Questions and Answers for Those Interested in Investing in Gold

The financial markets are crazy – they’re topsy turvy, which can and should put most people on edge. Now, while it’s normal for the market to bounce around, it doesn’t mean you shouldn’t prepare yourself.

You never know when we may fall into another Great Depression or economic downturn, like we witnessed in 2008. And it’s also important not to trust solely in your 401K, as this too can be subject to seizure if a major economic downturn occurred.

So what can you do to prepare yourself and your family’s financial future? That’s where gold investments come into play. But before you start buying gold, here are some questions and answers to help guide you.

Should You Invest in Gold Now?

Determining the best time to buy gold is difficult. For one, you never know when the prices will rise or drop. Obviously, you want to get in while the prices are down, so you can cash in when the worth begins to rise. But there’s one thing for certain, the price for gold has steadily risen over the past decade, and it’s expected that this trend will continue. So now, may be a good time to get in before the prices rise even higher.

What Are Your Objectives?

This is important to know because this will determine what type of gold to buy and how much. If you’re looking to create a retirement fund, then you want to look into long-term options. For example, if you’re worried about capital controls and gold seizure, then you may want to opt for pre-1933 gold coins. However, if you’re just looking to hedge financial uncertainty or would like to capitalize on gold price movements, then bullion coins would be optimal.

How Much Can You Afford?

Investing can sometimes turn into a bad habit, pretty much like betting. So you want to make sure you’re only spending as much as you can afford. Start with investing smaller amounts, then slowly build up your gold portfolio. You can use dollar cost averaging to help protect you from over committing on any one gold price.

As a rule of thumb, the diversification of your investment portfolio should be between 10% and 30%. You don’t ever want to put all of your eggs in one basket.

Where Should You Buy Your Gold From?

It’s a good idea to purchase your gold from reputable dealer. If possible, find a refiner to deal with directly. This will also give you a chance of getting a better price. Some say you should stick with American coins. Do your due diligence on the dealers you choose to work with to ensure they’re up to par.

The same goes for when it comes time to sell off some of your gold portfolio. Make sure you’re doing the transactions with a trusted dealer.

Then maybe once you’ve made a sizable profit, you can start shopping at places like Stuart Weitzman. Until then, you can use discounts from Groupon to get great deals.