You know the strengths of a diversified portfolio. Stock gains don’t last forever and you need assets that won’t lose out to high inflation or negative real interest rates. Many investors have been turning to gold, keeping it in a satellite position that occupies anywhere from 3 to 25 percent of their portfolio (or even more). They have plenty of reasons for making the move in an economy that’s starting to show cracks in the foundation.
For those of you who have decided that investing in gold is one of the right ways to create a stronger, more diversified portfolio, the first step is figuring out how you should actually buy it.
Why Buy Gold Bullion
When it comes to this unique investment product, going traditional maximizes the benefits that draw investors to gold in the first place. Investors who get into precious metals want to:
- Protect their purchasing power from currency debasement (i.e., the Federal Reserve’s quantitative easing program) and inflation
- Keep their money in a liquid asset similar to cash but not a currency that’s as vulnerable to the economy; the appeal of gold is an intrinsic value that has survived through thousands of years of changing economic systems across cultures
- Hedging against the stock market
- Avoiding third-party risks, such as mismanagement and bail-in regimes
While futures and ETFs are options for investors, gold bullion is the only option that satisfies all of these benefits.
How to Buy Gold Online
When you invest, you want it to be quick and simple, right? As easy as investing into equities. Thanks to new online options, it’s now that easy to buy gold. Follow these easy steps and include gold in your portfolio today:
1) Find Affordable Coins and Bars
There are plenty of reputable sellers out there who provide gold coins and bars from mints and private refiners from around the world. Stick to bullion coins that are 99.99% pure gold (although American Gold Eagles and South African Krugerrands, at 22 karats instead of 24, are exceptions to the rule). Gold bars can be an even better deal, as they often have lower premiums thanks to lower production costs.
2) Find a Seller with IRA-Eligible Gold
If you can’t buy gold bullion as part of a tax-advantaged savings account, find another seller. In the US, bullion is now accepted in IRA accounts and can help you save when you cash out your returns.
3) Find a Storage Option
For smaller investments, a home safe may work just fine. If you’re investing larger sums, consider storing your gold in allocated storage.
Consider Other Precious Metals
There’s more than one precious metal available if you want to further diversify. Silver, platinum, and palladium are all similar precious metals widely gaining appeal as investment vehicles. Used in everything from bullion coins to jewelry to electronics, they offer you alternatives. Make sure you check out live silver prices today before you invest, as with any precious metal.
When you buy gold digitally, you can save money and invest quickly and conveniently. The more you save, the easier it is to improve your returns.
Last Updated on February 3, 2021.