A Guide On How To Buy Gold

By Marcus Aurum

Mainly investors buy gold to use as a hedge against an monetary and financial crisis which would lead to the devaluation of paper currency while others purchase hoping to turn a profit. Your end goal is the main aspect which will impact your decision on how to purchase gold, whether for risk management or profit.

How to Purchase Gold as a Hedge

Gold bullion is most frequently used as a hedge as it is the metal itself which retains value thus making gold equity ineffective in terms of asset protection. You can either buy bullion in the form of marked bars or gold medals. medals are usually easier to move and liquidate both due to their smaller size as well as the fact that they are clearly marked. For this same reason it is recommended that if you decide to purchase gold bars you should only buy clearly marked ones because there have been many cases in which the bar was only made up of a gold covering and the rest was a different type of metal with a similar weight to volume ratio as that of gold.

There are some factors you need to contemplate when deciding how to purchase gold and that includes timing. Historically, one can see from the graphs that the price of gold has a habit of decreasing in the holiday months, around August and then picks up again starting late September when countries like India purchase up a lot of gold for their festivals and weddings. This leads to the conclusion that the holiday season may well be the best time to invest in gold

How to Buy Gold for Profit

If you anticipate to invest in gold to grow your investment and make a profit then your best opportunity would be to either buy bullion at a low price or to invest in gold equity. However, it is imperative to consider that equity in the shape of stock, bonds, futures and others carries distinctive risks than owning gold bullion. If you own gold bullion you will never entirely lose all your money while owning gold equity can bankrupt you just as it can make you a hefty return on your investment.

As with any shares you will want to conduct fundamental analysis in the meantime to get a clear understanding of the macroeconomics as well as any changes that may occur. For example, until recently most investment advisors advised their clients to take a bearish position and now the market has reversed with everyone starting to turn bullish. So your best bet would be to purchase gold while it in the off-season as prices will be much more acceptable.

How to Purchase Gold the Safest Way

Since we live in an imperfect world where scammers try to squeeze out your last drop of blood you will have to be wary when determining where to buy gold. Of course, the best places to purchase gold are dealers with a stellar standing and trademark, who can also be found online. The Internet gives you the advantage of being able to get recommendations from previous customers easily which will help you determine whether or not the dealer is trustworthy.

When determining how to purchase gold you will first have to define your goals which will make the procedure that much easier.