Gold has been used since ages, by a number of civilizations. It has been the backbone of many countries, supported vast empires and has been the centre for numerous wars.
Investing in gold bullion has been a staple in world economies and the trend is still continuing, making this one of the safest, most stable, and prominent investments in the world.
Here are some top tips by the experts that will help you if you are investing in gold bullion for the first time.
Tips to buy gold
1. Buy physical or digital gold and not paper gold
Anyone who buys gold bullion needs to understand that the basic function of it is to support the economy. Long back, gold was used as a form of money.
It was in 1971, when President Richard Nixon abruptly ended the practice to stop dollar-flush foreigners from sapping US gold reserves, to help combat the Great Depression.
Now that the world currencies are not backed by the government-held gold, the paper market for gold has grown immensely.
But, don’t buy gold on paper. Either get physical bars delivered to your house, or buy pool allocated bullion online. When you are buying gold to insure yourself against any crash of the monetary system, make sure to own the gold digitally or physically.
2. Have it under your direct and unencumbered ownership
Even if you have the budget of buying of a nominal amount of gold, as less as 1gm, do that. You need not invest a lot at the first go, rather take time and build up your portfolio slowly. But wherever you invest, how much you invest in, physical or digital, just make sure that the platform you are investing through, gives you proper ownership rights.
Just make sure wherever you are investing into gold, silver or any other precious metal, make sure that the gold belongs to you directly, and the company handling it cannot hedge it, pledge it or lease it out.
3. Building up of liquid stocks
Gold is not only a monetary insurance but also a means of building up savings over a longer period of time. For example, if a person had invested $100,000 in physical gold in 1970, he would be able to buy roughly 1,800 ounces of gold today, that would be worth around $2 million. Even if you purchased an ounce of gold sometime in 2004 at a price of $500, it would now be worth over $1,900.
Buying gold is like buying your insurance. It acts as a store of value.
You would obviously want to have access to your gold during crises and would not want to run around with a kilo of gold. You will want it to be liquid.
A lesson from the history: During the Weimar Republic in Germany, when inflation went rampant, an ounce of gold could purchase a house and an ounce of silver could pay the farmer to have chicken for about a month or more. If a similar situation arises today, you will be able to use gold for bigger opportunities and silver for financing smaller things.
4. Buy gold whenever you feel like
Have funds to invest? Great. Don’t have enough funds? Investment platforms like Central Bullion allows you to open and account and provides you with a wallet. They also let its customers buy gold of nominal amounts. Start putting in whatever little can to your wallet, let it reach the amount with while you can buy a gram or two of gold and silver. After you add it to your portfolio, start saving on your wallet again.
If you have saved some bucks, try investing, instead of shopping this time.
5. Store your invested gold in vaults outside the banking system
Physical gold, it is said, is the antidote to the current system. The banking system at present is based on credit, paper, and numbers on the computer. The crisis that may happen, the reason so many people are buying gold to protect themselves, will obviously be a huge banking crisis. Thus, if you decide to buy physical gold, experts believe that it is only justified to store it outside of the banking system.
The property rights in banking system are temporary by nature. History has seen how banks in the past have confiscated cash and physical gold.
Some may argue that you can have a safe deposit box, but usually those are not insured. Besides, during these tough economic crises in the past, the bank had either closed or didn’t have the amount of gold they claimed to have.
The investment bullion that you buy and sell on the Central Bullion Platform is Pool Allocated Bullion where one has the option to convert the Pool Allocated Bullion to Bullion Bars to be delivered to your own premises at any time. As a registered user of this platform, you will have a complete peace-of-mind knowing that when you buy Gold Bullion or you buy Silver Investment Bullion on the Central Bullion Platform and ‘Peer-to-Peer’ Central Bullion Market, you own ‘real’ physical Gold and Silver Investment Bullion.