Why Buy Gold? How To Buy Gold 101

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Why Buy Gold? How To Buy Gold 101 2017-08-25T11:25:42+00:00

What is Gold Investing?

Gold is a precious metal with a very long history in the world. From explorers in the 1400’s to the Gold Rush in the United States in the 1800’s, gold is one of the most sought after precious metals. It has helped safeguard wealth during difficult economic periods when people were afraid of deflation and untrusting of bank collapses. Over the past 10 years or so, precious metals like platinum, silver and gold have performed much better than stocks, bonds and other assets. In the first quarter of 2017 alone, Gold prices are up more than $100.

How Valuable is Gold?

Gold has kept its value strong and growing for thousands of years, which is unlike any other form of currency. Stocks, bonds, funds, treasuries, futures, you name it – all have risen and fallen in the USA and foreign countries. Gold is the only true currency that has weathered the test of time, people, governments and paper based money. Physical gold is as close to a guaranteed value as there will ever be in this world.

Why Should I Buy Gold?

Take a look at the news…the current political climate is extremely scary. From the USA being threatened by terrorism, trade deficits, currency exchanges, Brexit, you name it locally or across the world, there are many reasons why overinvesting in paper money can be dangerous. Gold gives you a safeguarded guarantee as well as diversification of your assets. There are many ways Gold will protect you, from guarding against global economic uncertainty, government overspending risks, stock market volatility created from such environments, bank and insurance company collapses, as well as creating tax advantages.

Is Gold Right for Me?

Gold is right for anyone that wants to diversify their portfolio away from paper currency, has money tied up in IRAs or other assets where the rate of return is smaller than desired. It is also for those that want a physical asset in finite supply or for those that want to seek out tax advantages.

Is Gold Recession Proof?

Gold is known as a “safe-haven” asset. Nothing in life is 100% guaranteed, but Gold is almost the exception to that rule. In volatile times, Gold stands up and continues to increase in value. If you look at the First Quarter of 2017, Gold prices are up $100 already to $1248. All the while the stock market has been up and down. Throughout history, when stock prices go down, gold prices have gone up. It’s probably one of the safest plays for your money in this world.

Why is Gold Safer Than Money in the Bank?

Gold gives you a safeguarded guarantee as well as diversification of your assets. For the banking industry, the FDIC deposit insurance coverage limit is $250,000 per depositor. This means if you have more money than that in a bank, and it collapses or ceases to function, they can take your money beyond the $250,000 limits. If you own Gold or other precious metals, it is your physical asset that no one can take from you. It has no limitations. You are not at the mercy of other people’s decisions, fraud, government issues and other geo-political unrest in the world.

What is a Precious Metals IRA?

Your IRA or other retirement accounts may be eligible to be converted into physical Gold, Silver or other precious metals. Most people who have saved for their retirement have a pension plan, annuities, a 401K, 403b, 457b, and many other programs like a Thrift Savings Plan. These programs typically consist of a portfolio of different assets from mutual funds, stocks, bonds and cash. All are paper based assets. Some or all of the money in these plans from previous employers can be converted into a Gold or Silver precious metals IRA – tax free!

What are 401k & 403b Accounts?

The 401k plan is named exactly after a section of the Internal Revenue Service Code, which is basically a savings plan that allows employees to invest a percentage of their earned income into the plan. This is before taxes are taken out. As an added benefit, many companies will often add a percentage match of the employee contribution into the fund, which can accrue to even more “free” money over time for your retirement savings. As for the 403b plan, it is merely the public employee version of the 401k plan, also named after its IRS code section. Public employees means those that work in sectors such as government, schools, and charities.

Why should I Convert My IRA to Precious Metals vs. Keeping a Traditional 401k/403b Plan?

There are many factors and limitations that restrict or hurt 401k/403b plans, such as asset volatility, the economy, political unrest, financial advisor management with limited self-directed control, and 10% early withdrawal penalties if taken out before 59½ years of age. You should check the terms of your accounts if they allow for precious metals investments. Gold and other Precious Metals are flexible assets that can be managed through a self-directed IRA and help guard against inflation if the dollar starts to devalue. It can also provide tax free or tax deferred growth for diversification. Keep in mind that some plans have roll-over penalties and others do not allow accrued dollars to be moved at all unless an exemption is cited like leaving employment or financial hardship Precious metals have generated amazing returns over the last 15 years, as Gold (319%) and Silver (259%) have greatly outpaced all other types of assets.

What Types of Precious Metals Are Approved by The Government for an IRA?

Gold, Silver, and Platinum coins and bars and rounds. Platinum has a minimum fineness of .9995, Silver has a minimum fineness of .999, and Gold has a minimum fineness of .995.

