Things To Know Before Buying Gold Online

things to know before buying gold onlineEven if the current economic conditions aren’t good, history has shown that precious metals such as gold and silver will continue to hold their value. One of the main reasons behind this is that these metals are constantly in high-demand from investors and coin collectors looking for tangible and safe assets.

Now the general public and ‘mums-and-dads’ investors can easily buy these metals in one of two ways: either buy and keep the metals yourself using your after tax-dollars, or buy them by using a Gold 401k or even an IRA Profile. Investors the world over have known for thousands of years that gold and other precious metals are worth spending their hard-earned cash on for a little something that is risk-free. It’s undoubtedly an effective investment technique, and with the Internet, it’s now even easier to buy your gold. Today I’m going to cover some basic things that you need to know if you’re looking to buy gold online.

Always Diversify

If you have an existing portfolio, don’t commit more than 10% – 30% of your total resources to gold.  It’s always good to diversify your risk when accumulating assets and by sticking to a small amount of gold or precious metal assures you a favorable investment without forking over excessive funds. Some investments are riskier compared to others, and by purchasing physical gold or silver, you can rest assured that you are investing in something that will hold its value and that has a very good long-term outlook. The other thing to do is don’t buy all your precious metals at once. Try to spread out your purchases so that you minimise the risk of buying all your allocations at a high price.

Take Advantage Of IRAs

If you can, try to buy your gold with your pre-tax dollars. Instead of trying to buy precious metals yourself, there are actually companies out there that will help you out on effective ways to invest in physical gold and silver and send it to you directly. A particularly cost-effective way to purchase precious metals is by using an Individual Retirement Account or even Gold 401K account. These companies will not only help you setup these accounts, they will also store your gold for you. To find a reputable gold IRA custodian to handle all this for you, check out these excellent and informative reviews of gold IRA companies at before you make the final decision to invest. They will explain all the advantages and disadvantages of using your IRA and how the whole process works.

Keep An Eye On Global Events

Be aware that events happening around the world can influence the price of gold and other precious metals. By keeping abreast of current world events, you will be able to spot opportunities to buy gold at reduced prices.  Gold usually performs well when the global economic climate is in a troubled state. As most currencies are no longer backed by gold, more traditional forms of investments an suffer sudden and dramatic losses in value, unlike gold which will move in the opposite direction in these circumstances.

So keep these things in mind if you’re considering buying some gold online to ensure you’re making the right decisions.

Why Gold Is Such A Great Investment

why gold is such a great investmentInvesting in gold always has been and always will be a great strategy for growing your assets and securing you and your family’s future. Gold is a well-understood and tangible form of investment that investors have always sought out. In fact, gold has been highly-prized and in high demand by people for thousands of years and there is no sign of this demand fading. So why is gold so highly-values? What makes it so special?

The primary reason why gold is such a highly sought after resource is that it is extremely difficult to extract and there is such a limited supply of it.  The demand for gold is also high because it is used by so many industries in so many ways. Due to its rarity, gold always holds its value, especially when the supply of gold is restricted due to war or workers strikes. As a result, gold can be used as an asset in times of economic crisis. Gold is also used as a means by which to measure the economic position of a nation and due to the powerful influence it has over the overall flow of income, can be a reliable and accurate indicator of world-wide market trends.

Gold’s extremely stable nature in times of economic hardship and uncertainty is being used to great effect by retirees concerned that value of their hard-earned retirement funds are in danger of being eroded. These retirees have been actively increasing their holdings in gold using their IRA to help diversify and therefore safeguard their retirement funds from any dramatic devaluations.

Investing in gold can be done in two different ways depending on the motives of the investor. The first way is by investing in physical gold itself, usually by buying gold bars or coins. The second way is by investing in gold backed securities like gold certificates and gold holdings, or by purchasing shares in gold mining companies. The important thing to note  is that all of these purchases can be tax-free if the purchases are carried out via an IRA.

Physical Gold Investments

By investing in physical gold, the investor will have numerous options in the forms of gold to invest in. Investors can purchase various types of gold coins that are on offer from a number of governments. There are also many different organisations that you can buy gold from, ranging from individual gold dealers and collectors, all the way up to multinational brokers and bankers.

When buying gold from a bank, you will typically get a certificate that lists the amount of gold you bought and the current value. If you choose to take delivery of it, it will normally come in the form of a gold bar. Buying gold jewellery on the other hand, is usually more expensive as effort has been expended into creating something of a higher aesthetic value. Buying gold from a broker or gold custodian is also more expensive than the actual spot price of gold as they include the additional costs incurred for storing, shipping and insuring the gold.

Gold Transactions

There are also several different ways to actually attain ownership of gold as well, and it’s worth the investor understanding these before taking the plunge and making a purchase. These ways or transactions are known as a gold transfer and a gold rollover and both are usually done via an IRA.

A gold transfer is when assets in an IRA are directly transferred from one IRA account to another, with the only parties involved being the IRA holder and the IRA custodian. In this particular instance, the IRS does not need to be notified as there is only one 3rd party involved.

In a gold IRA rollover, however, the IRS does need to be involved, as the rollover requires that assets from one account to the other are handled by the respective custodian – i.e. the actual owner of the IRA account is not involved in the transaction. With rollovers therefore, it is important that to avoid any scams, you ensure that you only deal with reputable gold dealers.

As always, being aware of the finer details in these transactions will ensure that your investments in gold will be successful so that you can take advantage of the long term benefits of having a holding in gold for your retirement.