In times of economic recession, the prices of gold and silver usually begin to increase. This means that gold becomes an attractive investment option, as you can buy a quantity, wait for the price to go up, and then sell to turn a tidy profit easily. Gold also provides a hedge against inflation and is also a safe haven for monetary assets in times of economic uncertainty.
Many people believe there is so mystery or difficulty involved with buying precious metals. However this is mostly a myth. Buying gold is actually fairly easy to do, provided you have the capital to purchase your precious metals.
Precious metals can be purchased in several different forms. The most common form is bullion coins. These can be 1/10th of an ounce coins all the way up to 1 pure ounce coins. The second form is bars. Bars are usually higher quantity, so these are a good way to buy lots in bulk if you have deep pockets or are an experienced investor. The third form is the least common for investment; nuggets. Nuggets are usually found in creek or river beds, and vary in purity and gold content so are less suited to investment and re-sale. Be sure to check the current price of gold per ounce on Monex.com or other precious metal website so you don’t pay overpay, regardless of which form of gold you choose to buy.
So, where to buy your gold? The internet is usually the easiest place to buy, although some people are not set up to buy things online or feel uncomfortable buying big-ticket items over the Internet. For such folks, the local metals and gem shop or pawn shop will probably be your preferred venue for your investment purchase. For Internet-savvy investors, you can easily and safely buy gold on Ebay or similar websites. Be sure to check the reputability of any web site you enter your financial information on.
Storing your metal safely is a consideration as well. You can store it in a safe at home or a safety deposit box at your bank. Some people find places to hide valuables in their homes as well. Choose the option that best serves your needs and situation. You’ll want to feel comfortable with your storage location so you’ll be able to sleep at night knowing your investment is safe and secure.
Once you’ve gotten your gold, check prices on Monex.com or other precious metal investment sites. You can watch the price go up and down so that you can choose when to sell your gold to turn a profit if you desire to do so. The other option is simply to hang onto your precious metal to protect your money against monetary devaluation or inflation.