Gold Investment Advice

By John Simpson

July 24, 2021

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Human beings have always regraded gold as an investment and a great store of value. Even if the market is volatile, or the economy is in the dumps, you will still find many investors that sleep well at night because they have a significant portion of their investing capital in gold.  As the world governments get crazier and more reckless with the handling of their currencies a lot of new investors are getting interested in gold.

Are you considering investing in gold? If so, the first step should be seeking gold investment advice. What’s more, you need to reevaluate your long-term strategy and investment goals. Ensure the precious metal you end up choosing is the perfect match for your portfolio.

Gold investment advice typically entails educating you on what precious metals you should purchase from whom. It talks about when you should buy it. It also covers how much you can spend without considering your particular situations, requirements, and needs.

Irrespective of the matter, the plan of every sales pitch is to part with their cash to obtain the advantages of a salesperson. When conversing with another person on a particular subject that you don’t understand, it might sometimes be challenging to counter what they say.

It doesn’t matter whether it looks like you’re far away from becoming wealthy, there is always a better method to invest and benefit. This is the reason you need to get the right tools to make your gold investment journey a success.

You Are the Best Asset


You need to understand more about yourself because being a prospective investor is your powerful and best tool. Since you know your circumstances, you are an expert on yourself. Most salespersons dedicate themselves to persuade your that your specific requirements will most likely be resolves by their solutions – for example, financial advisers. They often have a wide range of commodities they’re looking to push onto you, and they always get one to match.

Therefore, what matters a lot is the deep knowledge of yourself as an investor. It ultimately enables you to be in control and use our gold investment advice to suit your needs and circumstances best. The only thing you should learn is how best to obtain the right results.

Keep reading and you’ll easily identify what feels like the most suitable strategy to implement. You’ll also know what to look out for before investing in precious metals.

If you’re a novice interested in investing in gold assets, this vital gold investment advice will be useful. In the end, you will certainly be in a better place to tell the most suitable course of action. The best part is that you will know how to obtain success.

Reasons to Invest in Gold


For starters, you should understand what are your actual reasons to invest in gold. Being one of the oldest traded assets, gold has been in the business for a long time even before the introduction of the stock and bond markets.

Because of this, below are several reasons why you could consider gold as a great investment.

1. Maintaining Wealth

For thousands of generations now, gold has successfully helped maintain and store wealth. This is the primary reason most investors trust it. What’s more, its significance is recognized in the modern economy. Because of this, gold still stands out even with paper-dominated currencies.

Look at this example:

An ounce of gold was valued at $35 in the 1970s. At this time, you could either decide to keep your $35 or buy an ounce of gold. These two could actually buy certain items like a new business suit or a fancy bicycle. However, today, you can still convert an ounce of gold to recent prices, and will be enough to get a new suit. This is not the case when it comes to the $35 paper currency.

Over the years, the value of gold has significantly increased. That means that the gold’s value is substantially higher than the original $35 investment. On the flip side, the 35 dollar note hasn’t increased in value because of inflation. That means that it cannot purchase as many things as it might have back in the 70s.

2. Safe Haven

Generally speaking, the economic environment in today’s world is filled with uncertainties involving economic and political problems. As a result, investors view gold as a haven in these times. And why is this? Quite frankly, history tends to reveal to us many political coups, falling empires, and even currencies. During such situations, most gold investors managed to secure their wealth.

At certain times, they may use the asset to stay away from all the havoc. Because of this, every time there’s global economic uncertainty, most investors will turn to gold investment as a safe refuge. This is because gold is not directly or quickly affected by any kind of political or economic forces. And as a result, as opposed to today’s currencies, gold can’t be printed to assist control its demand and supply levels.

Yes, gold exists as a rare asset. Nevertheless, it can preserve its worth over the ages. Furthermore, it has demonstrated its value in acting as an insurance policy during adverse economic times. As a result, gold is a haven for many investors.

