Making An Investment In Gold

No matter what the current gold bullion price is, it is never to late to invest. If you buy gold online, the number one thing to keep in mind is dollar cost averaging, or putting a set amount of money towards purchasing gold each month no matter what the cost is. This plan of action allows speculators to spread the risk of investment out over a period of time. Making an investment in gold is insurance, or protection, against worldwide doubt, currency debasement and inflation.

If you intend to purchase gold coins or gold bullion, ensure that you avoid the big premiums. Making an investment in gold successfully requires that you purchase it as near to its spot price, with a maximum premium being 10 p.c. If you buy a higher premium, the cost of gold will have to be higher up in range if you want to earn a profit.

Working out how much the premium is for a gold product, figure out the spot price and subject it from the amount the owner is referencing you. Divide your difference by the spot price and then multiply the quotient by 100. For example, if you purchased a gold bar that weighed an ounce for $1,225.90, and the spot price was $1,200, the bar would have a markup of 2.1 percent. To paraphrase, the cost of gold would only really have to increase another 2.1 % from the prevailing levels of spot price for you to come out quits on the purchase. But premiums are known to elevate as high as 75 percent — or perhaps considerably higher — depending on the item the premium is for.

If you’d like to avoid getting ripped off, it is important to keep in mind why you would like to invest in gold bullion. Keep close to the spot price if you are fascinated by a long term investment. To possess it for the usage of money, it is better to ditch the bullion and work with smaller coins — such as a tenth of an ounce — but you will have to pay the premium in that case.

If you are going to work with coins, it is also necessary to bear in mind that rare coin collecting should get left with the rare coin collectors; this is not as certain as investing in gold, and uncertainty must be evaded.

For over 29 years, Jake Mitchell has been an investment expert. Mr. Mitchell is always on top of the prevailing gold bullion price when he wants to buy gold online . Coupled with his experience, he features a B.A. Degree from Yale University as well as an M.B.A. From the Varsity of Virginia.