3 Things To Know About Entering The Gold Market
Posted on: 7 January 2018
One of the most classic ways of investing is through the purchase of gold. If you are interested in entering the gold investment market, you need to make sure you understand a few basics about how it works.
Stick to North American Coins
With gold, unless you have a large amount of cash to get you started, you are not going to be buying gold bars, you are going to be buying gold coins. When you purchase gold coins, make sure that you stick with coins that were minted in North America. With coins minted in North America, you will have an easier time learning about which coins are valuable and finding authentic coins. When you start getting into other currencies from around the world, you enter an entirely new buying and knowledge market. When you start, it helps to stay local.
Don't Borrow Money
You should not borrow money to invest in gold. Borrowing money to make any type of investment, even in the gold standard, is a tricky business. The value of gold can change a lot over the short term, so you may not make back the cash that you want to pay back the loan. Over the long term, the value of gold can be solid, but it is not something you should hedge a short term loan on. When you invest, it should be with money that you have earned and want to see grow over time, not money that you have to turn over quickly for a profit.
Don't Fall for Scare Tactics
When purchasing gold, make sure that you don't fall for scare tactics. The U.S. Treasury is not going to confiscate your gold; it has been illegal to do so since the 70s. A rare coin is not suddenly going to disappear or go out of stock. Collectors coins are not where all the money is to be made. If you feel like you are encountering a gold buyer who is trying to use scare tactics to pressure you into purchasing gold, ignore them and stick to investments that you are able to take your time to research and make. You should never be pressured into purchasing gold. There are lots of legitimate gold buyers out there, but there are also some gold buyers out there who are going to try and pressure you into buying gold; these are the buyers that you should avoid.
If you want to invest in gold, do so with money that you have earned, not borrowed money. Invest in North American coins until you learn enough about other countries to be knowledgeable about their valuable coins and always take your time to research and feel comfortable about a purchase. Contact a dealer, like Beaverton Coin & Currency, for more help.
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