Using Your Savings To Buy Gold? Read This Before You Commit
Gold is a popular choice of investment for many people. But should you plow your savings into it? If you are tempted to turn your hard-earned money into gold – or any precious metal – then you should read this guide first.
Types Of Gold Investment
Many different communities around the world wear gold. Some might feel that wearing their wealth is the easiest and safest way to save! While this is true in one respect, if you want to invest in gold then you need to look into other areas. You could also invest in coins – which are a great way for beginners to get started – or bars. Once you are up on your feet and have some experience, gold bullion is the most effective long-term investment for your savings.
How To Buy It
There are several ways to buy gold. Rings and necklaces are the easiest – just head to your local jewelers – but as we mentioned before, it’s not the best way to grow your money. If you want to look for a more serious investment in coins, bars and bullion, you will need to find a gold broker. Once you have a broker, it is a very simple process – you can even buy gold over the phone. Another option is to use a gold-backed IRA. This is when you use some of your retirement fund to buy gold. If you are thinking about this, then you will need an IRA company to help you. Make sure you check out this Regal Assets company review, which will give you a good idea of what to look for.
Pros & Cons
Buying gold is usually a good long-term way of looking after our money. Its value tends to increase over time, so after a five to ten year period you will be able to cash out with a good profit. However, there is no guarantees. The price of gold fluctuates a great deal, meaning that investing in the short-term could be risky, and is a no-go. In fact, you might even be better off playing a game of poker! You will also need to store it somewhere, depending on the type of investment you have made. It can be risky keeping a hundred gold bars in your spare bedroom!
Spreading Your Risk
As with any investment, it is unwise to put everything in one place. Building a varied portfolio of investments including gold will be a safer way for you to spread your risk. Many experts advise that around 10-15% of your portfolio should be in gold. However, many others disagree.
Remember that gold isn’t an investment, and it isn’t the foundation for any ‘get rich quick’ scheme. It takes time to make the most out of gold, especially when you take into consideration the cost of hiring a broker and storing it. However, as it is a finite resource that will always be lusted after by many, it is a very safe way to get a boost to your long-term savings.