How to buy Gold and other Precious Metals

5 Ways to Buy Gold

Diversification is a key word used by many advisers when they advise that gold and other precious metals are deserving of a place in any investment portfolio

Gold – A diversifier in any Investment Portfolio

For the last 5000 years, gold and other precious metals served to back the economy, a country’s wealth used to be measured by the amount of gold they possessed. Although that is no longer the case, precious metals still play an important role in the world economy.

When all other commodities are down, the prices of gold, silver, platinum and palladium goes up, so does cooper. Especially in times of fear and inflation investors seek a safer product and go directly to buying gold. Many believe that gold is the only true currency, especially in times of panic and uncertainty.

Thanks to modern technology and globalization, we now have access to a great number of options of where to find gold; exchange and trade funds, jewelry swaps, even gold-vending machines. There are different opinions from advisors about gold and other precious metals. Some believe that gold and other precious metals should be a part of an investment portfolio because they help to diversify, silver and platinum, now, play a very important role as reliable commodities. Other advisors claim that gold and other precious metals are not investments, but more like collectibles, because gold or silver cannot produce returns.

We, at gold-buying-training disagree. But before you take the plunge into the gold rush, keep in mind some tips:

Don’t expect any return if you buy gold the traditional way. To learn more about buying gold at a discount click here

An unpredictable investment. The return on investment in gold, from 2001 to 2010 was of 17.7% per year. But this is not always the case. Relative to the US dollar, for instance, gold lost nearly 60% for almost 20 years in the 80’s and 90’s.

An Investment lacking a logical relation. Most assets move in tandem but that is not the case with gold, silver and/or platinum, which is why it serves as a diversifier in an investment portfolio. Some financial advisers recommend keeping up to 10% in gold and other precious metals in your portfolio to help stabilize portfolio volatility.

There are a lot of ways to buy gold

Real and physical gold. As an investment, gold coins and bars are the best option for those who want to keep it close and in an immediate basis. Jewelry is another asset but a hole other ball-game, it did, however, represent 54% of total gold demand in 2010, according to the World Gold Council.

Stocks. When it comes to stocks, gold, silver and platinum mining stocks are the most popular option. These offer investors the option to bet on gold demand. Mining company profits can change rapidly with the price of gold and other precious metals, when the price of gold goes up, mining stocks tend to go up as well.

Funds and ETFs. Some advisers and investors rely on GLD, the abbreviation for gold in the financial-investment world. Trade-exchange funds like SPDR Gold shares (GLD) are, indeed, backed by gold, however shareholders are not given the option of taking actual possession of it.

Safety. When possessing valuable items, one must consider certain safety procedures and keep in mind different options.

In the bank. One must be careful with bank safe deposits. Like everything else in life, building good business relationships is essential to long lasting and profitable business. When choosing a bank safe, take the time to talk to bank representatives and let them know that you are going to be storing precious metals in the safe and ask what is their policy to storing that in case the bank is robed. A very famous case, in Mexico City, where a bank was robed, one of their savvy customers had an inventory and a log of every item deposited in her safe-deposit box and she got reimbursed up to 90% of the value of her belongings.

At home. Homeowners’ insurance policies generally cover very little gold stored at home. If you decide to keep you gold at home be very careful and extremely cleaver about where you store your gold.

Avoid rookie mistakes when you buy gold.

Be careful who you buy from. Buy from someone who has been in business for many years, don’t be afraid to ask for other clients, make sure they acquire their gold from institutions such as the US mint or Bank Swiz.

Avoid paying too much. Never pay premiums of more than 9% over the spot price of gold per Ounce.

We at Gold Buying Training offer a system where you can actually buy gold coins, bars and even jewelry at a discount. For more information about our program please click here

We basically show you how to buy scrap gold and converted or trade it into legitimate gold coins and bars. How to identify fine jewelry in bad shape, fix it and either keep it or re-sale it at a profit. For more information about our program please click here