Gold is considered one of the most reliable investment tools throughout history. Humans using it already 6 millennia for different purposes.
There are many contributing reasons for that. It is a rare metal that can be stored in solid form, it doesn’t corrode or oxidize.
It is difficult to counterfeit, quite rare but at the same time found everywhere around the world. Also, gold looks shiny and beautiful that makes it even more valuable to be used in the jewelry industry. Did you know gold is also used in the electronic industry quite often?
The central banks around the world still recognize gold as the best store of value. Traditional currencies can be printed in necessity. But the amount of gold is limited unless new metal mined from underground.
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Gold is famous for holding its value when it is looked for for a long period of time. It is a type of commodity that becomes valuable during a financial recession or political instability. Gold’s value can go really high during these times against the currencies. For instance, recent trade wars between the US and China caused Gold’s value to skyrocket.
Define Your Relationship To The Gold
Before talking about investing in gold, we should define our relationship to the gold. Let’s assume you are a retail investor who plans to buy gold in the form of opening a gold investment account with the local bank. In this case, you will not have the actual gold in your hand.
That may be a good option since you will not have any security issues storing the physical gold. You have to carefully consider market conditions and for how long you plan to hold to the gold.
If you are the investor who likes to have physical gold in the form of gold bullions, then you should plan to store it way before you buy it. Gold is very valuable and proper storage is extremely important.
You may be the person who likes buying gold jewelry for daily use and also store for its value. This is the least profitable option. Since you buy jewelry you pay for labor and once you sell it back labor is never covered.
You may be the person who buys gold in the currency market with the leverage. We can call it trading gold rather than investing in gold but still an option of investing in gold.
Let’s talk about if it is the right time for buying gold by the time you read this article. Gold prices usually increase and decrease in longer trends. Generally, trends continue for extended periods of time.
If you don’t have proper education of financial markets chances are high you will lose the money invested in any type of instrument.
But let’s assume you have your retirement funds in the bank and you want to have versatility in your account. Then it may be a smart option investing in gold. But still, try investing only a small percent of your portfolio in gold.
Why include gold in your retirement plan?
According to many investment experts, you should include gold into your retirement plan. It will give you a more versatile portfolio and protect you from the financial instabilities.
You can buy gold bullions, as well as other precious metals, in 401(k) established or a self-directed IRA with a trusted company. There are many companies that can set up for you a gold IRA.
People who have retirement plans generally have a regular IRA or 401(k) with a brokerage firm or investment bank specialized in bank deposits, stocks, and other assets.
How to know If I work with a reliable Gold IRA company?
Before everything else, visit the Better Business Bureau’s profile on an organization before giving the decision to work with them. You should not only check company ratings but also if any complaints exist with the company.
The target for the good IRA companies has a consistent record of providing good support when customer complaints rise. You should also check if a company sustained an A+ rating over the period of long years. I wouldn’t work with a company that has a period of at least 10 years of proven track record.
These are the most basic steps every investor should have a look before investing in gold IRA companies.
Buy Gold When Everyone Else is Selling It
Never invest in any type of investment tool, gold is no exception when it is talked everywhere. If all TV channels, newspapers even your grandmother talking about investing in it, stay away. This rule applies to any type of instrument including the stock market, Bitcoin, gold, or other precious metals.
If you want to buy Gold, buy it when everyone else is selling. Buy it when no one else believes it can recover again. Markets go through in cycles. Open your newspaper and see what is said to be a bad investment idea is possibly a good investment idea.
When it comes to investing, do the things opposite of what the crowd does. If you want to learn more about investing in Gold,
You may remember Bitcoin (BTC) in 2013 is said to be a very bad investment idea. It crashed from $1000 back to $100. It is said everywhere that investing in BTC was such a bad investment idea. It peaked at $20K by the end of 2017.
“The time to buy is when there’s blood in the streets.”
I wanted to write an evergreen article. You may read it 10 years from today and decide if you should invest in gold. No one knows when is the absolute best time investing in gold. Always use caution and diversify your portfolio to protect yourself from financial and emotional devastation.