Investing in gold can be a tricky game. There are many ins and outs you need to learn to ensure that you are making the best decision for yourself and that you don't get scammed out of money, because when it comes to buying gold, there are plenty of people out there who are willing to use your loss as their gain. The brilliant, shiny precious metal is much desired, mainly due to its valuable - and thusly expensive - nature. I am here to give you some pointers on how to invest in gold, how to make sure you don't get scammed, and how to find an online dealer.
First off, know that there are multiple types of gold that you can invest in. For one, there is physical gold, including bullion bars and coins. These can be purchased from online or physical dealers and are either shipped to you or stored in a vault for a fee. There are also different types of "paper gold," including ETFs (exchange traded funds), as well as certain stocks and bonds that you can invest in, such as investing into the securities of gold mining companies. Gold IRAs are another way to own gold, however this is monitored by the IRS and they do not allow investors to physically retain the gold, rather a trustee must be employed to handle the transfer and storage of the bullion.
So how do you ensure that all of the transactions you choose will be trustworthy? Well, to keep your money as safe as possible, its good to know the possible scams that you're up against. Paper gold scams are perhaps the most common, as they are the easiest to pull off. In this case, you would buy into an ETF or a stock, and the paper certificate you get in return legally binding you to your holdings would have been completely falsified. To avoid this happening, make sure that before you buy from anyone anywhere ever, do research to ensure that you are purchasing from a well-established, trusted, reputable company that has been in business for a minimum of 10 years.
Regarding physical gold, there are two major scams. One is to be sold gold that is very low in purity, and the other is to be sold something that is indeed not gold at all, but rather just has a gold coating over it. The best way to avoid this scam is to again, make sure that the dealer you choose is reputable, well-trusted and has longevity, and ensure that they deal directly with the U.S. Mint (in the case of buying U.S. gold).
When looking for an online dealer, use your best resources. Start with word of mouth and ask those you trust for recommendations. Also, scout the internet, and then research any company you are considering thoroughly, questioning their business practices and investigating it from multiple sources. If any red flags at all pop-up, move on to the next one. Keeping your money safe is worth it!
First off, know that there are multiple types of gold that you can invest in. For one, there is physical gold, including bullion bars and coins. These can be purchased from online or physical dealers and are either shipped to you or stored in a vault for a fee. There are also different types of "paper gold," including ETFs (exchange traded funds), as well as certain stocks and bonds that you can invest in, such as investing into the securities of gold mining companies. Gold IRAs are another way to own gold, however this is monitored by the IRS and they do not allow investors to physically retain the gold, rather a trustee must be employed to handle the transfer and storage of the bullion.
So how do you ensure that all of the transactions you choose will be trustworthy? Well, to keep your money as safe as possible, its good to know the possible scams that you're up against. Paper gold scams are perhaps the most common, as they are the easiest to pull off. In this case, you would buy into an ETF or a stock, and the paper certificate you get in return legally binding you to your holdings would have been completely falsified. To avoid this happening, make sure that before you buy from anyone anywhere ever, do research to ensure that you are purchasing from a well-established, trusted, reputable company that has been in business for a minimum of 10 years.
Regarding physical gold, there are two major scams. One is to be sold gold that is very low in purity, and the other is to be sold something that is indeed not gold at all, but rather just has a gold coating over it. The best way to avoid this scam is to again, make sure that the dealer you choose is reputable, well-trusted and has longevity, and ensure that they deal directly with the U.S. Mint (in the case of buying U.S. gold).
When looking for an online dealer, use your best resources. Start with word of mouth and ask those you trust for recommendations. Also, scout the internet, and then research any company you are considering thoroughly, questioning their business practices and investigating it from multiple sources. If any red flags at all pop-up, move on to the next one. Keeping your money safe is worth it!