Investing in gold is a great way to diversify your portfolio and to hedge against economic collapse. With that said, investing in gold is a bit different from investing in stocks or bonds. For those who have never done it before, it can sometimes seem a little complicated. Wholesale Direct Metals works hard to educate investors on the dos and don’ts of gold investment; the company responds to some common inquiries, below.
What kind of gold is the best for investors?
This is the most obvious question, as there are numerous forms of gold—including bullion and numismatic coins—to consider. Most novice investors flock to bullion, but not so fast. Numismatic coins may actually offer even greater stability, and numismatics have historically appreciated at a higher rate. However, bullion does represent a way to protect yourself against government seizure.
When should I buy gold?
You should buy gold as soon as you need it, or really as soon as you need it. Buying a piece of gold is not like buying a stock, where timing matters a great deal. No, buying gold is really a form of wealth insurance. It allows you to preserve your wealth and to amass real savings, and as such, you should invest in your gold whenever you can or whenever you desire.
Should I just wait until gold investment becomes a necessity, and then buy?
Investors are advised not to wait until a time of crisis to purchase gold. The reason for this is that economic crises in recent years have led to gold bottlenecks, making it tough for investors to get the gold they really need. Don’t take this risk needlessly!
How much of my portfolio should I allocate toward gold?
This is a question that only you can answer, ultimately, but most investment experts advocate for a minimum of 10 percent. Some will go as high as 30 percent. Popular financial personality Jim Cramer has advocated for 20 percent.
Is it better to have direct gold ownership, or to buy a gold stock or a gold ETF?
Again, this is a question for individual investors to consider, but think about this. When a global economic collapse happens, which would you rather have—actual gold, or a piece of paper promising you gold? Direct gold ownership is the purest expression of value, and for investors, that’s something to take very seriously.