What Types of Platinum is Approved?

Platinum coins that are approved are the American Eagle Bullion, Australian Koala, Canadian Maple Leaf, and certain bars that have the minimum fineness of .9995.

What Types of Silver is Approved?

Silver coins that are approved include the American Eagle Bullion & Proof, Australian Kookaburra, Austrian Philharmonic, Canadian Maple Leaf, Johnson Matthey bars, and certain bars that have the minimum fineness of .999.

What Types of Gold are Approved?

Gold coins that are approved include the American Buffalo Bullion, American Eagle Bullion & Proof, Australian Kangaroo & Nugget, Australian Philharmonic, Canadian Maple Leaf and certain gold bars that have the minimum fineness of .995.

Economics: Gold Supply vs. Demand

Gold is a physical asset, and there is a limited supply in this world. Money is just paper, and we can always print more if we want to. World experts estimate there are 120 to 150 thousand tons of gold in the world in use and most of it still exists in physical form. In addition, roughly 3,000 tons of gold are mined each year to add to the supply, and most of this gold is utilized by industries like jewelry or dentistry. The rest of it is used to produce gold bars, coins, and bullion. As large as the figures sound, it is a very expensive and limited process to bring more gold above ground, which further has an impact on gold prices. The same cannot be said for paper currency.

Can I buy Gold online?

Yes you can buy gold online.  Many precious metals companies sell gold and silver coins, gold bars, and gold bullion online. You can speak to representatives as well and see pictures of what you are purchasing like the ones we have in our gallery. There are many valuable gold coins and silver coins from Australia, Austria, Canada, and the USA. Most of the companies where you can buy gold also offer retirement plan options such as 401k and 403b IRA rollovers as well.

Can I buy gold bars?

You can buy gold bars online or in local brick and mortar establishments.  You can also buy coins, bullion and other precious metal assets.  Most companies offer discounted storage in depositories to help make your gold purchase safe and secure.

Do you know where to buy gold?

There are hundreds of precious metal companies out there.  It is important to do your homework and read reviews and ratings about the companies. We work with many different gold and precious metal companies, and we rate them to help take some of the burden away from you. Only trusted companies we have experience with will be found on our site.

Is Investing in Gold worth it?

We certainly think so, as do many financial experts that you can see on a small sample on our Testimonials page. Gold gives you a safeguard against wild stock market swings and adds diversity to your financial holdings.  Over the past 10 years or so, precious metals like platinum, silver and gold have performed much better than stocks, bonds and other assets. Gold prices are up more than $100 in the first quarter of 2017.

Is Buying Gold safer than Investing in stocks?

Gold and other precious metals are a physical asset that no one can take away.  It has no limitations and is not subject to unpredictable activities in the world like wars, terrorism, global warming, bad leader decisions, ponzi schemes, and other things you cannot control. Gold and precious metals are in limited supply and are only controlled by supply and demand. Stocks are still very good to own, as are bonds, as are typical checking and saving accounts in your bank – we just know that diversifying a portion in precious metals is also a very smart and recommended strategy for your portfolio of assets.

How to buy Gold and other Precious Metals – is it easy?

Yes it is easy. There are thousands of precious metal companies out there both online and in local strofronts. We have made it easy as we work with many of the top companies who can get you a Free Investor Kit and speak to you on the phone or in person to customize the best options for you. They can take you through the process and make sure your retirement assets are eligible to be converted into a Precious Metals IRA. You don’t have to be an expert as they have the expertise to guide you through the quick and easy process.

What are the Advantages of a Gold Investment?

Gold and other precious metals have no limitations and are not subject to unpredictable activities in the world. Events like wars, terrorism, political decisions, new government regimes, and so many other things cause wild swings in the stock markets and currency. These are things we cannot control. Gold and precious metals are in limited supply and are only controlled by supply and demand, and they are a physical asset that no one can take away.

What are the Pros and Cons of Investing in Gold?

The pros of investing in Gold and other precious metals are that they are not subject to unpredictable activities in the world unlike paper currency. Traditional money is affected by world events and many things outside of our control. Gold and precious metals are in limited supply and are only controlled by supply and demand. They are a physical asset. The cons of investing in Gold are that it is a physical product that needs to be stored and protected securely, and that in strong economic times, it’s value may grow at a smaller rate than paper currency.

Are Gold Bars a Good Investment?

Yes!  Gold bars and gold coins are the most popular way to invest in gold. Gold bars are often thin, rectangle-shaped slabs produced by private minting companies. Gold bars and silver bars are are not considered legal tender, but are favored by larger investors that want to take possession of as much precious metal as possible. Gold bars typically have the lowest premium over spot price versus other precious metal formats like coins.

