Getting Started with Gold: What Are The Basics?
By now, you have heard the news. Investing in gold is a great way to save for retirement, hedge against inflation, protect yourself from economic issues, and much more. With all of the uncertainty right now surrounding inflation and a possible recession, there is no time better than now to start investing in gold. If you’re a first-time investor, this article is for you. Keep reading to learn more about getting started with gold and the basics of investing in gold.
Understanding Why Gold Is A Great Investment
According to Investopedia, several factors account for an increased desire to hoard the shiny yellow metal:
- Systemic financial concerns. When banks and money are perceived as unstable and/or political stability is questionable, gold has often been sought out as a safe store of value.
- Inflation. When real rates of return (RoR) in the equity, bond, or real estate markets are negative, people regularly flock to gold as an asset that will maintain its value.
- War or political crises. Conflict and political upheaval have always sent people into a gold-hoarding mode. An entire lifetime’s worth of savings can be made portable and stored until it needs to be traded for foodstuffs, shelter, or safe passage to a less dangerous destination.
- Gold’s value. Its value is determined by the market 24 hours a day, seven days a week. Gold trades predominantly as a function of sentiment—its price is less affected by the laws of supply and demand. This is because the new mine supply is vastly outweighed by the sheer size of above-ground, hoarded gold. To put it simply, when hoarders feel like selling, the price drops. When they want to buy, a new supply is quickly absorbed, and gold prices are driven higher.
Where to Begin Investing in Gold
There are many ways to invest in gold, and one of the great things about investing in gold is that it requires little-to-no education or knowledge to get started. This is vastly different than most investments, such as crypto, real estate, or starting a small business. You are limited only by your budget, and nobody has to know you own it. That’s right—you do not need to report any gold purchases (only if you sell it), and you can keep it for as long as you’d like.
Ways you can invest in gold include:
- Gold jewelry. Gold jewelry is easy to acquire and hang on to. However, it can be difficult to find a good price while purchasing due to high markups.
- Gold bullion. This is considered gold in the form of bars or ingots that are between 99.5% to 99.9%. Who doesn’t love gold bars? It is tangible ownership of gold that can be very high in value.
- Gold coins. A fun way to invest in gold, gold coins can be easy to find, whether online or through other means of purchase, and sell quickly when you need the cash.
- Gold stocks. This is equity ownership in a publicly traded gold mining, streaming, or royalty company. You can possibly earn dividend income on top of everything, but they can also underperform the price of gold.
- Gold ETFs and mutual funds. These are Exchange-traded funds (ETFs) and mutual funds that own physical gold bullion or shares of gold mining stocks that are highly liquid (sell ASAP when you need the cash!)
- Gold certificates. These certificates prove that you own gold without actually having to physically have it in your possession.
- Gold futures and options. These are derivative contracts that provide exposure to the price of gold. While this is the riskiest way to invest in gold, you don’t need to physically own it while enjoying the benefits of the price of gold.
Precious Metals IRA Investing
Another way you can invest in gold is through a precious metals IRA account. By rolling over your IRA, 401(k), 403, TSP, or 457 Plan into our Precious Metal IRA Account, you can achieve the same profits that you would gain by purchasing gold or silver directly while also enjoying the benefits that your retirement account provides. We have a proven four-step process that makes it easy to open a precious metals IRA, and we guarantee you the highest caliber customer service. Our IRA specialists will answer all of your questions, work with your current custodians to ensure a seamless transition, provide you a free metal evaluation, and continually help you to review your portfolio.
Investing in Gold with Priority Gold
If you are ready to invest in gold to protect your savings and secure your future, we can help. Priority Gold is one of the most trusted precious metals dealers in the United States with a BBB A+ Rating, AAA Rating with Business Consumer Alliance, and 5 Stars Rating with TrustLink.
We specialize in providing precious metals investment services with Security, Liability, and Great Convenience for customers. Our team is committed to helping to streamline their precious metals purchases at a fair price, selecting the right precious metals portfolios, and meeting their essential financial objectives.
We offer Free Storage for qualifying Gold & Silver IRA accounts, a fast & easy gold buying process, and smooth IRA Transfer. And gold shows up on schedule. Priority Gold guarantees the highest customer service standards, including honesty, professional conduct, and the Ethical Code of Business.
For more information, visit us at prioritygold.com