How to invest in gold and precious metals: Basic Guide
Many people consider investing in precious metals both to obtain benefits and to get insurance in case of crisis or cover their retirement.
In this guide I am going to focus on how to invest to get that insurance to turn to in case of catastrophe.
Why invest in gold and precious metals?
Gold has been used as a luxury good since the human being is aware of his humanity. It has the quality that it does not oxidize and is different by color from the rest of metals that are gray (copper is also different but oxidizes) and has utility not only aesthetic but also industrial. Therefore, gold (and the rest of precious metals) will never stop having an appreciable value. You will never lose all the money that you invest in it and it will be revalued in times of crisis, which is when it is most needed.
Click on the images to see them in detail
1 oz Krugerrand
Does gold never lose value?
I have not said that, gold, like any good, is subject to the law of supply and demand. There will always be demand but in times of economic bonanza its price will fall and in times of crisis it will rise.
How much should I invest? A salary in gold
This is one of the most complicated questions but we are going to give you a reasoned answer. The logical thing is to think that the more gold you accumulate the better, especially if the crisis is just around the corner and this is what the typical gold accumulators will advise you.
Be clear and repeat despite the obvious that the more you have better and if you want to ensure something retirement is a good idea to make annual purchases to accumulate something that does not take inflation
Now, what happens if there is no crisis insured in sight and you just want to have a quantity to defend yourself against unforeseen events? If you invest a lot of money in gold you can find that you need that money for an emergency and the gold, even if it is very "liquid" will never be as quick to mobilize (in good times) as the usual money.
Be clear and repeat despite the obvious that the more you have better and if you want to ensure something retirement is a good idea to make annual purchases to accumulate something that does not take inflation
Now, what happens if there is no crisis insured in sight and you just want to have a quantity to defend yourself against unforeseen events? If you invest a lot of money in gold you can find that you need that money for an emergency and the gold, even if it is very "liquid" will never be as quick to mobilize (in good times) as the usual money.
Therefore, how much do I have to accumulate at least in gold? Very easy, you have to have saved a salary in gold. What is a salary? Well, a salary is the money that you get (you get) in a month, whatever the amount is. With a salary is what you are used to survive in 30 days, reasonably enough time to escape from a country at war or find a solution to your problems. Having at least one salary accumulated in current money is a recommendation of the European Union to save you from unforeseen events, so I recommend that you make the effort to have that salary in normal currency and in gold (two salaries). If you have a high salary for sure you are used to more luxuries and if your salary is lower to more modest life. The measure of a salary fits all.
Alfonsina spanish gold coin
Do I buy all the gold in one go?
As the price of gold and other metals fluctuates, it is best to go buying little by little to go averaging. Think that in times of economic bonanza the gold goes down and in bad the gold rises.
Which metal is more convenient to invest to have that catastrophe insurance?
There are several precious metals such as rhodium, palladium, platinum ... which are still a good investment insurance (especially platinum) but make it easy for you not to have trouble buying it, of course the best is gold . Everyone knows it and knows it is valuable so it is easy to price (not like diamonds) and change it without problems. Its handicap, however, is that it is very valuable if, in case of crisis, its value rises a lot, you can find it in your hands with a piece that nobody can pay for, so silver pieces can be very useful for retail.
Platinum has less demand and is less known but many experts say it will be easier to sell as more platinum coins arrive on the market.
Do I invest better in bullion or coins?
Better the coins although both have their advantages and disadvantages. If you want to invest a huge amount it is best to have ingots for their greater weight, in addition, bullion tend to have lower premium or "Premium" (the cost of doing so and the benefit of the seller) on the price of gold (called this Spot). By contrast, ingots have less standardized forms which make them more easily fastable and therefore less demanded.
The coins have a well-known weight and dimensions (a one-ounce Krugerrand weighs always the same and always measures the same as another Krugerrand) and its drawing is also well known. To all this, many buyers prefer coins with a coined face (a king, etc.) because human beings are used to seeing faces and a fake face will have a somewhat different expression that will easily catch our attention.
Another thing, every time there are better fakes in terms of weight because of Tungsten, metal that weighs almost the same as gold and with which gold coins or ingots are sometimes covered with real gold. However, tungsten does not "sound" like gold and it is easy to tap a coin (with a wooden pencil so as not to damage it) and hear its sound; if Piiiiing sounds, it's solid gold.
Another advantage of the coins is that they can be sold in numismatic establishments, especially if they are historical coins, but this has also made their acquisition higher premium.
Do not buy damaged jewelry, your gold is with luck of 18 carats (75% of gold) and surely they will sell them as a jewel and you want to sell them as gold.There are jewelery with lower carat gold, make sure you buy
Better small since if the gold goes up in value we could have coins of much value and more difficult to change. Even so, a split gold coin still has value, although obviously in that case you have to weigh the fragment and it is not so easy to split a coin either.
Coins and ingots large or small?
Better small since if the gold goes up in value we could have coins of much value and more difficult to change. Even so, a split gold coin still has value, although obviously in that case you have to weigh the fragment and it is not so easy to split a coin either.
What are the best gold, silver and platinum coins to invest-accumulate?
Choose coins known in your country as the Alfonsina of 25 pesetas of gold in Spain, but there are coins that are recognized in all countries
In these links you will find the entries I made specifically analyzing the best coins and precious metal bullion. I also explain the differences between 24 carat (pure gold), 22 carat (alloy with other metals and more resistant) or 900 (9 tenths) coins.
Best platinum coins to invest
Is it wise to buy gold jewelry then?
If you are going to enjoy them as decoration, yes, because you are giving them daily use, something that you do not do with coins and ingots, and if necessary, you always get money when selling it. In that case buying gold jewelry is very sensible but always bearing in mind that the gold it contains has been expensive to have paid the making of the jewel.
Where to buy gold and precious metals?
The best thing is always to buy in legal premises and obtain an invoice that will help us in case of selling them legally to understand us with taxes.
Some say that buying on a registered basis is bad in case one day there is a confiscation of gold by the state as occurred in the US during the Great Depression.
Where to sell my gold when I need to make it liquid?
In case of hyperinflation catastrophe as lived in Germany after the First World War, you can negotiate directly with him and take advantage of that you have a good that is more precious than paper tickets. If the company keeps you will get better prices of your coins in Numismatics stores (it is good to know what your coins are worth in advance) that sometimes also buy small bullion. There are pages of sale between individuals on the Internet and in case of despair you can go to a buy-gold that is where you are least going to pay but if you are desperate are a way out (bad) but a way out.
Is physical gold or gold in values better then?
In case of catastrophe having a paper that tells you that you have gold in a Swiss bank may not help you at all and that if it is not a scam and your ounce of gold has not been sold to ten more people. Better for that the physical gold and in an accessible place that does not have to be in your house.
Be careful when saving the silver that has the tendency to rust, creating a dark oxidized or blackened.
Spanish silver coin of 12 euros.
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