3. Hedge Against Inflation

Gold’s wealth preservation abilities make it even more important in our modern economy. Primarily, that is where the investors experience the declining worth of the USD and looming inflation. Historically, gold has played as a hedge against such situations. Because of this, gold’s worth usually appreciates with the increase in inflation rates while the dollar depreciates.

When investors realize that their money’s value is decreasing, they will turn to a precious metal that has always preserved its value for a long time. Generally, the 1970s are a good example of a period when there was an increase in gold prices as inflation increased.

Why is this though? Well, the value of gold is usually measured and priced with regard to U.S. dollars throughout the world. Therefore, if you’d like to purchase gold, the central banks will have to sell their U.S. dollars.

Apart from that, a dollar that is declining in value ultimately makes gold a relatively cheaper investment for people seeking to hold other currencies. Mostly, this results in increased demand from investors with cash that has an increased value to the U.S. dollar.

4. Asset for Paying Dividend

In general, gold stocks are more of an attractive option to growth-oriented investors, unlike income investors. As a result, they often rise and fall based on gold’s price. Nonetheless, there are profitable and well-managed mining companies regardless of the reduced cost of gold.

In most cases, the gold-stock prices reveal the increase in gold’s price. It can result in substantial returns in the best gold stocks, and the owners may enjoy significant gains compared to bearers of physical gold. Primarily, you can gain by choosing gold stocks that boast a powerful historical performance. What’s more, stocks that usually pay dividends often have much higher returns on investment whenever the sector is improving compared to when there is a downturn.

5. Diversifying Investment

Generally speaking, gold is seen as a portfolio diversifier. For a long time now, it has served as an investment that can incorporate a diversifying component to your actual investment portfolio. This is without concerns about declining U.S. dollar value, inflation, or securing your wealth.

For those interested in investing in gold, pay more attention to diversification since gold is not correlated to bonds, stocks, and real estate. Simply put, owning a diverse portfolio helps most investors lower volatility and investment-related risks.

Gold Investment Advice


Choosing a Good Investment Strategy

Gold is a long-term investment choice with the most prolonged history. As a result, you will get it in different forms. What’s more, it is extremely accessible. Different ways come into play with gold investment. Make sure that you understand each strategy and pick one that is most suitable for your requirements. Jewelry, Coins, Bars, and Physical Gold Bullion.

The most famous and easiest method for investing in gold is by purchasing and owning it in its physical form. This can be through coins, bars, jewelry, bullions, and other stylish-looking luxury goods. When it comes to physical gold, it’s a yellow and attractive metal primarily used for monetary reasons. Many people also use it to represent wealth and power. There is much it can serve us and may yield significant rates of returns.

On the other hand, jewelry is simply a wearable piece that’s passed from one generation to the next. Its value is attained by wearing them for enjoyment and style. However, the most important part is that its value can appreciate, which makes it a worthwhile investment.

If you’re looking to buy gold and store bulk gold with a superb delivery, you should choose the gold bars. Although gold coins may also work best, you will have to look out not to get impure gold.

ETFs, Gold Stocks, and Mutual Funds

These are also another great and common way of investing in virtual gold. They’re excellent options when it comes to investors with large amounts of funds to do away with keeping the precious metal.

Gold Derivatives, CFDs, and Features

Purchasing physical gold usually poses a challenge with regards to keeping the asset, such as bars. The good news is that gold-based derivatives make it much accessible and a lot easier to trade gold. They are potentially highly lucrative.

CFDs are products that provide the trader with an option for either short or long-term investment, enabling them to gain profits from both sides.

Futures are usually quite a speculative investment product. Simply put, it involves traders placing bets on future gold prices.

By nature, derivatives depend on present gold prices in the market. It makes it a widely diversified investment asset to incorporate into any portfolio.

Understand the Principles for Investing in Bullion


Are you thinking of investing in precious physical metals such as gold? If so, below are the basic principles you need to learn. One or all of the following methods can be useful:

1. Buy in Bulk

In case you have more cash that is enough for your monthly savings or earnings, purchasing physical gold in bulk is the most suitable course of action. Apart from finding it pretty economical, it also guarantees you a greater return on investment.

