be challenging to know where to start. Luckily, there are several options available for those who are new to the industry. Physical gold (gold bars and coins): This is the most traditional way to invest in the precious metal, and can be purchased through large retailers like Costco or Walmart. It’s also possible to purchase individual gold pieces through online marketplaces.
Gold ETFs: These exchange-traded funds track gold prices and offer a liquid alternative to buying physical gold. Gold Mining Stocks: These are stocks in companies that extract and process gold. They carry more risks than ETFs, but can provide higher returns than buying physical gold.
When buying and selling your gold, it’s important to work with a trusted and reputable gold dealer. Be sure to review the terms and conditions carefully, and be wary of buyers who use high-pressure tactics. In addition, be sure to separate your items by karat so that you can receive the most accurate pricing. It’s also helpful to maintain documentation throughout the entire process, including quotes and receipts.