What are the Benefits of Investing in Gold?

Investing in gold has many benefits, with the largest one being stability of your financial investment.  Gold and other precious metals are not subject to unpredictable activities in the world, unlike paper currency.  Traditional paper money is affected by many things outside of our control, while gold is affected only by supply and demand.  Gold prices have also increased significantly in 2017, already up $100 in Q1 2017. It’s no coincidence there has been much instability in the world, but Gold remains steadfast in its value.

What is the Best Bullion to Buy?

Gold bars are the best bullion to buy.  Gold and silver bars are thin, rectangle-shaped slabs produced by private mints. Although not considered legal tender, bars are easy to store and stack, have the lowest premium over spot price, and allow investors to quickly and easily amass a large precious metals portfolio.

What is the Best Form of Gold to Buy?

Gold bullion such as bars and gold coins are the most popular and best way to invest in gold. Gold bars are thin, stackable, rectangular slabs rectangle-shaped slabs and gold and silver coins are small spheres that can be used for legal tender.

What are the Best Gold Bar Brands?

There are hundreds of gold bar brands in the market. Walk into any preciou metals shop or dealer and you will see many brands being sold.  There are many private mints in the USA, Australia, Canada, Switzerland and many more countries. All offer different sizes and designs.  It is really up to you to decide since the quality is standardized.  It is more about the look, feel and history that you will need to decide on before you make your choice. It’s all personal preference, but some top gold bar brands to research further are Apmex, Ohio Precious Metals, Johnson Matthey, PAMP Suisse, Credit Suisse, Royal Canadian Mint, and Monex.

What is the Best Gold Investment Plan?

The best gold investment plan is rolling over money from an IRA or other retirement accounts that are eligible to be converted into physical Gold, Silver or other precious metals.  Most people have a pension plan, annuities, a 401K, 403b, 457b, and many other retirement savings programs. You don’t have to convert all of it to gold in one shot.  You can slowly move over blocks of money as you see fit and enjoy the strong returns.  For example, if you have a $250,000 IRA, you can start with $50,000 in gold, then move over another $50,000 or even $100,000 a few months later.  You can do it at your speed and comfort level.

What is the Best Way to Buy Gold for Investment?

The best way to buy to buy gold for investment purposes is purchasing in the form of gold bars and converting an IRA/401K into precious metals. Gold and silver coins, bars and bullion, and retirement accounts are best set up through professional companies that handle these types of transactions. Purchasing from a local dealer may be good for smaller investments as well.

How Can I Buy a Gold Bar?

You can buy a gold bar through online dealers and local stores. Some banks do sell them, but it is not what they specialize in and many do not carry them on hand. There are many reputable dealers you can find online, such as Gold Trust Precious Metals, Red Rock Secured, Monument Gold, Fortress Gold and more. Be sure to look at their Better Business Bureau, Consumer Affairs and Trust Pilot ratings first before choosing the places you wish to speak with. All have different rates as well, so it is best to shop around at a few companies.

Can I Buy Gold at a Bank?

Some banks do sell them, but often times they do not carry stock on hand in their vaults. Most do not specialize in precious metals. It is best to call your local banks or choice and ask first before going in, It is best to find reputable dealers online that have solid ratings with the Better Business Bureau, Consumer Affairs and Trust Pilot.

Can I invest in Gold Now?

Yes you can invest in gold now or at any time you like. You can buy gold and silver coins, gold bars, and bullion, and also convert some or all of your qualified IRA/401K into precious metals. Anyone can invest in gold, and store their assets in a home vault or with a secure storage company.

Can You Own Gold Bars?

Yes you can own gold bars, and really anyone can buy gold bars or gold coins right now. It is recommended that you buy gold bars, coins and other precious metals through online dealers or local stores. Some banks do sell them, but it is not what they specialize in and many do not carry them on hand. There are many reputable dealers you can find online, such as Gold Trust Precious Metals, Red Rock Secured, Monument Gold, Fortress Gold and more. It is best to find reputable dealers online that have solid ratings with the Better Business Bureau, Consumer Affairs and Trust Pilot.

What is the Future of Gold Investment?

The future of gold investment and other precious metals like silver, platinum or palladium is very strong. Think about it – gold investment goes back hundreds if not thousands of years. In fact, gold was mentioned over 500x in the Bible! So gold investing isn’t ever going away, and will only get stronger as consumers continue to fear the instability of our US Government and the actions of countries around the world. Gold is already up well over $100 in 2017 alone!

Is there a Gold Investment Plan?

