Posted on: 29 March 2016
If you're looking to insure your wealth or diversify your investment portfolio, there are few options better than gold. For decades - if not centuries - gold has been seen as synonymous with financial security even during economic downturns. But there is a lot more that goes into buying gold than first meets the eye. Take a look below at three things you want to avoid when you begin investing in gold. These are rules that will help you avoid the seemingly inevitable pitfalls that claim so many other novice investors.
Don't Trade Often
Gold isn't meant for trading. You should hold gold for several years and view it as a long term investment. Plus, if you find yourself selling gold frequently, you'll have to go through the laborious process of selling it back to dealers. This is tedious enough when dealing with coins, and doubly so with gold bars. So be prepared to sit on your gold for longer than you would the average stock or even bond. That said, in times of dire need, you can rest easy knowing your gold is totally liquid.
Don't Wait To Buy
Timing isn't a huge concern when buying gold, as it is with stocks. But there is a time that you should seek to avoid -- namely, when everybody else is trying to buy gold. When times are tough and markets are bearish, gold is in high demand but short supply. In fact, during times of economic crisis, mints often struggle to keep up with the demand. So don't wait until you and everybody you know absolutely needs to insure their wealth. Be proactive and buy gold as soon as you are able.
Don't Overvalue History
Historical coins can be interesting to the casual collector, but they are almost never a good investment. One of the most common mistakes made by new investors is overvaluing historical coins and paying more for them than they are actual worth (or would be if they were melted down). So if you see a dealer marking up a coin because of perceived historical value, avoid them at all costs. While some coins certainly do have an inherent numismatic value, they are hard to spot and investing in them is best left to experts. When you're just starting out, strive to be boring -- buy American Gold Eagle coins or other official North American gold bullion coins. Contact a business, such as The Jackels Collection of Beverly Hills, for more information.Share