Gold is one of the most profitable investments that one can devolve into due to its nature of increasing in value over time. However, it is worth pointing out that you need the right knowledge to get the highest possible returns from such an investment. There is no need trying to bother about where to source for such experience as this post will help to show you some of the steps to take to invest in gold. You are guaranteed the best of returns by following these steps.
1 Gold should be in its physical form
Gold has been used for over centuries as means of exchange by traders before paper money was introduced, by Nixon in 1971. Since then, paper money has been adopted by the whole world and used by different countries as their currency. To use gold as an insurance, one must make sure it is physical gold and not gold on paper. The former might not be equivalent to the amount of money required.
2 Freely moved under direct ownership
This mostly applies to middle-income men in the street that are not in a good financial position to invest in gold. This being the case, one should acquire small gold coins directly and keep them closer where they live to facilitate access during the crisis. But if you are well established financially and you want to invest part of it into gold, then it’s advisable to go into jurisdictions that possess robust private property rights. Such authorities are found in Switzerland and Liechtenstein where gold is stored outside the traditional banking system. However, be careful with the company you choose to avoid pledging, hedging, or leasing of your gold.
3 Only have the coins and bars that are easily cashed
If you want to have more gold for cash, then you have to come up with liquid gold and silver stock. For this to happen, you have to put your wealth in legal tender coins like the maple leaf, the Austrian Philharmonic or the nugget of Australia. This excludes you from roaming around with small quantities of gold during the crisis. Care should be taken when buying gold coin of the maple leaf or the Austrian Philharmonic from shops or through the internet. You are supposed to get them at a price of more than 5-6 % because this is the price range.
4 Accumulate stock that is sold easily without devaluing
Gold is an asset that can cover up your money for a very long time without losing value in the market. It tends to appreciate hence providing security of your money. If you are not dealing with gold, then you must have some limits if you want to avoid losing value. The global financial markets have continued to increase credit, so gold should be put aside to mitigate any loss of value. This was witnessed in Germany where inflation was very high, and it was only gold that was used in large purchases.
5 Acquire gold using your own savings
It is always advisable to buy gold using your income or savings if you want to operate in a healthy economy. Liabilities are hazardous in any economy. So, avoiding debts is very important if you buy gold on credit, hoping to get more returns on the same. Payback to the creditor is not advisable because sometimes you may be required to pay when the price of gold does not rise to the levels you expected due to certain market conditions. You have to make some sacrifices if at all you want to enjoy in the future
6 Always have few coins around you
You are supposed to be close to the gold, maybe at your home in safe or any other place, so it is easily reachable. The rationale behind this is that, in case of any uncertainty, you can have quick and direct access to them. Despite this, you shouldn’t put all your eggs in one basket; rather you can have an insurance coverage outside your home country so that in the case of a crisis, you don’t lose your hard earned investments.
People should learn to store gold under safe authority that is not influenced by any politics. Switzerland is the innocuous country that one can store gold without encountering any challenges since the state cannot make decisions without involving the municipality, meaning it is a decentralized form of government. It’s not like other countries where the leaders make the policies without considering the needs of its people. Skilled clients nowadays prefer to move their assets to Asia than Switzerland due to extra attention they are drawing to themselves. Asian countries have a thriving economy with secure storing infrastructures that attract a lot of business clients.
8 Secure your gold outside the banking system
The available banking system is fully based on credit, paper, and computer digits, and this is precisely the reason why many are investing their wealth of gold to cushion to cover themselves in times of crisis. This means the only well-informed decision one should make to store gold outside the banking system. The insecure nature and non-permanency of property rights in the past led to the confiscation of gold and cash.
9 Observe the law when making gold purchases
If you are a middle gold investor (one who buys some small quantities of coins), this works well to them as it’s a positive move that majority embraces because buying is done freely and privately. However, in case you want to invest in larger amounts of gold, you should make sure that all requirements of the law are followed to the latter. Those who want to remain in the game have to operate with the laws underlining the same.
10 Use the surplus money meant to be utilized after 5 years period
Because of the probability nature of operation in many financial markets, it’s advisable that your project returns in at least five years if you want to get some reasonable returns on your investment. It is not a good idea to use money that you have plans to use in less than a year as the prices fluctuates a lot in a short investment period than in long ones. There is a high probability of better returns in a longer investment period than shorter ones. Therefore a five-year duration is always advisable.