A sound old investment plan should include either rolling over money from an IRA or other retirement accounts that are eligible to be converted into physical Gold, Silver or other precious metals, and/or buying gold bars or coins. You should keep some of your money liquid in terms of having cash on hand to pay bills and other normal daily life expenses. But for long term planning and financial balance, you can slowly move over portions of retirement money into precious metals. And buy gold bars and coins that you can store safely in your home or in a vault. For example, if you have a $150,000 IRA, you can start with $50,000 in gold, then move over another $25,000 or even $50,000 a few months later. You should do it at your speed and comfort level.

Where can I find Gold Investing Tips?

There are many gold strategists and websites you can consult for gold buying, such as this site GoldBuyingReviews.com. Other sites such as Consumer Affairs, Buy Gold Bars Online and Gold IRA Guide are very helpful as well. They can help you pick the best Gold and other precious metals companies to assist with your diversification strategies. We recommend a balanced portfolio that includes both paper money liquid assets as well as precious metals in the form of an IRA/401k/403b and gold bars or coins. This type of diversity helps keep a stable portfolio, no matter what happens in the stock market or the world.

How can I Buy Gold Bullion?

The word Bullion is used for precious metals such as gold, silver, and any other precious metals that are minted in the form the form of bars, coins, or ingots. The word bullion is actually derived from the 1600’s, as the French Minister of Finance under the reign of Louis XIII was named Claude de Bullion. You can buy a gold bullion in the form of gold bars, gold coins, or gold ingots through online dealers and even local stores. There are many reputable dealers you can find online, such as Gold Trust Precious Metals, Red Rock Secured, Monument Gold, Patriot Gold Group, Augusta Precious Metals, and more. Be sure to look at their ratings on the Better Business Bureau, Consumer Affairs and Trust Pilot before choosing the places you wish to speak with. All have different rates as well, so it is best to shop around at a few companies.

How Heavy is a Gold Bullion?

Gold bullion comes in many different shapes and sizes. In fact, gold bullion can be any size you want it to be! People are most familiar with gold bullion in the form of coins and bars, with gold bars being the most common. Gold bars start off at a size of 1 gram, and when they are traded, they typically will be 1 oz or lower. Gold investors are more likely to deal in gold bars, while gold coins are purchased moreso by collectors. Any kind of gold bullion can be purchased by gold investors and gold collectors alike.

How much does a Gold Bullion Cost?

The cost of gold bullion varies widely depending on the shape, mass, purity, and place you buy it. Gold bullion cost is also determined by the purity of its precious metals content, which is assessed using an extremely ancient technique called fire assay, as well as spectroscopic instrumentation in current times. This way the buyer is ensured on both weight and purity. The bottom line is that gold bullion costs can vary. For example, looking at prices as of May 2017, Gold costs almost $1,300 per ounce. So, if you want to buy a one pound gold bar, that would be 16 ounces x $1300 = $20,800. Or if you want to buy a kilo of gold, that is almost $41,000. Once you determine the mass and shape of your gold, you can easily calculate its price.

How does Gold Investment Work?

Gold investment works by rolling over money from an IRA or other retirement account that is eligible to be converted into physical Gold, Silver or other precious metals. Most people have a pension plan, annuities, a 401K, 403b, 457b, and many other retirement savings programs. A bullion gold investment such as bars and gold coins are the easiest way to invest in gold. Gold bars are rectangular slabs and gold and silver coins are small spheres that can be used for legal tender. As time goes on and you hold onto your precious metal assets, it is no different than buying stocks on the stock market. Buy low, sell high! You want to sell your gold bullion, your gold bars, and your gold coins once your metals appreciate in value enough to make a strong profit and you want to convert back to paper money again. Worth noting, you never have to sell your gold, and you can pass it down to your children and grandchildren so they can potentially sell it someday.

How Much Gold Can I Own?

There is no limit to how much gold you can own. It you amass a lot of gold or other precious metals, it may be tough to store safely in your home, so you may want to store with an external security firm. Additionally, as of May 2017, with gold around $1,300 an ounce, if you spend $1 million dollars on gold, you would only have about 48 pounds. So it can get very pricey to amass a heavy load of gold bullion. That being said, there are truly no limits as to how much gold you can own

How much gold is in the US Treasury?

As of April 2017, $261.5 Billion dollars worth of gold is in the US Treasury. The U.S. Treasury Department lists the U.S. Government Gold Reserve as gold coins and gold bullion, stored in Federal, Mint-Held and Deep Storage facilities such as Fort Knox, West Point, NY and Denver, CO. Deep Storage is the U.S.Government-owned gold bullion reserve which the Mint secures in sealed vaults, mostly in the form of gold bars.