We also don’t mean that you should go spending your entire life savings on buying gold or silver. This can turn out to be very deadly. Instead, it would be better to always have some additional money on hand for upkeep and necessities.

You should try saving for around 3-6 months for cash expenses. In general, it will limit you from spending your preserved emergency bullion for a long time.

2. Average Dollar Accumulation

With this principle, you need to buy precious metals at routine intervals, such as monthly. It is a common but essential gold investment advice strategy to think about.

Routine purchases mostly have lesser value than purchasing gold in bulk. That means that you can use the money saved from your monthly earnings for purchasing your precious metals. As a result, the average dollar accumulation is a great starting point when it comes to your gold investment interests.

By following this principle, you will always end up buying gold bullion at a varied set of prices. When it comes to the gold market, the prices will always fluctuate, and there is no way to stop or prevent it. Therefore, you must focus on what precious metals you can purchase and at what times you can.

Certain months may come with costs that can enable you to purchase precious metals in bulk and sometimes less. Nevertheless, this might be disadvantageous since only several investors can make accurate timings.

More so, it might lead to unnecessary stress after you’ve missed out on your target or recognizing an economical entry point after you’ve already made purchases. Generally, you need to look at the average dollar accumulation as a method of saving some cash every month. Rather than storing money, you keep physical gold.

You might be wondering if the proper and disciplined method of saving money for your bullion. You should consider deducting your fixed saving amount from your particular account immediately after getting your monthly income.

You can use the rest of the money to cater to your daily expenditure. Otherwise, you will soon be surprised that you have spent all of the cash. In case you choose to use this method to purchase silver or gold, ensure that you maintain the day and time every month when you buy.

This strategy can help you to:

  • Build a strong position when it comes to physical gold investment.
  • Constantly grow your overall quantity of precious metals.
  • Come up with consistent, proper, and disciplined saving habits and practices.
  • Prevent stress accompanied by price chasing.

3. Trading

The saddening truth is that a majority of us are not excellent financial traders. As a result, trading will most likely be the least popular gold investment advice. The discouraging part is that it is also certainly the hardest.

It entirely relies on your dedication and motive. From a personal point of view, when you boast about how good or consistent you can be at winning financial trades, this means you are luckier than Forest Gump. That means that you brag surprisingly extensive knowledge. Alternatively, you might either be committing fraud or you’re better than an HFT algorithm.

However, numerous investors do and can efficiently grow their wealth for a long time through trading. They usually win a lot in value and then end up losing. Such investors can: 

  • Stick and uphold their specific rules all through the trading period.
  • Come up with clear and concise sets of trading rules & regulations before trading.
  • Stay contented always and avoid engaging themselves emotionally with the markets.

As part of our vital gold investment advice, one of the strategies you should try is trading gold. Nevertheless, it would be best if you did this after having full ownership of physical bullion. What’s more, the gold that you’re looking to transact should be away from your central holding to prevent affecting it. For this reason, gold trading should be the last investment strategy you should look for.

Gold Storage: Home vs. Overseas?


In most cases, investors select their bullion storage sites depending on personal comfort. This choice is mostly brought about by fear and not logic. With this fear, most people opt to store their physical gold in a private vault or at home.

My opinion is that both storage options are excellent since they serve many roles. In general, the bullion amount and where to store it is actually a matter of logic and reasoning. Not the worry about potential losses or rather consequences of either choice.

As part of my gold investment advice, it would be better to purchase exceptional physical metals for home storage. Later on, you can then aim to develop a private store central holding location. Ensure to choose the one that suits you best.

My rationale relies on the summary below:

Home Storage

  • It’s an ideal option when it comes to temporary and emergencies.
  • The precious metals need to have a physical quantity of around 20% gold or 80% silver.
  • Typically involves small individual physical bullion units for barter trade.

Private Vault Storage

  • It should consist of your core holding, which acts as the main physical bullion’s bulk.
  • The precious metals should have the same (50/50) dollar value composition of silver and gold.
  • The core holding should be divided between two or more countries.

