Thursday, 26 January 2012

How To Start Investing Gold

Gold has traditionally been seen as a safe haven investment and is particularly popular in times of economic crisis such as now. As the economic outlook around the world worsens, more and more ordinary people are thinking about investing some of their savings in this precious metal. This is because it has an intrinsic value unlike paper money which only has value because a government says it does. The paper itself is not worth anything whereas gold is worth something.There are several ways of actually investing in gold. You could buy gold jewellery from second hand shops or antique dealers. Make sure that you are only paying for the gold value of the jewellery and there is no premium on the price because of the history of the piece or who made it. You should only buy gold like this from a dealer you trust to ensure you are getting what you pay for. You can expect to pay a small premium over the gold value which is the dealers profit from the sale. There are kits available to purchase which will test the quality of the gold you are buying.Another way is to buy gold coins. Again, only buy from dealers you trust to ensure you are not buying fake coins or coins which have other metals mixed in. There are lots of gold coins available such as the South African Krugerrand, British Gold Sovereigns, The American Eagle and The Canadian Mapleleaf among others. As with gold jewellery you only want to pay for the gold content of the coin and should avoid paying a premium because it is a rare coin or comes in a special case for example.A third way of buying gold is to invest in gold bullion or bars of gold. This can now be done online and you can also buy a fraction of a bar of gold. Usually the smallest amount you can buy is one gram of gold. You will need to do your research before you invest in gold bullion to find out which companies are safe and reputable. The things you need to think about include where the gold is stored ie do you want it stored for you or do you want it delivered. Also, what are the costs involved above the price of the gold such as storage, delivery, transaction costs etc. You should also check under which authority or jurisdiction the company is regulated.