How to Invest in Gold

There are many ways to invest in Gold, the precious metal that is often viewed as a reliable store of value. Investors can purchase physical gold in the form of bars and coins — referred to as bullion, or they can buy shares in companies that mine the metal. Investors who choose to hold physical gold may have to pay capital gains taxes on their purchases, depending on their tax status and how long they’ve owned the bullion.

Purchasing physical gold is one way to diversify an investment portfolio and hedge against inflation. However, investors should consider the cost of storing, transporting and insuring the gold they own. Additionally, it’s important to note that physical gold is not as liquid as stocks, mutual funds or ETFs.

Physical gold is available from many local dealers, including jewelry stores and pawn shops. These dealers usually sell the metal at a premium over the spot price, which is determined by the current market and historical prices. Investors should make sure the dealer they work with meets the international purity standard for investment-grade gold, which is 99.5% pure.

Another popular method of WoW Gold purchase is through futures contracts, exchange-traded funds and mutual funds that invest in the commodity. These options can provide a more liquid investment than physical bullion, but they typically come with additional fees and are subject to sky-high taxes. Investors considering these non-possessory methods of investing in Gold should speak with a financial advisor to see if they would be better off buying physical bullion.

When you decide to buy physical Gold, you’ll want to shop around for the best prices and quality. You can find reputable online dealers that offer a wide variety of bullion products, or you can visit local gold dealers to compare prices and types. Some investors avoid local dealers due to higher prices, sales tax, false advertising and wasted travel time.

Gold is considered a safe investment because it generally increases in value when the economy is in recession or a crisis hits. It also acts as a good complement to a stock portfolio, as it tends to rise when other investments plummet. It can be a great addition to a retirement account, as well, as it provides stability and diversification.

In a financial crisis, Gold can also be used as currency. It is a global asset that has universally recognized value and can be used to buy food, clothing or other necessities in the event of a collapsed or failing banking system. This is why some investors believe that holding physical gold can protect their assets against the coming banking crisis and other financial catastrophes. However, this strategy requires a large investment and a solid exit plan in case the crisis occurs. Some experts recommend a maximum of 10% of a diversified investment portfolio be in Gold. This is because the investment can lose value if the dollar depreciates against other currencies.