Additionally, you should learn what properties of bullion match with which kind of storage. Before making a move, you should also consider your financial state.

You have already learned that silver bullion takes a huge part in these two storage options. Therefore, although our topic covers more on gold investment advice, you need to understand the worth and potential of silver. Ensure that you do the same thing to any other precious metal.

Mostly, physical bullion offers a relatively larger profit margin compared to gold bullion. Therefore, you must carry out due diligence whenever you’re choosing a gold storage facility. In general, this entails establishing whether there are issues such as delayed deliveries and if they are legit.

Consider your Future Needs


Considering your future interests is a common piece of advice that most gold investors miss. After you have bought your preferred physical bullion, what should you do?

Nobody knows how the future will be. The best-set intentions and plans might end up differently than we anticipated. So, the kind of gold investment approach you choose might promote or limit your success in the future.

Below are several factors worth considering:

Need for Sale

Selling your gold bullion because of an unforeseen event could be the best idea. Nevertheless, ensure you sell it closer to the market price as possible and without any glitches.

You might also require to sell your precious metals later on. This is because the long-term stored gold may bring suspicions of fake. It might greatly impact its ability for a good or quick sale. Typically, precious metals stored in private vaults are bought directly from refiners and mints. Because of this, they’re widely accepted and come with a considerable price tag.

Quality of Life

One of the critical questions you can ask yourself is how your life will be in the future. The average dollar accumulation technique, however, bears the risk of over-saving.

Saving is generally good since it plays a role in making a quality future life. However, this involves sacrificing your life quality today. So, it’s essential to maintain a balance. The amount of money you save should be sustainable. Avoid forcing any gold investment strategy to work. This will enable you to build your physical gold savings.

Consider investing with these Gold Mining Companies


Since there are countless gold mining companies today, it has become a bit challenging to find the right option for your desires.

#1 GoldCo

Are you looking to accumulate wealth and safeguard your assets against the volatile stock market? If yes, Goldco should be your excellent option.

They boast an incredible reputation with proper certifications and awards for their excellent practices. You'll find it offers a vast range of gold products and services to choose from. More importantly, their experts are beneficial and dedicated to helping you whenever you want.

Pros:

  • Excellent ratings and reviews.
  • Reliable services from experts.
  • Multiple tax benefit benefits.

Cons:

  • Limited choice for precious metals.

#2 Augusta Precious Metals

One of the critical questions you can ask yourself is how your life will be in the future. The average dollar accumulation technique, however, bears the risk of over-saving.

Saving is generally good since it plays a role in making a quality future life. However, this involves sacrificing your life quality today. So, it’s essential to maintain a balance. The amount of money you save should be sustainable. Avoid forcing any gold investment strategy to work. This will enable you to build your physical gold savings.

Consider investing with these Gold Mining Companies

Since there are countless gold mining companies today, it has become a bit challenging to find the right option for your desires.

Pros:

  • Experts make it easier to select proper precious metals.
  • No extra shipping fees or insurance included.
  • Boasts a wide selection of precious metals for purchase.

Cons:

  • Their website doesn’t show the whole list of coins approved by IRA.

#3 Birch Gold Group

Birch Gold Group boasts 18 years in the gold investment business. It also has excellent reviews and ratings from its satisfied customers. For these reasons, it's among the most reputable and trusted dealers in precious metals in the U.S.

Their ultimate goal is to offer reliable information about precious metal investments. This guarantees better and sound investment decisions for financial success in the future.

Pros:

  • Highly reputable and trustworthy gold investment company.
  • Offer secure storage facilities.
  • Incredibly varied investment choices.

Cons:

  • Birch Gold Group doesn't clearly list all the fees they charge account holders on their website.

John Simpson

About the author

Welcome! In these perilous times of government overreach, reckless fiscal and monetary policies, shutting down small and medium sized businesses and paying people not to work, it has become my mission to protect my assets, my family's assets, and educate as many folks as possible on ways to protect their savings, retirements, and purchasing power, from rapidly devaluating fiat currency.

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