With continual market fluctuations, it’s time to take a look at how gold has always been an investment that will preserve wealth. Even when inflation is rising, gold will increase in value. When physical dollars are losing value, it’s time to invest in hard assets such as gold. If you invest in gold, you aren’t going to lose your money over the long term.
Of course, many firms in America advertise gold as a protection against inflation and irresponsible monetary policies – but rarely do they offer sound advice as to how to go about it. As an investment, for example, the precious metal should be anywhere from 10-20% of your overall investment portfolio. Read on to see if you’re investing in gold correctly.
How to Invest in Gold to Boost Your Portfolio
When the United States dollar is declining, gold is a good investment because the price is established globally. Investors that want to buy a significant amount of gold when U.S. dollar value is declining have to sell their dollars in order to buy the gold. This pushes the value of the physical dollar lower, making gold a cheap investment at the time.
You can purchase solid gold coins, gold bullion, gold futures, gold jewelry or invest in gold mutual funds in order to invest some of your money in cold.
It doesn’t matter whether you are trying to protect your wealth against inflation, or you are concerned about the value of the United States dollar going down – gold will add to your portfolio in a way that other investments can’t.
Gold investments don’t go up and down based on the real estate market, stocks or bonds. If you want a strong investment that isn’t going to fluctuate tremendously, it’s time to seriously consider investing.
Your Investing Options
If you want to invest in physical gold, you can buy pure gold coins offered by the United States government in the form of the American Eagle gold bullion. It’s an easy coin to buy and one that is easy to sell if you need to liquidate some of your investment. The U.S. mint guarantees the purity of the American Eagle coin, so you get what you pay for.
You can also take a look at the Canadian Maple Leaf coin, which has similar purity to the American Eagle coin and is also easy to sell if necessary. This coin is similarly guaranteed by the Canadian government.
The United States mint also offers a 24 karat American Buffalo coin, first manufactured in 2006, it is the purest coin ever offered by the U.S. mint.
If you are investing in physical gold, it is important to keep your gold in a safe within your home or in a safe deposit box. Avoid scams from dealers offering to purchase and hold your investment for you. Pay attention to commission rates, as you may end up spending more for investing in gold coins than you should.
Don’t invest in rare gold coins, as they are more of a collectible and less of an investment. While you may be able to find some great deals in rare gold coins, the value can fluctuate tremendously. Rare coins are indeed valuable as advertisers claim, but purity isn’t guaranteed and the value is in the rarity rather than the amount of gold within the coin.
When you want to invest in gold but you don’t want to physically take care of it, you can invest in gold futures or purchase mutual funds that focus on gold investments. That way your portfolio can include investments in gold without having to worry about storing coins or gold bullion bars in your home.
In a time where political upheaval is uncertain and the value of the U.S. dollar may fluctuate greatly, it’s time to add gold to your investment portfolio.
Regards,
Ethan Warrick
Editor
Wealth Authority
