While there has always been and always will be a hardcore group of dedicated, some would even say fanatical, gold investors, many non-traditional gold investors are also eager to deploy some capital into this newly red-hot sector. Just as in every other market sector, the gold arena can be quite complex and intimidating for investors who have not yet found the time to research the gold market in depth. Unfortunately many potential gold investors are probably scared away because they cannot easily find a way to begin investing in gold.
What Kind of Gold Should I Buy?
There are several schools of thought on this question among hardcore gold investors. Personally, I believe that you should consider buying whatever kind of gold that gives you the greatest amount of metal for the lowest possible cost. Getting the most bang for the buck is known in the gold industry as “having the lowest premium over content”.
For almost all investors, whether they are deploying $500 or $500k into gold, buying one-ounce national gold bullion coins is an ideal solution. Various countries around the world including the United States, Canada, Australia, and South Africa mint special national coins that contain one ounce of fine gold. There are slight differences between the national coins, which include the American Gold Eagle, Canadian Maple Leaf, Australian Nugget, and South African Krugerrand, but they are all outstanding coins. Your coin dealer can explain the nuances of each coin to you in great depth, but they all serve the same investment purpose.
One-ounce national gold bullion coins have several key advantages for gold investors.
First, they have a low premium over content compared to other forms of physical gold. They give you the most gold for your dollars for whatever amount of capital you wish to deploy into gold.
Second, these one-ounce national gold bullion coins are immediately recognized worldwide. If you happen to buy some Australian Nuggets on a vacation Down Under you can easily sell these very same coins later by walking into any coin store in America or the entire world. By contrast, if you were to buy gold bars, they are quite difficult to sell because the buyer has to make sure they are legitimate and their stated gold content is correct.
Third, gold coins are exceedingly easy to store. Because of their small unit nature, it is much easier to store or carry 400 one-ounce gold bullion coins than a single 400-ounce gold bar. Gold coins will also fit into all kinds of discreet hiding places around a house that are simply too small for a gold bar.
Finally, with gold coins you can easily sell any fraction of your physical gold portfolio you wish for any reason. If you buy 100 American Gold Eagles and later you need to sell to raise some cash for some expense, you can take 1, 10, or as many gold coins as you wish out of your gold investment to sell immediately. With easily divisible gold coin investments you are never stuck in an “all-or-nothing” mode regarding your physical gold holdings.
In addition to the low-premium generic national bullion coins, there is also a whole separate gold collectors’ coin world called numismatics. If you are new to gold, however, I would advise steering clear of numismatics until you have had enough time to fully research how these specialized collectors’ markets work. Gold numismatics can be excellent investments but they are far more complex and complicated than plain vanilla national gold bullion coins.
National one-ounce gold bullion coins are the perfect starting point for any new gold investor.
How Do I Secure Physical Gold?
Often new gold investors are worried about having any gold at home. They fear that thieves will come and liberate their gold from them. While theft is definitely a small risk, it can almost be eliminated by taking two easy steps.
First, if you are buying gold for investment reasons, tell absolutely no one about your purchase. Don’t tell your friends, don’t tell your neighbors, don’t tell your co-workers, don’t tell your kids, just be quiet about it. You could live in the most run-down shack in town and have $1m worth of gold sitting in your basement and no one outside would have a clue unless you told them about your gold investment. 95% of the chance of theft can be eliminated if you are very subtle and discreet and keep your investment absolutely private.
Even in general not bragging about any of your investments is a very wise idea as we live in a strange age full of dark greed and venomous envy where humans always seem to covet others’ possessions. Remember, you are investing to secure your own financial future and independence, not to make your friends jealous! Be discreet.
Second, even though no one except you and your Gold Broker know you have any gold, be creative in hiding it. If you have 100 ounces of gold sitting on your bedroom dresser in plain sight, chances are a random thief would notice the beautiful shiny metal. But, if you think carefully and hide your 100 ounces of gold in multiple covert locations in your home or on your property, they will never be discovered by a casual invader. So few people own investment gold these days that thieves never think about it and look for other loot instead.
There are whole books written on this subject and you can be very creative here. For example, one elderly woman I used to know (she has since passed away) stuffed a dozen ounces of gold into a full jar of peanut butter in the back of her refrigerator!
If you tell absolutely no one about your physical gold investment and are very subtle and discreet about storing it, the effective risk of theft drops to near zero. Be discreet.
Can Sell Your Gold help me purchase Gold Coins and bars?
Yes we can! Simply email or call our office for an appointment.