Many people buy gold for investment purpose, as this metal can offer you significant gain in the long run. You may find plenty of advice available in the internet which is necessary to be read by the first-time investor.
The advice offered by experts in the market can be invaluable and can prevent you to commit a big mistake of your life. The concept can be quite simple but for many first-time investors it may be a bit confusing too.
Therefore, in this post we are going to present the same in simpler words so that it can make the matter much simpler.
While you decide to buy gold then there is a possibility that most of you may end up doing following three mistakes that can be quite a costly mistake too.
- Make sure that you do not get ripped Off
There are few companies who often charge very high amount as the spot price for gold if you make bullion purchase. However, never make more than 5% – 10% over gold’s spot price.
Though sometimes the premium may go as high as almost 75% or even more based on your gold item. Few online dealers too, sell at 35% mark up.
However, at U.S. Gold Bureau, typical mark-up remains only 2% – 5% and generally gold bars are the cheapest way of buying gold bullion.
- Be careful while buying gold related stocks
For any investor, it is very difficult to choose right gold-related stocks. You need to check about their business, management practices, also their business strategy and how can they fare competition.
As per the U.S. Gold Bureau experts, the risk involved in these gold investing companies are as high as buying stock. Therefore, it is much better idea to diversify your investment in rare coins, physical gold rather than investing in stocks.
- Understand that any exchange traded funds are NOT really a physical gold
Number of investors who come across various ETFs e.g. IAU, GLD and SGOL and while they do research about them about precious metals and often do a mistake by believing that shares in such funds will represent actual gold.
In fact, it is very difficult to determine if gold in ETFs really exists. Mostly these funds hold gold but will issue you only shares as a paper that represent a gold.
At U.S. Gold Bureau, you will get physical possession of gold, so there will be no concern about security or validity of the investment.