Learning how to buy gold low can reward you with profitability, and also offer a more secure investment portfolio. There are several methods that are available. The method that’s best for you will largely depend on whether you are looking to buy for short term profits, or strictly for long term investment.
Originally the best way to buy gold low was to buy scrap gold from private individuals and either resell it to a refinery for profit, or hold it for investment. Although that method generates a substantial profit, it’s not as lucrative as it once was due to today’s fierce competition.
For nearly 25 years, from 1981 thru 2005, the price of gold held fairly steady. It generally stayed around the $300 to $400 mark, rarely going much lower or higher. Of course, during those years, we did not see the level of economic and geopolitical turmoil that we are seeing today. The events that are unfolding today, such as the monetary crisis, the Real Estate bubble, endless wars, Stock Market turmoil, and joblessness, all have the price of gold on a roller-coaster ride. And, it’s a good possibility it will only get worse.
If there is anyone who can find a silver lining in all that mess, it’s those who are wondering how to buy gold, and more specifically, how to buy it low. The huge swings in the price of gold provide a “Golden Opportunity” for those who are looking to make a profit. It also offers a more secure way for investors to buy.
How To Buy Gold Low In Today’s World
Since 2006 we have seen the price of gold have some major mood swings. These changes, whether up or down, are most often the result of the events we talked about earlier. One of the biggest factors that affects the gold price is a monetary crisis, more specifically the U.S. Dollar. Since gold is an independent asset, it has no correlation with any currency. It actually has a inverse effect, meaning when the dollar goes down, gold goes up, and vice versa.
In recent times the dollar has been struggling to hold on to its value. In fact, it’s even in jeopardy of losing its status as the world’s reserve currency. There are many factors that have, and will continue to have, a negative affect on the dollar. The biggest threat it faces is the misuse by those who control it, the Federal Reserve.
The money supply itself has grown to astronomical levels. But they just keep those printing presses rolling with no concern that for each new dollar printed, it dilutes the value all the others that are already in circulation. This in turn causes inflation, which erodes its value even further.
Some other challenges the dollar faces are, foreign investors like China dumping their treasuries, oil being denominated in another currency, an increasing national debt, unemployment, a real estate or stock market collapse, and the list goes on!
If you keep abreast of breaking news events concerning the dollar, and what affects its value, you can be prepared to know when the price of gold is ready to spike higher or drop lower. When bad news is released, BUY, good news, SELL. And don’t waste any time!
So, when you are ready to make a move to buy gold you need to decide exactly how and where you’ll be purchasing it. There are several good options. But one word of caution, stay away from stocks in gold mining companies and the like. The safest way to buy gold is the physical metal itself.
There are several ways to go about that as well. The most popular way is to buy gold bullion, bars or coins.
Buying gold bars is the most economical way to buy because there is less of a premium added to them. If you are a small time investor, you can buy bars as small a one gram and for the big timers they offer up to 100 ounces. When buying gold bars be sure to purchase only those that are stamped with the name of the manufacturer, the pure gold content, and the weight.
Gold coins, on the other hand, carry a higher premium. It’s best to stay away from rare gold coins that were once in circulation prior to 1933. They are different from bullion coins because they carry a much higher collectors value.
Bullion coins are generally minted by governments such as the United States, Canada, China, Australia and South Africa. They do have a legal tender value stamped on them, but they are worth a whole lot more in pure gold value. They come in various weights ranging from 1/10 ounce up to 1 ounce. Because they are more popular than bars, they are much easier to sell if the need arises.
How To Buy Gold IRA’s For Retirement
If you are interested in investing in gold for retirement purposes, Gold IRA’s are the way to go. You can either start a new IRA and fund it with gold, or rollover an existing IRA that is backed with dollar based investments such as stocks, bonds, mutual funds, or even Real Estate. This is rapidly becoming a popular investment in gold as many are looking to diversify so they have better security.
There are several companies out there that can manage your investment needs in the area of physical gold. In fact, a company called Regal Assets, from Burbank, CA offers bullion and IRA’s. They have been in business over 25 years and have an A+ rating with the Better Business Bureau. They also have excellent customer service, which is very comforting if you are a beginner investor.
In summary, if you want to learn how to buy gold low in today’s environment, learn what really affects the U.S. Dollar. More specifically, what makes it drop in value. Then with that knowledge, keep your eyes and ears open for the early signs. When it’s time to pull the trigger, so to speak, buy physical gold!
