Types of Gold Investing

by IRA Rollover in Gold, Gold Bullion, Gold Investing, Gold IRA with Comments Off on Types of Gold Investing

If you are thinking of buying gold as a retirement investment there are a few ways you can accomplish that goal.  Some buy gold as a hedge against inflation while others are investing in gold for retirement.  With both you’ll have security and wealth that inflation and fickle economies can’t touch.

Buying Gold Stocks

Gold stocks are actually shares in working gold mines.  This can be a lucrative investment, especially if the mine runs smoothly and finds some great veins of gold that require minimal expenditure to extract.  There are some risks to gold stocks because their value depends on how well the mine does.  Like any other type of stock, you can monitor it closely and sell at a profit if the company appears to be in trouble.

If you decide to invest in gold stocks you should make sure that you deal with a licensed commodity broker that has a good reputation among his or her clients.  You should avoid those who try to pressure you into an investment during your first contact.

Mutual Funds

Mutual funds are a “basket” of investments that are comprised of several interests.  They may hold interests in several precious metals, including gold, as well as other commodities such as oil, grains, or technology.  Mutual funds generally do well because if one of the stocks performs poorly the others might be making money hand over fist.  This basket of investments spreads your funds across several strata of interests so that you can make consistent profits even if some of the stocks or commodities that comprise the basket don’t do well at times.

Mutual funds are considered a conservative investment because of their generally consistent returns.  Many people over the age of 50 like mutual funds because they are generally low risk and allow them to invest in gold, other precious metals, and many profitable commodities.

Gold Bars and Bullion

When investing in physical gold and silver you’ll have several options.  Both come in bars or ingots as well as in bullion form such as coins.  If you’re using it for a gold backed IRA account you must buy certified purity in an approved form.  Bullion is a bulk quantity of a precious metal that can come in bars that are stamped with their purity content after having been melted and cast.  Bullion coins are not used as legal tender but kept as assets.  Several countries around the world produce bullion coins but those made in the U.S. are guaranteed as to quality, purity, and weight.

There are many reputable gold bullion dealers that you can buy bars or coins from.  If you’re considering buying bullion you can shop around for dealers who charge the lowest premiums and who have the most satisfied clientele base.

Collectible Coins

Often called numismatic coins, these assets are valued according to their condition and how rare they are.  You can buy a US gold double eagle (face value of $20) from 1877-1907.  These are 90% gold and weight .9675 ounces.  When you buy such coins you will be paying not only for the gold content but for the rarity and collectability.  You usually end up paying much more for numismatic coins than you would for a similar weight in a gold bullion coin or bar.  You are gambling that your coin will rise in value due to its rarity.

Numismatic coins are not eligible for inclusion in a gold back IRA.  Their value is also tied to what people will pay for them beyond the gold content.  Since you are paying much more for a numismatic coin than for a non-collectible gold bullion coin, you must consider the chances of getting your investment back before you buy them.  A numismatic coin that costs you $2500 today may sell for much less if you have to liquidate for any reason.

Gold as a Hedge against Inflation

Gold will always have value no matter which form you buy it in.  People are using gold as a retirement investment specifically for that reason since it is not affected by whether the economy is doing well or poorly.  Whether you buy it for a gold IRA account or store it yourself on your premises or in a secure facility, you can be sure that your gold will never lose its value.  Gold is a foolproof way to preserve your wealth and build a secure retirement plan.

If you are thinking of buying gold as a retirement investment there are a few ways you can accomplish that goal.  Some buy gold as a hedge against inflation while others are investing in gold for retirement.

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