Best Gold Investment

The best gold investment is the one purchased wisely.  Too many new investors jump into the market without doing their due diligence, and many times this lead to buying the wrong type of gold for their portfolio.  Choosing the wrong gold product could cost thousands of dollars in the long run.

The best gold investment is one that meets your individual goals and objectives; therefore the first thing you need to do is write out your goals and objectives and then match those to the appropriate gold product.

Gold Products

There are two types of gold products: bullion and those products that have a have a premium for being limited in supply or rare.  Each of these products will do something different in your metals portfolio.  Bullion products include modern issue coins like the American Eagle and Canadian Maple Leaf and bars like the 1 oz. Credit Suisse or the 1 kilogram Johnson Matthey.  Scarce or rare products are typically older U.S. gold coins like the $20 Liberty, $20 Saint Gaudens or Indian Head coins.  Bullion products will closely track the spot price of gold while older coins will vary depending on quality and rarity.  Many investors buy the old coins to gain extra leverage to the gold market.

Gold Dealers

Another important consideration when investing in gold is to find a reputable gold dealer.  Working with one that has astronomic mark ups can cost you a great deal of money in the long run.  Find a company that has reasonable prices and provides the services that you feel most comfortable with.  Most times our prices are the cheapest around, but if you need a dedicated account representative to spend hours with you making a decision then we may not be the best fit.  It goes back to the old adage; you get what you pay for.  If you want the best price you should already know what you want for the most part, which is easy to do if you buy gold online.  If you require a super attentive financial advisor you are going to pay handily for that service, nothing wrong with that just know going into it that time is money.

Investment Time Frame

With gold investments you should be able and willing to hold your products for the long-term, 2-5 years on average as volatility can create big ups and downs.  The best gold investments are physical products that you can hold in your hand which makes trading it difficult (buy/sell everyday).  Plan on buying and holding onto your gold for a few year to maximize profit potential, hedge against economic risks and keep costs low (buying and selling creates fees).

About Eric Griffin

Eric Griffin is the President and Co-Founder of www.GoldAndSilverOnline.com. Eric has been around the precious metals business since 1995 when his father started a leading nationwide precious metals dealer. While getting a finance degree from Arizona State University he helped his father with operations but decided to go into banking and finance when he graduated in 2002. He soon found his way back to the precious metals industry, and has written commentary, managed precious metals websites and managed clients portfolios for many years before opening GASO. Eric has a strong grasp on economics as well as a deep understanding of the precious metals markets. If you have any comments or questions don’t hesitate to respond to any of his blog post.

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