Mistakes To Avoid When Buying Gold Bullion
by Mashum Mollah Finance Published on: 12 October 2019 Last Updated on: 11 November 2024
Gold has long been the foundation of wealth, and of the many precious metals, gold is the most stable when it comes to investments. Most investors have some of their portfolio tied up with gold deposits, as the yellow metal offers more stability than any currency, plus it is globally accepted as a form of payment, and is easily liquidated into the currency of your choice. If you are looking to add to your investment portfolio by procuring some gold, here are a few common mistakes to avoid.
Not Taking Physical Possession Of Your Gold
Whenever you buy gold in any format, always make sure you take physical possession. Search online and you will find a reputable gold bullion dealer in your area, and by paying their offices a visit, you can take physical possession of your acquisition, which is much preferred to any document that states you are the owner.
Buying When Gold Prices Are High
The golden rule regarding supply and demand tells us that when something is in high demand, the price will be higher. Let’s say, if you want gold bullion in Brisbane when the prices are high, you are advised to wait a while until the spot price drops. You might be thinking that the price of gold will continue to rise, and you might be correct in that assumption, yet if you buy at the peak, you are likely to lose out in the long run. When gold prices are high, this is the time to sell rather than buy.
Buying Gold From Someone Who Approaches You
As a general rule, you should never buy gold from a person or company that approaches you. Gold bullion dealers do not cold call, rather they are there, ready to supply a customer with their requested purchase, and if any company approaches you regarding buying gold, this should set alarm bells ringing.
Investing In Gold Jewellery
Gold jewellery can be stunning, and if you like wearing gold jewellery, there’s nothing wrong with that. However, if you are buying gold as a form of investment, stick to either gold coins or gold bullion. There are informative articles that highlight common mistakes that people make when buying gold, which is recommended readings for all novice investors.
Buying Gold As A Short-Term Investment
If you are looking for a short-term investment, gold is probably not the commodity for you. Of course, you might be lucky and buy when prices are low, which would mean selling at a slightly higher price will see a return, but gold should be viewed as a form of investment that offers long-term returns.
Buying Gold From An Unknown Online Source
While it is fine to use the Internet to seek out a gold bullion dealer, you should not make an online payment until you have verified that the organization is legitimate. It is always best to visit the gold dealer’s office, where you can be sure that the gold is genuine, and you can take physical possession of the said gold when you have paid.
By making sure you avoid all of the above, you should be happy with your gold purchase, and by keeping your eye on the spot price, you are always in a position to make a profit, should the price be right.
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