While the idea of owning gold is appealing to many people, there are also many individuals who don’t see the benefit of physically owning gold. They would rather see their gold investment on paper like all their other investments. Well, let’s take a look at how gold bullion investments work and why you might want to invest physically in gold vs. investing in gold on paper.
First of all, let’s say that you decide to invest in gold, and the price goes up. Well, that is just great because it’s exactly what you want to see happen. However, you decided not to invest in gold physically, but instead, you chose a different option. There are gold mining stocks, gold index funds, and the likes. What you don’t realize is that the price of gold isn’t the only thing that impacts the prices of these other investments that deal with gold. In other words, you’re investing in more than just the gold itself, which can, of course, come with more inherent risk.
There are advantages to investing in gold on paper. I’m not going to deny that; however, there are also many advantages to investing in gold bullion. As mentioned, some people are going to be jubilant that they can have a part of their investment portfolio physically on hand. It’s like stashing cash under the mattress; only you have shiny gold and it’s making you money. Cash under the mattress doesn’t make you any money.
There are paper gold certificates available, but they are still not the same thing as having the gold you own. It’s important when looking at gold investment sites that you realize that gold can be sold at different prices. As well, there can be different tax rates on the gold depending on the seller you choose. Pay attention to the spot price so that you know what you’re supposed to be paying.
Naturally, you’re going to be paying more than the spot price, but you shouldn’t be paying too much more. You might think that means you only need to buy gold from within your country but take a look around. You might find out otherwise.
You do not just want to find a good seller, but you want to find a right buyer. That’s right, what are you going to do with all that gold when it’s time to liquidate some or all of your investment? You’re going to want a buyer, and that is where the seller comes back into play. Sure, you can sell your gold anywhere, but it’s a good rule of thumb for the vendor you choose to be a right buyer.
That will make your investment feel more safe, as you know exactly where to turn when it’s time for liquidation. Of course, they not only need to be buying back gold, but they need to have been doing so for quite some time. In other words, you want a seller that has a strong track record of taking care of its customers. They also need to sell the best gold bullion around, or you can find someone that does.
Another reason why you want to be able to sell back to the firm you bought the gold from is because you will make more money in general. Companies usually charge more if they aren’t the original seller. Now do you see how it works? From buying the gold to selling it to help finance your retirement, you are now ready to rock. What size gold bullion bars are you prepared to buy?